Robert Carey, ChairmanFor more than two decades, Ethtec has focused on making that transformation commercially viable. The Queensland-based company has developed a second-generation cellulosic ethanol production technology designed to improve the commercial viability of biomass utilization. Instead of viewing biomass solely as a source of ethanol, it has developed its technology around a biorefinery model that maximizes value from each feedstock stream and creates multiple product pathways.
Feedstocks such as sugarcane bagasse, crop stubble and forest residues form the foundation of this approach, enabling the production of ethanol, biodegradable chemicals and bioplastics. Lignin provides one example of the Ethtec Process. This byproduct of the process can be used as a renewable fuel source for boilers that support plant operations.
"The opportunity doesn’t lie in producing ethanol, but in maximizing the value that can be extracted from every biomass stream," says Robert Carey, Chairman.
Advancing Commercially Viable Cellulosic Ethanol Production
While biomass utilization has long attracted industry interest, achieving commercial viability has remained a significant hurdle for many 2G cellulosic technologies. Traditional ethanol processes typically operate as batch systems, require more than 72 hours to produce sugars, rely on feedstock-specific enzymes, generate significant liquid waste streams and incur substantial enzyme-related costs.
Ethtec’s 2G Second-Generation acid hydrolysis process addresses these challenges. Operating as an in-line process, instead of a batch system, the technology can produce sugars in less than 10 minutes and is not restricted to a particular feedstock type. The process is designed around acid recovery, a critical contributor to the project economics. Concentrated sulfuric acid is recovered, reconcentrated and reused, with losses of less than one percent. The 2G Ethtec Process produces little or no waste material.
Commercial validation of this technology is currently being advanced through Ethtec's Pilot Biorefinery Facility in Muswellbrook, New South Wales. Assisted by funding from the Australian Renewable Energy Agency (ARENA) and the New South Wales Government, and undertaken in collaboration with partners, including the University of Newcastle, the Project is intended to demonstrate the economic viability of large-scale ethanol production from biomass through an inline processing pathway. It’s expected to pave the way for a demonstration facility capable of producing approximately 30 million liters of ethanol annually.
Beyond ethanol production, the process will also support Sustainable Aviation Fuel [SAF] production or can be blended with diesel fuel to create Diesohol for use in road and rail transportation, mining and agriculture.
Ethtec views Diesohol as a solutionto greenhouse gas emissions reduction and a contributor to Australia's fuel security. As the process utilizes agricultural and forestry residues, it avoids the food-versus-fuel concerns associated with first-generation biofuels.
From Biomass Waste to Business Resource
Commercial practicality remains central to Ethtec's development strategy. In the sugar industry, where bagasse is generated during sugarcane processing, 2G cellulosic plants can be located directly at sugar mills, allowing the biomass to be processed where it is produced. Forestry and agricultural feedstocks present a different logistical challenge because, the material is dispersed across large areas, requiring facilities to be strategically located to support economical transport of biomass. Ethtec has also explored portable front-end processing systems that allow the sugar solutions to be transported to a central processing facility, thereby reducing the need to move large volumes of raw biomass.
Working in collaborations with organizations including Apace Research Limited, Novonesis, Dow Chemicals, Clextral and the University of Newcastle, Ethtec is advancing the commercial deployment of its 2G cellulosic technology. As part of this effort, it plans to deploy the technology in the second half of 2027 across major agricultural markets, including the U.S. and Brazil.


