The future of food: what biofuel means for modern Australian agriculture

Biofuels are liquid fuels produced from renewable biological sources, including plant and animal products. These energy sources have untapped potential to reduce dependence on fossil fuels and yield environmental and economic benefits.

Speaking at evokeAG. 2025, Dennis Voznesenski, Associate Director, Sustainable Agricultural Economist, CommBank, said a collective effort was needed to access biofuels’ myriad benefits.

“We have the companies to create the industry and we have the farmers to grow the feedstock needed – and with the right support and direction from government policy, this sector will be well positioned for growth,” he said.

Natasha Greenwood, General Manager, Agribusiness, CommBank, facilitated a panel discussion on ‘Unlocking the potential of biofuel for Australian agriculture’, which drew on perspectives from the agricultural, aviation, finance and manufacturing industries.

She said that biofuels could help primary producers diversify their income, and service regional communities through the establishment of domestic and regional manufacturing.

"We have the companies to create the industry and we have the farmers to grow the feedstock needed– and with the right support and direction from government policy, this sector will be well positioned for growth."
- Dennis Voznesenski, Associate Director, Sustainable Agricultural Economist, CommBank

Voznesenski set the scene, highlighting how the post-Paris Agreement effort to reduce emissions in the transport sector drove the demand for biofuels, such as those derived from canola and tallow.

He demonstrated how growth in demand for canola oil had bumped prices, incentivising canola production over other crops.

“Farmers have heeded the call and said: ‘We’re going to plant more’.”

Currently though, Australia’s lack of a biofuel industry means most of this resource is exported. Future demand is affected by the likelihood that as more people choose to drive electric cars, less fossil fuel – and therefore biofuel – is needed.

“The one saviour from a global perspective is, instead of focusing on just road transport, we start focusing more on sustainable aviation fuel,” Voznesenski said.

Qantas, for instance, has established a target for 10% of its fuel use to come from sustainable aviation fuels by 2030 and approximately 60% by 2050.

“If [every airline] does this, it creates about 1.3 million tons of sustainable aviation fuel,” Voznesenski said.

“In terms of unprocessed, uncrushed canola, that’s equivalent to about half of the total canola produced in Australia on average. That would be a big deal and it would buffer us from external offshore shocks to demand.”

Australia currently imports over 80% of its refined fuel products, leaving it vulnerable to supply chain disruptions amid today’s volatile geopolitical environment.

“If we could at least partially create fuel locally, that would benefit our critical industries substantially from a fuel security perspective,” Voznesenski said.

“If we could at least partially create fuel locally, that would benefit our critical industries substantially from a fuel security perspective.”
- Dennis Voznesenski, Associate Director, Sustainable and Agricultural Economist, CommBank

“Will there be any government legislation? That's an important question,” Voznesenski said.

A regional renaissance

The production of biofuels could lead to a “regional renaissance”, according to Sean Cole, Advocacy and Rural Affairs Manager, GrainGrowers.

“Having a booming biofuels industry is really a boon for growers and for us – it means regional jobs, it means regional vibrancy and it means fuel security,” Cole said.

“Having a booming biofuels industry is really a boon for growers and for us – it means regional jobs, it means regional vibrancy and it means fuel security.”
- Sean Cole, Advocacy and Rural Affairs Manager, GrainGrowers

A national low-carbon liquid fuel feedstock strategy that incorporates both supply and demand side solutions would be an important building block for industry certainty.

While most people were familiar with canola as a feedstock, many other commodities are also suitable.

For example, Australian farmers produce 30 million tonnes of sugarcane annually, and 85% of it is exported, according to Dan Galligan, CEO, CANEGROWERS.

With the entire crop potentially usable, biofuels represent an opportunity to add value to existing products in an industry that had long wrestled with diversification.

“The ideal scenario – we'd have an existing profitable, sustainable sugar supply chain that's co-located and sits in parallel to an aviation fuel or biofuel sector,” Galligan explained.

“The ideal scenario - we'd have an existing profitable, sustainable sugar supply chain that's co-located and sits in parallel to an aviation fuel or biofuel sector.”
- Dan Galligan, CEO, CANEGROWERS

“In fact, in other major sugar-producing countries around the world, [including] two of the biggest, Brazil and India, do this.”

The decarbonisation of aviation

The panel discussed the benefits that having clear policy measures, such as mandates or tax incentives, combined with demand and supply-side strategies would have in creating an even competitive playing field to drive Australia's biofuel sector and improving decarbonisation.

“More recently, through Bioenergy Australia, we're looking into policy drivers about why things may or may not be happening,” Galligan said.

According to Darcy Davis, Lead Supply Manager ANZ, Neste, there were “basic” barriers to establishing a biofuel manufacturing sector in Australia.

Neste produces renewable diesel, sustainable aviation fuel, and renewable polymers and chemicals. Exploring what has worked, or not, for global counterparts could be instructive, Davis said. Mandates or tax incentives may also be necessary.

“It’s about creating predictability and demand so we can make the right choices as a country and send the right signals to those who actually have money to invest,” he said.

Speaking separately, Dr. Kimberly Camrass, Acting Regional Head, Asia Pacific, Global Sustainability Policy and Partnerships, Boeing, urged Australians not to miss the opportunity.

“The decarbonisation of aviation is happening … whether Australia participates or not,” she said.

“You need both a demand-side policy mixed with a supply-side policy as well – that’s been the most effective policy mix around the world, whether in the US or Europe,” she added.

Camrass argued that there was sufficient feedstock in Australia to satisfy all our jet fuel needs.

“That’s the mentality we have to think through for aviation to decarbonise,” she said, noting his view that aviation is unlikely to fly electric or hydrogen-powered commercial aircraft in the near-term. “We need extremely large volumes of sustainable aviation fuel for the sector to decarbonise.”

Because sustainable aviation fuel is more expensive than traditional fuel, early-adopting airlines could be at a competitive disadvantage without policy support.

“The ingredients are there on the table, the keys are in the door, and if we're using the ‘Let's unlock’ analogy, what will turn the key will be policy reform,” Camrass said.

“The ingredients are there on the table, the keys are in the door and if we're using the ‘Let's unlock’ analogy, what will turn the key will be policy reform.”
- Dr Kimberly Camrass, Acting Regional Head, Asia Pacific, Global Sustainability Policy and Partnerships, Boeing

In short, Australia has a strong foundation to build a thriving biofuel industry – if market conditions are optimised. And if that does indeed eventuate, this renewable energy form could become a driving force in Australia’s agricultural future.