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Market Chatter: Australia Eyes Biofuel Mandate in Response to Global Energy Crisis

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Australia plans to mandate biofuel blending to improve energy security, while bolstering local production due to the energy crisis resulting from conflict in the Middle East, Reuters reported, citing a government official familiar with the matter.

A major producer of canola seed and tallow, the country currently exports these valuable seed oils, while importing most of its fuel needs.

The government is expected to begin consultations in the coming months, including industry engagement, reviews of international best practices, and broader cost-benefit assessments, with a target of developing a policy by the end of the year.

Last year, Australia's center-left government unveiled A$1.1 billion ($780 million) in funding to support biofuel production infrastructure over the next decade to establish a low-carbon fuel industry worth tens of billions by mid-century.

has contacted the Australian government seeking confirmation and comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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