We are the voice for change for the Australian sugar manufacturing sector

The Australian Sugar Manufacturers warns against oversimplified approaches to Australia’s fuel security challenges, calling for a multipronged approach, with a particular focus on increasing domestic ethanol production and utilisation. Currently, Australia underutilises its ethanol capacity, despite having available feedstock and capability to significantly expand production at a fraction of the cost of large-scale electrification.

The media release highlights that a time of heightened global uncertainty and pressure on international fuel supply chains, Australia remains vulnerable, importing the majority of its refined fuels and holding around 30 days of reserves. The sugar manufacturing sector is calling for stronger engagement between government and the domestic ethanol sector.

Australian Sugar Manufacturers (ASM) is calling on the Federal Government to urgently engage with the domestic ethanol industry, warning that Australia is failing to use an immediate, home-grown solution to strengthen national fuel security.

Australia already has just under 370 million litres of ethanol production capacity, yet government has failed to meaningfully engage with the sector on how this capability can support Australia’s fuel security.

ASM has stated that Australian ethanol producers have under-utilised manufacturing capacity and with the right policy settings, additional ethanol fuel supply is readily available.

At a time when the Federal Government is making decisions affecting fuel standards and supply chains, ASM has highlighted that ethanol continues to be overlooked despite being cleaner, domestically produced and ready to scale at a national level. Australian Sugar Manufacturers Chief Executive Officer, Ash Salardini said the industry is ready now, but government action is lagging. “Australia already has nearly 370 million litres of ethanol production capacity, yet the government hasn’t come to us to discuss what role this sector can play in strengthening Australia’s fuel security,” Mr Salardini said.

Australian Sugar Manufacturers (ASM) is urging the Queensland and Federal Governments to include cane rail infrastructure in disaster recovery funding following severe flooding in the Bundaberg region. ASM Chief Executive Officer, Ash Salardini said while it is still too early to determine the full extent of the damage, there are serious concerns about impacts to farms and the region’s vital cane rail network.

“Our first thoughts are with the communities affected by flooding in and around the Bundaberg region, including workers and families connected to our two sugar manufacturing facilities in the region,” Mr Salardini said.

“Currently it is too early to fully assess the damage, but there will likely be impacts to farms and to the cane rail network that underpins our local sugar industry.”

Australian Sugar Manufacturers (ASM) is calling on the Australian Government to act now to strengthen its fuel security and protect regional industries as global instability in the Middle East threatens up to 20 per cent of the world’s oil supply.

ASM Chief Executive Officer, Ash Salardini said a national bioethanol fuel mandate is essential to reduce Australia’s exposure to global fuel shortages and securing the long-term future of Australia’s sugar manufacturing sector.

“Australia needs a plan immediately to secure the future of our domestic fuel supply,” said Australian Sugar Manufacturers Chief Executive Officer, Mr Ash Salardini.

“With the Strait of Hormuz currently closed due to ongoing conflict in the Middle East, blocking 20 per cent of global oil supply – Australia doesn’t really have a plan A, let alone plan B.”

Australian Sugar Manufacturers (ASM) is calling on the Australian Government to introduce a national ethanol mandate to unlock the most affordable pathway to low-carbon liquid fuels and secure Australia’s sovereign fuel capability.

ASM Chief Executive Officer, Ash Salardini said a national mandate modelled on Queensland’s E10 requirements would provide the certainty needed to drive investment in domestic ethanol production and support the development of sustainable aviation fuel (SAF) and biodiesel.

Today, leaders from the Australian sugar manufacturing sector are converging on Queensland Parliament to present at the Parliamentary Inquiry into Sugarcane Bioenergy Opportunities in Queensland. Senior industry leaders will highlight the significant opportunities for the Queensland economy through sugar industry diversification into biofuels and bioenergy, however, this agenda can only be successful with effective government-industry collaboration. This agenda is even more urgent, as the sugar industry is facing a significant downturn in global sugar prices.

To kickstart the diversification agenda into biofuels and bioenergy, Australian Sugar Manufacturers has developed a $40 million government-industry proposal, focusing on effective market incentives that can underpin a successful Queensland biofuels and bioenergy capability, developing shovel ready biofuel projects that can attract earmarked federal funding, and further transforming industry R&D to ensure that we are at the cutting edge of innovation that will provide us with an enduring competitive advantage in the production of sugar, biofuels and bioenergy.

Australian Sugar Manufacturers (ASM) today submitted its 2026 – 2027 Pre-Budget Submission to the Federal Government, calling for urgent and coordinated government action to secure a sovereign Australian manufacturing capability that underpins food production, renewable energy and low-carbon liquid fuels.

ASM’s submission outlines a nationally significant opportunity to leverage Australia’s sugar manufacturing sector to deliver food, biofuels, biogas, renewable electricity and advanced biomanufacturing products. This agenda can transform regional economies and create thousands of jobs across Queensland.

The sugar manufacturing sector has the capacity through biodiversification to deliver up to 800MW of baseload renewable electricity (equivalent to the Callide B Power Station – one of the largest generators in Queensland), produce enough biofuels to meet around one-third of Australia’s domestic aviation fuel demand, and unlock further opportunities in biogas and biomanufacturing.

Australian Sugar Manufacturers Chief Executive Officer, Mr Ash Salardini, said the opportunity is real, viable and immediate – but not guaranteed.