Liquid biofuels

Liquid biofuels include sustainable aviation fuel (SAF), renewable diesel (RD), ethanol, methanol, e-fuels and biodiesel.

Australia currently uses approximately 7 billion litres (BL) of aviation fuel and 30BL of diesel each year. Aviation, heavy road freight, mining and extraction, maritime, rail and construction account for 80% of liquid fuel use. Some of Queensland’s critical industries, such as resources, tourism and primary industries, are significant users of these liquid fuels.

Some liquid biofuels, such as SAF and RD, are drop-in fuels that can be used now in existing infrastructure and equipment, including heavy road and mining vehicles and aircraft (up to approved blend limits) without requiring modifications or upgrades.

Australia currently exports $3.9 billion per year of feedstock for offshore biofuels production. It is estimated by 2050 a mature domestic liquid biofuels industry could deliver $36 billion of fuels sold* with most of the $15 billion domestic feedstock opportunity this represents being supplied by Australia’s agricultural sector.

Queensland is already a major producer of liquid biofuels feedstocks such as tallow and sugar cane. Our primary industries sector could build on these existing markets and, leveraging expertise and knowhow, expand into more novel feedstock opportunities. This economic diversification could make our primary industries sector more resilient, supporting jobs and communities in our regions.

Currently Queensland produces small volumes of biodiesel and approximately 60ML of ethanol a year.

Production of liquid biofuels in Queensland could assist in alleviating Australia’s reliance on imported fuels, in turn reinforcing fuel supply for the critical industries driving our economy. The potential size of the industry also offers a potentially significant economic opportunity for primary industries and other industries in the supply chain.

* CEFC report Refined Ambitions: Exploring Australia’s Low Carbon Liquid Fuel Potential