Australia promises $735 million to launch biofuel industry
CANBERRA, Sept 17 (Reuters) – The Australian government said on Wednesday it would invest A$1.1 billion ($735 million) in the development of a low-carbon fuels industry, a move welcomed by farm groups, who hope it will boost demand for biofuel feedstocks like canola and sugarcane.
The money, to be released over 10 years from 2028, is intended to stimulate private investment in products like biodiesel and sustainable aviation fuel, the government said.
Australia is a major producer of crops such as canola, sugarcane, sorghum and tallow, that can be used to make fuel.
It currently exports the vast majority of those goods and imports most of its gasoline. Australian canola is a major feedstock for Europe’s biodiesel industry.
The government said in a statement,
Thanks to our advanced farming practices and access to cheap and reliable renewable energy, Australia is in an enviable position to produce cleaner, low-carbon liquid fuels that jets, ships, construction machines and heavy trucks need to reach net zero,
Finance Minister Jim Chalmers, said:
This is a down payment on developing an entirely new industry in Australia,
“It’s about making Australians and our economy big beneficiaries of the global net zero transformation.”
Climate and Energy Minister Chris Bowen, said:
More Aussie jobs, more profitable Australian farms and lower emissions.
“That’s the win-win-win,”
Private investors would be able to bid for government support for projects which would have to be producing fuel by 2029, he said.
Australian farm groups have been lobbying for investment in biofuels for years, saying that without government help, an industry won’t get off the ground.
Su McCluskey, interim CEO of the National Farmers’ Federation, said:
The economic opportunities it will bring are enormous for regional jobs,
The government is expected in the coming days to announce an emissions reduction target for 2035. Australia aims to reach net zero by 2050, but an increasing number of opposition, right-of-centre politicians say that goal should be abandoned.
($1 = 1.4952 Australian dollars)
Reporting by Peter Hobson; Editing by Michael Perry and Sonali Paul
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Australia promises $735 million to launch biofuel industry, source
