Opportunities and Priorities for a Low Carbon Liquid Fuel Industry in Australia

March 4th, 2025

Australia now has an opportunity to develop a LCLF industry which delivers regional economic growth while meeting decarbonisation and fuel security goals.

Australia can play a key role, as both a source of feedstocks and as a LCLF producer, with Australia already producing significant quantities of feedstocks exported for LCLF production.

There is significant potential to refine new and existing biomass sources through a variety of conversion pathways. Australia is well-positioned to expand biomass into a diversified portfolio of feedstock sources. 

Australia’s growing hydrogen economy could provide a clean supply of hydrogen which is needed by several pathways as either a feedstock on its own or in future fuel production processes.

But, key questions remain around affordability and sustainability, as well as competition for feedstocks and economically efficient scales of production. With numerous feedstocks and technologies to choose from, what are Australia’s most suitable LCLF options?