Australia Backs Big Biofuels Drive

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The Australian government has pledged A$1.1 billion (US$735 million) to ramp up its investment in the biofuels sector.

The money will play a crucial role in developing a domestic low-carbon fuels industry, it claimed and it was welcomed by the country's agricultural sector, which has been fighting for financial support to diversify into the alternative fuels sector. The new 10-year Cleaner Fuels Program is designed to stimulate private investment in domestic production of low carbon liquid fuels, such as renewable diesel and sustainable aviation fuel (SAF) to fuel trucks, cargo ships and planes into the future. The government said that it already has "the ingredients needed to make cleaner liquid alternatives to fossil fuels", including feedstocks like canola, sorghum, sugar and waste.

Liquid fuels make up around half of Australia's national energy use, and 80% of that is imported, costing almost A$51 billion (US$34 billion) in 2023. The government believes that replacing fossil fuels with cleaner alternatives will not only drive down emissions and secure fuel supplies, but offer a major economic opportunity. Today, Australia exports nearly A$4 billion (US$2.6 million) of suitable feedstocks like canola and tallow but according to the Clean Energy Finance Corporation (CEFC), an Australian low-carbon liquid fuel industry could be worth A$36 billion (US$23.9 billion) by 2050. Industrial Info is tracking 24 alternative fuels projects worth US$3.7 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

"Making cleaner fuels here, from Australian feedstocks, creates the path for emissions reduction in sectors that are hardest to clean up, like plane travel and construction machines," said Minister for Climate Change and Energy Chris Bowen. "Across the nation we have 2 billion litres worth of projects in the pipeline, many of which are ready to scale up production. A new thriving domestic industry with more jobs in our regions, from farmers growing the inputs to workers refining the fuels of the future is within our reach. A$1.1 billion (US$735 million) for low carbon liquid fuels production here in Australia builds on the A$250 million (US$166 million)we have already allocated to low carbon liquid fuels research and development through the Future Made in Australia Innovation Fund."

The investment was welcomed by Australia's National Farmers Association (NFF), which represents more than 85,000 agricultural businesses. Interim Chief Executive, Su McCluskey said: "This is an important acknowledgement that agriculture is a critical component of Australia's cleaner fuels future. Farmers already supply products that power biofuel industries overseas; this investment will help to support a domestic industry. "NFF members like GrainGrowers and Canegrowers have for years worked on developing policy settings that encourage domestic production, enabling their growers to access new markets and ensure their sectors remain profitable and sustainable. A strong domestic biofuels industry will help diversify the market opportunities for producers, a key element of risk management. This isn't just about cleaner fuels. It's about creating jobs, diversifying farm businesses, and ensuring our regions remain at the forefront of Australia's transition to net zero."

One of the country's leading developers of SAF projects, Jet Zero Australia (Sydney, Australia), welcomed the financial aid. "As a company focused on bringing the regions to the runway with SAF, we are extremely excited about this new funding support and what it means for our most advanced project, Project Ulysses," commented chief executive officer Ed Mason. Project Ulysses in Townsville, Queensland, has almost completed A$75 million (US$50 million) of engineering activities and early civil works and aims to commence construction in 2026. It will be capable of delivering 102 million liters per year (ML/yr) of SAF and 12 ML/yr of renewable diesel by 2028.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).