Opportunities and Priorities for a LowCarbon Liquid Fuel Industry in Australia

As Australia transitions toward net zero emissions, the country faces both challenges and opportunities in decarbonising hard-to-abate sectors such as transport, aviation, and mining. The global shift towards Low-Carbon Liquid Fuels (LCLFs) presents an opportunity for Australia to leverage its abundant biomass resources and renewable energy potential. The report outlines key areas for development, barriers to industry growth, and policy considerations that can support a sustainable LCLF industry.

Download the summary report “Opportunities and Priorities for a LowCarbon Liquid Fuel Industry in Australia”

Key findings of the report:

• Australia could achieve over 33 million tonnes CO2-e per year in emissions abatement by 2035 through LCLF production.
• Developing a domestic LCLF industry could contribute between AUD $6 billion to $12 billion annually in economic benefits.
• The feedstock supply base includes agricultural and forestry residues, emerging biomass sources, and green hydrogen integration.
• LCLFs are a drop-in solution that can replace fossil fuels without requiring major infrastructure changes.

Learn more about Tas 43 (Biomass Supply in a Nature Positive Circular Economy).