Low-carbon liquid fuel now an economic reality for regional WA as pyrolysis technology improves

Low-carbon liquid fuel has been recognised as an important part of the puzzle for Australia as the world transitions away from fossil fuel use to decarbonise the global economy. Opportunities for developing a low-carbon liquid fuel industry in WA were discussed at length at Bioenergy Australia’s WA Low Carbon Fuels Summit, held in East Perth on October 11. The audience was told with large steps now being made in pyrolysis efficiency, led by US research, the development of regional low-carbon fuel nodes was making more economic sense. Pyrolysis is the heating of an organic material, such as biomass, in the absence of oxygen. Speaking at the event, retiring Swan Hills MLA Jessica Shaw said WA was poised to benefit like no other place on earth from the renewable energy industry boom. “WA has everything it needs to become a clean energy superpower,” she said. “We will help the world decarbonise; we know the Pilbara has the minerals needed for the energy transition.” Ms Shaw said developing a low-carbon liquid fuel industry was a necessary part of decarbonisation plans, but acknowledged the transition to new energy sources would be challenging. She said the Government “has a plan” and it would take government, community and industry working together to overcome the challenges in meeting net zero. Ms Shaw pointed to the Federal Government’s National CCUS (carbon capture, use and storage) Technology Emissions Abatement Strategy as playing a key role. “The CCUS will be important for continued oil and gas production as we transition to new energies,” she said. Carbon capture projects would also have links with low-carbon fuel production, as has been seen in WA oil mallee projects over the past 20 years. CSIRO research scientist Cathryn O’Sullivan said the benefits of integrating oil mallees on-farm with grazing and cropping were proven, and this was one way WA could produce more feedstock which was desperately needed to help grow the low-carbon liquid fuel industry. She said WA primary producers were pivotal for the development of the industry. “Australia doesn’t currently have the feedstocks available to eliminate the use of liquid fossil fuels entirely,” Dr O’Sullivan said. “Aviation, mining and maritime are hard industries to electrify so we will need other fuel alternatives. “We will really need to diversify our feedstock base on-farm. This means energy tree crops and other novel feedstocks. “We need to encourage and build as many of these feedstocks as possible to distribute risk.” Dr O’Sullivan said Australians would rely more and more on primary producers to decarbonise the economy. “Farmers are going to have to choose between producing feedstocks, food or trees,” she said. “Getting sustainable principles right in regards to water efficiency, land-use efficiency and providing lasting social benefits for regional communities are all things that need considering. “This is about financing what needs to be done now and making it financially rewarding for primary producers.” Dr O’Sullivan said with more than two decades of on-farm oil mallee research projects which had proved land was still productive, coupled with huge improvements being made in pyrolysis processing technology, WA was on the brink of a low-carbon liquid fuel boom. The economics were starting to stack up, she said, as improvements in pyrolysis technology provided the potential for the creation of sustainable regional processing nodes of woody waste around WA. Dr O’Sullivan said the cost of producing biocrude oil using pyrolysis had dropped from about $6/gallon initially to $3/gallon. The goal was to improve efficiency of pyrolysis to produce biocrude for just $2/gallon, she said, with the creation of more regional jobs also a key driver of the emerging industry.