A $250 million commitment as part of the wider $1.7 billion Future Made in Australia Innovation Fund to grow the nation’s Low Carbon Liquid Fuel (LCLF) industry.
Australia’s domestic LCLF industry will focus on renewable diesel fuel and sustainable aviation fuel in liquid fuel-reliant industries including heavy vehicle transport, rail and maritime, aviation, mining, agriculture and construction.
The CSIRO projects a strong Low Carbon Liquid Fuel industry could contribute between $6 billion and $12 billion annually in direct economic benefits and create diversified revenue streams for farmers and regional communities.
It will help support a diversification in agriculture and make use of excess feedstock from crops, sugarcane and waste products such as tallow.
Alongside the $250 million for LCLF, the Future Made in Australia Innovation Fund is providing $500 million for clean energy technology manufacturing capabilities.
The Sustainable Aviation Fuel Initiative has so far seen $33.5 million invested across five projects to date, including LCLF production facilities in Bundaberg and Townsville.
Federal Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King says investment in LCLF will help progress wider transport decarbonisation.
“We know industries vital to our national prosperity, like the transportation of people and goods across our vast land, are carbon intensive and hard to abate,” King says.
“That’s why we’re investing hundreds of millions of dollars to develop – right here in Australia – the low carbon liquid fuels of the future that will reduce their environmental impact without preventing their operation or expansion.
“We have all the ingredients in Australia to be a global clean energy superpower, and the Future Made in Australia Fund will help bring that potential to reality.”
Funding for the Future Made in Australia plan is administered by the Australian Renewable Energy Agency (ARENA) and builds on the momentum of the Sustainable Aviation Fuel Initiative.
“Australia has the know-how and skills to meet the crucial task of decarbonising hard to abate sectors such as aviation, heavy transport and mining that rely on liquid fuels,” Minister for Climate Change and Energy Chris Bowen says.
“Investing in a Future Made in Australia means delivering the industries that will provide high-end jobs, many in the regions, for future generations.”
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