Australia allocates $735 mln for biofuels development

The Australian government announced on Wednesday an investment of A$1.1 billion ($735 million) in low-carbon energy development. This move was welcomed by agricultural organizations, who hope it will boost demand for biofuel feedstocks such as canola and sugarcane.

In a press release, the government stated that the funds will be allocated over ten years to stimulate private investment in sustainable aviation fuel and biodiesel production.

Australia is one of the world’s leading producers of fuel crops such as sugarcane, canola, and sorghum.

Australia imports most of its gasoline and exports a significant portion of these crops. Australian canola is a key feedstock for the European biodiesel sector.

The statement stated that “thanks to our advanced agricultural practices and access to affordable and reliable renewable energy, Australia has an enviable opportunity to produce cleaner, lower-carbon liquid fuels for aircraft, ships, construction equipment, and heavy trucks to achieve net-zero emissions.”

Jim Chalmers, Australia’s Minister for Finance, stated, “This is a down payment on developing a completely new industry in Australia.”

The goal is for Australians and our economy to be major beneficiaries of the global transformation toward net-zero emissions.

Australian farming groups have been lobbying for government investment in biofuels for years. They argue that without it, the industry will not take off.

It’s not just about cleaner fuel. Su McCluskey, acting CEO of the National Farmers Federation, noted that it’s not just about cleaner fuel, but also about creating jobs and diversifying the agricultural industry.

Tags: Australia, rapeseed, biofuel