New Report: Unlocking Australia’s low carbon liquid fuel future

Published Mon 07 Jul 2025

Refined Ambitions: Exploring Australia's Low Carbon Liquid Fuel Potential
 

Australia is at a crossroads. With 80 per cent of our liquid fuels imported and electrification challenging for key sectors, Low Carbon Liquid Fuels (LCLFs) offer a sovereign, scalable and regionally beneficial path to decarbonisation. 

A new report, Refined Ambitions: Australia’s Low Carbon Liquid Fuel Potential, commissioned by the CEFC and prepared by Deloitte, explores how a $36 billion domestic LCLF industry could underpin economic resilience and emissions reduction. 

The report finds that LCLFs are crucial to Australia's net zero transition, particularly for hard-to-electrify sectors like aviation, mining and heavy freight.  

Key Insights 
  • $36 billion domestic LCLF market opportunity by 2050
  • 230 million tonnes of CO2-e savings over the next 25 years
  • Untapped potential for Australia in processing of feedstock
  • Persistent demand for liquid fuels
With co-ordinated action and the right settings, Australia can lead in clean fuels innovation and production. 
 
Download the full report and Investment Insight on the CEFC website.