The Federal Government has invested $250 million to accelerate the development of the Low Carbon Liquid Fuels (LCLF) industry, a fuel source produced sustainably from waste, that could be used for heavy vehicle, rail and aviation transport, as well as construction.
Low carbon liquid fuels can be produced sustainably from waste, biomass such as agricultural feedstocks, or renewable hydrogen.
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 Future Made in Australia Innovation Fund is providing financial support and investment for various initiatives that support Australia’s transition to a net-zero economy, as well as greater support further growth and establishment of domestic production across the country. Funding is administered by the Australian Renewable Energy Agency (ARENA).
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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 Federal 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.
Minister for Climate Change and Energy Chris Bowen said the funding also aims to create new jobs and opportunities throughout the sector in Australia.
“The [Federal] Government is backing clean, green low carbon liquid fuels as an important part of our move towards net zero and long-term fuel security,” Bowen said. “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.”
