The Clean Energy Council has welcomed the Albanese Government’s announcement of more than $1 billion to establish a domestic low-carbon liquid fuels industry, describing it as a landmark step in decarbonising Australia’s hardest-to-abate sectors.
The funding package will support the production of sustainable fuels such as renewable diesel and sustainable aviation fuel (SAF), which can be produced from Australian feedstocks including sugarcane, canola and tallow. These fuels are essential for industries such as aviation, shipping and heavy machinery that cannot easily be electrified, and are expected to play a central role in meeting Australia’s 2035 climate targets.
The CEC has long called for government action to bridge the cost gap between low-carbon fuels and their traditional equivalents, and to provide investors with the confidence to build large-scale green fuel projects in Australia.
The announcement builds on the recommendations the CEC set out in its 2024 submission on unlocking Australia’s low-carbon fuel opportunity, which highlighted the importance of sector-wide mandates, durable policy frameworks and investment incentives.
Getting this right will require predictable mandates, smart incentives and durable policy settings so producers and users alike can plan with confidence. Today’s announcement is a strong start, and industry is ready to work with government to turn it into a world-leading clean fuels sector.William Churchill Clean Energy Council Chief Policy and Impact Officer
The CEC said the decision also positioned Australia to take advantage of its natural strengths. With world-class renewable resources and abundant agricultural feedstocks, the nation is well-placed to become a leading global producer of clean fuels, cutting reliance on imports, strengthening energy security and creating new regional jobs.
Quotes attributable to William Churchill, Chief Policy and Impact Officer, Clean Energy Council:
“Making cleaner fuels here in Australia means we can cut emissions in planes, ships and machines that simply can’t plug into the grid. This investment gives industry the confidence to build at scale and deliver real climate benefits.”
“We export the very ingredients needed to make sustainable fuels. This announcement puts us on a path to being a serious global producer, while creating jobs and cutting reliance on imported fuels.”
“Getting this right will require predictable mandates, smart incentives and durable policy settings so producers and users alike can plan with confidence. Today’s announcement is a strong start, and industry is ready to work with government to turn it into a world-leading clean fuels sector.”
ENDS
For more information or to arrange an interview, please contact:
Liam Straughan
Clean Energy Council Media Officer
+61 409 470 683
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