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The potential fuel security fix growing in Australia's paddocks

Australia already grows enough crops and collects enough waste to produce more jet fuel than it currently uses, according to GrainCorp. The challenge is processing more of those raw materials at home rather than exporting them overseas.

24 July 2026

A crop of canola with a plane flying overhead. Image: Adobe stock.

Key points

  • Australia imports more than 90% of the fuel it uses
  • Australia could produce up to 117% of the jet fuel it currently consumes using local feedstocks
  • About 80% of Australian canola produced is exported, much of it processed into renewable fuel overseas

Australia imports over 90% of the fuel it uses, leaving the country reliant on global supply chains to keep industries, businesses and transport moving.

Recent global events, including Russia's invasion of Ukraine and the conflict between the US and Iran, have highlighted how quickly disruptions can affect fuel markets.

GrainCorp Managing Director and CEO Robert Spurway says Australia already grows much of the feedstock needed to produce sustainable aviation fuel.

"We estimate that using all of the feedstocks available in Australia, we could produce up to 117% of the jet fuel that Australia currently uses," Spurway said, speaking with CommBank Director of Agriculture and Sustainable Economics Dennis Voznesenski.

"That's a really exciting statistic that shows we're not constrained by feedstocks."

Much of the feedstock leaves Australia

Despite that potential, about 80% of Australian canola oil is currently exported, with much of it turned into renewable fuel in Europe before some is shipped back to Australia.

A single commercial-scale canola crushing plant could process about one million tonnes of canola each year and help produce around 750 million litres of sustainable aviation fuel. 

“While that would be not quite 10% of what Australia uses,” Spurway said. “It would make a meaningful difference, though, in terms of sovereign capability, fuel security, and in the decarbonisation of that sector.

Both sustainable aviation fuel and renewable diesel can be used in existing engines as alternatives to fossil fuels.

A canola infographic.

New opportunities for regional Australia

For Spurway, the bigger opportunity is processing Australia's feedstocks domestically rather than exporting them.

"Not only is it a solution that builds sovereign capability, but it's a great opportunity for Australia to create investment, create jobs and benefit regional Australia," he said.

He said additional domestic demand would give growers greater certainty in a market affected by tariffs and shifting trade rules.

Spurway is confident Australian farmers would respond.

"Over decades now, Australian farmers have really shown their ability to respond to new demand," he said.

GrainCorp sees its role as connecting growers to that demand. It is working with Ampol and IFM to explore repurposing the Lytton refinery in Queensland to produce sustainable aviation fuel and renewable diesel, while assessing options for a new canola crushing plant.

Most of Australia's exportable canola is grown in Western Australia, while most fuel demand is on the east coast, meaning the project's location would ultimately depend on commercial considerations. 

Turning potential into production

Spurway said there was also a sense of urgency. Large projects take years to develop, meaning decisions made over the next six to 12 months are unlikely to translate into commercial production before 2030 or 2031.

"By the time we get to 2030, Australia will be far less vulnerable to imported fuels and producing more sustainable fuels locally," Spurway said.