Commercialising digestate and biogenic CO2

The official consultation question

Q41 · §4.6(b) · paper page 33

What are the key barriers to commercialising co-products, including the use of digestate as biofertilisers, and how do these barriers affect project viability or scale-up pathways?

Shelby’s response

Electricity cost is an important influence on recovery economics. More broadly, the principal commercial barriers are the capital required for recovery equipment and the absence, in some markets, of sufficiently dependable long-term product premiums and offtake arrangements.

For BioCO₂, this includes purification, liquefaction, storage, quality assurance and delivery; Digestate requires reliable nutrient composition, contaminant and pathogen controls, suitable storage and agricultural outlets. Biochar requires additional conversion equipment and product testing. Until these elements are established, developers may face disposal costs while potential product revenue remains unavailable for financing.

Policy should actively help developers bridge that commercialisation gap. Shelby recommends feasibility and capital assistance for modular retrofits, support for product testing and buyer trials, and shared regional services where aggregation reduces costs. Producers could share suitable storage, transport, laboratory services and sales arrangements while retaining local production. Support should also encourage Australian fabrication, assembly and maintenance capability as deployment grows. This can help smaller facilities participate and improve regional returns without requiring every producer to build a complete processing and distribution business.

Frequently asked questions

What is Shelby’s position on commercialising digestate and biogenic co2?

Co-product commercialisation depends on recovery capital, dependable buyers and practical quality and logistics arrangements. Shelby recommends feasibility assistance, buyer trials and shared storage, transport, testing and commercial services so smaller facilities can participate.

What should a project team read alongside this answer?

Read the linked commercial guides and original question. Separate the response’s recommendations and illustrative assumptions from source-reported operating evidence.

Sources & References

• Department of Climate Change, Energy, the Environment and Water, National Renewable Gas Policy consultation

  Publication: Date not verified

  Observation period: Not recorded

  Relevant page / section: Claim-level locator not yet verified

  Last link / title verification: 2026-10-11

  Publisher link checked; individual claims, costs and regulatory applicability still require review.

  Check scope and current applicability before relying on this reference.

• Department of Climate Change, Energy, the Environment and Water, National Renewable Gas Policy consultation paper

  Publication: 2026-08

  Observation period: Australia; 2026 consultation

  Relevant page / section: Consultation questions; use answer-specific paper page and question reference

  Last link / title verification: 2026-10-11

  Publisher link checked; individual claims, costs and regulatory applicability still require review.

  Source for questions/context, not proof of an implemented support mechanism. Question text attribution: Commonwealth, CC BY 4.0, as noted in Shelby’s supplied consultation response.

• Creative Commons, Attribution 4.0 International

  Publication: Date not verified

  Observation period: Not recorded

  Relevant page / section: Claim-level locator not yet verified

  Last link / title verification: 2026-10-11

  Publisher link checked; individual claims, costs and regulatory applicability still require review.

  Check scope and current applicability before relying on this reference.