The Australian government has committed A$250m (€147m) to the development of low-carbon liquid fuels (LCLF) from its A$1.7bn Future Made in Australia Fund.
As part of the Future Made in Australia programme, the federal government has recognised LCLF - including sustainable aviation fuel and renewable diesel - as being key to Australia’s transition to net zero, offering a decarbonisation pathway for many hard-to-abate sectors including aviation, shipping and heavy transport, said a consortium formed to establish an integrated renewable fuels supply chain in Australia.
In July last year, IFM Investors, Ampol and GrainCorp formed a partnership to jointly advocate for targeted supply and demand incentives to support the growth of a domestic market for LCLF.
Danny Elia, global head of asset management at IFM Investors described the government’s investment as a step in the right direction which would move the industry closer to take-off.
“We will continue to work with the government and our partners to accelerate superannuation investment in the energy transition in areas that can generate risk-adjusted returns for our clients and their millions of members.”
Ampol managing director and CEO, Matt Halliday, said: “The development of a domestic renewable fuels supply chain and unlocking the many benefits it could bring to Australia can only be realised if industry and government work together to achieve supportive policy settings.”
Robert Spurway, GrainCorp CEO, said the government’s investment was a critical step in building an Australian renewable fuels industry, creating new opportunities for agriculture and regional communities.
“Crop-based oils, like canola, will play a key role in supplying the feedstocks needed for the domestic production of sustainable aviation fuel and renewable diesel,” he said.
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