Have your say on a future made in Australia: unlocking Australia's low carbon liquid fuel opportunity

The Albanese Government is seeking views on ways to help kickstart Australia’s low carbon liquid fuels (LCLF) industry, from farm and feedstock to bowser. 

We are seeking feedback on options for production incentives and other measures to assist the growth of the industry. 

Sustainable fuels will play an important role as global economies transform to net zero, and as part of the $22.7 billion Future Made in Australia package, we can help unlock investment and create jobs.

LCLFs are a priority sector in the package, with initiatives identified to support the growth of new industries to benefit communities and workers.

Advanced biofuels (sustainable aviation fuel and renewable diesel) are compatible with existing fuel infrastructure and can be produced from feedstocks including municipal solid wastes and agricultural crops, some of which are currently exported.

The response to the consultation paper will help ensure Australia has the appropriate policy settings to encourage the growth and use of sustainable fuels which will help decarbonise the transport sector.

A domestic LCLF industry will produce sustainable fuels to support emissions reductions in the aviation, heavy vehicle, rail and maritime sectors.

In the 2024-25 Federal Budget, the Government announced a number of measures to support a domestic low carbon liquid fuels industry, including $18.5 million over four years to develop a certification scheme for these fuels.  

The Government also committed $1.5 million over two years to undertake an impact analysis of the costs and benefits of demand-side measures for sustainable fuels, which will complement this targeted consultation.

Consultation on A Future Made in Australia: Unlocking Australia's low carbon liquid fuel opportunity will close on 18 July 2024.

Insights from this consultation will build on consultations carried out through the Aviation White Paper process and also inform the Government’s development of a Transport and Infrastructure Net Zero Roadmap.

Submissions can be made online at the Have Your Say or alternatively by emailing: lclfconsultation@infrastructure.gov.au.

Quote attributable to Infrastructure, Transport, Regional Development and Local Government Minister Catherine King:

“Our country currently exports a significant amount of canola and tallow each year, which is used to produce biofuels in Europe. As part of our Government’s commitment to a Future Made in Australia, we should be producing it right here, on our shores.

“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.” 

Quote attributable to Climate Change and Energy Minister Chris Bowen:

“Liquid fuels make up around half of our final national energy use, and are especially vital in our hard to electrify sectors like aviation, shipping and construction machinery. 

“The previous Government talked big on fuel security while watching Australian refineries close. Making low carbon liquid fuel on our own shores - from Australian renewables and Australian feedstock – will make our future fuel supply cleaner, stronger and more secure.”