Bioenergy from wood waste

Bioenergy and biofuels can play an important role in expanding the range of energy sources available in Australia.

The government is aware that, to be beneficial to the environment and society, the production of biofuels and, critically, the feedstock used, must be sustainable. Using wood residues to produce bioenergy requires sustainable forest management to maintain environmental integrity. For this reason the Australian and state and territory governments have put in place comprehensive frameworks to ensure that environmentally responsible forestry underpins the use of wood residues for bioenergy.

Native forests in key forested areas are managed under joint federal and state government Regional Forest Agreement's which provide for the sustainable management and ensure recognition and maintenance of forest values. While forest management is the constitutional responsibility of states and territories, issues of national significance in areas outside the areas covered by the RFA's are subject to the Commonwealths Environmental Protection and Biodiversity Conservation Act 1999. The Act is administered by the Department of Sustainability, Environment, Water, Population and Communities.

A carbon price will encourage the use of woody biomass as an energy source. The use of biomass for electricity generation or heat energy will not attract any liability under a carbon price. This means that generators that use biomass, including wood wastes from native forests, will become more cost competitive relative to generators that use fossil fuels, which will be subject to the carbon price.

In 2009, the Australian government committed to the Renewable Energy Target (RET) scheme to ensure that 20 per cent of Australia’s electricity supply will come from renewable sources by 2020. The additional incentive from the RET for the burning of native forest wood waste to generate electricity could lead to unintended outcomes for biodiversity and the destruction of intact carbon stores. To remove the additional incentive that the RET might provide to use native forests for bio-energy, the RET scheme rules will be amended to exclude wood waste from native forests as an eligible renewable energy source.

Further information can be found on the Department’s biofuels and bioenergy webpage.