$1.1 Billion Biofuels Program: Securing North Queensland’s Energy Future

Photo: Chris McDougall (Townsville Enterprise Director Regional Development and Investment) and Adam Douglas (Jet Zero Industrial Manager)

Townsville Enterprise has welcomed the Federal Government’s announcement of a $1.1 billion Cleaner Fuels Program for the development of a domestic low carbon liquid fuels sector, saying it represents a major step forward for energy security, regional jobs, and emissions reduction.

 Townsville Enterprise Director Regional Development and Investment Chris McDougall said, “Townsville and North Queensland have huge potential to lead the way and contribute to Australia’s renewable liquid energy supplies.”

 “This announcement shows the Government understands the importance of the biofuels industry – particularly for North Queensland as it has the opportunity to be one of Australia’s leading renewable liquid fuel producing regions for both Sustainable Aviation Fuel (SAF) and renewable diesel,” said Mr McDougall.

 “With domestic demand for aviation fuel projected to exceed 7 billion litres in the coming years, projects like Jet Zero’s Ulysses plant will ensure Australia has a sustainable, sovereign supply of liquid energy – made from Australian products and refined right here onshore.”

 Townsville Enterprise is pleased to see major proponents such as Jet Zero Australia (Jet Zero) also welcoming the Government’s announcement.

 Jet Zero CEO Ed Mason said, “This is big news for North Queensland, and particularly good news for Townsville.  It gives us more certainty and more opportunity for Townsville across jobs and local supply chains.

 “Targeting production of 113 ML per year of SAF and renewable diesel by 2028, this project is worth several hundred million and one of the largest proposed investments for Townsville in its history.

 “Jet Zero and the SAF we aim to produce will play an important role in providing clean fuels for flight, fuel security for our forces, feedstock from our farms and ultimately delivering a sustainable aviation future,” Mr Mason said.

 Jet Zero’s Project Ulysses will be Australia’s first commercial-scale alcohol-to-jet SAF facility, located in the Townsville State Development Area. The project is currently completing $75 million of engineering activities and early civil works and aims to commence construction next year.

 The anticipated benefits of Project Ulysses include:

• Acceleration of timelines: Supporting construction to commence as planned.
• Job creation: Delivering over 1,000 construction and operation jobs, plus substantial flow-on jobs in the agriculture, logistics, and defence sectors.
• Emissions reduction: SAF is expected to cut aviation emissions by ~65-70%. This aligns squarely with national climate and aviation decarbonisation goals.
• Regional economic development and fuel security: With feedstock sourced from agricultural by-products, Ulysses supports regional agriculture, strengthens domestic fuel supply chains, and improves fuel security – important for both commercial aviation and defence in Northern Australia.

 As the nation’s Army capital and a hub for defence capability, Townsville and North Queensland understand better than most the critical need for sovereign supply chains.

 Mr McDougall said, “This announcement demonstrates the Government’s recognition that future fuel supplies for the Australian Defence Force (ADF) must be resilient, secure, and locally produced. A North Queensland biofuels industry will provide the men and women of the ADF confidence that their aviation and ground vehicle fuel needs can be met right here in the region.”

 Mr Mason said, “The development of a SAF industry in Australia is particularly crucial to our fuel security and Townsville, as a garrison city, is the best placed to develop an industry to serve this pressing national security need.”

 From feedstock grown in North Queensland soil, to the local workforce trained and employed in advanced manufacturing, the biofuels industry in Townsville is set to become a centre of excellence for Australia’s clean energy future.

 “Confidence from both government and private industry couldn’t be stronger,” Mr McDougall said. “We are excited to be working with fantastic companies like Jet Zero and all levels of government to harness the full potential of our region and position North Queensland as a hub for sustainable fuel production and distribution.”