The Australian government has announced it will fast-track support for a low-carbon liquid fuel industry as part of its 2024-25 budget.

The budget promises transport funding across a number of key industry sectors, including roads and freight infrastructure, zero emissions and road safety and productivity.

As part of its Future Made in Australia plan, the government said it will fast-track support for a low-carbon liquid fuel industry, with an initial focus on sustainable aviation fuel and renewable diesel to support emissions reduction in the aviation, heavy vehicle, rail and maritime sectors.

“This investment will help move our transport sector towards net zero and create new jobs and industry across Australia,” it said.

The investment includes

• $18.5 million over four years from 2024-25 to develop a certification scheme for low-carbon liquid fuels, including Sustainable Aviation Fuels and renewable diesel, in the transport sector by expanding the Guarantee of Origin scheme.
• $1.5 million over two years from 2024-25 to undertake a regulatory impact analysis of the costs and benefits of introducing mandates or other demand-side measures for low carbon liquid fuels.
• Investing $1.7 billion over the next decade in the Future Made in Australia Innovation Fund, to support the Australian Renewable Energy Agency to commercialise net zero innovations including low-carbon liquid fuels.

The government said it will be undertaking targeted consultation to identify options for production incentives to support the establishment of a made-in-Australia low carbon liquid fuel industry.

A further AU$4.6 billion will be invested in 69 new transport projects, as well as AU$10.1 billion to ensure current projects can be delivered.