- Author CRCNA and research partners
- Publish date 15 June 2026
- Type Report
- ISBN 978-1-922437-61-7
- Documents
- Sugarcane
- Agriculture
Summary
Sugarcane in northern Australia: Research findings and future directions
This research synthesis report brings together findings from six CRCNA-funded sugarcane research projects delivered across northern Australia between 2017 and 2025. As one of 12 industry-focused research synthesis reports being completed by the CRCNA, it forms part of a broader effort to consolidate and communicate the knowledge generated through almost a decade of collaborative research investment.
Drawing on project reports, impact evaluations and supporting literature, the report examines opportunities to strengthen the long-term resilience and profitability of the Australian sugarcane industry through diversification, value-adding and participation in the emerging bioeconomy. It explores opportunities in biomass utilisation, renewable fuels, alternative processing technologies, complementary oilseed crops and new value-added products, while highlighting the role of existing farming systems, processing infrastructure and supply chains in supporting future industry development.
The synthesis identifies key research findings, emerging impacts and future opportunities for industry, government and investors, providing an evidence-based overview of how sugarcane could contribute to Australia’s future food, energy and manufacturing sectors.
Projects
Project B Green (sugarcane)
Project BGreen explored how the Burdekin sugar industry could diversify beyond traditional crystal sugar production by using the entire sugarcane crop to create new bio-based products and renewable energy opportunities. Delivered by Queensland University of Technology, Sugar Research Australia and industry partners, the project investigated the feasibility of developing an energy self-sufficient, carbon-negative sugarcane refinery capable of producing high-value biochemicals alongside conventional sugar products. The research aimed to reduce financial risk for growers and millers while creating new revenue streams and strengthening long-term regional economic resilience. The project demonstrated strong commercial potential for diversified sugarcane processing and helped build industry confidence in the transition toward a broader bioeconomy. Researchers confirmed that purified sugar syrups produced from sugarcane could be used in emerging biochemical manufacturing processes, opening opportunities for renewable fuels, bioglycols and other high-value products. Importantly, the project identified significant cost savings through integration with existing milling infrastructure rather than constructing entirely new processing facilities. The study found that partnering with established sugar mills could avoid more than $750 million in capital costs associated with new milling and transport infrastructure, substantially improving the commercial viability of future bio-based manufacturing in the Burdekin region. Although the project did not progress to full-scale development due to the high capital cost and risks associated with emerging technologies, it delivered valuable technical and commercial insights that continue to inform future investment pathways. The project also developed a market-ready bioeconomy concept capable of attracting future investment as renewable energy, hydrogen supply and biochemical processing technologies mature. The research positions northern Australia’s sugar industry to diversify beyond sucrose production into biomass processing, renewable energy and specialty biochemicals, helping create a more resilient and sustainable future for regional sugar-growing communities.
Mackay alternative sugarcane processing pilot project: equipment and product test sampling phase
This project tested an innovative alternative sugarcane processing system designed to unlock greater value from the sugarcane crop and support the development of new manufacturing industries in northern Australia. Operating from a pilot facility in Mackay, the project demonstrated the ability to separate sugarcane into multiple component fractions and produce research-scale samples for downstream product development and market testing. The pilot plant successfully showed that Queensland-grown sugarcane can be separated into distinct renewable feedstocks and processed into a range of high-value products suitable for further manufacturing applications. The project confirmed that approximately 85% of the harvested sugarcane plant has the potential to be transformed into value-added products beyond traditional sugar production, creating opportunities across sectors including sustainable packaging, advanced materials, bio-based manufacturing and renewable products. By proving the technical feasibility of alternative sugarcane processing and demonstrating market-ready product quality, the project established an important foundation for future investment in value-added processing industries, helping position northern Australia’s sugarcane sector to participate in the emerging bioeconomy.
Seed handling, crushing and refining: Infrastructure Feasibility Project
This project was designed to research the feasibility of locating a crushing/refining facility within northern Queensland, whether it be static or mobile or a combination thereof. The project came about as a result of the need to develop new cropping areas in northern Australia. Recent studies have demonstrated the feasibility of growing new crops or expanding current crops into this region. However, a major economic hurdle for expansion of oilseed crops is the lack of infrastructure to process the grain locally. Transport of grain to distance processors is both costly and inefficient. The location of such infrastructure within northern Australia, whether it be static or mobile or a combination thereof, would certainly enhance the prospect of expanding crops into this region. The research was targeted to identify all industries linked with a proposed crushing/refining facility and the interactions between industries by understanding the benefits and calculating regional and rural economic benefits. The research gathered input from suitable representatives of identified industries and determine the most suitable infrastructure model, whether it be static or mobile or a combination thereof. A feasibility report was completed, identifying the industries, regions and crops that would benefit most from a crushing/refining facility. It includes a recommendation on suitable infrastructure and supply chain models, as well as a pathway for further development of the facility.
Sugarcane Industry Situational Analysis: Industry consultation and roadmap development
The Australian sugarcane industry is a cornerstone of northern Australia’s economy, supporting regional communities, export markets and extensive agricultural infrastructure. Recognising both the challenges facing the industry and the opportunities emerging through the global transition to a low-carbon economy, this project brought together growers, millers, researchers and industry leaders to develop a shared vision for the sector’s future. Through extensive consultation and collaboration, the project delivered the Sugar Plus: Fuelling the Future of Food, Energy and Fabrication roadmap—the first industry-wide, consensus-driven strategy for the Australian sugarcane industry. The roadmap identified pathways to improve productivity, strengthen supply chain resilience and diversify beyond traditional sugar production into emerging opportunities such as biofuels, renewable energy, bioplastics and other bio-based products. By establishing a unified vision to 2040, the project positioned sugarcane as a strategic renewable feedstock capable of supporting regional development, advanced manufacturing and Australia’s growing bioeconomy. The roadmap continues to inform industry planning, investment discussions and policy development, providing a foundation for future innovation and sustainable growth across northern Australia.
Suitable sugarcane to diversify income and add value
Delivered by Far Northern Milling, Sugar Research Australia and The University of Queensland, the project investigated how sugarcane biomass could be better utilised to support new bio-based industries in tropical Far North Queensland. The research developed detailed chemical profiles of sugarcane stems and leaves across commercial and high-biomass varieties, while also assessing sorghum as a complementary biomass crop. The project confirmed the potential to maintain sucrose production while significantly increasing total carbon output through fibre, molasses and ligno-cellulosic fractions. Researchers identified 19 commercially relevant metabolites within sugarcane biomass, demonstrating the potential for higher-value products beyond raw sugar, including biofuels, biochemicals and fermentation-based products. Importantly, the project defined two viable diversification pathways for northern Australia: short-rotation, high-biomass cropping systems suited to drier development regions, and integrated energy and fermentation processing within existing milling infrastructure. The research also confirmed the productivity potential of existing high-fibre cane varieties, reducing the need to wait for future energycane breeding programs before pursuing biomass-focused production systems. The project has helped reduce technical uncertainty around biomass production and biofactory investment, providing the evidence base needed to support future industry diversification. Long-term opportunities identified through the research include new biomass production districts, expansion of secondary processing industries within existing mills, increased production of renewable fuels and specialty chemicals, and more resilient revenue streams for northern Australia’s sugar industry. Project updates Update 1: Project overview Update 2: Sugarcane crop development Update 3: Mid-season crop composition Update 4: Mid-season sugarcane water soluable chemical composition
Developing an oilseed industry in Northern Australia
Developing an oilseed industry in northern Australia investigated the potential for oilseed crops to become a new and diversified agricultural industry across northern Queensland. Led by Savannah Ag Consulting and project partners, the project established multiple oilseed trials across Far North Queensland to identify which oilseed crops were best suited to northern growing conditions and how they could be integrated into existing farming systems, particularly sugarcane rotations. Trial and demonstration sites were established across Laura, Mareeba, Cairns, Innisfail and Walkamin, as well as in the Burdekin and Mackay regions, to support grower engagement and agronomic decision-making. The project screened a range of oilseed crops and identified several promising opportunities for future industry development. Particular focus areas included safflower production during sugarcane winter fallows, future biodiesel production from safflower oil and the longer-term potential for regional oilseed crushing facilities. Research also identified practical agronomic outcomes for soybean production, including benefits from reduced sowing rates and improved disease management strategies. Importantly, the project demonstrated how oilseed crops could contribute to more diverse and resilient northern farming systems by providing alternative crop rotations and additional income opportunities for growers. While large-scale commercial uptake remains limited, the project established a strong foundational knowledge base for future research, adoption and expansion of oilseed industries in northern Australia. The work continues to support ongoing investigation into profitable oilseed production systems, biofuel opportunities and integrated cropping models suited to tropical and subtropical northern environments.