New South Wales has launched an ambitious Renewable Fuel Strategy that places regional communities at the heart of the state's clean energy transformation, with up to $170 million in funding earmarked for hydrogen, biomethane, and other low-carbon fuel development. 

The strategy outlines 20 key actions designed to scale up renewable fuel industries across NSW, targeting sectors that are challenging to electrify (including mining, manufacturing, heavy transport, and aviation) many of which are cornerstones of regional employment.

Minister for Climate Change and Energy Penny Sharpe described the initiative as a "win-win-win opportunity: a win for jobs, a win for fuel security and a win for the planet." The Minns Government is prioritizing local production to diversify the economy and establish a reliable, long-term fuel supply for the state.

Regional areas from the Hunter and Central West to the Riverina are expected to be prime locations for new projects, building on existing exploration of hydrogen, biomethane, and recycling ventures.

The funding package includes several targeted initiatives: $130 million through the Net Zero Manufacturing Initiative to support large-scale renewable fuel projects utilizing emerging technologies. $40 million dedicated to biomethane production. $1.5 million for innovation and capability-building research.

The strategy also expands the Renewable Fuel Scheme to incorporate biomethane and introduces programs supporting GreenPower certification for renewable fuels and co-products. Additionally, research funding will support crop development and biomass production trials in partnership with farmers and regional research institutions, potentially creating new revenue streams for landholders.

The Australian Hydrogen Council (AHC) has endorsed the strategy's emphasis on coordination and shared infrastructure. AHC CEO Dr. Fiona Simon highlighted hydrogen's critical role as an enabler of future renewable fuels, stating: "Hydrogen is the molecule that can enable many renewable fuels, from ammonia and methanol, through to sustainable aviation fuel".

Dr. Simon emphasised the need for enhanced collaboration across supply chains to ensure hydrogen availability for both feedstock purposes and industrial processes.

For regional NSW, where much of the state's manufacturing, mining, and freight industries operate, the plan promises to unlock opportunities for local production, research partnerships, and infrastructure investment. Communities already engaged in renewable fuel exploration are well-positioned to attract projects under the new framework.

The NSW Renewable Fuel Strategy represents a significant step toward decarbonizing hard-to-abate sectors while simultaneously strengthening regional economies and creating sustainable employment pathways for communities traditionally reliant on fossil fuel industries.

The full NSW Renewable Fuel Strategy is available on the NSW Climate and Energy Action website.