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| Labor reveals $1.1bn plan to replace petrol with fuels made from canola, sorghum and sugar | |
| (30 minutes later) | |
| Program aims to replace liquid fuels – which make up a third of Australia’s emissions – with cleaner alternatives | |
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| The Albanese government will invest $1.1bn to drive local production of low-carbon liquid fuels under a new push to decarbonise hard-to-abate sectors that threaten its climate goals. | The Albanese government will invest $1.1bn to drive local production of low-carbon liquid fuels under a new push to decarbonise hard-to-abate sectors that threaten its climate goals. |
| The government will on Wednesday announce a 10-year grants program to encourage private sector investment in on-shore production of lower-emissions fuels, such as so-called renewable diesel and sustainable aviation fuels. | The government will on Wednesday announce a 10-year grants program to encourage private sector investment in on-shore production of lower-emissions fuels, such as so-called renewable diesel and sustainable aviation fuels. |
| The petrol alternatives – which are made from feedstock such as canola, sorghum and sugar – have long been touted as the solution to cut emissions in hard-to-abate sectors including aviation, cargo shipping and heavy road freight. | The petrol alternatives – which are made from feedstock such as canola, sorghum and sugar – have long been touted as the solution to cut emissions in hard-to-abate sectors including aviation, cargo shipping and heavy road freight. |
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| The announcement comes ahead of the anticipated release of the federal government’s 2035 emissions reduction target and detailed pathways to decarbonise six sectors of the economy, including transport and agriculture. | The announcement comes ahead of the anticipated release of the federal government’s 2035 emissions reduction target and detailed pathways to decarbonise six sectors of the economy, including transport and agriculture. |
| It follows the release on Monday of the landmark national climate risk assessment report, which outlines the severe and far-reaching social and economic consequences of the climate crisis for Australia. | It follows the release on Monday of the landmark national climate risk assessment report, which outlines the severe and far-reaching social and economic consequences of the climate crisis for Australia. |
| Liquid fuels account for roughly 32% of Australia’s total emissions, making the transition to a cleaner alternative critical to hitting net zero. | Liquid fuels account for roughly 32% of Australia’s total emissions, making the transition to a cleaner alternative critical to hitting net zero. |
| The treasurer, Jim Chalmers, and the climate change minister, Chris Bowen, will detail the new $1.1bn program at the Ampol refinery in Brisbane, promoting low-carbon liquid fuels as both a climate action and economic opportunity for Australia. | The treasurer, Jim Chalmers, and the climate change minister, Chris Bowen, will detail the new $1.1bn program at the Ampol refinery in Brisbane, promoting low-carbon liquid fuels as both a climate action and economic opportunity for Australia. |
| A July report from the Clean Energy Finance Corporation found Australia could develop a $36bn liquid fuels industry with the potential to reduce emissions by 230m tonnes by 2050. | A July report from the Clean Energy Finance Corporation found Australia could develop a $36bn liquid fuels industry with the potential to reduce emissions by 230m tonnes by 2050. |
| That is equivalent to 2.3 times Australia’s annual transport emissions, according to the government. | That is equivalent to 2.3 times Australia’s annual transport emissions, according to the government. |
| “Becoming a world-leading producer of low-carbon liquid fuels is a really big chance for Australia to be part of a really important, growing global supply chain,” Chalmers said. | “Becoming a world-leading producer of low-carbon liquid fuels is a really big chance for Australia to be part of a really important, growing global supply chain,” Chalmers said. |
| Bowen said low-carbon fuels offer a path to cut emissions in sectors that are “hardest to clean up”. | Bowen said low-carbon fuels offer a path to cut emissions in sectors that are “hardest to clean up”. |
| “Across the nation we have 2bn litres’ worth of projects in the pipeline, many of which are ready to scale up production. A new thriving domestic industry with more jobs in our regions, from farmers growing the inputs to workers refining the fuels of the future is within our reach,” he said. | “Across the nation we have 2bn litres’ worth of projects in the pipeline, many of which are ready to scale up production. A new thriving domestic industry with more jobs in our regions, from farmers growing the inputs to workers refining the fuels of the future is within our reach,” he said. |
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| The $1.1bn funding will be provided under a competitive grants system, with eligibility details to be thrashed out later this financial year. | The $1.1bn funding will be provided under a competitive grants system, with eligibility details to be thrashed out later this financial year. |
| The announcement has been welcomed by the Low Carbon Fuels Alliance of Australia and New Zealand, a group of more than 300 stakeholders involved in the sector. | The announcement has been welcomed by the Low Carbon Fuels Alliance of Australia and New Zealand, a group of more than 300 stakeholders involved in the sector. |
| “For industry, this is more than a funding announcement – it is a turning point. It gives companies the confidence to invest, innovate and build here in Australia, using our enormous feedstock potential to build a clean energy future,” said Shahana McKenzie, the founder of the alliance and the chief executive of Bioenergy Australia. | “For industry, this is more than a funding announcement – it is a turning point. It gives companies the confidence to invest, innovate and build here in Australia, using our enormous feedstock potential to build a clean energy future,” said Shahana McKenzie, the founder of the alliance and the chief executive of Bioenergy Australia. |
| “With demand for low-carbon liquid fuels rising both at home and abroad, this investment positions Australia to play a leading role in meeting that need.” | “With demand for low-carbon liquid fuels rising both at home and abroad, this investment positions Australia to play a leading role in meeting that need.” |
| The National Farmers Federation’s interim chief executive, Su McCluskey, praised the “significant” investment. | The National Farmers Federation’s interim chief executive, Su McCluskey, praised the “significant” investment. |
| “This isn’t just about cleaner fuels. It’s about creating jobs, diversifying farm businesses and ensuring our regions remain at the forefront of Australia’s transition to net zero,” she said. | “This isn’t just about cleaner fuels. It’s about creating jobs, diversifying farm businesses and ensuring our regions remain at the forefront of Australia’s transition to net zero,” she said. |