Australia backs methanol from wood pilot with $1.1 million grant

November 27, 2025 |

In Australia, HAMR Energy announced on November 26 it has secured $1.1 million in funding from the Australian Forest and Wood Innovations Centre for Sustainable Futures to launch the Fibre to Fuels project, which will convert forestry residues into low-carbon methanol for use in shipping, aviation, and industrial chemicals.

The project will use entrained-flow gasification to process residue streams from plantations across Tasmania, Western Australia, and the Green Triangle. The goal is to validate the technical and commercial viability of using wood waste as a renewable fuel feedstock.

“This will help forestry businesses unlock new value from their plantations, support Australia’s renewable fuels industry, and reduce emissions from hard-to-abate sectors,” said HAMR Energy Director Alex Smith.

The project is supported by a national consortium including CSIRO, the University of the Sunshine Coast, and the University of South Australia. Professor Mark Brown, who leads the AFWI Centre, said the effort represents “the type of commercially-minded innovation that can move Australia to the forefront of low-carbon manufacturing.”

Fibre to Fuels is one of several new AFWI-backed research projects focused on advancing bio-based materials and renewable energy while strengthening the country’s forest and fibre sectors.

More on the story

Category: Sustainable Marine Fuels

Thank you for visting the Digest.