Canberra: The Australian government on Wednesday announced a A$1.1 billion (S$938 million) investment to develop a low-carbon fuels sector, aiming to strengthen domestic production of biodiesel and sustainable aviation fuel (SAF), reports The Business Times.
The funding, to be spread over 10 years, is designed to encourage private investment and create new demand for agricultural feedstocks such as canola, sugarcane and sorghum. Australia currently exports much of these crops while importing the bulk of its petrol. Australian canola already serves as a key feedstock for Europe’s biodiesel industry.
“Thanks to our advanced farming practices and access to cheap and reliable renewable energy, Australia is in an enviable position to produce cleaner, low-carbon liquid fuels that jets, ships, construction machines and heavy trucks need to reach net zero,” the government said in a statement.
Finance Minister Jim Chalmers described the initiative as “a down payment on developing an entirely new industry in Australia.” He added: “It’s about making Australians and our economy big beneficiaries of the global net zero transformation.”
Farm groups, who have long pushed for government support, welcomed the announcement. Su McCluskey, interim CEO of the National Farmers’ Federation, said: “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.”
