Sustainable aviation and diesel fuels play a key role as the global and Australian economies transition to net zero. These fuels offer a decarbonisation pathway for many challenging sectors such as aviation, shipping and heavy transport.
Australia's natural advantage in low carbon liquid fuels includes:
The Australian government's investment in low carbon liquid fuels has facilitated the development of innovative technological capabilities. These capabilities can help enhance overseas production capacities.
Through international partnerships, Australian companies are eager to support the availability of low carbon liquid fuels worldwide, as well the global push toward Environmental, Social, and Governance (ESG) goals and a decarbonised aviation sector.
Australia is a natural producer of low carbon liquid fuels.
There is growing domestic demand for low carbon liquid fuels in Australia.
Australia is investing in its capability. The development of production facilities and advancing new and existing technologies has led to growing momentum in this sub-sector. Recent notable partnerships between Australian companies and multinationals have highlighted the role of this sub-sector in the future of Australia's Green Economy and emphasised Australia’s potential capacity to deliver.
In the medium term, Australian companies may be able to export the fuel itself in addition to their technological solutions and expertise.
Australia’s ability to satisfy local jet fuel from biogenic feedstocks: • 60% by 2025 • 90% by 2050
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).
The Australian Government’s Future Made in Australia plan identifies low carbon liquid fuels as a priority industry that can make a significant contribution to achieving net zero, where Australia has a comparative advantage.
The Australian Government’s initiatives to support the low carbon liquid fuels industry include:
The Australian Government is making it easier for businesses and trading partners to source low-emissions products by building better markets and product standards for green products.
The Guarantee of Origin scheme will measure and certify the emissions intensity across the supply chain of key products.
The Australian Government is fast-tracking the initial phase of this scheme, focused on renewable hydrogen. The program will also be expanded to green metals and low carbon liquid fuels.
The Australian Government's Aviation White Paper sets out long-term policies to guide the next generation of growth and aviation innovation in Australia, including sustainable aviation fuel.
Australia has the potential to be a leader in the production of low carbon liquid fuels. This includes the science behind low carbon liquid fuels. As a major agrifood exporter, Australia has the capacity to deliver feedstock for biodiesel production. Crops include canola and tallow, plus forestry residue.
Low carbon liquid fuels is a major focus for Australia’s scientific agencies and academic institutions.
