The New South Wales Government has launched its Renewable Fuel Strategy to accelerate the production and use of renewable fuels in the state, to drive down emissions and underpin industrial activity.
Renewable fuels will help the state meet its emissions reduction targets, decarbonise hard-to-abate sectors, drive economic development and jobs in regional New South Wales, and improve domestic fuel supply.
The strategy outlines 20 actions to scale up New South Wales’ renewable fuel industry. These include expanding the renewable fuel scheme to include biomethane, and up to $170 million in funding for production.
Other actions include funding research and innovation to improve industry capability, as well as supporting the expansion of GreenPower certification to additional renewable fuels and co-products.
The Renewable Fuel Strategy sets a clear and achievable pathway to grow the NSW renewable fuel industry and help reduce emissions in sectors that are hard to decarbonise.
Renewable fuels are low carbon alternatives to fossil fuels, such as biomethane, sustainable aviation fuel, green hydrogen, biodiesel and renewable diesel.

Boosting energy action
The state government has also launched a new $5 million grant program to support community energy groups and not-for-profit organisations to help households cut energy costs, as well as adopt renewable technologies and access government rebates and incentives.
Up to $600,000 of funding will be eligible to organisations to support education workshops, guidance sessions, develop digital tools or resources that help find energy solutions, and develop other innovative and alternative activities that address community needs.
Community energy groups and not-for-profit organisations that support New South Wales’ household energy consumers are eligible to apply. Applications will close on Monday 16 February 2026.
Minister for Climate Change and Energy Penny Sharpe says households want more support to make the switch to “smarter, more efficient” energy solutions that lower bills.
“That’s why we’re launching the Community Energy Activation Program to tap into trusted local networks that can bridge the gap for consumers by connecting them with energy information and a range of New South Wales Government programs,” Sharpe says.
“These groups help energy users in a meaningful way, often with only volunteers, so this funding will create more opportunities for households to get free, credible guidance to reap the benefits of renewable energy.”
Write to Aaliyah Rogan at Mining.com.au
Images: NSW Minerals Council & iStock



