The Australian Sugar Manufacturers (ASM) has presented an ambitious proposal to the Parliamentary Inquiry into Sugarcane Bioenergy Opportunities in Queensland, urging a $40 million investment to position the sugar industry at the forefront of Australia’s renewable energy and low-emissions fuel transition.
Representing a sector that sustains over 20,000 jobs in regional areas, ASM’s submission outlines how Queensland’s sugar industry can capitalise on its feedstock — including cane juice, molasses, and biomass — to become a national leader in biofuels, biogas, cogeneration, and biomanufacturing. The proposal hinges on coordinated action from both government and industry.
Key highlights of the submission include:
- The potential to meet up to 30% of Australia’s aviation fuel needs using sugar-derived materials.
- The capacity to supply renewable baseload electricity to power 500,000 homes via cogeneration.
- The opportunity to develop bioenergy precincts throughout regional Queensland, utilising a 4,000 km cane rail network to collect agricultural and forestry waste for fuel production.
- New income streams for growers by using sugarcane tops and trash in bioenergy production.
ASM CEO Ash Salardini described the submission as a call to government to work alongside industry to establish a robust bioenergy and biomanufacturing sector in Queensland.
“This is about more than energy — it’s about creating well-paid jobs in regional centres like Cairns, Mackay, Townsville, Tully, Ingham, Childers, and Bundaberg,” Salardini said. “We have the chance to build a sovereign capability in liquid fuels and bioenergy that will ensure the long-term future of one of Queensland’s foundational industries.”
The submission warns that the sugar sector is at risk without urgent diversification. Many mills are operating with production costs higher than global prices — prices that are artificially lowered due to international subsidies.
Salardini drew comparisons to global trends: “Countries like China, India and Brazil have recognised the strategic importance of industries like steel and sugar, and are backing them with significant support as part of their food and fuel security agendas.”
To enable this transformation, ASM is asking the Queensland Government for:
- $9 million to co-fund the development of shovel-ready bioenergy project proposals.
- $20 million in enabling infrastructure to attract federal and private investment for project delivery.
- $6 million to support a $24 million R&D facility focused on advanced sugar manufacturing technologies.
- $1 million for a prefeasibility study into establishing a sugar-based biofuel supply chain for the Australian Defence Force.
- The inclusion of cane rail infrastructure in disaster recovery funding to enhance resilience.
- Exploration of electricity offtake agreements to support sugar industry cogeneration, which offers renewable, baseload, and synchronous power.
Salardini warned against waiting for the industry to decline before acting, referencing the public cost of recent industrial bailouts such as the Mount Isa copper smelter.
“We’re putting forward a proactive, cost-effective plan for government support that will future-proof an iconic Queensland industry,” he said. “We won’t sit back and wait for our viability to disappear.”
“With the feedstock, infrastructure, and expertise already in place, the next step is a coordinated strategy. We urge the Queensland Government to work with us to develop a Sugar Industry Diversification Strategy to turn this vision into reality.”
