Biofuels

Liquid biofuels include:

• sustainable aviation fuel (SAF)
• renewable diesel
• ethanol
• methanol
• e-fuels
• biodiesel.

Australia uses large amounts of liquid fuel each year - about 7 billion litres of aviation fuel and 30 billion litres of diesel. Most of this is used by industries such as aviation, transport, mining, construction, and shipping. In Queensland, key industries like tourism, agriculture, and resources rely heavily on these fuels.

Some liquid biofuels, such as SAF and renewable diesel, are called “drop-in fuels.” This means they can be used in existing vehicles and equipment without needing any changes. For example, trucks, mining equipment, and even aeroplanes can use these fuels without upgrades (within certain limits).

Australia currently exports about $3.9 billion worth of raw materials (feedstocks) used to make biofuels overseas. By 2050, a fully developed liquid biofuels industry in Australia could be worth $36 billion , with an opportunity for much of the feedstock coming from agriculture.

Queensland already produces feedstocks like sugar cane and animal fats (tallow) and makes small amounts of biodiesel and about 60 million litres of ethanol each year. Expanding this industry could create jobs, support regional communities and reduce reliance on imported fuels.

Renewable diesel

Many industries—including transport, construction, and manufacturing—are looking for cleaner fuel options. Even though electric vehicles will increase, diesel (or renewable diesel) will likely still be needed until at least 2050, especially for heavy-duty work where electric power is not yet practical.

Sustainable aviation fuel

Globally Airlines want to reduce emissions by using cleaner fuels to meet environmental targets for the countries where they fly. For example, Qantas plans to use:

• 10% sustainable aviation fuel by 2030
• Around 60% by 2050

A 10% blend of SAF means Australia will need more than 700 million litres (ML) per year, increasing over time. While electrification may be suitable for shorter flights, SAF will be required in the long term for flights over 1,000 kilometres – that’s two-thirds of Australia’s domestic flights and all of our international flights.

Gas is a major energy source in Australia, used for about 25% of energy supply and some electricity generation. It is especially important for industrial processes that need very high heat.

Biogas is a renewable gas made from organic waste. It can be used to produce electricity, heat, and steam. It can also be upgraded into biomethane, which is very similar to natural gas.

Biomethane:

• can replace natural gas
• works with existing gas systems
• can be used as fuel for trucks and heavy vehicles.

Biogas can be produced by:

• breaking down organic material (anaerobic digestion)
• processing waste and wastewater
• capturing gas from landfill.

Although Queensland does not yet have large-scale production, this technology is widely used in Europe and the United States.

Biogas and biomethane can:

• lower energy costs for businesses
• provide renewable energy to communities
• improve waste management
• increase energy security.

Solid biofuels are made from organic materials and include:

• biomass used for electricity co-generation
• pellets and briquettes
• biochar
• biomass used for electricity generation.

In Queensland, a common example is co-generation at sugar mills, where leftover plant material (called bagasse) is used to produce electricity. While co-generation is used to reduce energy costs for the mills, it also currently supplies about 1.6% of the state’s electricity.

Pellets and briquettes are often exported but can also be used as a replacement for coal in power stations, furnaces, and heaters.

Biochar is mainly used in agriculture to improve soil but can also replace charcoal. The process of making biochar can also produce gases that can be turned into liquid biofuels.