Defining Moment For Sugarcane Industry

12 September 2025. Chris Punzell, AgForce Cane President.

The Queensland Government Inquiry into bioenergy from sugar held hearings in Mackay and Townsville this week, and it was great to see a strong contingent of farmers, millers and industry representatives in attendance.

This is a defining moment for our industry in the long overdue development of Queensland's biofuels and bioenergy sector. It was promising to see the extreme amount of interest shown at the meetings with such a range of people participating and a strong media presence.

Important issues were raised such as the availability of water for this emerging industry and how to better support these projects to develop local agriculture in the regions with a biocircular economy.

The Queensland Government has also announced a feedstock study which impacts the sugarcane industry as well.

Deloitte is undertaking the feedstock research, collecting information for the government from numerous groups with the aim of establishing suitable feedstocks and alternative sources of energy production into the future.

Producers throughout North Queensland have spent years speaking to renewable energy companies about turning sugar into biofuels, but they need government backing for the industry to really take off.

There is a lot of potential within the sugar cane districts to build strong and mutually beneficial links to the bioenergy and biofuel industry. We need to see these projects established in all cane growing areas.

The volatility of sugar markets has always placed pressure on our need to diversify to ensure the sugar industry is sustainable into the future.

The State Crisafulli Government is seeking to increase primary production output to $30 billion by 2030, and bioenergy and biofuels can contribute greatly to this goal through increased production.

A venture of this type would bring additional prosperity to the local economy and the state through increased jobs and national recognition, as well as ensuring sustainability for millers and farmers.

Producers would be able to reinvest in their businesses which would have flow on effects to the wider business community operating in a far more efficient and effective manner, and bringing wealth to the nation.

Another possibility that was explored at the hearings is the possibility of supporting farmers for their feedstock contribution through reduced electricity tariffs to enable increased production, and support cogeneration plants in the sugar mills.

In return the miller - through government and possible outside support and funding - would benefit through increased factory reliability and efficiency through updated equipment and income sources.

We are in a changing world where it is important that this nation looks more seriously at being self-sufficient. Sugar cane is well placed as a positive industry within that plan with factories, rail and transport infrastructure, ports, and airports already in place.

People have been talking about this on and off for years, and the time has come for bioenergy to be developed to its full potential. This is the start of the nation's investment in its country.

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