ARENA to deliver government’s $1.1B Cleaner Fuels Program

Male aviation worker connects refueller to plane
Image: Shutterstock

The Australian Renewable Energy Agency (ARENA) has been named as the delivery agency for the Australian Government’s $1.1 billion Cleaner Fuels Program, supporting the development of a domestic low carbon liquid fuels (LCLF) industry.

The Cleaner Fuels Program is a key part of accelerating LCLF production in Australia, helping to build fuel resilience while reducing emissions in hard-to-abate transport sectors such as aviation.

Related article: The government’s plans to bolster Australia’s fuel stores are sensible, but five years too late

ARENA CEO Darren Miller said the program was an important step in supporting Australia’s transition to net zero while strengthening fuel resilience.

“Australia is well-positioned to become a key producer of low carbon liquid fuels, backed by our renewable resources and innovation capability,” he said.

“Through this program, ARENA will support advanced projects that could lead to fuel production, helping to lower emissions and build Australia’s resilience to fuel shocks.”

The Cleaner Fuels Program will provide production-linked incentives over 10 years and target support toward LCLF projects that are likely to reach production in the near future.

Related article: CSIRO explores Australia’s alternative fuel opportunities

ARENA has previously announced $33.5 million in funding towards five projects as part of its Sustainable Aviation Fuels Funding Initiative. The agency is also administering the Future Made in Australia Innovation Fund, including its LCLF stream with $250 million in funding available to support the development of the industry.

Stay on top of the latest energy news and insights by subscribing to our free weekly e-newsletter and digital magazine.

Previous articleAGL’s Muswellbrook Battery gets environmental approval