Australia Unveils $1.1 Billion Plan to Build Low-Carbon Fuel Industry

On September 17, 2025, the Australian government announced a $1.1 billion AUD ($938 million SGD) investment over 10 years to develop the low-carbon fuel industry, welcomed by agricultural groups. The funding aims to boost private investment in biodiesel and sustainable aviation fuels, increasing demand for feedstocks like canola, sugarcane, and sorghum.

Australia, a major producer of these crops, exports most while importing oil. Treasurer Jim Chalmers called it a “down payment” for a new industry. The plan leverages Australia’s agricultural expertise and renewable energy to produce cleaner fuels, creating jobs and supporting net-zero goals.