The Albanese government has announced its investment of $1.1 billion to replace petrol and diesel with low carbon liquid fuels (LCLF) made from canola oil and “waste”.

It is part of the government’s Cleaner Fuels Program which will offer grants to domestic producers of LCLFs.

Fuels made from “feedstocks like canola, sorghum, sugar and waste” are said to become direct substitutes for existing fuels like petrol and diesel and are expected to work in “today’s engines”.

In a joint department memo on Wednesday, the Albanese government said the investment would unlock “vast economic opportunities” for LCLFs in its bid to reach net zero.

The investment will seek to stabilise supply chains for the “more sustainable fuels” to power Australian trucks, cargo ships and planes.

The Albanese govern

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