15-May-2024 10:44 AM

Australia to invest USD1bn over 10 years to commercialise low carbon liquid fuels

Australia's Government announced (14-May-2024) plans to increase support for a low carbon liquid fuel industry, as part of the Future Made in Australia plan. An initial focus will be on sustainable aviation fuel (SAF) and renewable diesel to support emissions reduction in the aviation, heavy vehicle, rail and maritime sectors. Details include:

  • AUD18.5 million (USD12.3 million) over four years from 2024/25 to develop a certification scheme for low carbon liquid fuels, including SAF and renewable diesel, in the transport sector by expanding the Guarantee of Origin scheme;
  • AUD1.5 million (USD993,584) over two years to undertake a regulatory impact analysis of the costs and benefits of introducing mandates or other demand side measures for low carbon liquid fuels;
  • AUD1.7 billion (USD1.13 billion) over the next decade in the Future Made in Australia Innovation Fund, to support the Australian Renewable Energy Agency to commercialise net zero innovations, including low carbon liquid fuels.

The government will undertake targeted consultation to identify options for production incentives to support the establishment of a low carbon liquid fuel industry. Tourism & Transport Forum CEO Margy Osmond stated: "Australia has the potential to become a world-leading supplier of sustainable aviation fuel, with enough feedstock to replace 90% of local jet fuel with SAF by 2050". She added that developing a local SAF industry would create "thousands of new jobs" in regional Australia. [more - original PR] [more - original PR - II]

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