A major Queensland vegetable grower has secured $80 million in investment to build Australia’s first integrated food and energy precinct, turning farm waste into renewable energy and sustainable fertiliser. Construction began Thursday at the $291 million Scenic Rim Agricultural Industrial Precinct, located at Kalbar, southwest of Brisbane.
Kalfresh, a significant supplier of carrots, pumpkins, onions and beans to both domestic and export markets, is partnering with climate investing firm Wollemi Capital and the Queensland Government’s Queensland Investment Corporation (QIC) on the project. The 40-hectare precinct will utilize anaerobic digestion to convert processing offcuts, farm waste, and rotational crops into renewable natural gas.
The process, which employs microorganisms to break down organic matter, produces biogas and bio-fertiliser. While anaerobic digestion is already used in Australia for wastewater, landfill, and food waste, this marks the first large-scale deployment of the technology within an Australian farming region, according to project developers.
At full capacity, the Kalfresh Bioenergy Facility is projected to generate enough energy to power up to 31,000 homes or fuel 98 million kilometres of truck and bus travel annually. The project is expected to create approximately 1,000 jobs during construction and 475 ongoing operational roles.
Queensland Deputy Premier Jarrod Bleijie stated the state government has been involved in planning the project since 2019, when it was designated a coordinated project. He confirmed an $80 million investment from capital funding and QIC. “When we talk about renewable energy… there has been concerns of the impacts of wind farms and solar farms,” Bleijie said. “We have here a biofuel that everyone can get behind. Farmers can get behind. It’s getting waste and turning it into gas, into energy… affordable, reliable and sustainable fuel.”
Kalfresh CEO Richard Gorman explained the concept originated over a decade ago after observing an anaerobic digester in operation. He noted the technology is already established in Europe and America, powering homes and fleets for companies like Amazon and UPS. Gorman emphasized the suitability of the project for the Scenic Rim region. “We live in the Scenic Rim, it’s a scenic place. We aren’t going to put solar farms and wind farms everywhere. This is made from plants. It’s going to add benefits to our food production and supply us with fertiliser.”
Gorman anticipates the plant will have a lifespan of up to 60 years. “Paddocks that can grow food can grow base-load power to support the grid, and low carbon fuel for trucks and busses,” he said. “You can send energy to the grid at peak times to stabilise the power network when wind and solar are not available.” He added that the project will diversify Kalfresh’s business, reducing costs and improving soil health.
The first energy from the site is expected to flow into the grid by mid-2027, and the company has indicated plans to replicate the model at other locations throughout the state.