Australian Government looks to biofuels to reduce emissions

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While hobbyists have been spruiking the benefits of them for decades, the Australian Government is only now looking at sustainable biofuels for the transport industry.

The Australian Government is considering alternative biofuels as a way to reduce emissions from the transport industry.

This week the Government announced it was investigating ways to increase the manufacture and use of biofuels, also known as low carbon liquid fuels (LCLF), in the heavy vehicle fleets – as well as aviation, rail, and maritime sectors.

While LCLFs can be produced from solid municipal waste and agricultural crops, for decades hobbyists have been creating biodiesel at home using waste vegetable oil to power older diesel vehicles.

According to the Government, advanced biofuels, such as sustainable aviation fuel and renewable diesel, are compatible with existing fuel infrastructure and can lower the carbon output of engines, while also reducing the nation’s reliance on refined fuel derived from crude oil – much of which is sourced from overseas – increasing Australia’s fuel security.

“Our country currently exports a significant amount of canola and tallow each year, which is used to produce biofuels in Europe,” said Infratructure, Transport, Regional Development, and Local Government Minister Catherine King in a written statement.

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“As part of our Government's commitment to a Future Made in Australia, we should be producing it right here, on our shores.

“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,” she said.

In the most recent budget, the Australian Government announced $18.5 million over four years to develop a certification scheme for LCLFs, in an effort to ensure the quality and consistency of these biofuels, ensuring their reliability in all engines.

“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,” the Minister for Climate Change and Energy, Chris Bowen, said at the announcement.

“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.”

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A further $1.5 million over two years has also been committed by the Government to study the impact, costs, and benefits of creating an LCLF industry in Australia.

The Government is considering changes to how biofuels are taxed, as well as grants, incentives, and whether mandates should be introduced for heavy-polluting industries.

While Australian airline companies have begun using sustainable aviation fuel, the European Union has mandated airports use a mix of 2 per cent biofuel by 2025 – gradually increasing to 20 per cent by 2035.

As part of the process, a period of public consultation has been opened until 18 July 2024, with submissions invited on the Department of Infrastructure website, found by clicking here.

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