$500m biorefinery for sustainable jet fuel and renewable diesel set for Gladstone
A proposed $500m biorefinery in Gladstone plans to turn waste and feedstocks into low carbon fuels but questions remain about who will financially back the project.
The company planning a $500m biorefinery, one of the first in the country, says it can’t divulge the names of the “iconic partners” who will finance the project.
The plant in Gladstone – turning waste and feedstock into low carbon fuel – has been proposed by Oceania Biofuels, a newly-created subsidiary of a group that has overseen similar developments overseas.
Oceania Biofuels chief executive Mike Everton said he could not name the project’s financial backers until next week.
“It’s about the politics of the industry. We don’t want to light up the bridge,’’ he said.
Mr Everton said he was waiting for an imminent announcement from the board of an unnamed overseas company, which will also have a role in the project’s management, feedstock and offtake agreements.
Oceania has also sought a credit facility for up to $250m from the Clean Energy Finance Corporation, a federal government initiative which has already invested $10bn in projects as part of the goal of achieving net-zero emissions by 2050.
Construction of the plant in the Yarwun Industrial Precinct is expected to kick off in the first quarter of next year.
Oceania has put a deposit on the $4.5m cost of a 45ha government-owned site in the precinct, which is already home to the $18m Northern Oil Advanced Biofuels Pilot Plant launched in 2017. Development approvals are in place but the company is still lining up permits.
Production is expected to start in early 2025 and Mr Everton said talks were now underway with Qantas and Virgin to source fuel. “Gladstone is the ideal location for us as it has a highly skilled workforce and access to a deepwater port, furthering our export potential,’’ he said.
The Queensland government has not committed any funds towards construction of the plant but has helped facilitate the contract of sale for the site, according to a spokeswoman for Deputy Premier Steven Miles.
The state’s decade-long biofuels road map aims to create a $1bn biotechnology and bioproducts industry.
Can a bank make carbon offsetting a growth industry?
Many firms have supported tree-planting projects as a way of burnishing green credentials, usually through third-party scheme developers. The UK’s Atom Bank is taking a direct approach.
Pipeline springs a giant worker leak
Australia is facing a shortage of nearly 200,000 workers to deliver the nation’s $213bn major infrastructure pipeline, with renewable energy projects set to increase six-fold in just four years.