On 26 August 2026, the Australian Government released the National Bioenergy Feedstock Strategy (strategy).
The strategy reflects the importance of feedstocks to domestic low carbon liquid fuel (LCLF) production. It recognises the potential for Australia’s strong agricultural and forestry sectors to grow feedstock production and the economic opportunities this creates for producers and regional communities.
What the strategy aims to achieve
The strategy outlines how governments, industry and the supply chain can work together to support development of Australia’s feedstock industry. It provides a shared national direction for a feedstock industry that is competitive, scalable, sustainable and internationally connected.
The strategy focuses on 5 priority areas for collective effort. These are:
- Improving data to underpin investment.
- Investing in innovation to advance feedstock readiness.
- Regional supply chain development to drive efficiencies.
- Sustainability and certification to create public confidence.
- Building sector capability
Priority areas for collective effort
To achieve scale, Australia will need to build on its existing feedstock production capacity and diversify into new feedstocks over time. This approach will help the industry respond to growing global demand and adapt to climate, market and technological changes while protecting food and fibre systems.
Consultation
The strategy was developed with significant input from industry and government stakeholders.
Submissions to the strategy discussion paper have been published on the Have Your Say project page.
National Bioenergy Feedstock Strategy
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Support and investments
The strategy complements other Australian Government commitments aimed at growing Australia’s low carbon liquid fuel (LCLF) industry and advancing decarbonisation, fuel security and economic development.
The $1.1 billion Cleaner Fuels Program is a key measure and is intended to assist first movers and help establish a domestic industry. Alongside this, the government is working with industry to introduce a market measure that drives demand for Australian LCLF production. A consultation paper on design of the measure was released on 18 August 2026.
These initiatives build on earlier investments in research and development including:
- $250 million through the Future Made in Australia Innovation Fund
- $33.5 million through the Sustainable Aviation Fuel Funding Initiative.
The Government is also expanding the Guarantee of Origin (GO) Scheme to include LCLFs and establishing the Paraffinic Diesel Standard.
Low Carbon Liquid Fuels Knowledge Hub
The Australian Government has launched the new Low Carbon Liquid Fuels Knowledge Hub.
The Hub was developed by the Queensland University of Technology, in partnership with the Department of Infrastructure, Transport, Regional Development, Communications Sport and the Arts through the iMOVE Cooperative Research Centre.
The Hub brings together a range of information on low carbon liquid fuels, including clear explainers on fuel types, feedstocks and supply chains, answers to frequently asked questions, dedicated pages for the aviation, maritime, road, rail, agriculture, construction and natural resources sectors.
For more information visit: lowcarbonliquidfuels.com.au