The government is now operating in accordance with the Guidance on Caretaker Conventions, pending the outcome of the 2025 federal election.

Sustainable fuels

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:

  • readily available agricultural feedstock
  • existing refinery infrastructure that can be re-purposed
  • relevant technical expertise
  • research organisations that are exploring new ways to create low carbon liquid fuels
  • industrial focus on sustainable aviation fuel (SAF), biodiesel and bioethanol — Australia aims to become an exporter of low carbon liquid fuels — including SAF.

Australia is a natural producer of low carbon liquid fuels.

  • 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 low carbon liquid fuels in Australia.

How we can help

Snapshot


Low carbon liquid fuels 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).

Sources:

  1. Sustainable aviation fuel opportunities for Australia - CSIRO
  2. Fuelling Australia's future sustainable aviation industry - CSIRO

Incentives, grants and support

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:

Guarantee of origin 

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.

Aviation White Paper

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.

  • Australia is 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.
  • Bioenergy Australia promotes the development of a sustainable bioenergy industry in Australia. The organisation works with industry, government and research institutions.
  • 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 sustainable aviation fuel (SAF).
  • 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.

Low carbon liquid fuels is a major focus for Australia’s scientific agencies and academic institutions.

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