Reaping the Benefits: How Australian Grain and Oilseeds Can Support Australia's Low-Carbon Fuel Security
Low Carbon Liquid Fuel in Australia
Learn about the process from paddock to power, and what the opportunity is for Australia's grains industry & liquid fuel security.
Australia faces mounting pressure to decarbonise its fuel supply and meet ambitious emissions reduction targets. As the world transitions to cleaner energy, the challenge lies not only in reducing dependence on fossil fuels but also in ensuring that alternative fuels can be produced domestically, at scale, and with reliability.
GrainGrowers' new report, Reaping the Benefits: How Australian Grain and Oilseeds Can Support Australia's Low-Carbon Fuel Security, explores how low-carbon liquid fuels derived from Australian grain and oilseeds offer a strategic solution to both challenges. With a world-class grain industry, established supply chains, and the capability to produce sustainable fuels that meet stringent environmental standards, Australia is uniquely positioned to strengthen its fuel resilience while driving down emissions.
By leveraging agricultural strengths, Australia can reduce its reliance on imported fuels, support regional economies, and build a sovereign, sustainable fuel future.
Insights from the Report
1. Current global instability underscores Australia’s fuel vulnerability
Ongoing conflict in the Middle East has reignited concerns about the fragility of global fuel supply chains. With 91% of liquid fuels imported and limited domestic stockholdings, Australia faces growing risks to its fuel security and economic resilience.
2. Grain and oilseeds offer a homegrown, low-carbon solution
Australian crops like canola can be used to produce renewable diesel and sustainable aviation fuel (SAF) through HEFA technology — a proven, investment-ready pathway compatible with existing infrastructure and climate goals.
3. A coordinated national approach is urgently needed
The report calls for a National Feedstock Strategy and investment in domestic refining infrastructure to unlock the full potential of grain-based fuels. Without action, Australia risks missing a strategic opportunity to build sovereign fuel capability.
4. Supporting grain-based fuels strengthens regional Australia
A local renewable fuel industry will create new markets for growers, boost jobs in regional areas, and ensure the transition delivers broad economic benefits.
Want to learn more about Low Carbon Liquid Fuel?
Watch the Landline segment on low carbon liquid fuel featuring GrainGrowers’ Zach Whale here (episode 15/06).