More than 26,000 jobs could be created and emissions reduced by 10 per cent over the next decade under a new roadmap for Australia's bioenergy sector.
Bioenergy comes from materials generated in forestry, agriculture or other waste streams and can be used for producing heat, electricity, gas and liquid fuels.
The sector is expected to contribute $10 billion to Australia's annual GDP by the 2030s.
The Australian Renewable Energy Agency's roadmap said bioenergy has the potential to supply 20 per cent of the country's energy needs by the 2050s.
On top of the almost $500 million committed to the bioenergy sector by ARENA and the Clean Energy Finance Corporation, the government has added $33.5 million to develop biofuels for aviation and maritime use.
ARENA CEO Darren Miller hopes the roadmap will "provide the information required by governments and industry to further develop our bioenergy resources and support future growth".
Energy Minister Angus Taylor welcomed the report identifying the barriers and key opportunities for the bioenergy sector.
"Advanced biofuels have been identified as one of the few low emissions alternatives to traditional jet or marine fuels that are available in the short to medium term," he said.
"The bioenergy roadmap outlines areas where bioenergy has a comparative advantage and complements other low emissions technologies, and opportunities for industry and governments to drive commercial growth together."
Australian Associated Press
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