Farmer News
1 November, 2025
Unlocking new opportunities for forestry residue
THE Victorian Forest Products Association (VFPA) last month welcomed the Federal Government’s announcement of the $1.1 billion Cleaner Fuels Program.
The program has the potential to supercharge Victoria’s future production of low-carbon liquid fuels.
VFPA chief executive Andrew White said the program could be a game-changer for the plantation forestry and renewable energy sectors in Victoria, supporting establishment of new markets for plantation wood residues, while helping to decarbonise hard-to-abate industries like shipping and aviation.
“Victoria’s sustainably managed plantations and wood processing sector can be a cornerstone of the future biofuel economy,” Mr White said.
“Plantation wood fibre residues and by-products that might otherwise go to waste, will be transformed into renewable low carbon fuels – helping to decarbonise heavy transport, shipping, and aviation.
“Victoria’s plantation timber industry is poised to provide significant volumes of wood residues as feedstock, which will generate new income streams for growers and processors, and support new jobs in low-carbon fuel manufacturing in regional Victoria.”
In western Victoria, for example, HAMR Energy is progressing plans to establish a renewable fuels facility in Portland, seeking to convert wood residues and renewable hydrogen into low-carbon methanol for aviation and shipping.
Mr White said the new program complemented the sector’s broader policy agenda in Victoria, off-the-back of the recent release of the Victorian Wood Fibre Roadmap 2050.
“Cleaner fuels are a positive for regional jobs, for our climate, and for energy security.
“By backing cleaner fuels made from Victorian forestry by-products, the government is also backing our foresters who are world leaders in innovative, sustainable production.
“We will continue to work with governments and industry to ensure the emerging policy framework supports the plantation wood fibre industry as a key supplier.”
The VFPA represents Victoria’s plantation-based wood fibre and timber manufacturing sector.
The industry contributes $9 billion annually to the economy and supports around 17,000 jobs, with a strong focus on housing, climate-smart construction, and jobs.