Markets: Bioenergy markets in Australia: Bioenergy markets: Power and heat
In 2011–12, electricity generation using bioenergy in Australia represented around 0.9% of total electricity generation, according to the Australian Energy Resource Assessment (2nd Edition published in 2014).

Capacity, resources, trends

The Australian Energy Resource Assessment (2nd Edition published in 2014) dedicates Chapter 12 to bioenergy – the resources and the market. Jointly undertaken by Geoscience Australia and the Bureau of Resources and Energy Economics, it describes the bioenergy resources used for generating electricity and heat, and identifies facilities.

It also has statistics on the amount of electricity generated using bioenergy, and associated trends.

Policies and regulation

The Australian Government has set a national Renewable Energy Target (RET) to be achieved by 2020. Initially, the target was for 20% of Australia’s electricity to be sourced from renewable energy sources by 2020. In August 2015, after a review of the RET, the target for large-scale generation was reduced from the previously legislated 41,000 gigawatt-hours (GWh) to 33,000 GWh.

The Renewable Energy Target scheme is the primary mechanism for achieving this target.

Under the RET scheme, you can earn renewable energy certificates for generating 1 MWh of compliant renewable energy. The RET requires liable entities (energy retailers and large energy users) to purchase a proportion of their energy requirements from renewable energy sources.

The heat component of industrial cogeneration (such as alongside sugar mills) and dedicated industrial thermal energy are not supported by the RET scheme.

Nevertheless, a range of thermal energy projects have proceeded, generally using process wastes such as sawdust at sawmills. Besides industrial heat applications using biomass, Australia uses 4–6 million tonnes of firewood for heating space and water.

More information about the RET,including its benefits for Australia, are available from The Clean Energy Council.


A number of national and state-based grants and support services are listed in the Grants and incentives section of this website.


Dragon NRG Pty Ltd

Bendigo 3550, Australia,
Phone: 0438 587791
James Joyce

Pyrocal Pty Ltd

Toowoomba, QLD 4350,
Phone: 07 4639 2009
Mark Willcocks – Active Group mulch and wood chip supplies)

Active Group (including Active Tree Services)

15/198 Young St, Waterloo NSW 2017,
Phone: 0438 055 277
Australian New Energy – wood pellets

Australian New Energy

42-50 Point Henry Road Moolap Victoria 3221,
Phone: 0448345881
Hitachi Zosen Inova (HZI) Australia – Marc Stammbach

Hitachi Zosen Inova (HZI) Australia Pty Ltd

Level 17, 40 Mount Street North Sydney NSW 2060 ,
Phone: +61 2 8003 4110
David Hall

Energy Developments and Resources (EDR)

4 Glenneth Court, Bonny Hills NSW 2445,
Phone: +61 (0)2 6585 5368
Damien Bassett

Yarra Valley Water

Lucknow St, Mitcham, Victoria 3132,
Andrew Edney

Yarra Valley Water

Lucknow St, Mitcham, Victoria 3132,
Kelly Wickham

Energy, Environment and Climate Change | Department of Environment, Land, Water and Planning

Level 15, 1 Spring Street, Melbourne, Victoria 3000,
Phone: 03 839 26239
Martin Moroni

Private Forests Tasmania

30 Patrick Street, Hobart 7000,
Phone: 0361654073