Sewage will be turned into renewable diesel and even jet fuel under a north Queensland project to provide an alternative to the stockpiling of waste and boost Australia's energy security.
Energy Minister Josh Frydenberg announced $4 million in funding for the $11.8 million Southern Oil Refining demonstration project in Gladstone, with biosolids to be sourced from local wastewater plants and from Melbourne Water's Werribee facility.
The renewable crude oil created will be upgraded to renewable diesel and potentially jet fuel, he said.
"With Australia producing over 300,000 tonnes of biosolids through sewage treatment annually, it makes sense to look for options for commercialising its disposal," Mr Frydenberg said in a statement.
"Bioenergy projects not only provide a possible alternative to the stockpiling of waste, but also have the potential to help with Australia's fuel security."
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The Southern Oil Refining facility in Gladstone currently re-refines waste oils such transmission and engine oils.
Mr Frydenberg said it would treat up to one million litres of biosolids every year.
