Abstract for: Circular economy diversification: Biofuel production in the Port of Newcastle

System dynamics (Powersim) is being used to assess the viability of the circular economy as a diversification strategy for the Port of Newcastle in response to declining coal shipments. This paper focuses on a study of biofuel production to exemplify the methodology. The economic viability and environmental impact of biomethane production is modelled, highlighting the influence of factors such as Australian Carbon Credit Units and government subsidies. The findings highlight the efficacy of the system dynamics approach for capturing the dynamic interactions and feedbacks within the circular economy. Future research aims to enhance the model's accuracy, explore additional feedback loops, and integrate stakeholder engagement strategies for a more robust and sustainable port.