Could native forests be part of Cement Australia's 'sustainable' fuel option?

Cement Australia is upgrading its Railton kiln so that it can run off alternative fuels such as wood. (ABC News: Sandy Powell)

Cement Australia will update a coal-fired kiln in Tasmania to supplement its fossil fuel use with alternative fuel sources such as used tyres and sustainable wood waste.

But conservationists say the wood waste, if sourced from native forest logging, could offset the environmental benefit.

The six-week site upgrade at the Railton kiln in Tasmania's north-west is underway, with the new fuels set to be in operation by the third quarter of 2026.

One of the largest cement manufacturing sites in Australia has temporarily shut operations as it upgrades its coal-fired kiln to accept alternative fuel sources such as used tyres and "sustainable" wood waste.

Cement Australia's Railton plant, in north-west Tasmania, will stop production for an estimated 45 days to allow for the $108 million works as the company moves to reduce its reliance on fossil fuels.

The company — which produces 1.4 million tonnes of finished cement annually — says the project is key to its decarbonisation efforts, but conservationists question whether the proposed wood waste would be sourced from plantation timber or native logging.

Cement Australia's Railton plant is one of the biggest cement manufacturing sites in the country. (ABC News: John Gunn)

Opponents of the partially federally funded project say the move to wood chips could increase harmful emissions.

In 2024, Cement Australia's chief executive Rob Davies said alternative fuels would make up 35 per cent of the plant's fuel use, with wood chips making up 30 per cent and used tyres 5 per cent.

The company started using alternative fuels in 2008, and they now account for 15 per cent of its fuel use.

Cement Australia is a major part of the country's construction materials industry. (ABC News: Maren Preuss)

In 2024, the federal government announced $53 million in funding for the kiln's Alternate Fuels Project as part of the $330 million Powering the Regions Fund.

The funding package will help nine major heavy industrial manufacturers decarbonise.

Cement Australia has not said whether the biomass would be sourced from plantations or native forest harvesting. (ABC News: Tony King)

By switching to alternative fuels, Cement Australia expects to reduce coal use by 111,000 tonnes a year, and reduce carbon dioxide by 105,000 tonnes over the same period.

Last month, Tasmania's Environment Protection Authority (EPA) gave the project the green light, but with strict conditions.

"The board determined that w