The Hon Chris Bowen MP, Minister for Climate Change and Energy
The Hon Catherine King MP, Minister for Infrastructure, Transport, Regional Development and Local Government
The Albanese Government is delivering $250 million to accelerate the pace of Australia's growing domestic Low Carbon Liquid Fuels (LCLF) industry.
This funding is part of the $1.7 billion Future Made in Australia Innovation Fund and will be provided as grants to support pre-commercial innovation, demonstration and deployment.
Low carbon liquid fuels can be produced sustainably from waste, biomass such as agricultural feedstocks, or renewable hydrogen.
Australia's domestic LCLF industry will focus on supplying sustainable aviation fuel and renewable diesel in liquid fuel-reliant sectors, including transport (aviation, heavy vehicle, rail and maritime), mining, agriculture and construction.
The development of low carbon fuels will drive economic growth and jobs in regional areas, including supporting diversification in agriculture, making good use of excess feedstock from crops, sugarcane and waste products such as tallow.
CSIRO projects that a LCLF industry could contribute between AUD $6 billion to $12 billion annually in direct economic benefits, with greater gains from regional co-benefits including diversified income streams for farmers and regional communities.
LCLFs not only help decarbonise hard-to-abate sectors of the economy but provide Australia with sovereign capability and resilience at a time of increasing international uncertainty.
Alongside the $250 million for low carbon liquid fuels, the Future Made in Australia Innovation Fund is providing $500 million for clean energy technology manufacturing capabilities including electrolysers, batteries and wind towers.
The Fund - a key element of the Future Made in Australia plan - will ensure Australia can maximise the economic and industrial benefits of the international move to net zero and secure Australia's place in a changing global and strategic landscape. Funding is administered by the Australian Renewable Energy Agency (ARENA).
The investment in a wider domestic LCLF industry builds on the momentum of the Sustainable Aviation Fuel Funding Initiative.
This Sustainable Aviation Fuel Funding Initiative has seen the Albanese Government invest in $33.5 million across five projects to date, including LCLF production facilities in Bundaberg and Townsville, and enabling the supply of sustainable aviation fuel at Brisbane Airport.
Funding from the Future Made in Australia Innovation Fund is subject to the legislated Future Made in Australia Community Benefits Principles. The Albanese Government established these principles to ensure public investment and the private investment it attracts, has a direct and tangible benefit for local workers and businesses.
Quotes attributable to Minister for Climate Change and Energy Chris Bowen
"The Australian Government is backing clean, green low carbon liquid fuels as an important part of our move towards net zero and long-term fuel security.
"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.
"Investing in a Future Made in Australia means delivering the industries that will provide high end jobs, many in the regions, for future generations."
Quotes attributable to Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King
"We know that industries vital to our national prosperity, like the transportation of people and goods across our vast land, are carbon intensive and hard to abate.
"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."
