Friday, July 11, 2025

Issue:

Mackay and Whitsunday Life

Parliament Investigates Biofuel Potential Of Sugar Industry

The State Government has initiated a new Parliamentary inquiry through Queensland Parliament’s Primary Industries and Resources Committee to investigate the potential of sugarcane as a renewable energy source to help power Queensland’s future.

The committee will be examining how to unlock new investment, support the value-add opportunities in the sugar industry and examining the regulatory hurdles that the sector may have to overcome to see potential growth for a new biofuel industry made from sugar.

Member for Mirani Glen Kelly MP welcomed the announcement of the inquiry saying that biofuels have the potential to help provide long-term certainty for the sugar industry in Queensland.

“Sugar has the potential to provide a cost-effective base to produce biofuels, including aviation fuel, biodiesel and biomethane,” Mr Kelly said.

“By taking advantage of the byproducts from sugar processing, we can unlock more growth for our vibrant sugar industry, and also help secure our national security if our supply lines for fuel are cut off.

“This inquiry will be looking at ways to unlock new investment, identify the regulatory barriers that may be holding the potential for a new industry back, and provide recommendations that will help coordinate an effective industry-government approach.

“The Mackay region produces over $250 million worth of sugarcane in a year, and biofuels would help provide economic security against market instabilities in sugar.”

Industry experts estimate that scaling up sugar-based bioenergy could reduce wholesale electricity costs by up to 15%, that could help provide more affordable power for families and businesses across Queensland.

Member for Mackay Nigel Dalton said that this inquiry is a direct response to calls from the Mackay region to add value to our natural resources and turn challenges into opportunities.

“As the local member, I’m excited by what this means for Mackay.

“This is about securing long-term jobs, future-proofing our economy, and backing our farmers with the policy support they deserve,” Mr Dalton said.

“Mackay, the heart of Queensland’s sugar belt, is uniquely positioned to lead the next wave of renewable energy innovation through biofuels and alternative power sources derived from sugarcane. With three major mills and a proud agricultural history, our region stands to benefit directly from this forward-looking initiative.

“Queensland’s sugar industry already supports over 20,000 jobs, with Mackay being a major contributor to that figure. This inquiry is a direct response to calls from our region to add value to our natural resources and turn challenges into opportunities.

“This is the kind of smart, regional-focused policy that will drive Mackay’s next generation of economic growth.”

The committee will soon be inviting public submissions to the inquiry and details will be made available in due course.

Member for Mirani Glen Kelly and Member for Mackay Nigel Dalton met with Member for Burnett, Stephen Bennett last month to discuss the inquiry’s scope, regional engagement opportunities, and the importance of hearing directly from growers, millers, and industry stakeholders across Queensland’s sugar belt. Photo credit: Hannah McNamara

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