Queensland, Australia invests in biodiesel as a way to reduce its dependence on imported fuel

The Queensland government announced on Wednesday that it would invest A$25,000,000 ($18,000,000) in a project to produce renewable diesel. It hailed the move as "the first step" towards reducing reliance on imported fuel.

Since the U.S. and Israel war against Iran, Australia has faced high fuel prices as well as the threat of shortages.

Global oil prices are rising, and many countries are increasing their biofuel production in response.

Ampol, a fuel producer in Queensland, has announced that it will invest in the production of Lytton Refinery.

In a press release, the company said that it will convert waste vegetable oils and animal fats into renewable diesel, generating 20 million litres per year, starting in 2028.

The company said that biofuels are one of their priorities, and that hundreds of millions of litres can be produced as early as next decade.

Queensland Premier David Crisafulli stated that these projects were important in order to "ensure we're never left at the mercy?of foreign nations at the?end of a global supply chain"

The equivalent of 20 million litres of biofuel is approximately 125,000 barrels or 10% of Australia's daily oil consumption of 1 million barrels.

Australia's massive farm sector has called for years to create an industry that would turn its products into fuel. But producers claim they need more support from the government to make investment viable.

(source: Reuters)