LEARN MORE ABOUT
LOW CARBON FUELS

To learn the basics about low carbon liquid fuels, plus find out what they are, how they’re made, and why they matter for Australia’s energy future, go to this page.

No, while both can be used to run engines and power our economy, low carbon fuels are derived from constantly replenishing natural sources like biomass or agricultural waste, operating within Earth's short-term carbon cycle, while fossil fuels are non-renewable, taking millions of years to form from ancient organic matter and releasing stored carbon into the atmosphere when burned. Renewable fuels offer a sustainable alternative with significantly lower greenhouse gas emissions over their life cycle compared to fossil fuels.

Low carbon fuels are essential to cutting emissions, strengthening fuel security and creating new opportunities for Australia. To learn more about why they are so important, go to this page.

Low carbon fuels produce much lower emissions than fossil fuels. Learn how they close the carbon loop and reduce pollution on this page.

Australia is building a renewable fuels industry that works hand in hand with the food system. To learn more about this, go to this page.

Instead of creating competition, the development of a low carbon fuels industry can increase food and feed production, enhance energy security and provide a new industry for regional Australia. Read more on this page.

The short answer is it depends on which low carbon fuel. You have probably noticed that E10 is the cheapest fuel at your local service station, however refining low carbon fuels to meet the drop in standard for aviation or diesel applications is harder to achieve. But that is to be expected and was the same situation for other renewables such as wind and solar. That is why the Government supporting the development of this sector is so important.

As with other renewable technologies, costs are expected to decrease as technology advances, production scales up, and supportive policies like production incentives and mandates are implemented.

Higher production costs: The technologies and processes for creating these are still in their early stages and are more expensive than traditional petroleum refining.

Limited scale and availability: They currently accounts for a tiny fraction of the total fuel market, and insufficient production capacity creates limited availability and drives up costs.

Feedstock Challenges: Sourcing and processing the varied sustainable feedstocks. While some pathways are well established, many are still in development.

Yes. What we know, is that costs will reduce over time due to:

Technological advancements: Improvements in production processes and technologies are expected to make these fuels more efficient and less expensive.

Increased production and scaling: As production capacity grows to meet demand, economies of scale will naturally lower costs.

Supportive policies: Governments and industries are exploring ways to bridge the cost gap as shown by the Australian government.

Industry buy-in: Greater investment and commitment from fuel relaint industries and other stakeholders is crucial to accelerate development.

Yes - low carbon liquid fuels are considered safe for use in many applications, and their safety has been tested and certified in regulated environments.

Here’s why:

• Many SAF flights have already taken to the skies: over 450,000 flights globally have used SAF blends in their tanks, showing real-world use under safety-tested conditions

• Low carbon fuels undergo rigorous certification processes (fuel quality, compatibility with existing engines) to meet the same safety and performance standards as conventional fuels

• SAF blends are chemically compatible with existing aircraft engines and fuel systems; when properly manufactured and certified, the engine manufacturer and regulatory bodies approve them

• These fuels also tend to produce fewer harmful pollutants (like sulfur or particulate matter) than conventional fossil fuels, contributing to reduced health impacts

In short: When produced and used under the right rules and testing, low carbon fuels are safe, reliable, and already in regular use around the world.