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Government opens consultation on low-carbon liquid fuel

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The Federal Government is encouraging stakeholder feedback on ways to kickstart Australia’s low-carbon liquid fuel (LCLF) industry.

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Following on from its 24-25 Federal Budget announcement that revealed a number of measures – such as $18.5 million over four years to develop a certification scheme for LCLFs – to decarbonise transport and infrastructure, the Ministers for Transport and Infrastructure, Catherine King, and Climate Change, Chris Bowen, released a joint statement announcing the opening of submissions.

“An Australian low carbon liquid fuel industry will make great use of existing resources, create new jobs in our regions, and provide the drop in fuel solutions our transport sector needs to assist them on their decarbonisation journey,” said King. “Our country currently exports a significant amount of canola and tallow each year, which is used to produce biofuels in Europe. As part of our Government’s commitment to a Future Made in Australia, we should be producing it right here, on our shores.”

According to the Government, sustainable fuels will play an important role as global economies transform to net zero, and as part of the $22.7 billion Future Made in Australia package, the Government believes they can help unlock investment and create jobs.

Advanced biofuels (sustainable aviation fuel and renewable diesel) are compatible with existing fuel infrastructure and can be produced from feedstocks including municipal solid wastes and agricultural crops that, according to the Government, are currently exported.

“Liquid fuels make up around half of our final national energy use, and are especially vital in our hard to electrify sectors like aviation, shipping and construction machinery,” said Bowen. “The previous Government talked big on fuel security while watching Australian refineries close. Making low carbon liquid fuel on our own shores – from Australian renewables and Australian feedstock – will make our future fuel supply cleaner, stronger and more secure.”

Consultation on A Future Made in Australia: Unlocking Australia’s low carbon liquid fuel opportunity will close on July 12, 2024.

Submissions can be made online at the Have Your Say or alternatively by emailing:

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