Main content

Australia's natural advantage

Australia's natural advantage in biofuels includes:

  • readily available agricultural feedstock
  • existing refinery infrastructure that can be re-purposed
  • relevant technical expertise
  • research organisations that are exploring new ways to create biofuels
  • our industrial focus on sustainable aviation fuel (SAF), biodiesel and bioethanol. 

Today, Australia aims to become a become a major exporter of biofuels — including SAF. 

Australia is a natural producer of biofuels.

  • We have an abundance of biomass and feedstock to support production.
  • Our agriculture industry already works closely with scientists and research organisations.
  • There is growing domestic demand for biofuels in Australia.

How we can help


Biofuels industry in Australia

Biogenic feedstocks

Australia’s ability to satisfy local jet fuel from biogenic feedstocks: • 60% by 2025 • 90% by 2050

Sustainable aviation fuel

Australian farmers are already large-scale producers of crops that can be used for SAF. This includes carbohydrates (sugarcane, bagasse, sorghum), and oilseeds (canola, cottonseed, sunflower).

Australian state and territory governments want Australia to be a leader in the production of biofuels. This includes the science behind biofuels. As a major agrifood exporter, Australia has the capacity to deliver feedstock for biodiesel production. Crops include canola and tallow, plus forestry residue.

  • There is financial support for biofuels projects from national and state-based agencies.
  • Australia wants to be a leader in SAF. The Queensland Government supports the development of a SAF industry in Queensland, where suitable feedstock is grown.
  • We are already a major producer of feedstock for bioethanol. Molasses – a byproduct of sugarcane – contributes 22% to world ethanol production. Australia is the world’s third largest sugarcane producer.
  • Australian governments support the development of Power-to-Liquids (PtL) SAF. State and territory governments have implemented renewable energy targets.

Australia’s Jet Zero Council brings together stakeholders from across the aviation sector and its supply chains. The council will lead efforts to deliver net zero aviation in Australia, including via SAF.

Biofuels is a major focus for Australia’s scientific agencies and academic institutions.

The Sustainable Aviation Fuel Alliance of Australia and New Zealand (SAFAANZ) is a working group that will advance sustainable aviation fuel production, policy, education and marketing in Australia and New Zealand.

Incentives, grants and support

The Aviation White Paper sets out long-term policies to guide the next generation of growth and aviation innovation. This includes funding projects.

  • Australia’s Clean Energy Finance Corporation (CEFC) leads decarbonisation investment in clean energy and co-funds projects. It has access to around A$30 billion of Australian Government funding.
  • The $15bn National Reconstruction Fund has earmarked A$3 billion for renewables and low-emission technologies. This includes SAF projects.
  • The A$1.9 billion Powering the Regions Fund supports the decarbonisation of existing industries. It also supports the creation of new, clean-energy industries and jobs.
  • The Australian Renewable Energy Agency (ARENA) funds renewable energy and sustainable transport projects. It funds biofuels projects.