Bioenergy – the quiet achiever

Published: 20 March 2024
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Solar, wind, even nuclear – the debate around our energy transition to renewables is complex. But why is no one talking about bioenergy?

What if we could create renewable energy from food waste, surplus crops, or even abattoir offcuts? Enough to surpass Victoria’s current gas requirements? According to Matt Nelson, Team Leader Waste to Energy at Sustainability Victoria, the technology is already here.

‘That’s why bioenergy is great – it’s a “here and now” energy source,’ Matt explains after last month’s Victorian Bioenergy Network Forum event hosted at Sustainability Victoria.

‘Biofuel is what’s called a “drop in” fuel replacement, meaning you don’t have to have all new equipment and infrastructure to transition.’

Bioenergy is a renewable energy source generated from the conversion of biomass into heat, electricity, biogas and liquid fuels. Biomass is organic matter – it can be green waste, food industry byproducts, agricultural and industrial waste.

‘Basically, we are taking advantage of the natural process of biodegradation rather than letting it escape into the environment,’ explains Matt. ‘In nature, when an animal or plant dies it releases gases as part of the biodegradation process. Bioenergy technologies capture and convert those gases into a usable form of energy.’

In nature, when an animal or plant dies it releases gases as part of the biodegradation process. Bioenergy technologies capture and convert those gases into a usable form of energy.

The Victorian Government’s Gas Substitution Roadmap recognises that biomethane, a purified form of biogas, will play a major role in halving organic waste sent to landfill by 2030 and increase the proportion of renewable energy generated in Victoria to 50% by 2030.

‘It helps reduce the amount of organic waste going to landfill and can be used to improve soil health and carbon sequestration. It supports regional economic development and job creation. It supports agricultural and primary production industries. I look at it from a supply chain perspective,’ explains Matt. ‘Bioenergy is an economy.’

Organic matter left to rot in landfill or breakdown on the farm produces methane emissions which are 25 times more harmful than carbon dioxide. Biomethane upgrading removes the carbon dioxide and water from the biogas, improving the quality so it is suitable for injection into our existing gas infrastructure networks. Life cycle assessments have shown that biomethane produced through anaerobic digestion emit far less harmful greenhouse gases than its fossil gas equivalent.

‘What’s exciting about bioenergy is the circularity – getting more value out of those materials. Rather than burning it in open fields, burying it, or even compositing it, bioenergy helps maximise the material value,’ says Matt.

Head of the Victorian Bioenergy Network Ragini Prasad presents at the Victorian Bioenergy Network Forum at SV in February

Ragini Prasad, head of the Victorian Bioenergy Network, opened the forum by citing projections in the Australian Bioenergy Roadmap that demonstrate the significant feedstock supply potential in Victoria. ‘The gas generation potential alone is estimated at 371 PJ, surpassing Victoria’s total natural gas usage,’ said Ragini. In Victoria, natural gas usage currently stands at 195 PJ per year.

Australia’s Bioenergy Roadmap projects that Australia’s bioenergy sector could contribute to around $10 billion in extra GDP per annum, create 26,200 new jobs and reduce emissions by about 9 per cent, and divert an extra 6 per cent of waste from landfill.

Australia’s Bioenergy Roadmap projects that Australia’s bioenergy sector could contribute to around $10 billion in extra GDP per annum, create 26,200 new jobs and reduce emissions by about 9 per cent, and divert an extra 6 per cent of waste from landfill.

‘To be honest, the big thing about bioenergy is it helps with energy security, reducing our dependence on imported fossil fuels,’ says Matt. ‘It just adds more depth to the grid and helps people achieve energy independence and less reliance on the grid.’

Matt is focused on developing the opportunities for investment in Victorian-based bioenergy projects, ‘It can help a business achieve sort of energy-cost neutrality, where they can see their energy bills go to zero.’

On behalf of the Victorian Government, Sustainability Victoria invested more than $9.5 million into bioenergy capacity to support 28 projects across the state.

The Waste to Energy – Bioenergy Fund is supporting Yarra Valley Water to process approximately 55,000 tonnes of industrial food waste per year. Once operational, the Lilydale facility hopes to generate more than 12,900MWh of electricity per year – that’s around 35 per cent of Yarra Valley Water’s energy needs or enough to power the equivalent of more than 2,200 Victorian households.

The project also creates digestate, a locally produced, nutrient-rich product providing an alternate to expensive imported chemical fertilisers for Victorian agriculture.

‘Here at SV, we use our Investment Facilitation Service to connect the policy to the players able to take the action necessary to decarbonise Victoria’s mains gas,’ explains Matt. ‘There’s no cap on bioenergy projects – the opportunity is huge.’

‘We’re interested in working with people who produce biomethane. We're working with people in that space to understand how we can work together and support the Gas Substitution Roadmap.’

Sustainability Victoria CEO Matt Genever, keynote speaker at the forum, said he was incredibly excited by the possibilities of bioenergy.

‘Just imagine where we will be in one to three years' time as we build on the momentum that is happening as we work together across government and industry to take advantage of these bioenergy opportunities,’ said Genever.

‘The importance of ongoing collaboration is what will accelerate moving us forward to solutions that build from the knowledge and information that exists.’

To learn more about how Sustainability Victoria can help you navigate the approval pathways and source funding options for bioenergy infrastructure, visit our investment facilitation page or email invest@sustainability.vic.gov.au.

To attend the upcoming Bioenergy – Unlocking the Circular Economy event on 18 April 2024, click here.