
Biofuels are now on the federal government’s list of options to reduce CO2 emissions, so much so that it’s made low-carbon liquid fuels (LCLF) a ‘priority sector’ within its $22.7 billion Future Made in Australia package.
The Albanese government released a new consultation paper last week titled ‘A Future Made in Australia: Unlocking Australia’s low carbon liquid fuel opportunity’, in which it explores the possible sourcing, production and certification of a local LCLF industry to support heavy vehicle fleets and the aviation, rail and maritime sectors.
A major drawcard of advanced biofuels like sustainable aviation fuel and renewable diesel is the fact they’re compatible with existing refuelling infrastructure and engine technology, and can be produced from feedstocks including municipal solid wastes and agricultural crops like canola.

Federal minister for infrastructure, transport, regional development and local government Catherine King said a “significant amount of canola and tallow” is exported to Europe each year, where it’s used to make biofuels.
“As part of our government’s commitment to a Future Made in Australia, we should be producing it right here, on our shores,” she said.
“An Australian low carbon liquid fuel industry will make great use of existing resources, create new jobs in our regions, and provide the drop in fuel solutions our transport sector needs to assist them on their decarbonisation journey.”



Depending on the feedback gained from the consultation paper, the government will commit $18.5 million over four years to develop a certification scheme for these fuels and cement it as a new local industry nurturing Australia’s transport sectors and creating jobs.
A number of manufacturers have been campaigning for the legalisation and commercialisation of sustainably produced biofuels and e-fuels for years now.
Porsche has even gone as far as establishing its own e-fuel production facilities around the world, including a Tasmanian plant to commence operations in 2026.
