Why Australia? A Strategic Partner in Renewable Fuels
Australia is rapidly progressing policy for renewable fuels as the economy transitions to Net Zero. The Australian Government recently announced its emission reduction targets of 62-70% for 2035, building on the 43% target for 2030. Renewable liquid and gas fuels will become increasingly important in the transition as Australia and the APAC region move further along the pathway to net zero. For global companies looking to secure feedstock, diversify supply chains, and expand into growth markets, Australia offers a compelling proposition:
-
Abundant Feedstock: Vast supplies of renewable energy sources, agricultural residues, organic waste, and forestry by-products provide a strong foundation for large-scale SAF, biomethane, and renewable diesel projects.
-
Ambitious Policy Frameworks: Australian governments are advancing policies for supply and demand side policies, renewable gas targets, feedstock developments, and investment incentives to accelerate decarbonization.
-
Government Incentives: The Australian Government is funding low carbon liquid fuels (LCLF) through the Cleaner Fuels Program, with a new $1.1 billion investment announced in September 2025. This funding builds on an earlier $250 million allocation to the Future Made in Australia Innovation Fund that will support trials and co-investment of Low Carbon Liquid Fuel (LCLF) projects, infrastructure and feedstocks. In addition, The Australian Government has commenced the development of a Certificate of Origin Scheme for Low Carbon Fuels with an expansive approach to feedstock that will enhance Australia’s agriculture industry.
-
Emerging Opportunity: Australia’s bioenergy industry is largely undeveloped compared to other markets. With an abundance of feedstock, supportive government frameworks it is the perfect timing for early movers to establish projects. In addition, Australia is liquid fuel reliant with over 50% of domestic energy currently from liquid fuels and the domestic traditional fossil refining industry has declined rapidly with over 80% of liquid fuel now imported.
-
Stable and Investment-Friendly: Australia offers a robust, transparent economy with strong institutional support and appetite for foreign investment in decarbonization projects. The government has prioritized renewable fuels as a significant contributor to achieving the committed to decarbonization target.
-
Like-Minded Partner: With shared commitments to net-zero emissions and high sustainability standards, Australia aligns with global climate and energy priorities.
Please note that the expression of interest is NOT yet an official registration to the Australian Renewable Fuels Delegation. Austrade will evaluate all expressions of interest submitted. We will reach out to you to confirm your eligibility, as well as provide information on the next steps for registration and confirmation of participation.
