Australia's federal government is consulting on a requirement for fuel companies to purchase or supply specified volumes of low-carbon liquid fuel, including biofuels. The proposal would start with volume-based mandates in 2029, then shift to carbon intensity-based requirements after 2035. The Biofuel Producers Alliance, which includes Manildra Group and Wilmar Sugar, is pushing for a national blending mandate from 2027, citing existing domestic capacity of around 470 megalitres of ethanol and biodiesel. The consultation comes as Australia exported over 60 megalitres of domestically produced ethanol and biodiesel in the first half of the year, even while domestic petrol reserves sit at 41 days and diesel at 33 days, well below the international 90-day standard. The Australian Chamber of Commerce and Industry has opposed market obligations until supply, infrastructure, and monitoring systems are proven. Biodiesel currently makes up just 0.1% of diesel consumed in Australia, highlighting the scale of the challenge.
