The NSW Government has launched its landmark Renewable Fuel Strategy to accelerate the production and use of renewable fuels in NSW to drive down emissions and underpin industrial activity in NSW.

The state government says that renewable fuels will help NSW meet its emissions reduction targets, decarbonise hard-to-abate sectors, drive economic development and jobs in regional NSW, and improve domestic fuel supply.

Renewable fuels are low-carbon alternatives to fossil fuels, such as biomethane, sustainable aviation fuel, green hydrogen, biodiesel and renewable diesel.

A strong renewable fuels sector will accelerate NSW’s transition away from fossil fuels because these alternatives offer low-carbon solutions for hard-to-electrify sectors like mining, manufacturing, aviation and heavy transport.

The Strategy outlines 20 actions to scale up the state's renewable fuel industry, including:

• Expanding the Renewable Fuel Scheme to include biomethane.
• Up to $170 million in funding for renewable fuel and biomethane production in NSW.
• Funding research and innovation to improve industry capability, including crop research and development trials to test and demonstrate biomass production opportunities in partnership with primary producers.
• Supporting the expansion of GreenPower certification to additional renewable fuels and co-products.

The Strategy was developed in collaboration with government and industry stakeholders and informed by feedback gathered from the 2024 discussion paper.

It invites collaboration across industry, researchers, investors, and communities to make renewable fuels a core part of NSW’s clean energy future.

The Renewable Fuel Strategy is available at www.energy.nsw.gov.au/nsw-renewable-fuel-strategy.

Minister for Climate Change and Energy, Penny Sharpe said, “This is a win-win-win opportunity: a win for jobs, a win for fuel security and a win for the planet.

“The Minns Labor Government is boosting local production of renewable fuels to diversify the economy and deliver new jobs, growth and enhanced energy security for our state.

“This Strategy shows our commitment to building a robust and resilient renewable fuels industry right here in NSW.”