KALBAR, Queensland – In a move signaling a significant investment in Australia’s renewable energy landscape, vegetable grower Kalfresh has secured , an A$80 million climate investment from Wollemi Capital and the Queensland Investment Corporation (QIC). The funding will facilitate the construction of Australia’s first integrated food and energy precinct, the Scenic Rim Agricultural Industrial Precinct (SRAIP), located at Kalbar, west of Brisbane.
The A$291 million SRAIP will center around the Kalfresh Bioenergy Facility, designed to transform farm waste and crop residues into renewable natural gas. This innovative approach aims to provide 24/7 renewable energy for Queensland’s industry and transport sectors, while simultaneously producing sustainable fertiliser for farmers. At full capacity, the facility is projected to generate enough energy to power up to 31,000 homes or fuel 98 million kilometers of truck and bus travel annually.
The project represents a novel “paddock-to-power” model, leveraging agricultural byproducts to create a sustainable energy source. While anaerobic digestion – the process of breaking down organic matter using microorganisms to produce biogas and fertiliser – is already utilized in Australia for wastewater treatment, landfill management, and other food waste applications, this marks the first large-scale deployment of the technology within a farming region.
Queensland Deputy Premier and Minister for State Development, Infrastructure and Planning, Jarrod Bleijie, highlighted the project as an example of industry and innovation working in tandem to build a future-ready Queensland. “Queensland is open for business, and we’re working with the private sector on strategic partnerships like this that will accelerate development and drive innovation in our priority industries, and create secure new jobs,” Bleijie stated. He emphasized the project’s potential to position Queensland as a global leader in biofuels and energy innovation.
Minister for Finance, Trade, Employment and Training, Ros Bates, underscored the importance of bioenergy projects in regional Queensland, stating they represent the kind of practical investment needed to strengthen the state’s economy and ensure regional communities benefit from growth. The project is expected to create approximately 1,000 jobs during the construction phase and 475 ongoing positions once operational.
Kalfresh, a major Queensland vegetable grower supplying carrots, pumpkins, onions, and beans to both domestic and export markets, has been planning this initiative for over a decade. CEO Richard Gorman explained that the company intends to utilize its processing offcuts, farm waste, and rotational crops as feedstock for the anaerobic digester. He noted the technology is already widely adopted in Europe and America, powering operations for companies like Amazon and UPS.
Gorman emphasized the benefits of the project beyond energy production. “Here’s made from plants. It’s going to add benefits to our food production and supply us with fertiliser,” he said. He envisions the plant operating for up to 60 years, providing a stable, base-load power source to the grid, particularly during periods when wind and solar energy generation are limited.
The SRAIP’s design addresses concerns often associated with renewable energy projects, such as the visual impact of wind farms and solar installations. Bleijie noted the project offers a biofuel solution that is broadly appealing, particularly to farmers. The facility is designed to integrate seamlessly into the agricultural landscape, utilizing existing farmland to generate both energy and valuable agricultural inputs.
The first energy from the site is anticipated to flow into the grid by mid-2027. Kalfresh plans to replicate this model at other locations throughout the state, potentially establishing a network of paddock-to-power facilities that contribute to Queensland’s renewable energy targets and support its agricultural sector. The project represents a significant step towards a more circular economy, where waste is minimized and resources are utilized efficiently.
Gorman believes the project will diversify Kalfresh’s business, reducing operational costs and enhancing soil health. “It uses more of the crop, it reduces our bills and befits our soil,” he stated. The integration of energy production with agricultural operations positions Kalfresh to capitalize on the growing demand for sustainable food and energy solutions.
