Australian farmers may soon find a new market for their canola crops—as a source of low-carbon fuel for jet engines. A new initiative aims to produce sustainable aviation fuel (SAF) from domestically grown canola, potentially transforming both the energy and agriculture sectors, reports ACB.Net.
Aviation accounts for around 2.5% of global carbon emissions and is among the hardest industries to decarbonise. The growing global demand for SAF is now positioning Australian-grown canola—long valued for its oil and pretty yellow flowers—as a potential solution.
Currently, most Australian canola is exported to Europe, where it is processed into biofuel. Now, a local plan led by fuel company Ampol, agribusiness GrainCorp, and investment firm IFM Investors is exploring how to refine canola oil within Australia for use in aviation.
GrainCorp is planning a new canola crushing facility capable of processing 1 million tonnes of canola each year—almost double the capacity of its existing plant in Numurkah, Victoria. Although a site hasn’t been finalized, options include Western Australia and New South Wales. The by-product, canola meal, would be used for livestock feed, while the oil would be transported to Ampol’s Brisbane refinery to be converted into renewable diesel and SAF.
Brent Merrick from Ampol described the project as a major opportunity, with engineering already underway and a target production date around 2030. “This is a rare chance to make a real change in how Australia produces and uses energy,” he said.
However, the companies involved say they’ll need government support to get the SAF sector off the ground. Don Campbell from GrainCorp said that while SAF is currently more expensive than conventional jet fuel, financial assistance could help bridge the gap.
“We’re still figuring out how much support we need,” said Campbell, adding that temporary subsidies, start-up funding, and government mandates for airlines to use SAF could all be part of the package.
Australian airlines are already showing interest. Qantas recently imported nearly 2 million litres of SAF from Malaysia—enough to power about 900 Sydney-to-Auckland flights once blended.
The federal government has committed over $30 million toward building an SAF industry in Australia, including $8 million for Ampol and $6 million for GrainCorp. In addition, a $250 million fund has been announced to accelerate local low-carbon liquid fuel production.
Speaking at a GrainCorp facility, Transport Minister Catherine King emphasized the importance of keeping value-added production within Australia. “It doesn’t make sense to keep sending our feedstock overseas to make low-carbon fuels,” she said. “We should be doing this here—for our farmers, our manufacturing sector, and the broader economy.”
The national science agency CSIRO estimates that a domestic SAF industry could contribute up to $12 billion annually to the Australian economy. GrainGrowers spokesperson Zach Whale said regional areas would benefit the most, with added fuel security and more market options for farmers.
“We don’t expect farmers to abandon other crops, but canola could see stronger domestic demand and better prices,” Whale noted.
CSIRO scientist Dr. Cathryn O’Sullivan highlighted the importance of sustainability checks to ensure food systems aren’t negatively affected. “This isn’t a roadblock, but we do need strong measures to balance food production and fuel use,” she said.
Canola, she added, is a good example of a dual-purpose crop: its oil can be used for either food or fuel, and the remaining meal supports the livestock industry.
Whale agreed, stressing the dual benefits: “It’s not about choosing between food and fuel—it’s about producing both.”
This year, Australian grain growers are expected to harvest 5.7 million tonnes of canola from 3.4 million hectares, indicating that the crop’s future could be as prominent in energy as it is in agriculture.
