The Australian Government has announced a 10-year Cleaner Fuels Program it says will promote private investment in local production of low-carbon liquid fuels to replace heavy fuel oils in cargo ships, jet fuel in airliners, diesel in heavy trucks and – eventually – diesel, petrol and liquified petroleum gas (LPG) in cars.
Federal minister for climate change and energy Chris Bowen said the $1.1 billion program plans to foster the introduction of biofuels made from feedstocks including canola, sorghum, sugar and waste.
The first of these ‘drop-in’ fuels is expected to be publicly available from 2029 to power “jets, ships, construction machines and heavy trucks”, said the government.
“Low-carbon liquid fuels are an enormous economic opportunity for Australia,” federal treasurer Jim Chalme