Opportunities and Priorities for Low Carbon Liquid Fuels in Australia

This report outlines the opportunities and priorities for developing a low carbon liquid fuel (LCLF) industry in Australia. It discusses the transformative shift in the global LCLF sector driven by decarbonisation commitments, fuel security demands, and advancements in LCLF technologies. The report emphasizes Australia's potential to leverage its abundant biomass resources and renewable energy capabilities to establish a competitive domestic LCLF industry. It details the potential climate and economic benefits, including the possibility of achieving over 33 MtCO2-e in emissions abatement by 2035. The report also highlights the economic potential of the LCLF industry, estimating annual direct benefits between AUD $6 billion to $12 billion, alongside regional co-benefits such as diversified income streams for farmers and enhanced biodiversity. Additionally, it addresses barriers to industry development, including the cost gap between fossil fuels and renewable alternatives, and stresses the need for strategic support and investment to overcome these challenges.