Liquid 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.