We’re seeking your views on the options for, and design of, production incentives and other demand side measures to support a domestic low carbon liquid fuel (LCLF) industry, as part of a Future Made in Australia. 

The Issue

The Australian Government has announced a new Future Made in Australia Act identifying a package of reforms and initiatives which will support the growth of new industries to benefit communities and workers. Low carbon liquid fuels (LCLFs) have been identified as a priority sector as part of a Future Made in Australia.

In the 2024-25 Federal Budget, the Government announced it is undertaking targeted consultations to identify the best form of production incentives and other measures to support the establishment of a made in Australia LCLF industry. This consultation paper builds on public consultation on the Aviation Green Paper, Renewable diesel fuel quality standards, and the Electricity and Energy Sector Plan.

As part of the Future Made in Australia plan, the government is fast-tracking support for an LCLF industry. The domestic LCLF industry will initially focus on sustainable aviation fuel and renewable diesel to reduce emissions in fuel reliant sectors, including transport (aviation, heavy vehicle, rail and maritime), mining, agriculture and construction. The government has also committed $1.5 million over 2 years from 2024-25 to undertake a regulatory impact analysis of the costs and benefits of introducing mandates or other demand-side measures for LCLF.

We are seeking your views, including relevant data and analysis, to inform how an Australian LCLF industry will be supported. Insights from the consultation will also inform the Government’s development of a Transport and Infrastructure Net Zero Roadmap and the Electricity and Energy Sector Plan, and further regulatory impact analysis on the introduction of an LCLF mandate or other demand measures to support an LCLF industry.

The outcomes of consultation are expected to be considered by Government by the end of 2024.

Relevant documentation

• Consultation Paper – Low Carbon Liquid Fuels - A Future Made in Australia: Unlocking Australia’s low carbon liquid fuel opportunity

Outcome

Submissions on the Low Carbon Liquid Fuels Consultation Paper closed on 18 July 2024. This consultation process has been an important opportunity for the Australian community and industry to have their say. The input received is important to government decision making on policies to support the establishment of domestic low carbon liquid fuel industry in Australia and transitioning transport to net zero operations by 2050.

Submissions made on the Consultation Paper are published below. All submissions were reviewed to ensure that the privacy of submitters is respected, those that indicated they wanted to remain in-confidence have not been published.

The Department is not responsible for the content of these submissions, which remains the responsibility of the original authors and do not represent the views of the Department. To the extent permitted by law, the Commonwealth disclaims liability to any person or organisation in respect of anything else done, or omitted to be done, in reliance upon information contained in any of the submissions.

Source: https://www.infrastructure.gov.au/have-your-say/consultation-future-made-australia-unlocking-australias-low-carbon-liquid-fuel-opportunity

Learn More:

• Future Made in Australia Innovation Fund (overview) — “Future Made in Australia Innovation Fund”
• FMA Innovation Fund Priority: Low Carbon Liquid Fuels — “Low Carbon Liquid Fuels (LCLF) priority funding”
• Financing & Funding — “financing and funding support”
• Feasibility Studies — “feasibility studies for SAF/renewable diesel pathways”
• Due Diligence Services — “technical and commercial due diligence”
• Carbon Intensity Management — “MRV and carbon intensity strategy”
• Pyrolysis Oil Upgrading (projects hub) — “low carbon liquid fuels upgrading pathways”
• Project Evaluation — “submit an Australia fuels project for review”

Request an Australia LCLF Policy-to-Project Readiness Review

If you are developing SAF, renewable diesel, or enabling infrastructure, we will map your project against the consultation’s incentive and demand-measure logic—plus a diligence-ready plan for permitting, MRV, and offtake.

Contact a Klean Industries Expert Today » GO.