ARENA is providing A$2.4 million in funding support for Southern Oil Refining to develop and construct a state-of-the-art biocrude and biofuel laboratory in Yarwun, near Gladstone in Queensland. The project will inform the feasibility and design of a proposed commercial-scale biorefinery. ARENA CEO Ivor Frischknecht said there was clear potential for biofuel production and refining in Australia.