Australia does not yet have its own bioeconomy strategy, but many areas of bioeconomy, such as biotechnology, bioenergy, circular economy, and blue economy, are of great national importance.
Many activities relevant to the bioeconomy originate from the promotion of biotechnology. The first national biotechnology strategy dates back to 2000. This was followed by the "Industrial Biotechnology Strategy" in 2008. The national biotech association AusBiotech published, in the same year, the strategy "Biotechnology and Australian Agriculture: Toward the Development of a Vision and Strategy for the Application of Biotechnology to Australian Agriculture" together with the Australian Department of Agriculture. The 2018 strategy "Biotechnology and Australian Agriculture" outlines possibilities for biotechnological applications in the agricultural and food system.
Australia's national science agency, CSIRO (Commonwealth Scientific and Industrial Research Organisation), published the National Synthetic Biology Roadmap. in 2021. The strategy paper provides an overview of the potential of synthetic biology, which is the targeted generation of biological systems with new properties for industrial production. By 2040, this technology field could achieve an annual turnover of up to AUD 30 billion (EUR 20.1 billion). The roadmap aims to establish a national ecosystem for synthetic biology in Australia and create cost-effective domestic production capacities in the areas of food, agriculture, health, and medicine. The government has already invested tens of millions of dollars.
In 2022, the Australian Department of Health published the strategic document Biotechnology in Australia – a strategic plan for health and medicine. The plan outlines various measures that the Australian government aims to support across all areas of the research and development pipeline — for example, through incentives for expanding research and development capacities and capabilities. One of the main advantages for biotech companies in Australia is tax benefits for R&D activities. There are also funding sources for companies, such as the Medical Research Future Fund and the Biomedical Translation Fund. As part of the package for the commercialization of university research, the government will provide more than AUD 2.2 billion (EUR 1.4 billion) over a period of 11 years for various initiatives, including incentives for research to commercialize relevant results and partnerships between universities and companies.
In 2011, the state-run Rural Industries Research and Development Corporation published a national innovation strategy to promote the development of the bioenergy sector (Opportunities for Primary Industries in the Bioenergy Sector: National RD&E Strategy 2011). The strategy focuses largely on building value chains — from the provision of sustainable biomass raw materials to suitable (nearby) conversion pathways for bioenergy. A corresponding action plan for further orientation and implementation of this innovation strategy was created in 2014. In 2021, ENEA Australia and Deloitte Financial Advisory published a Bioenergy Roadmap on behalf of the Australian Renewable Energy Agency (ARENA). This roadmap outlines a vision for a sustainable bioenergy industry. By the beginning of the next decade, the Australian bioenergy sector is expected to contribute to an additional gross domestic product of about AUD 10 billion (EUR 6.7 billion) per year and create 26,200 new jobs, reduce greenhouse gas emissions by about 9%, divert an additional 6% of waste from landfills, and increase fuel security.
Other bioeconomy-relevant policy measures at the federal level include the National Waste Policy (NWP) and the accompanying 2019 Action Plan (NWPAP). They were the first documents to establish the goal of a circular economy at the national level. While the NWP and NWPAP include strategies for organic municipal waste (such as food and garden waste), agricultural waste is not mentioned. At the end of 2022, federal and state environment ministers made the decision that Australia should transition to a circular economy by 2030. This will mainly involve removing regulatory and commercial barriers and promoting best-practice initiatives as well as research, development, and innovations in the circular economy. Collaboration with the private sector is particularly emphasized. At the same time, the governments of all Australian states and territories have developed a circular economy strategy that includes a roadmap to support the transition.
In September 2020, the Australian government presented a national agenda for agricultural innovation that outlined five pillars for reforming the Australian agricultural innovation system: strengthening the innovation ecosystem, improving funding and investment for innovations, embedding innovation practices through greater transparency and entrepreneurship, strengthening regions, and creating a next-generation innovation platform. With this agenda, the government aims to establish Australia as a reliable exporter of high-quality food and agricultural products and to enhance the climate resilience of the agricultural sector.
In 2015, the National Marine Science Plan 2015–2025 was published by the National Marine Science Committee. This document defines measures on how Australia can promote the development of a blue economy. Aspects such as biodiversity protection, food and energy security, sustainable coastal development, and marine safety are addressed among others.
Regional activities in the bioeconomy
Aside from national efforts, the development of the bioeconomy in Australia is heavily influenced by regional approaches. Some states and territories have already implemented bioeconomy policies or strategies that focus either on climate issues or on promoting biobased products and biotechnological applications.
South Australia adopted a bioeconomy strategy in 2011 titled “Building a Bioeconomy in South Australia 2011 – 2015.” This aimed to leverage local expertise in the biosciences to open new markets and increase the export of innovative bioscience products and services from the region. The biosciences sector was seen as key to driving innovations in various critical sectors of the region, such as medical diagnostics, viticulture, agriculture, and renewable energies.
The government in Western Australia mentions the development of a dedicated bioeconomy strategy as one of the measures in its 2020 climate strategy to promote the growth of the bioenergy and biotechnology industries in the state.
To address future challenges, the government of Victoria adopted the “Victoria's Technology Plan for the Future – Biotechnology” in 2011. With more than 55 million AUD allocated, it supports initiatives in areas including industrial and agricultural biotechnology.
In 2016, the state of Queensland launched the Queensland Biofutures 10-Year-Roadmap and Action Plan , endowed with 1 billion AUD (670 million euros). This initiative is part of the regional program "Advance Queensland," which tasked the Department of State Development, Manufacturing, Infrastructure, and Planning with developing roadmaps for emerging and promising industries such as advanced manufacturing, biomedicine/life sciences, and the bioindustry. The roadmap and the accompanying action plan outline an overarching vision for the country's biofutures industry by 2026.
They describe how competitive advantages should be utilized and growth opportunities realized, but also how challenges in developing a competitive sector for industrial biotechnology and bioproducts in Queensland can be addressed. To this end, the document specifically aims to support knowledge and technology transfer by promoting collaboration between entrepreneurs and researchers from universities and public institutions. Queensland is a large Australian state with a technologically advanced agricultural industry and a strong biotechnology sector. The term "biofutures" refers to the industrial biotechnology sector that produces biochemicals, biofuels, and bioplastics (more on this in this interview).
In June 2022, a new version of the roadmap was published. It is part of the 3.34 billion AUD (2.24 billion Euro) Queensland Jobs Fund and reaffirms the Queensland government's ongoing commitment to the growth of the biofutures industry. Particularly, the local biofuel market is to be promoted through collaboration with key sectors such as aviation, construction, shipping, and transport. With the roadmap, the Queensland government also responds to supply chain bottlenecks experienced during the global COVID-19 pandemic, focusing on creating an attractive environment for domestic industry, supporting specific initiatives for the development of this industry, and promoting investment opportunities in Queensland.
Queensland is also actively seeking international cooperation opportunities. Germany and the Australian state aim to conduct joint research for a sustainable bioeconomy. This was agreed upon by Federal Research Minister Bettina Stark-Watzinger and Cameron Dick, Minister for Trade and Investment of Queensland, in a joint declaration in 2022. The goal is to further develop bioeconomy projects under the funding activity "Bioeconomy International." Initial projects have already been launched.
More information on international cooperations with Queensland
Interview with Ian O’Hara: "Queensland pushes its Biofutures industry"
News: Bioeconomy research alliance with Australia
Solutions for sustainable agriculture and forestry
Approximately 55% of Australia's land area is actively used for agriculture. Crop production—such as grains or permanent crops like wine—concentrates along the coastal zones. The majority of value creation (about 44%) comes from livestock farming, particularly cattle farming for meat and milk production. In grain cultivation (approximately 31% of value creation), wheat is the main product. Around 72% of Australia’s agricultural, fisheries, and forestry products are exported.
According to the government agency ABARES, the gross value of agricultural, fisheries, and forestry production has increased by 51% in real terms over the last 20 years, rising from approximately USD 62.2 billion (EUR 44.2 billion) in the 2003/04 financial year to USD 94.3 billion (EUR 67.2 billion) in the 2022/23 financial year. The reasons for this growth vary by sector. In crop production, producers have increased their productivity through the introduction of new technologies and farming methods. In livestock, higher prices were among the main drivers of growth, influenced by rising demand for protein in emerging markets and other factors such as droughts in the United States and outbreaks of diseases like African swine fever in countries that import meat.
Through the Agriculture 4.0 initiative, promoted by the Australian Trade and Investment Agency (Austrade), researchers are developing innovative solutions for the agricultural sector in areas such as robotics, remote sensing, and machine learning. Disruptive approaches for global food supply chains, new cultivation methods, and innovations in food processing are also being explored. Smart farming solutions play a significant role in Australian agriculture overall—not only to increase agricultural production but also to contribute significantly to mitigating climate impacts. This includes early warning systems for weather events and real-time monitoring of cattle herds on often hundreds of thousands of hectares of cattle farms, which can provide crucial information for adjusting livestock density to local pasture quality.
Key focuses in agricultural biotechnology include plant and animal breeding, including genetics, soil microbiomes, breeding, and animal health, enabling farmers to maximize their productivity and sustainability.
Australian consumers are increasingly health-conscious and concerned about the environmental impacts of industrially produced products and meat. There is a growing interest in reducing the carbon footprint of livestock farming. Consequently, Australian consumers are focusing more on a healthier diet, which includes alternatives to meat proteins. Data from Food Frontier indicates that Australia was the third-largest growth market for plant-based foods in 2020, with a revenue of AUD 185 million (EUR 132 million).
In 2023, the Australian Industrial Ecology Network (AIEN) organized the inaugural Australian Bioeconomy Conference. This two-day event will take place again in 2024, providing policymakers and leading figures from industry and business an opportunity to network and discuss topics related to the Australian bioeconomy.
Bioenergy facing challenges, new raw material sources in focus
Oil, coal, and gas continue to dominate Australia's energy mix. According to government data, the share of renewable energy in Australia's energy consumption was 9% in 2021–22. The electricity generation from renewable sources has more than doubled in the last decade. In 2022, 32% of Australia’s total electricity generation came from renewable sources, including solar energy (14%), wind power (11%), and hydropower (6%). However, the burning of biomass, such as firewood and bagasse, still accounts for about a third of the total renewable energy consumption in Australia.
Biodiesel is primarily produced from slaughter waste, used cooking oils, and oilseeds in Australia. Manufacturers such as Australian Renewable Fuels, Biodiesel Industries Australia, and EcoFuels Australia operate several facilities in the country. New raw material sources, such as algae and tropical plants like the moringa tree, could also provide new momentum for the industry. Major ethanol producers include Manildra, CSR Ethanol, and Wilmar Bioethanol, which produce alcohol in their biorefineries using grain starch and by-products from the sugarcane industry.
Alternative aviation fuels are being targeted by the national airline Qantas and British provider Virgin Airlines. Queensland has also brought Oceania Biofuels to Gladstone to establish Australia’s first commercial biorefinery for sustainable aviation fuel. The investment of AUD 500 million (approx. EUR 360 million) is seen as a significant step toward the growth of the emerging biofuel industry and strengthens the political efforts to establish a sustainable biofuel and bioenergy sector in Queensland.
The Queensland government has also partnered with the international shipping and logistics company ANL to conduct Australia’s first trial of biofuels in containers to significantly reduce emissions in the maritime transport sector. The project was carried out in collaboration with the entire supply chain, with ANL working alongside the Woolworths Group, the Port of Brisbane, BP Marine, and local supplier EcoTech Biodiesel.
Growth market biotechnology
Low venture capital investments, geographical isolation from investors, and gaps along the translation and innovation pathway have long posed challenges for Australia's life sciences ecosystem in transferring research findings into application. This is particularly evident in the pharmaceutical sector, where several large pharmaceutical companies have recently downsized or reduced their production capacities, including Pfizer, Johnson & Johnson, Roche, and GSK.
In contrast to this trend, the biotechnology sector is developing very dynamically and is being significantly supported by the government as part of the aforementioned long-term national biotechnology strategy. Large investments are being funneled into the research and manufacturing of vaccines. Moderna is establishing an RNA vaccine production facility in Melbourne by the end of 2024, and BioNTech has also announced the establishment of an mRNA research and innovation center in Melbourne.
Australia's biotech ecosystem generated more than USD 8 billion (EUR 7.3 billion) in annual revenue in 2021, with an annual growth rate of 3% projected for the period from 2021 to 2026. There are 540 biotechnologically active companies in Australia employing 16,310 people, with medical biotechnology accounting for more than 53% of the product and service segment. Food and agriculture are expected to be the fastest-growing applications of biotechnology in the medium term and will constitute the largest part of the sector in terms of production and employment.
There is a growing national interest in investing in Australian start-ups in the field of synthetic biology, with Main Sequence Ventures being one of the key investors. Main Sequence was established in 2017 by CSIRO to bridge the so-called Valley of Death between research and commercialization.
The Australian start-up Samsara Eco specializes in biological plastic recycling. The company uses enzyme-based technology to break down plastic into its components. Following a Series A funding round of AUD 54 million (EUR 49 million), the start-up announced the construction of its first commercial plastic recycling facility in Melbourne, where it aims to recycle 20,000 tons of plastic. In collaboration with the activewear brand Lululemon, Samsara Eco launched the world’s first enzymatically recycled nylon 6,6 product in February 2024.
Another Australian start-up, Number 8 Bio, has developed an innovative approach to reduce methane emissions from livestock. Inspired by nature, the company harnesses the natural potential of seaweed and combines it with the advantages of industrially scalable yeasts.
Companies such as All G Foods, Nourish Ingredients, Loam Bio, and Vow are other interesting new players in the field of synthetic biology.
Relevant research institutions in Australia are particularly concentrated along the metropolitan areas of the east and southwest coasts. The Commonwealth Scientific and Industrial Research Organisation (CSIRO), the largest and oldest research organization in the country, plays a crucial role in applied research and is often compared to Germany's Fraunhofer Society. Funded annually by the Australian government with approximately AUD 1 billion (around EUR 630 million), it employs over 6,000 staff across 51 research institutes. CSIRO's research scope is broad, covering agriculture and food, marine science, data, energy, environment, health and biosafety, industrial production, mineral resources, space, and astronomy.
In 2023, CSIRO announced a AUD 25 million (EUR 16 million) investment for a new program aimed at establishing an Advanced Engineering Biology Future Science Platform (AEB FSP) by 2027 to significantly advance biotechnology development in Australia. This interdisciplinary research program connects science and industry to foster innovations in engineering biology and build competencies. The AEB FSP focuses on three research themes: data-driven molecular design, innovative bioproduction platforms, and interdisciplinary decision-making.
So-called biofoundries are laboratory centers where the automated synthesis and characterization of biological systems occur through high-throughput experiments. The CSIRO BioFoundry at the Ecosciences Precinct in Dutton Park is one such state-of-the-art facility. CSIRO has also established the National Biologics Facility (NBF) in partnership with the Australian Institute for Bioengineering and Nanotechnology at the University of Queensland to promote the large-scale production of valuable proteins for biopharmaceuticals. The initial funding for the facility began in 2006 through NCRIS, and later contributions were made by the Education Investment Fund and the Super Science Initiative. The Victorian government also contributed AUD 1 million (EUR 630,000) to establish the pilot-scale protein production facility operated by CSIRO, which forms the Victorian node of the National Biologics Facility.
Victoria, New South Wales, Queensland, and South Australia with strong research centers
At Australia's oldest university, the University of New South Wales, the agricultural faculty plays an important role in the bioeconomy. It focuses on new plant varieties and site-specific, sustainable agriculture. At the Australian Centre for Field Robotics (ACFR) of the university, fully automated systems for applications in agriculture are being developed.
The University of Technology Sydney (UTS) houses the Deep Green Biotech Hub (DGBH), which provides a variety of support programs for companies based in New South Wales to develop algae-based biotechnology solutions, promoting sustainable innovations in the areas of food and feed, dietary supplements, cosmetics, and industrial chemicals.
Research in Queensland is also diverse:
In Brisbane, the University of Queensland is an important hub for bioeconomy research. The university is home to the "Queensland Alliance for Agriculture and Food Innovation (QAAFI)," among other institutes. Additionally, the Australian Institute for Bioengineering and Nanotechnology (AIBN) is strong in bioeconomy research.
The Centre for Agriculture and the Bioeconomy at the Queensland University of Technology (QUT) combines agricultural and bioeconomy research to develop sustainable bio-based products from agricultural residues. The center provides global research and consulting solutions in the fields of biotechnology and biomass processing and specializes in tropical agriculture and the high-value bioproducts sector. The institute's research areas include agricultural and food systems, bioprocess engineering, genetics and molecular biology, food innovations, sustainable agricultural ecosystems, and synthetic biology.
QUT also operates the Mackay Renewable Biocommodities Pilot Plant. It serves to explore and demonstrate the conversion of lignocellulosic biomass, such as sugarcane bagasse, into biofuels. The pilot facility is equipped with state-of-the-art equipment to process a wide range of feedstocks and is strategically located on the premises of the Mackay Sugar Ltd Racecourse Mill. The goal is to promote the dissemination of technologies for renewable bioproducts in Australia through the development of innovative, commercially viable products.
Part of the QUT pilot facility is also the biorefinery operated by Mercurius Australia. It utilizes waste from the sugarcane harvest and converts this bagasse into renewable diesel and sustainable aviation fuel. The facility is part of the Queensland University of Technology’s pilot plant for renewable biofuels. Mercurius collaborates with QUT to demonstrate the feasibility of new technologies at the pilot scale and to identify commercial opportunities.
The Australian Institute of Marine Science (AIMS) , founded in 1972, is located in Cape Ferguson, about 50 km east of Townsville in Queensland. It focuses on the sustainable use and protection of the oceans, emphasizing tropical marine research.
Since its establishment in 2007, the Centre for Marine Bioproducts Development (CMBD) at Flinders University in Adelaide has been researching sustainable processing and marketing methods for South Australian microalgae, marine sponges, fish, crayfish, sea cucumbers, and seaweed. The goal is to convert these marine bioresources into high-quality products for human nutrition, pharmaceuticals, and medical materials. The CMBD develops sustainable technologies for existing industries while simultaneously exploring advanced processing technologies and products for new industries. The University of Adelaide is also a hub for bioeconomy research.
In addition, several ministries operate research institutions that correspond to German departmental research. The Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES) is, for example, the scientific and economic research division of the Department of Agriculture, Fisheries, and Forestry (DAFF). The DAFF includes the Plant Innovation Centre, a recognized R&D center focused on researching innovative solutions in the field of biosecurity.
The Australian Institute of Marine Science (AIMS) is the extended scientific arm of the Department of Climate Change, Energy, Environment, and Water (DCCEEW) and specializes in researching the sustainable use of the oceans.
ARC most significant sponsor
Funding is available to researchers from both academia and industry from various sources at national, state, and local levels. Generally, funding is allocated directly by the relevant ministries to individual research institutions or research groups. The most significant supporter of research and development at universities is the Australian Research Council (ARC), which allocates around AUD 900 million (EUR 570 million) annually across all disciplines, except for medical research, in the fields of basic and applied research.
The ARC Centres of Excellence conduct research in various areas of the bioeconomy, such as plant research and climate-neutral green chemistry. They also involve international partners, including institutions from Germany like the Jülich Research Centre and the Max Planck Institute for Colloid and Interface Research. The ARC Centre of Excellence in Synthetic Biology unites nine Australian universities with startups, government agencies, industry associations, and international research institutions to find sustainable solutions for agriculture, food production, the chemical industry, and healthcare.
At the same time, the Australian government supports a total of six Industry Growth Centers—one focusing on food and agriculture. So far, the Center has co-funded 77 industry-led collaboration projects. The government agency Australian Renewable Energy Agency (ARENA) provides funding for renewable energy projects, including the commercialization of bioenergy initiatives.
Research and Text: Christin Boldt; Editorial: Philipp Graf
