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
  • our industrial focus on sustainable aviation fuel (SAF), biodiesel and bioethanol — Australia aims to become a major 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:

  • 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 A$15 billion 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 administers the A$1.7 billion Future Made in Australia Innovation Fund, which funds the deployment of innovative technologies and facilities linked to priority industries, including low carbon liquid fuels. 

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 Aviation White Paper sets out long-term policies to guide the next generation of growth and aviation innovation in Australia, including sustainable aviation fuel.

Australian state and territory governments want Australia 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.

  • There is financial support for low carbon liquid fuels 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.

Low carbon liquid fuels 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.

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