Invest in bioenergy

Last updated: 29 June 2022

We offer support to project developers to navigate the approvals pathway and source funding options for bioenergy infrastructure.

Our goal is to divert organic material from landfill to:

  • recover valuable resources
  • harness the power of renewable energy
  • stabilise and drive down prices of energy
  • attract investment
  • create local jobs.

For more information on our program, contact us at

What is bioenergy

Bioenergy is generated from the recovery of organic matter from plants and waste streams.

Organic matter is called biomass and can include:

  • agriculture residues and waste products
  • biodegradable municipal waste
  • forestry residues
  • industry waste such as food, pulp and paper, abattoir residues
  • energy crops grown specifically for bioenergy.

Organic waste that ends up in landfill produces methane emissions as it breaks down. Methane emissions are 25 times more harmful than carbon dioxide. Using organic waste as bioenergy reduces greenhouse gas emissions, not only through diversion from landfill but by displacing demand through fuel switching of electricity, gas or liquid fuels.

Victorian waste to energy policy

The way waste to energy is managed in Victoria is changing.

The Victorian Government’s waste to energy framework is part of Recycling Victoria: A new economy.

The Victorian waste to energy framework recognises the role of waste to energy to divert waste from landfills. It strikes the right balance to focus on waste avoidance and recycling in Victoria's transition to a circular economy.

Read about Victorian waste to energy policy.

The Victorian Government’s 10-year action plan to reform Victoria’s waste and recycling system is a critical lever for bioenergy. Amongst other targets, this action plan aims to halve the volume of organic waste going to landfill by 2030. In line with this target, anaerobic digestion is considered a priority for investment in waste to energy infrastructure.

Find out more in Recycling Victoria: A new economy.

The Victorian Government has a legislative goal to achieve net zero emissions by 2050. Bioenergy helps achieve this by reducing waste going to landfill and offsetting fossil fuel energy sources. The target is also supported by the Victorian Renewable Energy Targets (VRET) which include 40% renewable energy capacity by 2025 and 50% by 2030.

Read about Victoria’s Climate Change Strategy and Victorian Renewable Energy Targets.

Bioenergy will play a major role in supporting the dual aspirations of halving organic waste from landfill by 2030 and increasing the proportion of renewable energy generated in Victoria to 50% by 2030 and Victoria's transition to a circular economy.

With efforts to decarbonise mains gas through Victoria’s Gas Substitution Roadmap, bioenergy could also play a role in supporting the transition to net zero emissions for the gas sector. It is expected that the Roadmap will be released in 2022 and will detail the Victorian Government’s priorities and actions for decarbonising the gas sector.

For more information read Victoria’s Gas Substitution Roadmap Consultation Paper.

At the federal level, Australian Renewable Energy Agency (ARENA) published the Australian Bioenergy Roadmap in November 2021. The Bioenergy Roadmap reveals that by the start of the next decade Australia’s bioenergy sector could contribute to around $10 billion in extra GDP per annum, create 26,200 new jobs, reduce emissions by about 9% divert an extra 6% of waste from landfill and enhance fuel security.

The Bioenergy Roadmap highlights the opportunities bioenergy offers for regional development. Many of the bioenergy feedstocks come from agricultural activities, such as sugarcane waste and the livestock industries. As most of these industries are regional, bioenergy investment will support long-term regional employment, provide additional revenue streams for farmers and ultimately national economic growth.

Read about Australia’s Bioenergy Roadmap.

Contact us for more information at

Biomass residue assessment

The Australian Biomass for Bioenergy Assessment (ABBA) is funded by ARENA. Its purpose is to identify biomass resources for bioenergy across Australia to catalyse investment in the renewable energy sector.

Sustainability Victoria produced the Victorian segment of the ABBA project. We generated biomass residue data from primary and secondary production sectors across Victoria.

Read the Australian Biomass for Bioenergy Assessment Report.

Visit the Australian Renewable Energy Mapping Infrastructure data platform for ABBA data regarding biomass feedstock location and availability.

Check Sustainability Victoria’s interactive mapping on Victorian Biomass Residue Generation Estimates by LGA.

Biogas sector assessment

To increase the capacity and capability of waste to energy infrastructure, Sustainability Victoria provided a total of $2.3 million in grant funding through the Waste to Energy Infrastructure Fund in 2016 and the Bioenergy Infrastructure Fund in 2019.

In 2020, the development of a $10 million waste to energy support package was announced as part of the Recycling Victoria: A new economy 10-year action plan to reform Victoria’s waste and recycling system.

The Victorian Government has highlighted that biological waste to energy treatments such as anaerobic digestion (to generate biogas) will be critical to achieving greater recovery of organic wastes.

To inform the development of the new $10 million package, Sustainability Victoria engaged Enea Consulting to investigate the landscape for future investment in anaerobic digestion in Victoria.

Read the Estimate of Victoria’s Biogas Potential report which analyses and expands the Australian Biomass for Bioenergy Assessment (ABBA) project biomass data and provides an estimate of Victoria’s biogas potential.

Read the Government Measures and Intervention report which investigates global measures and intervention strategies that facilitate anaerobic digestion infrastructure development and provides recommendations for Victoria.

Other data and resources

Victorian Energy Efficiency Certificate

There is potential for all Energy from Waste (including bioenergy) projects to access rebates in the form of Victorian Energy Efficiency Certificates (VEEC) that can demonstrate CO2 reduction through energy related activities. Each VEEC represents one tonne of greenhouse gas emissions reduction. VEEC value is projected to keep rising in response to market drivers and VEEC creation can cover a considerable portion of the project cost. VEECs are delivered by the Essential Services Commission under the Victorian Energy Upgrades program.

Clean Energy Regulator – Renewable Energy Target

The Renewable Energy Target (RET) is an Australian Government scheme, under the Clean Energy Regulator (CER), designed to reduce emissions of greenhouse gases in the electricity sector and encourage the additional generation of electricity from sustainable and renewable sources. Large-scale power stations and owners of small-scale power systems that generate electricity from an eligible renewable energy source such as biomass or organic feedstock can apply to participate in the Large-scale Renewable Energy Target (LRET) and Small-scale Technology Certificates (STC) for every megawatt hour of power generated.

Gippsland Bioenergy Project Development Framework

The Gippsland Bioenergy Project Development Framework, developed by Wellington Shire Council in partnership with the Latrobe Valley Authority, supports industry to build capability in initiating, developing or investing in biomass to energy projects in Gippsland, Victoria.

ADAdvisor tool

The ADAdvisor tool provides site-specific economic assessment of the viability of Anaerobic Digestion in Australia. This project is developed by University of Southern Queensland supported by Meat and Livestock Australia through funding from the Australian Government Department of Agriculture, Water and the Environment.

CSIRO Biomass Quality Database

The CSIRO Biomass Quality Database provides information on chemical properties of Australian biomass and waste sourced from agriculture, forestry, industrial processing, and urban waste to support their use in a range of thermochemical technologies.

Help with investment solutions

Our investment facilitation service helps you navigate the approvals pathway and source funding options for bioenergy infrastructure.


Investment Facilitation Services