Queensland, Australia – Oceania Biofuels has announced the suspension of its ambitious $339 million biofuel project in Gladstone, Queensland. This decision was detailed in a recent project status report from the Australian government’s Environment Protection and Biodiversity Conservation (EPBC) process.
Launched in 2022, the project was initially celebrated by the Queensland state government for its potential economic and environmental benefits. The planned facility was set to produce 350 million liters of renewable diesel and SAF annually, utilizing waste tallow, canola, cotton seed, and used cooking oil as feedstock. The site, located in Gladstone’s Yarwun Industrial Precinct, was chosen for its strategic location near key infrastructure, including the state’s LNG export port and Northern Oil’s waste-lube-to-base-lube recycling facility.
However, Oceania Biofuels has recently withdrawn the project from the EPBC process and taken down its website, effectively halting the development. This move aligns with a troubling trend in the renewable energy sector, where several projects have faced setbacks. Notably, Fulcrum BioEnergy shut down its waste-to-fuel plant in Nevada in May 2024, and major oil companies like Chevron, Shell, and BP have paused their SAF projects in Europe, shifting their focus toward increasing shareholder returns and profitability.
Despite these setbacks, there are still several SAF projects under development in Australia. For instance, Northern Oils’ advanced biofuels plant at Yarwun and the Ampol-ENEOS feasibility project in Brisbane continue to progress. Additionally, BP plans to start SAF and biodiesel production at its Kwinana refinery in Western Australia by 2026.
Analysis
The halt of Oceania Biofuels’ project underscores the challenges facing the renewable energy sector, particularly in scaling up production to meet increasing demand. The decision reflects broader issues such as technical difficulties, financial pressures, and shifting strategic priorities within the industry. This trend could signal a need for more robust support mechanisms and policies to sustain momentum in developing alternative fuels.
About Oceania Biofuels: Oceania Biofuels aimed to lead in producing sustainable aviation fuel and renewable diesel, contributing to the global effort to reduce carbon emissions. The company’s focus on utilizing waste and renewable feedstocks highlighted its commitment to sustainability and innovation.
Sources:
- Biofuels News. (2024). Oceania Biofuels is latest company to halt biofuel project. Retrieved from Oceania Biofuels
- SAF Investor. (2024). Australian SAF project by Oceania Biofuels scrapped. Retrieved from SAF Investor
- EPBC Public Portal. (2024). Project description of Oceania Biofuels. Retrieved from EPBC Public Portal