Expert Insights with Shahana McKenzie, Bioenergy Australia: Developing Australia’s position as a SAF leader
Shahana McKenzie
Chief Executive Officer
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Bioenergy Australia
In this interview, Shahana McKenzie explores Australia’s progress toward a domestic SAF industry, highlighting government investment, policy momentum, and global collaboration as key factors in progress. With abundant feedstocks and growing alliances, Australia is positioned to lead in low carbon fuels, if the right infrastructure and policy mechanisms are put in place. Read on to find out more…
Australia has made notable progress in laying the groundwork for a domestic SAF industry. What are the most significant recent developments, and what do you see as the near-term priorities for scaling production amongst your members?
The Australian Government has made a number of significant announcements over the last three years. This includes:
The allocation of $250 million to the Australian Renewable Energy Agency (ARENA) (2025 Joint media release: Low-carbon liquid fuels of the Future Made In Australia).
$18.5 Million for the development of a certificate of origin scheme (2024 Media release: Have your say on a future made in Australia: unlocking Australia's low carbon liquid fuel opportunity)
$1.5M allocated for development of supply and demand side policy levers to accelerate deployment, with the intention of additional funding to support this in coming budgets (2024 Media release: Joint media release: Australia’s homegrown sustainable aviation fuel industry takes off)
In addition to this the Australian Government established the Australian Jet Zero Council, an initiative designed to bring industry and government together to identify barriers and accelerate deployment of decarbonization of aviation. This council has met regularly over the last 2 years and has played a crucial role in providing advice to government. 2023 Media release: Australian Jet Zero Council ready to take off
The Australian government has also significantly invested in the development of sectoral based decarbonisation plans with low carbon liquid fuels identified as essential across many modes of transport in Australia (Net Zero Sectoral Plans).
The Australian Government doesn't just see the role of low carbon liquid fuels as a decarbonization opportunity it is also being viewed as a significant opportunity to enhance Australia’s fuel security and energy security with Australia currently relying on over 80% of its liquid fuels being imported and the majority of that from the Asia region (Report: Securing our Fuel Future: Resilience Through Low Carbon Liquid Fuels (March 2025))
What policy mechanisms are needed to accelerate domestic SAF production, and how does Australia’s policy framework compare to that of Europe or the U.S.?
One of the benefits of being a decade behind is that we are able to learn the lessons from Europe and the United states and design A uniquely Australian policy environment. We are very much the beginning of this journey however significant progress has been made over the last three years.
Australia is already a significant exporter of feedstock into other regions for low carbon fuel production. Whether it is canola, used cooking oil or tallow.
The development of a domestic low carbon liquid fuels industry will be determined by the policy mechanisms implemented by the government of the day. There are basically four options and we are at the very beginning of this journey.
Australia will continue to be an exporter of raw HEFA pathway feedstocks as we currently do.
Australia will become an intermediary with an amount of pre processing of feedstock prior to export. This is particularly relevant with the alcohol to jet and lignocellulosic pathways.
Australia will develop a domestic refining industry with the support of Government grants for capital infrastructure, however the fuel will be exported to meet Government mandates and incentives in other jurisdictions.
Or, Australia recognises this opportunity and the essential need for low carbon fuels domestically and not only provides support through grants, but also implements demand side levers such as mandates and supply side support to reduce the cost impact of these fuels.
Ultimately the pathway taken will be determined by the government. And the investment that the government is willing to make in supporting the development of the industry and supporting decarbonization of hard to abate sectors that are liquid fuel reliance.
What role is Bioenergy Australia playing in connecting the Australian SAF market with global markets, and how can stakeholders around the world engage?
Bioenergy Australia created two key alliances 3 years ago. The first was the Sustainable Aviation Fuels Alliance of Australia and New Zealand and the second was the Cleaner Fuels Alliance. In the last six months these two alliances have merged to become the Low Carbon Fuels Alliance of Australia and New Zealand. This alliance meets every 2 months and now has over 400 stakeholders representing the entire supply chain from feedstock to consumer. The alliance contains most of the major SAF and Renewable Diesel refiners globally that are relevant to the Australian market, and we very much welcome any new additions. The alliances are the singular reason we have has success in driving supportive policy outcomes.
Australia has abundant feedstock potential and renewable energy resources. What steps are being taken to turn this potential into commercial-scale SAF supply chains?
Currently Australia is a significant exporter of feedstock however the tide is changing. The Australian government and State governments have made commitments to understand how they can capitalise on the opportunity of Australian feedstocks whilst also operating in a sustainable way moving forward. If the current government is re-elected they have committed to the development of a national feedstock strategy which Bioenergy Australia fully supports. (2025 Media release: Feeding Australia: Albanese Labor Government's plan to secure our food future)
How important is international collaboration in accelerating SAF adoption, and what opportunities do you see for cooperation in areas such as feedstock trade, technology transfer, or investment?
Global collaboration is essential to achieve decarbonisation.
Australia is a key contributor into the IEA Bioenergy TCP, we work collaboratively with other Governments, seek to listen and learn and have a close connection into IATA, CAAFI and other industry led initiatives.
Ultimately to achieve decarbonization, technology advancement, feedstock innovation, streamlining of carbon accounting and education to support investment will need to be progressed in a collaborative and global way.
Australia has a significant role to play within the Asia Pacific region given our significant feedstock potential. The Australian Government and the industry recognise the crucial role that Australia will need to play in supporting our neighbours, and in particular those countries that do not have the ability to domestically develop low carbon fuels.
Events such as these are essential in connecting industry and governments globally to accelerate the development of this industry. The cant afford to get this wrong.