The Australian Renewable Energy Agency (ARENA) will provide up to $4 million of the $11.8 million pilot project which involves building a demonstration scale hydrothermal liquefaction reactor to produce the renewable crude oil from biosolids.The biosolids will then be treated using a thermochemical conversion process to produce biocrude, which will be upgraded to renewable diesel and potentially renewable jet fuel.The process will take place at Southern Oil's refinery near Gladstone, Queensland, with Melbourne Water providing biosolids from wastewater treatment facility in Werribee, Victoria.ARENA CEO Ivor Frischknecht said the project could help solve the country's issues of fuel security. "A crucial service like wastewater treatment unfortunately produces a significant amount of leftover waste, so we're particularly excited to see Southern Oil Refining's project deliver an option to divert biosolids into a recycled, renewable form of energy,"? he said. "Biosolids are produced at sewage treatment facilities across the country and often stockpiled so this project could literally turn waste that into fuel."? Managing Director of Southern Oil Refining Tim Rose said the plan had real potential."With wastewater treatment stockpiles across the country, this project is entirely scalable and I believe will ultimately lead to the production of hundreds of millions of litres of renewable fuel each year,"? he said."This outcome would greatly benefit the environment, be tremendous for the economy while improving Australia's fuel security."?