Prime Minister Anthony Albanese has unveiled a bold plan that could see petrol and diesel phased out and replaced with fuel made from Australian canola oil.
The Albanese government announced on Wednesday it would be investing $1.1billion into a ten-year Cleaner Fuels Program aimed at tackling climate change.Â
The program is set to focus on maximising the economic and industrial benefits of shifting the country to clean energy as it moves towards a net zero target.Â
It will also focus on the economic opportunities on offer, from low-carbon liquid fuels, and prompt private investment in Australian onshore production.Â
The program outlined low carbon liquid fuels would include renewable diesel as well as sustainable aviation fuel.Â
However, the first production of ‘drop-in’ cleaner fuels – which can be directly substituted for exisiting fuels in current engines – will not be ready until 2029. Â
Treasurer Jim Chalmers said producing low-carbon liquid fuels in Australia could position the country as an indispensable part of the global market.Â
‘It’s about making Australians and our economy big beneficiaries of the global net zero transformation,’ Chalmers said.Â
The Albanese government announced on Wednesday it would be investing $1.1billion into a ten-year Cleaner Fuels Program
‘Developing this industry has the potential to make us an indispensable part of the growing global net zero supply chains.
‘This is a down payment on developing an entirely new industry in Australia.
‘It’s another way we’re helping Australians grasp the big benefits on offer in the transformation to cleaner and cheaper energy – to help lift wages, grow living standards, create jobs and grow our economy.’
Minister for Climate Change and Energy Chris Bowen added the production of low-carbon liquid fuel tackled emissions reductions in the hardest sectors including plane travel and construction machines.Â
Bowen added the program would also generate hundreds of jobs and create countless opportunities for Australian businesses.  Â
‘A new thriving domestic industry with more jobs in our regions, from farmers growing the inputs to workers refining the fuels of the future is within our reach,’ Bowen said.
The Albanese government argued Australia already has the ingredients needed to make cleaner liquid alternatives to fossil fuels, with ready access to feedstocks like canola, sorghum, sugar and waste.
Meanwhile, liquid fuels already make up around half of Australia’s national energy use.Â
The program would see diesel and petrol fuels phased out and replaced with low-carbon liquid fuels – made from canola oil – to help Australia shift to cleaner energy as it moves to net zeroÂ
The government added replacing the current fossil fuel use in the country with cleaner alternatives would create massive climate and economic opportunities.Â
Australia already exports almost $4billion of suitable feedstocks like canola and tallow.
However, an Australian low carbon liquid fuel industry could be worth $36billion by 2050 according to the Clean Energy Finance Corporation
Funding would also be provided through the program to Australian innovators, from farmers to the fuel bowser, to help transition to low-carbon fuels.Â
Details about eligibility for funding are set to be considered through public consultation and design work this financial year.Â
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Albanese government’s bold plan to ditch petrol in Australia: ‘Developing an entirely new industry’