NEWCASTLE, AUSTRALIA — The Australian government is seeking input on what is needed to establish a low carbon liquid fuels (LCLF) program as part of its Future Made in Australia Act to support the growth of new industries.

As part of the Future Made in Australia plan, the government is fast-tracking support for an LCLF industry. The domestic LCLF industry initially will focus on sustainable aviation fuel and renewable diesel to reduce emissions in fuel reliant sectors, including transport (aviation, heavy vehicle, rail and maritime), mining, agriculture and construction. The government also has committed A$1.5 million over two years from 2024-25 to undertake a regulatory impact analysis of the costs and benefits of introducing mandates or other demand-side measures for LCLF.

The government is asking for relevant data and analysis so it can determine how an LCLF industry will be supported. Information gathered will be used to develop a Transport and Infrastructure Net Zero Roadmap and Electricity and Energy Sector Plan.

The consultation is further recognition of the crucial role that sustainable aviation fuel (SAF) and renewable diesel play in decarbonizing the Australian transport sectors, said Robert Spurway, managing director and chief executive officer at GrainCorp.

“The government’s launch of this consultation process will ensure we capture crucial industry knowledge and feedback to establish a renewable future in Australia,” he said. “This in turn will provide Australian growers, domestic feedstock supply chains and SAF refiners with the confidence to invest and build capacity to decarbonize our transport sectors.”

The consultation complements a broader budgetary commitment of the A$22.7 billion Future Made in Australia package, which will help to accelerate investment and commercialization of renewable initiatives in priority industries.

“As the demand for renewable fuel feedstocks and SAF continues to grow, it presents a unique opportunity for Australia to make the most of its comparative advantage in agriculture capability, sustainable farming practices and land availability,” Spurway said. “GrainCorp is a leading supplier of feedstocks like tallow, vegetable oils and used cooking oils, and we’ll contribute our expertise to this consultation, as we look to expand our canola seed crush capacity to support the growth of this industry.

“We’re working closely with IFM Investors on our feasibility study into domestic crop-based fuel production, including the policy frameworks required to establish this exciting new opportunity for Australian growers.

“With the right incentives in place, a local SAF industry would onshore a valuable market for canola growers and feedstock producers, who are already exporting our surplus homegrown materials overseas for refining into biofuels.”