Australia Pledges A$1.1 Billion to Kickstart Biofuel Industry by 2028

Australia has committed A$1.1 billion (about US$735 million) over the next decade to develop a low-carbon fuels industry, with funds earmarked beginning in 2028. The initiative aims to nurture private investment in biofuels such as biodiesel and sustainable aviation fuel.

The deal has been welcomed by farm groups in Australia, which anticipate increased demand for feedstocks like canola, sugarcane, sorghum, and tallow—many of which are currently exported rather than used domestically. The government wants eligible projects to be producing fuel by 2029.

Australia positions this strategy as a “win-win-win,” saying it will generate regional jobs, raise farm incomes, and lower emissions. It also aligns with its broader net-zero by 2050 target, helping reduce reliance on imported fuels and boosting domestic low-carbon fuel production.