Australia pledges $735 million for biofuel development

The Australian government announced on Wednesday that it would invest A$1.1billion ($735m) in developing a low-carbon energy industry. This move was welcomed by agricultural groups who hope this will increase demand for biofuels feedstocks such as canola or sugarcane.

In a press release, the government stated that this money will be released over ten years to encourage private investment in sustainable aviation fuel and biodiesel.

Australia is one of the world's leading producers of fuel-producing crops, such as sugarcane, canola and sorghum.

It imports most gasoline and exports a large portion of these crops. Canola from Australia is a key feedstock in Europe's biodiesel sector.

The statement stated that "due to our advanced farming techniques and access to cheap, reliable renewable energy, Australia has an enviable opportunity to produce cleaner and low-carbon liquids fuels for jets, vessels, construction machines, and heavy trucks to achieve net zero."

Jim Chalmers, Finance Minister of Australia, said: "This is an initial payment for the development of a completely new industry in Australia."

It's about making Australians, and our economy, big beneficiaries of global net zero transformation.

Australian farm groups have been pushing for government investment in biofuels since years. They claim that an industry will not get started without it.

This isn't about cleaner fuels. Su McCluskey is the interim CEO of National Farmers' Federation. She said that it's not just about cleaner fuels, but also creating jobs and diversifying farm businesses. ($1 = 1,4952 Australian Dollars) (Reporting and editing by Michael Perry; Reporting by Peter Hobson)

(source: Reuters)