More than $1 billion will be invested in growing Australia’s sovereign low carbon fuel making capabilities.
Federal Agriculture, Fisheries and Forestry Minister Julie Collins said a new 10-year Cleaner Fuels Program aimed to stimulate private investment in Australian onshore production of low carbon liquid fuels, such as renewable diesel and sustainable aviation fuel.
Minister Collins said the $1.1 billion investment would help ensure the country had strong supply chains for the more sustainable fuels that could power our trucks, cargo ships and planes into the future.
She said the first production of ‘drop-in’ cleaner fuels, which could be directly substituted for existing fuels and worked in today’s engines, was estimated by 2029.
“Australia has the ingredients needed to make cleaner liquid alternatives to fossil fuels, with ready access to feedstocks like canola, sorghum, sugar and waste.
“Thanks to our advanced farming practices and access to cheap and reliable renewable energy, Australia is in an enviable position to produce cleaner, low carbon liquid fuels that jets, ships, construction machines and heavy trucks need to reach net zero.”
Treasurer Jim Chalmers said liquid fuels made up around half of Australia’s national energy use.
Treasurer Chalmers said replacing those fossil fuels with cleaner alternatives would deliver a massive climate and economic opportunity.
He said Australia already exported nearly $4 billion of suitable feedstocks like canola and tallow.
“But the Clean Energy Finance Corporation (CEFC) estimates an Australian low carbon liquid fuel industry could be worth $36 billion by 2050 – highlighting the untapped potential of developing local refining and value-adding capability.”
Treasurer Chalmers said funding to make cleaner fuel on Australian shores, from Australian feedstock would help back Australian innovators from the farmer to the fuel bowser, make the fuel supply greener and more resilient and make low carbon fuels available for early adopters.
He said details about eligibility would be considered through public consultation and design work to take place this financial year.
