MELBOURNE (Reuters – Australia’s bioenergy sector could bring in around A$10billion ($7billion) by 2030. This was according to the government, which laid out a plan for promoting biofuels, to reduce carbon emissions and achieve net zero by 2050.

Bioenergy (which includes the conversion of organic waste or crop waste to fuel) currently amounts to about 3% in Australia’s energy consumption. The Australian Renewable Energy Agency, (ARENA), stated that it can grow to up to 20% within the next 2050s but the production cost would need to decrease to do so.

According to ARENA, the industry can create 26200 new jobs and reduce greenhouse gas emissions by approximately 9% compared with 2019 levels in 2030s.

ARENA has received A$33.5 Million in funding. This new money will be used to support projects that could identify areas where biofuels have a competitive advantage.

The government noted that carbon emissions in the following sectors are difficult to reduce, including aviation, marine fuels, renewable gas, and industrial heat. This sector offers market opportunity for biofuels.

Energy Minister Angus Taylor stated in a statement that “this will help foster strong and world-leading marine and aviation industries that are competive and sustainable over the long term.”

ARENA stated that sustainable aviation fuel may make up 18% of global jet fuel markets by 2030s.

($1 = 1.3748 Australian dollars)