- Posted on 14 Oct 2025
- 3-minute read
Could this be a great option for decarbonisation?
New research shows that ‘marginal land’ in NSW holds large potential for biomass feedstock production to supply fuels for planes and long-distance ships.
As Australia works towards net zero, one of the biggest challenges lies in decarbonising sectors like aviation and shipping, where technical limitations mean a continued reliance on fossil fuels. The Australian Government has recently announced a $1.1 billion commitment to foster the production of low carbon liquid fuels (LCLF).
The new LCLF industry will have strong potential for both domestic and international markets driven by emerging mandates for sustainable aviation fuels (SAF) in many countries.
A recent study led by UTS Institute for Sustainable Futures (ISF) researchers Dr Saori Miyake and Maartje Feenstra explored an innovative solution: using native woody biomass crops grown on marginal land in NSW – relatively low rainfalls, underutilised areas that are generally unsuitable for existing agricultural activities – to produce sustainable transport fuels.
The project, supported by the NSW Decarbonisation Innovation Hub Land and Primary Industries Network, examined how these semi-arid lands could be transformed into sources of biomass for LCLFs such as biomethanol and SAF. These fuels are critical for reducing emissions in sectors that can’t easily switch to electricity or hydrogen, and technologies are still being developed to realise commercial synthetic fuels production.
Our research shows that semi-arid marginal land in NSW holds untapped potential, both to contribute to decarbonisation and to create socio-economic benefits for regional communities.
Using geospatial analysis and techno-economic modelling, the team assessed the potential for planting drought-resilient native eucalyptus species across two NSW case study regions. These crops are already known for their benefits in restoring the soil and hydrological cycle, and may provide options for local farmers.
The study found that marginal land could play a meaningful role in supporting Australia's energy transition:
- it could provide a new source of biomass to complement organic waste-based feedstock, such as agricultural and forestry residues
- producing biomethanol from these crops could be commercially viable if buyers pay a premium, as they already do in parts of Europe
- under these case studies – SAF is harder to produce economically, but offers major climate benefits, with emissions up to 68% lower than fossil-based jet fuel.
Beyond cutting emissions, the researchers highlight broader benefits for rural NSW or Australia. If the project is planned and implemented with very careful consideration for sustainability, bioenergy projects could bring new jobs, support local industries, and help restore ecosystems by planting native vegetation.
The research was conducted in partnership with NSW Department of Primary Industries and Regional Development and a startup company, CO2e partners.