Changes to Renewable Fuels Scheme Welcomed by Energy Users
Emily Wood | November 11, 2026
The Energy Users’ Association of Australia (EUAA) welcomes changes made to the NSW Renewable Fuels Scheme that will expand the definition of renewable fuels to include biomethane and ensure liable entities under the scheme, including many large commercial and industrial (C&I) energy users who already pay for the scheme, will not be charged twice.
“Encouraging the development of renewable fuels at scale is a critical part of Australia’s transition away from fossil fuels and changes made to the NSW Renewable Fuels scheme that will help facilitate this are welcome,” said EUAA Chief Executive Officer, Mr Andrew Richards.
“Ensuring large C&I energy users who are already paying for the scheme as liable entities are not double charged is an important and welcome amendment. As is the expansion of eligible fuels to include biomethane, recognising that different renewable fuels will have different roles to play in supporting the decarbonisation of Australian industry.
“The transition away from natural gas is not going to be straightforward for many businesses. We need to recognise that industrial energy users have very different energy requirements and that there is no single solution that will work for every business or manufacturing process.”
The term ‘renewable fuels’ refers to alternatives to natural gas, including hydrogen and biomethane. Developing these alternatives is aimed at providing pathways for businesses to reduce, and potentially eliminate, their reliance on natural gas.
For some manufacturing processes, removing natural gas entirely may be extremely difficult or technically unfeasible. In these circumstances, biomethane presents a particularly promising opportunity because it is chemically very similar to natural gas and therefore has the potential to be used in existing gas infrastructure and equipment, potentially reducing the need for costly changes to industrial operations.
For other applications, hydrogen may provide a suitable alternative, although its suitability will depend on the specific industrial process, technology requirements and economics.
“Policies that support the development of renewable fuels need to be grounded in the practical realities facing energy users,” Mr Richards said.
“Large energy users want to be part of Australia’s transition to a lower emissions economy, but they also need solutions that are technically viable, commercially sustainable and internationally competitive.
“Getting the policy settings right is important. We need to encourage investment in new renewable fuel production and supply while ensuring the costs of these schemes are fair, transparent and do not place unnecessary additional pressure on Australian businesses.”
The EUAA looks forward to continuing to work with the NSW Government and industry stakeholders to support the development of a competitive renewable fuels market that can help meet Australia’s future
The Energy Users’ Association of Australia (EUAA) is the peak body representing Australian commercial and industrial energy users. Our members are the engine room of the Australian economy, producing many of the products that households and business use every day including bricks, glass, steel, cement, aluminium, cloud services, paper, food and beverages. Combined our members employ over 1 million Australians, pay billions in energy bills every year and in many cases are exposed to the fluctuations and challenges of international trade.
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Media Contact: Emily Wood 0421 042 121
