ARENA to drive domestic low-carbon fuel production

The Australian Renewable Energy Agency (ARENA) announced May 13 that it has been named as the delivery agency for the Australian government’s AUD$1.1 billion (USD$798.5 million) Cleaner Fuels Program, supporting the development of a domestic low-carbon liquid fuels (LCLF) industry.  

Announced in September, 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.  

ARENA CEO Darren Miller said this program is 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,” Miller 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”, he added.

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. 

This announcement follows ARENA’s close engagement with the appropriate federal department during the consultation phase on the policy design.  

ARENA has previously announced AUD$33.5 million (USD$24.3 million) in funding towards five projects as part of its sustainable aviation fuel (SAF) funding initiative. 

ARENA is also administering the Future Made in Australia Innovation Fund, including its LCLF stream with AUD$250 million (USD$181.5 million) in funding available to support the development of the industry. 

For updates about the Cleaner Fuels Program, visit the ARENA funding page.