Australia currently holds only weeks of liquid fuel reserves, leaving the country highly exposed to international supply disruptions and price volatility.
New research commissioned by Sydney Airport finds Australians strongly support developing a domestic Sustainable Aviation Fuel (SAF) industry:
- Nearly 70% of Australians support SAF once they understand what it is
- Around 60% support policies to accelerate local production
- Many are willing to contribute small amounts through airline tickets to help fund the industry
- Respondents recognise the potential for regional jobs, agricultural demand and local manufacturing
At the same time, a new Asia-Pacific benchmark report released by the Low Carbon Fuels Alliance from Bioenergy Australia finds that several regional markets are moving faster than Australia to establish renewable fuels industries through policy mandates, incentives and investment frameworks.
The report warns Australia risks missing a major economic opportunity despite abundant feedstocks and industrial capability. Industry analysis suggests a domestic renewable fuels sector could be worth more than $10 billion annually and support over 26,000 jobs, many in regional areas.
Both reports are being launched today at the Renewable Fuels Summit.
Bioenergy Australia CEO Shahana McKenzie is available for interview on fuel security, Australia’s renewable fuels opportunity and the implications for aviation, shipping and heavy transport.
Media releases and the reports are attached. High-resolution images are available for download here. Interviews available today.
Kindest,
Claire
--------------------------------------------------------
Media Release 12 March 2026 - Sydney Airport
Australians Back Locally Produced Sustainable Aviation Fuel and Regional Jobs
New research commissioned by Sydney Airport shows strong public support for building a domestic Sustainable Aviation Fuel (SAF) industry, with Australians recognising the opportunity to create regional jobs, support farmers and keep more of Australia’s natural resources and manufacturing capability at home.
Australia already produces many of the feedstocks needed to make SAF - from agricultural crops and residues to used cooking oil and household waste, yet much of this material is currently exported overseas to be processed into fuel.
Sydney Airport CEO Scott Charlton said Australia has a significant opportunity to develop a new regional industry centred on Sustainable Aviation Fuel (SAF).
“Locally producing SAF would reduce aviation emissions while creating jobs, supporting farmers, and strengthening Australia’s fuel security, and we continue to advocate for demand measures as part of the Australian Government’s $1.1 billion investment in low-carbon liquid fuels.
“The current conflict in the Middle East highlights the importance of mandates that attract global investment and secure a domestic fuel supply. Globally, SAF mandates are accelerating, and Australia must implement measures to boost domestic SAF production, using feedstock that would otherwise be exported.”
Public support for sustainable aviation fuel is also stronger than many people realise. Research conducted by Sydney Airport in early March, revealed that although awareness of SAF remains relatively low, especially among those who hadn’t flown in the past year, support rises to 60 percent of Australians once they understand what SAF is and how it functions.
Nearly 70 percent of Australians said they support the use of sustainable aviation fuel, and the majority said they would be willing to contribute small amounts through airline tickets to help accelerate its development.
There is also a clear preference for Australian-made fuel.
The strongest motivator for a domestic SAF industry is reducing aircraft emissions (57 percent), but Australians also recognise the value of:
- using renewable Australian resources (49 percent)
- climate and broader environmental benefits (48 percent)
- improved fuel security (45 percent)
- supporting Australian manufacturing (43 percent)
- job creation and economic growth (42 percent)
Support was higher among frequent flyers and business travellers. Environmental concern was also a contributing factor, with 48 percent of Australians reporting concerns about the environmental impact of aircraft fuel emissions.
The research also revealed a strong expectation for enhanced information and transparency, with respondents expressing greater confidence in SAF when given clear, fact-based explanations of its production process, the application of safety standards, and the methods used to achieve emissions reductions.
“Australians want to see this industry built here because they recognise the benefits for farmers, regional communities and Australia’s long-term fuel security,” Sydney Airport CEO Scott Charlton said.
“With global aviation demand continuing to grow, the window to establish a domestic Sustainable Aviation Fuel industry is now.
“Building fuel infrastructure takes time - often close to a decade from investment decision to production - so the opportunity is to start building that capability now and supporting regional economies.”
Sydney Airport is participating in the Bioenergy Australia Renewable Fuels Summit in Sydney this week, which brings together government, industry and investors to examine the role of renewable and low carbon liquid fuels in supporting emissions reduction, fuel security and domestic manufacturing.
Read the full report and Sydney Airport CEO, Scott Charlton’s speech here
ENDS
Notes to Editor
The National Sentiment toward Sustainable Aviation Fuel report, conducted by independent research firm 89 Degrees East was sponsored by Sydney Airport.
The report surveyed Australians on their views on SAF, including affordability considerations, domestic production and fuel security.
The research was conducted in early March 2026, prior to the conflict in the Middle East.
About Sydney Airport
Sydney Airport is Australia’s international gateway and at the heart of the country’s domestic aviation network.
Part of the social and economic fabric of Sydney for more than 100 years, Sydney Airport continually strives to deliver its purpose – to be a leading global airport connecting Australia. Sydney Airport welcomes more than 40 million passengers annually, generates more than $40 billion in annual economic activity, and supports 314,000 jobs.
Contact for further information
Sydney Airport Media
M +61 437 033 479
---------------------------------------------------------------
MEDIA RELEASE - 12 March 2026
New APAC benchmark report highlights renewable fuels opportunity to
strengthen Australia’s fuel security
A new Asia-Pacific benchmark report has found Australia has the resources and policy foundations to build a major renewable fuels industry, but risks falling behind regional competitors unless investment and market demand accelerate.
The Low Carbon Fuels Alliance of Australia and New Zealand (LCFAANZ) - an industry alliance established by Bioenergy Australia to accelerate low-carbon fuel development - released the APAC Low Carbon Fuels Benchmark Report today at the Renewable Fuels Summit,, assessing how 19 economies across the region are positioning themselves to produce fuels such as sustainable aviation fuel, renewable diesel and renewable gas.
The report comes amid growing global concern about fuel security, with Australia currently relying heavily on imported liquid fuels, exposed to supply disruptions and rising global energy prices.
Bioenergy Australia CEO Shahana McKenzie said the benchmark highlights both the opportunity and urgency for Australia to develop domestic renewable fuel production, “Australia imports the majority of its liquid fuels, which leaves our economy exposed to global supply disruptions and price volatility,”
“Renewable fuels produced from Australian feedstocks provide a practical pathway to strengthen fuel security while reducing emissions in sectors like aviation, shipping and heavy transport that are difficult to electrify.” McKenzie said.
Industry analysis suggests Australia has sufficient feedstock resources to underpin a renewable fuels industry worth more than $10 billion annually, supporting more than 26,000 jobs, many of them in regional areas.
The benchmark compares countries across four key indicators: government policy ambition, feedstock availability, fuel production capacity and carbon accounting maturity.
It finds Australia sits within a group of “constrained leader” economies, alongside countries such as Japan, Korea, China and Singapore. These economies show strong policy intent and favourable conditions for industry development but have yet to establish large-scale production capacity.
In contrast, countries including Indonesia, Malaysia and Thailand were identified as “high potential leaders”, with strong feedstock resources, clear policy frameworks and emerging project pipelines supporting renewable fuel production.
The report also highlights a growing shift in global fuel markets, with governments increasingly using blending mandates and demand-side policies to drive investment in sustainable fuels.
Across Asia-Pacific, aviation fuel mandates are gaining momentum. Singapore will require 1 per cent sustainable aviation fuel on departing flights, while South Korea will introduce a mandate from 2027 and Thailand has already introduced blending requirements.
Australia currently has no national sustainable aviation fuel mandate, although voluntary airline targets and some state-based policies are emerging.
The report also warns that biomass and waste oils are rapidly becoming strategic resources, with governments moving to secure domestic feedstocks as demand for renewable fuels accelerates.
Recent policy moves in Asia include export restrictions and supply controls on key feedstocks such as used cooking oil, highlighting growing competition for the raw materials needed to produce renewable fuels.
Australia has significant feedstock advantages, including agricultural residues, waste oils, municipal waste and biomass resources. However, the report notes that a substantial share of these feedstocks is currently exported, which could limit domestic fuel production if policy settings do not encourage local processing.
McKenzie said the benchmark shows renewable fuels represent a major opportunity for Australia to strengthen energy resilience while supporting regional industries, “With abundant feedstocks, strong research capability and growing investor interest, Australia has the ingredients to become a regional producer of renewable fuels,”
“The question now is whether we move quickly enough to convert those advantages into domestic production and investment.” concluded McKenzie.
ENDS
Media enquiries & registration: Claire Maloney | 0431 279 785 | [email protected]
Available for interview: Shahana McKenzie, CEO, Bioenergy Australia
Notes to Editors:
-
About the report: The APAC Low Carbon Fuels Benchmark Report was developed by the Low Carbon Fuels Alliance of Australia and New Zealand (LCFAANZ), an industry alliance established by Bioenergy Australia to accelerate the development of renewable fuels across the region
-
Scope: The benchmark assesses 19 economies across the Asia-Pacific to understand how they are positioning themselves to develop low-carbon fuel industries, with a particular focus on sustainable aviation fuel (SAF) and other renewable transport fuels
-
Methodology: Countries were assessed across four indicators:
-
Government policy ambition
-
Feedstock capacity
-
Low-carbon fuel production capability
-
Carbon accounting and emissions reporting maturity
-
-
Regional findings: The analysis groups economies into four categories of market readiness:
-
High Potential Leaders: Indonesia, Malaysia, Thailand
-
Constrained Leaders: Australia, China, India, Japan, Republic of Korea, Singapore
-
Contributing Economies: Cambodia, Fiji, New Zealand, Papua New Guinea, Philippines, Vietnam
-
Low Readiness Economies: Brunei, Myanmar and Pacific Island nations
-
-
Australia’s position: The report finds Australia has strong feedstock potential and mature carbon accounting frameworks, but currently limited large-scale production capacity for low-carbon fuels, placing it within the “constrained leader” category
-
Feedstock opportunity: Australia has significant potential feedstocks for renewable fuels, including agricultural residues, sugarcane bagasse, waste oils, grains, municipal waste and forestry by-products
-
Economic potential: Previous industry analysis indicates Australia has sufficient feedstock resources to support a renewable fuels industry worth more than $10 billion annually, supporting more than 26,000 jobs
-
Global trend: Renewable fuels are expected to play a major role in reducing emissions from aviation, shipping, heavy transport and industrial sectors that are difficult to electrify
-
Regional policy trends: Aviation fuel blending mandates are emerging across Asia-Pacific markets including Singapore, South Korea and Thailand, helping drive demand for sustainable aviation fuel.
Renewable Fuels Summit 2026 Supporters:
Platinum Sponsors: LMS Energy, Ampol, GrainCorp, IFM Investors, and Sydney Airport.
Gold Sponsors: Clean Energy Finance Corporation, GreenPower, Queensland University of Technology, Neste, Sky Renewables, and Australian Trade and Investment Commission.
Silver Sponsors: Queensland Government, Velocys, Toyota, Viva Energy, Green Gas & Liquids, Jemena, Honeywell, Licella, ResourceCo, and Australian Gas Infrastructure Group
Government Partner: NSW Government
Contact details:
Claire Maloney | 0431 279 785 | [email protected]
