We are the voice of the Australian sugar manufacturing sector

The Queensland Government has answered calls from the Australian Sugar Manufacturers (ASM) to establish a Parliamentary Inquiry into capturing bioenergy opportunities from Queensland’s sugar industry.

The Hon Tony Perrett MP, Minister for Primary Industries, has confirmed that the proposed inquiry has been formally referred to the Queensland Parliament Primary Industries and Resources Committee, chaired by Mr Stephen Bennett MP.

“The sugar industry can be a powerhouse energy producer through the production of biofuels and renewable baseload electricity. The only way we are going to get there is industry and government working hand in glove to capture these opportunities – this inquiry will provide the pathway to do exactly that,” Mr Ash Salardini, CEO of ASM said.

Queensland’s sugar manufacturers are working around the clock to ensure factories and rail infrastructure are ready for the 2025 crush, after one of the most severe wet seasons in some key sugar regions across North Queensland.

The impacts of the North Queensland floods have been profound – flooding factories, washing out rail lines, damaging rail signals and bridges, and delaying critical mill maintenance.

“At the end of the day our manufacturers have every right to use regional roads, and as the cost of maintaining cane rail infrastructure becomes too high, the sector might have to look at road transport more seriously,” Mr Salardini said.

“The ballooning cost of maintaining our rail infrastructure due to the increased frequency and severity of natural disasters requires governments to revisit their approach to disaster recovery. Let’s make sure that next time a flood hits, industry and government can work together to get the cane rail network up and running for the benefit of all impacted regional Queensland communities.”

Queensland’s sugar manufacturing sector could be the next step in Australia’s renewable energy transformation, providing a domestic biofuels capability and enough electricity for up to 500,000 homes, according to industry leaders speaking tomorrow (15 May 2025) at noon at the Rural Press Club of Queensland event, The Future of Sugar and Bioenergy in Queensland.

An expert panel from across energy and primary industries will outline how sugar manufacturing can supercharge regional economies through the continued production of sugar, and expansion into renewable electricity and low carbon liquid fuels production, turning one of Queensland’s oldest industries into its newest energy powerhouse, and solidifying more than 20,000 regional jobs.

Australian Sugar Manufacturers (ASM) have told Queensland’s Primary Industries and Resources Committee that bioenergy can secure the future of the sugar industry, and called for a coordinated government-industry approach to make it a reality.

Appearing before the committee today, ASM CEO Ash Salardini outlined how Queensland’s sugar sector could power up to 500,000 homes with renewable electricity, supply 40% of Australia’s aviation fuel needs, and establish world-leading manufacturing facilities – all while supporting more than 20,000 regional jobs.

“I don’t know of too many other power plant options that provide baseload and renewable electricity capacity and supports 20,000 jobs,” Mr Salardini said.

Australian Sugar Manufacturers (ASM) is calling for a strategic partnership with Defence to secure an indigenous biofuels capability in Northern Australia – a proposal that would enhance national security, reduce reliance on imported fuels, and create shared infrastructure benefits for both sectors.

“Our political leaders have unequivocally stated the need to enhance our defence capabilities in the face of an increasingly uncertain geopolitical environment, yet we have done very little to secure the liquid fuel supply chains that our defence forces run on and rely upon,” said Mr Ash Salardini, CEO of the ASM.

Australia has around two weeks’ worth of liquid fuel reserves and is wholly reliant on overseas supply chains. This is a critical national security vulnerability for Australia.

Australian Sugar Manufacturers (ASM) has released its election priorities which target continued growth for regional economies and reinforce sugar’s status as a key element of regional manufacturing in Queensland.

The $4.4 billion sugar industry employs over 20,000 people and contributes around $2.5 billion annually to Australia’s export revenues. Beyond sugar, the sector offers major opportunities in baseload renewable electricity and biofuels.