Australian Government has announced a new ten‑year Cleaner Fuels Program

The Australian Government has announced a $1.1 billion investment to support domestic production of low carbon liquid fuels, including renewable diesel and sustainable aviation fuel, through a new ten‑year Cleaner Fuels Program.

Liquid fuels make up around half of Australia’s energy use and remain one of the hardest sectors to decarbonise. Developing cleaner “drop-in” fuels that are compatible with existing engines is an essential step to reducing emissions across transport, freight and aviation, while also strengthening fuel security.

Australia is well placed to build this industry, with abundant feedstocks including canola, sorghum, sugar, and waste, alongside reliable renewable energy. This industry could be worth $36 billion by 2050, delivering regional jobs and new opportunities from farming to refining.

Powering Australia’s Transport Sector Competitiveness Plan outlines how targeted investments and industrial capabilities can position transport as a major driver of emissions reduction and sustainable economic growth, complementing government efforts to unlock Australia’s clean fuel potential.

Read the full Cleaner Fuels Program announcement here.