Interview with Jess McGuire, ABC NSW Radio

E&OE TRANSCRIPT
RADIO INTERVIEW 
ABC NSW STATEWIDE DRIVE
WEDNESDAY, 17 SEPTEMBER 2025

SUBJECTS: Low carbon liquid fuels announcement

JESS MCGUIRE, HOST: The Federal Government has today announced a $1.1 billion plan to boost cleaner fuel production in Australia, and the idea is an ambitious one. They want to create new industries around renewable diesel and sustainable aviation fuel using crops and feedstocks from our agricultural sector. So here to tell us more about what it could mean for regional communities, I am joined by the Federal Minister for Agriculture, Julie Collins. Good afternoon, Minister. 

JULIE COLLINS, MINISTER FOR AGRICULTURE, FISHERIES AND FORESTRY: Good afternoon, Jess, and to your listeners today. 

MCGUIRE: So, this is a billion-dollar announcement. Why is the Government wanting to make this investment? What outcomes are you hoping it's going to achieve? 

COLLINS: It will obviously help us in terms of the shift to cleaner energy and net zero. It will be over 10 years. It’s significant funding, and what it will do is allow us to make sure that we have options in terms of sustainable biofuels going into the future. It's also obviously a great opportunity, as you indicated, for our agriculture sector. Our agriculture sector, of course, does produce more than Australians consume, and we do export around 70 per cent of it, so this is a great opportunity to have some of that, what we call downstream processing and value adding here in Australia. 

MCGUIRE: Are you envisioning jobs being created as a result of this investment? 

COLLINS: Well, certainly. You would think that there will be. At the moment, a lot of our grains and things go overseas to produce biofuels overseas. This is a great opportunity to have low-carbon liquid fuels here in Australia. Things like sustainable aviation fuel or renewable diesel, as you sort of indicated. These are like drop-in substitute fuels that can be used, and this is, as I said, a terrific opportunity. What we're also doing alongside it is we're working with the industry and the sector in terms of having a feedstock strategy for biofuels. I hope in coming weeks to be able to release a discussion paper in line with that to make sure that we have sustainable feedstock for biofuels going into the future, as well as, of course, our strategy to have low-carbon fuels. 

MCGUIRE: Would we see refineries being built anywhere? 

COLLINS: Obviously they will need to be turned into low carbon fuels, so this is an opportunity for that to occur, and there are a number of existing proposals whereby industry are excited about the opportunities of biofuel production here in Australia, and I'm certain that there will be many communities across Australia that would be keen to have biofuel production in their local communities. Obviously, we'd need to make sure that we've got the feedstock, which is part of having the feedstock strategy also. 

MCGUIRE: So, what parts of this program do you think we might actually see in New South Wales? 

COLLINS: We do know that there are already some proposals to produce and manufacture these low-carbon fuels here in Australia, liquid fuels in Australia. Those biofuels, as we call them. This is about making sure that we can actually get these sectors up and producing here in Australia, and that we can get ahead of the curve. What we want to do is make sure that Australia has all the opportunities, particularly given we're such a large producer of grains here in Australia, and those grains could be going straight into biofuels here in Australia instead of being shipped overseas. I expect that there will be many proposals across the country, and that's what our funding will be about. It will be grants that we will design with industry and the sector to make sure that we're getting the best value and that we actually are able to get production up off the ground. 

MCGUIRE: Okay. So, these fuels, are they going to be mostly made from waste products? Are they going to also rely on crops that are grown specifically for the fuel? 

COLLINS: It will be a combination of both. We do send some tallow overseas at the moment, we also send over some used oils, I understand, as well as some of our grains going into biofuel production across the globe. So it would be terrific to be able to manufacture that here in Australia as part of our push to net zero, and as part of the changing climate. 

MCGUIRE: There might be some people listening that could be concerned that turning crops into fuel might end up competing with food production. I mean, is that something that's being considered? 

COLLINS: It absolutely is, which is why we need to make sure that we have the feedstock strategy. We're also going to produce a food security strategy for Australia as well, so our Government announced that, and we've had a discussion paper out that's still out at the moment in terms of seeking input. From farming to refineries, primary production, processing, all of that will be part of the process in terms of the production of these fuels here in Australia. 

MCGUIRE: Now, I know it's early days, cleaner fuel production goals sounds great for the environment. I wonder, though, are there going to be any environmental trade-offs as far as producing these low-carbon liquid fuels, like whether that is land use or water, or even the energy cost to make it? 

COLLINS: Well, we already know that Australian farmers are some of the lowest emission and some of the most productive farmers across the globe. As I said, a lot of our grains are going overseas now into biofuel production. It's much better that we do that here in Australia, and we have access to those low-carbon liquid fuels ourselves for our industries to help them decarbonise here in Australia. I'm confident that we can make this work, but we certainly are going to work with industry and with the sector to make sure that we get the design right. 

MCGUIRE: What is the timeline on this plan, Minister? 

COLLINS: We'll be doing the consulting with industry and with the sector. We hope to get the grants out next financial year, and as I said, it will be over 10 years in terms of the strategy to produce low-carbon fuels in Australia, so it will take a little while to get up and running, but certainly, we need to take the time to make sure we get it right. But we will hasten quickly, because obviously, we also need to get to net zero. 

MCGUIRE: Okay. And looking ahead in the future, like what does success look like for this program? 

COLLINS: Success looks like us being able to produce and manufacture biofuels here in Australia and for us to be using Australian inputs into that biofuel, because that provides the opportunities for everybody. From farmers to refineries to processing actually happening here in Australia. 

MCGUIRE: We've been discussing today the Federal Government's announcement of $1.1 billion as part of a new 10 year cleaner fuels program with the Federal Minister for Agriculture, Julie Collins. Thank you so much for your time.