LOW CARBON FUELS
AUSTRALIA'S ENERGY OPPORTUNITY
Low carbon fuels are made from renewable and waste resources, and are designed to reduce emissions in sectors that need fuel now and into the future
WHAT ARE LOW CARBON FUELS?
Low carbon liquid fuels (LCLFs) are renewable energy sources that reduce carbon emissions compared to traditional fossil fuels. They are made from materials, known as feedstocks, such as sugarcane, animals fats, used cooking oil, crop residues, and captured carbon with hydrogen.
Types of low carbon liquid fuels include ethanol, biodiesel, renewable diesel, sustainable aviation fuel (SAF), methanol, and synthetic e-fuels.
WHY ARE THEY SO IMPORTANT?
Low carbon fuels are essential for reducing carbon emissions in sectors such as aviation, freight, mining, and shipping. Additionally, boosting fuel security is important, especially since Australia imports 80% of its liquid fuels. Developing the low carbon fuel industry could also create regional jobs and help grow a domestic market that is projected to reach $36 billion by 2050.
HOW ARE THEY MADE?
Low carbon fuels are produced from renewable feedstocks such as oilseeds, tallow, sugarcane, waste, or from captured carbon with green hydrogen.
They can be created in different ways, for example, by fermenting crops into ethanol, processing used oils and fats into renewable diesel, turning agriculture residues into jet fuel, or creating synthetic fuels with hydrogen and carbon.
Australia already produces biodiesel and ethanol, and new projects are underway.
HOW DO THEY REDUCE EMISSIONS?
Compared to fossil fuels, low carbon liquid fuels deliver much lower lifecycle emissions. This is because their sources absorb or displace carbon dioxide during growth or production, reducing overall emissions compared to fossil fuels.
For example, plants used as fuel sources absorb COâ‚‚ during photosynthesis, effectively closing the carbon loop. Importantly, many of these fuels are made from waste or residues, like used cooking oil or crop residues.
FREQUENTLY ASKED QUESTIONS
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What are low carbon fuels? Learn more about low carbon fuels
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Why are they important? Find out more about the importance of low carbon fuels
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How do these fuels reduce emissions? Discover how low carbon fuels help to reduce emissions
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How are these fuels sustainable? Read more about how low carbon fuels can be sustainable
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What about food versus fuel? Discover how food, fuel, fibre and feed, together
