Australia is set to grow enough canola this year to \u201cfill just over six MCGs\u201d,\u00a0according to CommBank Agriculture and Sustainability Economist Dennis Voznesenski. Yet\u00a0very little\u00a0of that crop stays at home.<\/p>\n
\u201cMost of our canola is sent to Asia, the Middle East and Europe,\u201d Voznesenski said.<\/p>\n
Once offshore, the oilseed has two main uses. One is familiar \u2013 cooking oil. The other surprises many people.<\/p>\n
\u201cIt\u2019s either eaten as cooking oil or, believe it or not, turned into fuel,\u201d he said.<\/p>\n
Why canola is part of the fuel conversation<\/p>\n
The idea of crops powering vehicles\u00a0isn\u2019t\u00a0new, but it has gained momentum as governments and industries look for ways to cut emissions.<\/p>\n
\u201cA while ago scientists found that biofuels, when burnt in a car, truck or plane, produce\u00a0fewer\u00a0emissions than conventional fossil fuel,\u201d Voznesenski said.<\/p>\n
Biofuels are particularly relevant for sectors where cutting emissions is difficult. Aviation is one of them.<\/p>\n
\u201cYou can make cars electric but not planes, at least not yet,\u201d he said. \u201cIn the case of plane transportation, it helps reduce emissions in a hard to abate sector.\u201d<\/p>\n
That makes sustainable aviation fuel a growing focus globally \u2013 and a potential opportunity for Australian agriculture.<\/p>\n
The missing piece: local production<\/p>\n
Despite Australia\u2019s large canola harvests, the country currently has limited ability to turn crops into fuel.<\/p>\n
\u201cAs of today, there\u2019s very limited capacity to create biofuel in Australia for road-based vehicles, and none for planes,\u201d Voznesenski said.<\/p>\n
The main barrier is cost.<\/p>\n
\u201cThe cost of biofuel far outstrips conventional diesel,\u201d he said.<\/p>\n
That price gap has slowed investment locally, even as overseas markets scale up production and demand.<\/p>\n
More than an emissions story<\/p>\n
While emissions reduction is often the headline, Voznesenski said local biofuel production could deliver broader economic and strategic benefits.<\/p>\n
One\u00a0is\u00a0supply\u00a0security.<\/p>\n
\u201cLast year Australia imported over 95 per cent of its fuel,\u201d he said. \u201cThat\u2019s a scary stat for any industry.\u201d<\/p>\n
Producing more fuel domestically could reduce Australia\u2019s exposure to global supply disruptions and geopolitical shocks.<\/p>\n
Another\u00a0benefit is for farmers.<\/p>\n
\u201cCreating local demand for crops reduces the risk of economic coercion being used against the farming sector,\u201d Voznesenski said, pointing to recent tariff disputes that have affected agricultural exports over the past five years.<\/p>\n
A domestic biofuels industry could provide growers with another major buyer for their crops, helping to diversify income streams and reduce reliance on a small number of export markets.<\/p>\n
What it could mean for canola growers<\/p>\n
If Australia were to\u00a0establish\u00a0a sustainable aviation fuel industry, the scale of demand would be significant.<\/p>\n
\u201cIf a sector for sustainable aviation fuel production is created in Australia, our numbers show that roughly a million tonnes of canola would be needed,\u201d Voznesenski said.<\/p>\n
That level of demand would\u00a0represent\u00a0a substantial share of current production and could reshape how and where canola is sold.<\/p>\n
It would also keep more value onshore, linking regional farming communities more closely to domestic energy and transport supply chains.<\/p>\n
The key takeaway<\/p>\n
Canola may look like just another crop, but it sits at the intersection of agriculture, energy\u00a0security\u00a0and emissions reduction.<\/p>\n