The Australia Government has committed $250 million to accelerate the pace of Australia’s domestic low carbon liquid fuels (LCLF) industry.
This funding is part of the $1.7 billion Future Made in Australia Innovation Fund and will be provided as grants to support pre-commercial innovation, demonstration and deployment.
Low carbon liquid fuels can be produced sustainably from waste, biomass such as agricultural feedstocks, or renewable hydrogen.
Australia’s domestic LCLF industry will focus on supplying sustainable aviation fuel and renewable diesel in liquid fuel-reliant sectors, including transport (aviation, heavy vehicle, rail and maritime), mining, agriculture and construction.
The Government claims the development of low carbon fuels will drive economic growth and jobs in regional areas, including supporting diversification in agriculture, making good use of excess feedstock from crops, sugarcane and waste products such as tallow.
The CSIRO projects that a LCLF industry could contribute between $6 billion to $12 billion annually in direct economic benefits, with greater gains from regional co-benefits including diversified income streams for farmers and regional communities.
Alongside the $250 million for low carbon liquid fuels, the Future Made in Australia Innovation Fund is providing $500 million for clean energy technology manufacturing capabilities including electrolysers, batteries and wind towers.
The investment in a wider domestic LCLF industry builds on the momentum of the sustainable aviation fuel funding Initiative.
This sustainable aviation fuel initiative has seen the Government invest $33.5 million across five projects to date, including LCLF production facilities in Bundaberg and Townsville, and enabling the supply of sustainable aviation fuel at Brisbane Airport.
Minister for Climate Change and Energy Chris Bowen says the Government is backing “clean, green low carbon liquid fuels as an important part of our move towards net zero and long-term fuel security.
“Australia has the know-how and skills to meet the crucial task of decarbonising hard-to-abate sectors such as aviation, heavy transport and mining that rely on liquid fuels.
“Investing in a Future Made in Australia means delivering the industries that will provide high-end jobs, many in the regions, for future generations.”
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