When you think of renewable energy sources, Bioenergy might not be the first to come to mind but it can be a clean source of energy and is a growing sector in Australia. Between 2012 and 2020, the Australian Renewable Energy Agency (ARENA) committed a total of $131 million to fund bioenergy related projects. In fact, ARENA has provided funding to 38 bioenergy related projects with a total project value of $1.4 billion. So, if you’ve ever wanted to learn more about the future of bioenergy in Australia, then sit back grab a cup of your favourite sustainable, fair-trade, organic coffee (or tea, we don't judge), and read on.
- Source & Credit: Delorean Corporation.
Firstly, what is Bioenergy?
Bioenergy is energy that is derived from organic matter, such as plants and waste. In Australia, this can include things like wood waste, sugarcane, feedstock, and even algae. Unlike traditional fossil fuels, bioenergy is considered a renewable energy source because the organic matter used to produce it can be replenished. Bioenergy is made even greener if renewable energy sources are used to process it.
Why invest in Bioenergy?
Bioenergy has some significant scope to expand as an energy source in Australia. In 2019-20, bioenergy accounted for 47 per cent of Australia’s current renewable energy production, and 3 per cent of Australia’s total energy consumption. ( Australian Government, Australian Energy Update, 2021.) Additionally, the Australian Bioenergy Roadmap reveals that by the start of the next decade, the bioenergy sector could contribute to around $10 billion in extra GDP per annum, create 26,200 new jobs, reduce emissions by about 9%, divert an extra 6% of waste from landfill and enhance fuel security. It’s clear that Bioenergy is on the up, and becoming an emerging energy sector.
How Bioenergy investments support our climate future?
Bioenergy is considered a renewable energy source because the organic matter used to produce it can be easily replenished. Unlike fossil fuels, which take millions of years to form, bioenergy can be produced from crops that can be grown in just a few months.
Much of the fuel used for bioenergy comes from agricultural activities, such as sugarcane waste and the livestock industries. Supporting a circular economy and diverting organic waste from landfill. Additionally, as a majority of these industries are regional, bioenergy investment will support long-term regional employment, provide additional revenue streams for farmers and ultimately national economic growth.
Furthermore, according to Project Drawdown if biomass used for electricity generation is derived from perennial bioenergy feedstocks and replaces conventional coal, oil, and natural gas. By 2050, biomass power could avoid 2.62–3.59 gigatons of carbon dioxide equivalent emissions. Bioenergy will be key to helping us reduce our dependency on fossil fuels, and moving towards renewable energy sources.
Delorean Corporation - a Bloom investment portfolio case study
Via its investment in the Palisade Impact Fund, Bloom is proud to support two new bioenergy projects based in Australia, managed by Delorean Corporation.
Delorean Corporation is an Australian company developing and operating bioenergy infrastructure in Australia, and have recently announced the development of two new clean energy projects.
Source: Delorean website.
Investing in SA1 Salisbury Bioenergy Plant
- Source & Credit: Delorean Corporation.
SA1 is Australia’s first project to create green gas utilising organic waste feedstocks, located in Salisbury, South Australia. During stage 1, the plant will process up to 60,000 tonnes per annum of commercial/industrial waste streams from the Adelaide metropolitan area, exporting 150 Terajoules per annum of renewable gas (biomethane).
The energy created through this waste has been signed onto a multi-year network deal with Origin, and any surplus energy will be sold and put onto the grid for Adelaide residents.
Why do we like it?
In Stage 1 the project will process up to 70,000 tonnes per annum of commercial/industrial waste streams from the Adelaide metropolitan area, exporting 2000 Terajoules per annum of renewable gas (biomethane) into the gas network under a multi-year offtake with Origin. Surplus energy will be exported to the grid.
In Stage 2 (future expansion), there is the potential to increase to 125,000 tonnes per annum.
Source: Delorean website.
Investing in VIC1 Stanhope Bioenergy Plant
- Source & Credit: Delorean Corporation.
VIC1 is located in Stanhope, Victoria, the project, in its first stage, will process up to 40,000 tonnes per annum of organic and agricultural waste streams to generate 1.2MWh of baseload renewable electricity exported to the grid.
Why do we like it?
In Stage 1, the project will process up to 54,000 tonne per annum of organic and agricultural waste streams for the generation of 1.2MW baseload renewable electricity exported to the grid. In Stage 2 (future expansion), there is the potential for extension to 71,000 tonne per annum.
And more projects in the pipeline... in Queensland
With the expertise and capability to deliver bioenergy projects from concept to completion, Delorean Corporation has an impressive list of other bioenergy projects awaiting for approval to be constructed.
Source: Delorean website.
One of them is the much anticipated Bioenergy Plant is Queensland: The “QLD1 Bioenergy Plant”
Investment pipeline: QLD1 Bioenergy Plant
- Source & Credit: Delorean Corporation.
Queensland One Project is located in Queensland, will process up to 83,000 tonnes per annum providing 3.0MW generation capacity (electricity to grid/behind the meter). It is 100% owned by Delorean Energy, and is subject to final approval. The project is expected to be ready for approval in late-2022.
At a global scale, Project Drawdown estimated that by 2050, biomass power could avoid 2.62–3.59 gigatons of carbon dioxide equivalent emissions with associated marginal first costs of US$56.48–69.24 billion. For context, that is equivalent to the carbon sequestered by 43,321,925,265 (43B+) tree seedlings grown for 10 years.
Source: Delorean Press release and Delorean website.
Delorean is just the tip of the iceberg
At Bloom, we have created a unique Climate Impact Investing Methodology. As of January 2023, The Delorean Bioenergy Projects are part of the holdings of the Bloom Climate Impact Fund via the Palisade Impact Fund. These investments aim to create a positive climate impact and accelerate the world’s transition to a cleaner future while striving to generate financial returns for its investors.* (*All investments carry a risk. You may lose some or all of your money invested).
Each business that Bloom considers must meet an impact solution, like water conservation, from Project Drawdown or ClimateWorks, and the asset itself needs to be a sound investment financially. The info in this article is just a glimpse into our research and portfolio, for more information download the Bloom app and start your climate impact investing journey with us.
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The information on this blog is prepared by Bloom Impact Investment Services Pty Ltd (ACN 651 965 098 AR 001294778), who is an authorised representative of Cache Investment Management Pty Ltd (ACN 624 306 430 AFSL 514 360) (Cache). All information is general information only and does not take into account your personal circumstances, financial situation or needs. The units in the Bloom Climate Impact Fund will be issued by Melbourne Securities Corporation Limited (ACN 160 326 545 AFSL 428 289), as disclosed in the relevant PDS. You should also read the TMD which describes who the financial products mentioned herein, may be appropriate for. All information is general information only and does not consider your personal circumstances, financial situation or needs. Before making a financial decision, you should read the PDS and consider whether the product is right for you and whether you should obtain advice from a professional financial adviser. All investments carry risk. You may lose some or all of your money invested.