CANEGROWERS has welcomed Federal Government consultation on a proposed national demand mechanism for low-carbon liquid fuels, while calling for earlier action to support Australian biofuel production.
The consultation paper proposes an initial national volume requirement for lower-carbon fuels, potentially beginning in 2029, followed by a transition to a carbon-intensity-based system from 2035. Petrol is proposed to be included, with ethanol recognised as an eligible fuel.
CANEGROWERS CEO Dan Galligan said the consultation represented an important development for the sector but argued investment certainty was needed sooner.
“The direction is right, but the pace matters. Investment decisions are being made now, and industry needs certainty now,” Mr Galligan said.
Potential for Australian agriculture
According to the consultation paper, Australia currently has 360 million litres of operational ethanol production capacity.
CANEGROWERS says the Australian sugar industry, which processes around 30 million tonnes of sugarcane in a typical year, has the potential to play a larger role in domestic renewable fuel production.
Mr Galligan said sugarcane could contribute to ethanol production while sugarcane biomass could also support the development of fuels including sustainable aviation fuel and renewable diesel.
CANEGROWERS is calling for a national policy framework that encourages investment in Australian production and supports greater use of locally produced agricultural feedstocks.
“We need a national framework that gives investors confidence to build here, produce here and create value here,” Mr Galligan said.
