The National Farmers’ Federation (NFF) has welcomed the Federal Government’s $1.1 billion Cleaner Fuels Program, describing it as a significant investment to stimulate the domestic production of low-carbon liquid fuels (LCLF).
NFF Interim Chief Executive Su McCluskey joined the Treasurer and Minister Bowen at the announcement. Ms McCluskey said being at today’s announcement demonstrates the vital role farmers will play in supplying Australia’s low-carbon liquid fuels industry.
“This is an important acknowledgement that agriculture is a critical component of Australia’s cleaner fuels future,” Ms McCluskey said.
“Farmers already supply products that power biofuel industries overseas; this investment will help to support a domestic industry.”
The new program will support the production of renewable diesel and sustainable aviation fuel using Australian-grown feedstocks such as canola, sorghum and sugar, alongside agricultural byproducts.
“NFF members like GrainGrowers and Canegrowers have for years worked on developing policy settings that encourage domestic production, enabling their growers to access new markets and ensure their sectors remain profitable and sustainable,” Ms McCluskey said.
“A strong domestic biofuels industry will help diversify the market opportunities for producers, a key element of risk management.”
“This isn’t just about cleaner fuels. It’s about creating jobs, diversifying farm businesses, and ensuring our regions remain at the forefront of Australia’s transition to net zero.”
The NFF has long called for increased domestic production of biofuels. The industry’s 2030 Roadmap to a $100 billion industry highlights biofuels as a critical lever for growth by helping to diversify farm income, improve resilience, and contribute to Australia’s climate commitments.
“Alongside the sustainability benefits, building this industry here will also strengthen Australia’s sovereign fuel capability by reducing our reliance on imports.”
The NFF said it also looks forward to working with its members and Government in the development of the Government’s ‘National Bioenergy Feedstock Strategy’ to ensure feedstock supply is sustainable, competitive and well-integrated with regional development.
Quotes attributable to GrainGrowers CEO, Shona Gawel:
“Today’s announcement is a welcome investment in Australia’s LCLF industry. Domestic LCLF production can strengthen Australia’s energy security and unlock new economic opportunities, ensuring Australia remains fuel-secure, sustainable, and resilient.
“Australia produces an abundance of crops suitable for biofuel production, including canola and other oilseeds. Our world-class sector and established grain supply chains are well-placed to supply domestic LCLF production.”
Quotes attributable to CANEGROWERS CEO, Dan Galligan:
“Almost half of the Queensland’s sugarcane is recognised by the world’s three biggest sustainability gatekeepers as a global leader in sustainable farming. This gives immediate confidence to airlines, freight and heavy industry that local feedstocks meet global benchmarks.
“Our growing region stretches along the Queensland coastline, alongside major population hubs. We also have a cane rail network stretching thousands of kilometres, linking farms to mills and multiple deep-water ports.
“This footprint shortens supply chains, cuts costs, and de-risks a rapid scale-up of domestic low-carbon liquid fuels. With sugarcane feedstock alone, Queensland could deliver more than 30% of Australia’s aviation fuel demand.
“This is about positioning Queensland as the nation’s biofuels hub. It means cleaner fuels for airlines and motorists, thousands of new jobs, and billions in regional investment.”
Stacey Davidson
Ashleigh Whittaker