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The Australian grain industry is poised to play a crucial role in the development of low-carbon liquid fuels, leveraging its expertise in grain and oilseed production to contribute to a more sustainable energy landscape.

By harnessing Australia's abundant feedstock resources and fostering a domestic low carbon liquid fuel industry, we can advance our national efforts in decarbonising critical industries, improving fuel security, and supporting domestic manufacturing and economic growth in regional areas.

Developing a thriving domestic low-carbon liquid fuel industry, however, will require a comprehensive suite of supporting policies. Although Australia has significant potential to be a powerhouse in low-carbon liquid fuel production, the industry is still in its infancy and will require a range of production-side and demand mechanisms such as a National Feedstock Strategy, capital expenditure grants to encourage early-stage industry development, fuel production-side tax incentives, and demand mechanisms such as low carbon fuel standards and mandates, as well as minimum public procurement levels and community education.

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