Renergi was created out of Curtin University to commercialise a suite of energy technologies developed by the university's Fuels and Energy Technology Institute.

Renergi's efforts include biomass gasification for distributed power and heat generation, biomass pyrolysis and refinery for the production of biochar, bio-oil and advanced biofuels, and co-firing of biomass with coal in the existing coal-fired power stations.

With the funding, Renergi aims to scale up existing technology and will design construct a 100kg per hour biomass conversion (pyrolysis) unit along with a complementary 20 litre per hour bio-refinery unit.

"Biomass like agricultural waste and mallee can be used to produce products that replace fossil fuels, including bio-oil and advanced biofuels," ARENA CEO Ivor Frischknecht said.

"Renergi's approach would allow green bio-crude to be produced by conversion units at the source of feedstocks and refined into high quality transport biofuels and a large central refinery."

Frischknecht said the technology had the potential to reduce the cost of bioenergy by offering novel approaches to conversion and refining processes.

“Existing processes require agricultural waste crops to first be ground into smaller pieces, costing considerable time and energy. Renergi’s solution aims to streamline this step by incorporating steel grinding balls into a rotating biomass conversation unit, allowing simultaneous break-down and gasification," Frischknecht said.

“The plant will operate at low temperatures and close to atmospheric pressure increasing safety and reducing energy requirements and capital costs."

The $12.9 million project is scheduled for completion in October 2017.