Industry Reports

Bioenergy Fund Project Reports on Electricity Cogeneration & Pelletisation of Bagasse

07 October 2025

The Australian Sugar Manufacturers (ASM) initiated this study to explore the opportunity to significantly expand electricity cogeneration capacity (using bagasse as the feedstock) within the sugar

manufacturing sector.  The sugar manufacturing sector has the ability to expand cogeneration capacity to 835MW of installed capacity – capacity that is renewable and baseload. To do this requires appropriate market and government supports and incentives for cogeneration.

Co-funded through the Queensland Bioenergy Fund, the study delivers the following insights:

1. Competitiveness and viability of cogeneration in the National Energy Market.
2. NEM operational requirements and risks.
3. Policy, market and commercial mechanisms to support investment in cogeneration.
4. Economics of bagasse densification.