GrainCorp has welcomed the Australian Government’s National Bioenergy Feedstock Strategy, describing it as an important step forward for growing Australia’s bioenergy feedstock industry and strengthening the foundations for sovereign low-carbon liquid fuel (LCLF) production.
The Strategy recognises Australia’s competitive advantage in agriculture and forestry, identifies established feedstocks including canola, tallow and used cooking oil as among the most advanced options for near-term LCLF production, and sets priorities to support sustainable industry growth.
GrainCorp Managing Director and CEO Robert Spurway said the Strategy reinforces the important role Australian agriculture can play in strengthening the nation’s fuel resilience while creating new opportunities for growers and regional communities.
“More than 90 per cent of Australia’s liquid fuel is imported or derived from imported crude, leaving our economy exposed to global disruption,” Mr Spurway said.
“Australia already has the feedstocks, agricultural capacity and supply chains to reduce that reliance. The opportunity now is to translate those strengths into greater domestic processing, manufacturing and fuel production.”
The Strategy draws on GrainCorp’s From Paddock to Plane: Feedstock White Paper released in June, which found Australia has sufficient feedstocks to support a domestic sustainable aviation fuel (SAF) industry, starting with established commodities and waste streams, while investing in the next generation of lower-emissions feedstocks.
The White Paper also found that existing feedstocks, including canola, used cooking oil and tallow, could support SAF volumes equivalent to 117 per cent of Australia’s projected jet fuel demand in 2030, without compromising food production.
“We do not need to choose between food and fuel,” Mr Spurway said.
“Australian agriculture is highly productive and export-oriented, and the same supply chains can support food, animal feed and lower-carbon fuels. Processing more canola domestically creates value across the chain, producing oil for food and fuel markets alongside high-protein meal for Australia’s livestock sector.”
The Strategy identifies five priority areas for collective action: improving market-ready data, supporting innovation, strengthening regional supply chains, building credible sustainability and certification systems, and improving capability across the sector.
It estimates that, by 2050, the feedstock component of Australia’s bioenergy value chain could be worth up to $15 billion annually, while a mature industry could support around 26,000 additional jobs.
GrainCorp is already working with Ampol and IFM Investors to explore the development of an integrated Australian renewable fuels supply chain, including a proposed canola processing facility and a renewable fuels manufacturing facility at Ampol’s Lytton Refinery in Queensland. The refinery would have the potential to produce up to 750 million litres of SAF and renewable diesel annually using Australian feedstocks, including canola oil, tallow and used cooking oil.
“The Strategy provides a strong foundation and a shared direction for government and industry,” Mr Spurway continues.
“The next step is ensuring an integrated policy framework that connects feedstock development with the Cleaner Fuels Program, well-designed demand measures and credible sustainability frameworks that give industry the confidence to invest and scale.
“By working together, we can build a globally competitive bioenergy feedstock industry and a LCLF fuels sector that supports Australian growers, strengthens regional communities and improves our national resilience.”
