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Home Alternative fuel

Cenagen fuels tomorrow

by Lisa Korycki
December 17, 2025
in Alternative fuel, Emissions reduction, New South Wales, News, Sustainability
Reading Time: 3 mins read
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cenagen cement plan

A 3D render of the planned plant. Image: Cenagen

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An Australian town built on concrete could now pioneer a global circular economy first.

The former Cement Australia cement works once supplied the material that hardened the foundations of modern Sydney, including the iconic Harbour Bridge and Opera House. Now, the sprawling industrial site, inactive since 2011, is preparing to forge a different kind of legacy: a groundbreaking, global-first industrial integration set to redefine resource recovery, sustainable fuel production, and food security in Australia.

Behind the proposal is an Australian-owned company, Cenagen, that is focused on developing sustainable, net-zero emission solutions using world’s best practice technology for the manufacturing of alternative fuels to support the decarbonisation of the economy.

In one of the largest industrial-renewal projects in New South Wales’s history, the proposal will transform the former Kandos cement works, located one hour north-east of Bathurst, into an advanced methanol production and greenhouse facility.

Operations will use a patented process and advanced gasification technology to produce methanol from process-engineered feedstock manufactured from residual household and business waste that cannot be recycled.

Green methanol is a form of sustainable transport fuel that can be used as an alternative to fossil-based fuels to reduce the greenhouse gas emissions of transportation fuels and is in high demand by the world’s shipping industry, which is heavily reliant on diesel.

The facility will also include a large-scale enclosed greenhouse complex, using captured carbon dioxide from the methanol production process to grow fresh produce and cut flowers.

cenagen cement plan
Cenagen will use existing infrastructure on the 50.29-hectare site, including a rail siding to transport waste. Image: Cenagen

The proposal represents a $1 billion capital investment in the New South Wales economy and is expected to create 300 to 350 permanent full-time jobs, revitalising local industry and supporting the state’s climate and sustainability goals.

“Cenagen is committed to working closely with the Kandos community to renew manufacturing at the former cement works,” says Jason O’Sullivan, Cenagen Chief Executive Officer.

“We are committed to designing and building a clean, world-class facility that builds on Kandos’ proud history.

“Our goal is to deliver a net zero emissions facility that will deliver long-term benefits for the region, creating jobs, opportunities and a sustainable future.”

Due to significant amount of community interest in the proposal, Cenagen will host multiple community information events over the coming months in Kandos and Rylstone.

“We are working to have respectful and meaningful engagement, taking feedback and incorporating it as the project progresses,” Jason says.

“We’re not just ticking a box, this is a commitment to having a positive impact and reflects our company’s ethos that we need to support the communities we join, not just the balance sheet.”

Cenagen is seeking community feedback on the proposal to include with the lodgement of a Scoping Report to include with a request for Secretary’s Environmental Assessment Requirements from the Department of Planning, Housing and Industry.

“We have partnered with global engineering firm, WoodBeca, which has a strong track record in the engineering design of bioenergy, oil, gas, wood and fibre developments,” Jason says.

“Specialist industrial planning firm JEP Environment & Planning will be leading the environmental assessment, community consultation and planning application for the proposal. It has led some of the largest and most complex industrial development approvals in New South Wales’s history.”

A comprehensive Environmental Impact Statement (EIS) will then be developed providing detailed assessments of issues such as human health, noise, air quality, traffic and access, hazards, fire safety, hydrology, soil, water, waste management, biodiversity, Aboriginal cultural heritage, European heritage, visual impacts, landscaping, social and economic matters.

For more information, visit: www.cenagen.com.au

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