A Gladstone pilot biorefinery that will be the trial site for jet fuel and diesel production from agricultural and forestry waste is set to go ahead after a funding injection from the Palaszczuk Government.
US company Mercurius has commenced detailed design of the pilot biorefinery and will begin construction in months.
Premier Annastacia Palaszczuk said the state government had been at the forefront of developing a bio-industry in Queensland.
"New industries mean new jobs and our focus is clearly on jobs. That's why we're supporting companies like Mercurius," Ms Palaszczuk said.
"I met with Mercurius during a trade mission to the US in 2017 and they made it clear they recognised Queensland was committed to developing a biofuels industry."
Mercurius has developed cutting-edge, patented biotechnology to produce cost-effective drop-in biofuels and bio-chemicals from non-food feedstocks like sugarcane waste – all without directly producing a CO2 by-product
Minister for State Development, Manufacturing, Infrastructure and Planning Cameron Dick said Mercurius' world-leading biotechnology will bring Queensland a step closer to achieving a $1 billion biofutures industry by 2026.
"The planned biorefinery pilot represents a huge vote of confidence in the biofutures credentials of Queensland, particularly in the Gladstone region," Mr Dick said.
"During its three-month operational period, the pilot biorefinery will provide work for around 30 people.
"Once the pilot is successfully delivered, Mercurius then plans to build a larger demonstration plant, which would scale up production of biofuels and bio-chemicals.
"The demonstration biorefinery would target production of four tonnes of renewable diesel and jet fuel daily and could attract a combined investment value of $11 million and create an estimated 50 jobs."
"As stated in the KPMG bioenergy state of the nation assessment, commissioned by Bioenergy Australia, Queensland in leading the nation when it comes to the development of the bioenergy industry," he said.
"We're strongly placed to capitalise on our existing agricultural and manufacturing base and supporting infrastructure, and this is allowing us to take a lead role in the production of renewable fuels."
The pilot is supported through the Palaszczuk Government's $150 million Jobs and Regional Growth Fund, which helps to facilitate private sector projects that create regional employment and economic growth opportunities.
Through the state's Advance Queensland Industry Research Fellowships program, QUT also secured $300,000 over three years to fund research on Mercurius' biotechnology at the pilot plant.
Member for Gladstone Glenn Butcher said Mercurius chose Queensland to develop and commercialise its technology due to the state's willingness to support innovative projects.
"Over the longer term, based on the performance of the pilot and demonstration plants, the company plans to establish up to five commercial scale biorefineries across regional Queensland," Mr Butcher said.
"This project is great news for Gladstone in terms of high-value local jobs and investment, and the state government looks forward to continuing working with Mercurius as they move this project closer to commercialisation."
Gladstone Mayor Matt Burnett said the city was proud to be recognised as a biofutures hub.
"I joined the Premier on her 2017 US trade mission. I understand the investment potential that can be unlocked by this innovation," Mr Burnett said.
"As our economy continues to transition and evolve, it's crucial we attract companies like Mercurius to Gladstone, to expand the local biofutures industry and create more high-value jobs here in central Queensland."
Mercurius Managing Director Michael Vevera said the company continues to see the strong potential of regional Queensland as a leading global biorefinery location.
"Queensland is an ideal destination to further develop our patented REACH biotechnology," Mr Vevera said.
"This is due to the abundance of feedstocks, coupled with the Queensland Government's continued commitment to build a strong biofutures industry."
Mercurius President and CEO Karl Seck said the company was attracted to Queensland by the Queensland Government's Biofutures Acceleration Program in 2017.
"Through that program, we successfully completed our scientific validation of the company's biotechnology last year, which was conducted at QUT," Mr Seck said.
"Mercurius is excited to continue working with the Queensland Government, and we look forward to driving this project forward, for the benefit of Queensland's regional communities."
The Mercurius pilot biorefinery will be co-located on the Northern Oil Refinery at Yarwun, with construction scheduled to conclude in late 2019.
To learn more about the Palaszczuk Government's commitment to biofutures, download the Queensland Biofutures 10-Year Roadmap and Action Plan.
