Rural & Agriculture
21 June, 2026
Bioenergy project targets 2028 gas production
MORE than a year after its last major public update, Ararat’s $400 million bioenergy project is still moving forward, with developer Valorify revealing it has secured international investment and is targeting first gas production by the end of 2028.
The facility would use cereal straw sourced from district farms to produce biomethane, a renewable form of natural gas that could be injected into Victoria’s existing gas network.
Despite a prolonged period of limited public news about the project, Valorify director Scott Grierson said the company remained fully committed to the project.
“Absolutely!” he said when asked whether Valorify remained committed to the project.
“The Ararat Bioenergy remains a priority ‘flagship’ project for the company and will act as a template for the delivery of mono-digestion straw plants around the country, including expansion stages envisaged in Ararat.”
The project generated significant interest after Valorify secured feedstock agreements with local farmers in 2024, but few public updates have emerged since a bioenergy forum held in Ararat last year.
Mr Grierson said delays linked to renewable gas policy uncertainty had slowed progress after feedstock agreements were secured.
“Generally speaking, since mid-2024 when we had locked in feedstock with local suppliers, we have been held up by protracted delays in relation to launch of the Victorian State Government’s Renewable Gas Target,” he said.
He said uncertainty surrounding incentives and long-term policy settings had made investors reluctant to commit funding.
“While there is and has been much emphasis on and support for renewable electricity, batteries and even renewable hydrogen in recent years, the concept of ‘renewable natural gas’ has required an unexpected amount of ongoing advocacy at all levels.”
Mr Grierson said those delays occurred despite strong growth in the biogas sector overseas and the potential benefits renewable gas could deliver to regional Australia.
“This, despite the explosive growth of the biogas sector overseas and all of the benefits that our solution offers rural Australia, using existing underground pipelines and end-use infrastructure, creating jobs, diversifying farm incomes and making better use of agricultural waste, to name a few.”
Mr Grierson said several important barriers had recently been overcome, including changes allowing biomethane injection into gas pipelines, introduction of the Renewable Gas Guarantee of Origin certificate scheme and recognition of renewable gas under emissions reporting frameworks.
“Thankfully, these barriers have now been overcome and Australia is finally beginning to attract investor interest - it’s been a long haul!” he said.
Mr Grierson said Valorify had now secured a major investment coup from overseas and was negotiating long-term offtake agreements for both biomethane and biogenic carbon dioxide.
“Based on these recent developments, Valorify has secured a major international investor and is now negotiating product offtake agreements that will lock in long-term revenue streams for both biomethane and biogenic CO2, thereby securing the project,” he said.
“This has been a major focus in 2026.”
He said completion of those agreements would unlock the funding required to progress the project through Front End Engineering and Design before moving towards construction.
Mr Grierson said the company hoped to achieve financial close and begin construction by the middle of next year.
“We hope to have achieved Financial Close and be turning sods by mid-next year, with a view to ‘first gas’ flow from Stage 1 by the end of 2028,” he said.
He said preliminary consultation had already been undertaken with relevant agencies regarding a development application and discussions had also taken place with the local gas pipeline operator regarding a pathway for injecting biomethane into the network.
Despite the delays, Mr Grierson said the project’s overall concept remained unchanged.
“The scope and delivery pathway for the project remains essentially unchanged, and it is only the timeline for delivery that has pushed out for the reasons outlined above.”
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