Low Carbon Fuels in Parliament, March/April 2026

Low Carbon Fuels in Parliament

Momentum is building in Canberra, with low carbon fuels and bioenergy increasingly recognised across Parliament as critical to strengthening Australia’s fuel security, supporting regional economies, and driving the transition to a lower-emissions future.

2 April 2026: Question and Answer - National Press Club, Canberra

The Hon Anthony Albanese MP, PRIME MINISTER: “Well, just bear in mind that the 90-day reserve considered by the IEA isn't a reserve for domestic use. … And we'll continue to examine what is the best policy to further increase that security. So, there's a range of measures, there's biofuels, there's a range of new technologies as well that can add to our security.

HOUSE OF REPRESENTATIVES Hansard MONDAY, 30 MARCH 2026

Dr WEBSTER: “Australia also has an incredible capacity to produce biofuels, such as ethanol and biodiesel, but stocks on hand at present are not being brought into the mix. Take, for example, biodiesel. Australia produced 2.14 million tonnes of canola in 2019 and more in recent years, and we could have used that to produce 5.5 million barrels of biodiesel. Instead, 70 per cent of that canola, or carinata, went to the European Union for them to make into biodiesel. This is a crisis that was entirely foreseeable. The late former senator Jim Molan was saying as much—that our fuel security was at risk and we needed domestic, sovereign capacity.”

HOUSE OF REPRESENTATIVES Hansard MONDAY, 30 MARCH 2026

Mr BIRRELL (Nicholls)“We are going to have to look at whether there are other products—feedstocks, if you like—that have a calorific content that enables us to create diesel from not just crude oil. We need to look at those potentials. I acknowledge that across the parliament we're starting to look at some of those, such as biodiesel from canola, and it's been talked about with ethanol…”

The Hon Chris Bowen MP, Press conference, Fairfield West, 6 April 2026

“CHRIS BOWEN: Well, I wouldn't recommend people make their own arrangements for their cars. I think you should only put in what your car manufacturer recommends. More broadly, a serious point, biodiesel's got a great future, in my opinion. That's why the Treasurer, Catherine King, and I announced last year $1.1 billion to support the development of Australian biofuels, which are not only lower emissions but can create a lot of economic activity for Australia's farmers.

I mean, one thing we can do is create a lot of feedstock, do we are very bullish on Australia's biofuel future.”

House of Representatives Hansard, WEDNESDAY, 25 MARCH 2026

Dr CHALMERS (Rankin—Treasurer) “Locally produced fuel is a big part of the government's efforts to deal with the consequences of what we're seeing out of the Middle East. We also recognise how important ethanol is to our domestic fuel supply. More than recognising that, we're investing in it. Once again, at the Lytton refinery, the energy minister and I announced $1.1 billion for our Cleaner Fuels Program, which is to invest in low-carbon liquid fuel production in Australia, consistent with the kinds of goals that the member for Kennedy has. That's on top of the $250 million in innovation funding under the Future Made in Australia Innovation Fund. He's right that we don't have a mandate, but the relevant departments and authorities have been working to see whether we could implement one in the future, making sure that we factor in things like safety and quality. Again, that's all about supporting our local fuels industry.”