Australia’s biofuels plan drops UCO & power-to-liquids hydrogen

Editor
October 3, 2025

Australia’s new bioenergy feedstock strategy proposal excludes used cooking oil (UCO), municipal waste and non-biogenic inputs—explicitly including green hydrogen used for power-to-liquids fuels.

Instead, the plan backs agriculture/forestry-derived feedstocks (canola, tallow, biomass, sugar cane, sorghum) and prioritizes HEFA over FT/ATJ/PtL pathways, alongside the A$1.1bn Cleaner Fuels Program.

Hydrogen projects can still pursue separate support via the A$2bn Hydrogen Headstart scheme; consultation responses are due 7 November, with submissions to be released 21 November.

Key takeaways

PtL sidelined for now: Green H₂ for power-to-liquids is excluded from the feedstock strategy, signaling a near-term policy tilt toward bio-based SAF routes.
HEFA favored: Government emphasis on “most viable” pathways elevates HEFA vs FT/ATJ/PtL; this shapes near-term SAF investment signals.
Waste oils out: UCO and municipal waste are not in scope, potentially affecting UCO-reliant SAF/biodiesel players eyeing Australia.
Hydrogen not shut out entirely: Renewable H₂ projects may still access support—just via Hydrogen Headstart, not the feedstock plan.
Timeline: Comments due 7 Nov 2025; submissions published 21 Nov 2025.

Source: Argus Media — “Australia excludes UCO, hydrogen from feedstock plan” (2 Oct 2025)