Australia Biofuel Market 2025 | Worth USD 9.29 Billion by 2033

Market Overview
The Australia biofuel market size reached USD 2.79 Billion in 2024 and is projected to grow to USD 9.29 Billion by 2033. This growth is driven by government policies promoting renewable energy, rising environmental concerns, demand for cleaner transportation fuels, technological advancements, and increased investment in sustainable agriculture. The market is expected to grow at a compound annual growth rate (CAGR) of 12.8% during 2025-2033.

For more detailed insights, see the full Australia Biofuel Market report
https://www.imarcgroup.com/australia-biofuel-market

How AI is Reshaping the Future of Australia Biofuel Market
• AI technologies are enabling optimization in biofuel production processes, reducing costs associated with feedstock processing and improving efficiency, which addresses high production cost challenges.
• Through big data analytics, AI supports supply chain optimization by forecasting feedstock availability, helping to mitigate supply and consistency concerns detailed in the market.
• Machine learning algorithms assist in refining regional refinery operations, such as those near agricultural centers, improving energy security and supporting regional economic development.
• AI-driven research platforms accelerate development in advanced biofuels including algae-based and waste-to-fuel technologies, enhancing innovation in commercial-scale projects.
• Companies like Rio Tinto and Terviva Inc. are exploring AI applications in feedstock cultivation (e.g., Pongamia seed farms) to maximize oil yields and operational sustainability.
• AI-powered digital monitoring assists compliance with government blending mandates and fuel standards to ensure fuel quality and regulatory adherence.

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Market Growth Factors
strictly controls the Australia biofuel market. The Australian government has fuel blending mandates, at both the federal level and at the state level in New South Wales and Queensland, which provide a guaranteed market for ethanol and biodiesel fuels. Other regulatory support exists for transport, aviation and industry decarbonization. Financial support, including capital grants, tax benefits, and funding from the Australian Renewable Energy Agency (ARENA) are available to support the building of pilot plants, infrastructure, and feedstock. This enables large-scale investments to be made in long-life capital assets and bio-based fuel uptake and market expansion.
form a basis for the biofuels industry in Australia. Sugarcane, canola, sorghum and organic waste are widely grown in rural areas of Australia's states and territories for the large-scale production of ethanol and biodiesel. Increased supplies can reduce imports and provide farmers with income from by-products and waste that becomes feedstock for bio-refineries. Improved crop rotation and agricultural management can increase feedstock without compromising food output. In addition to sustainable biofuel manufacturing capacity, these resources will support rural Australian economies and the transition to a clean energy future.
also propel the biofuel market. Australia's reliance on imported petroleum, however, exposes the country to the price fluctuations and supply chain disruptions of world events. Production of renewable fuels in the domestic market, such as biofuels for transport, industry, and defense, contributes to energy security and offers investment opportunities in domestic bio-refineries and regional feedstock production while advancing decarbonization of energy systems, sectors and value chains. Government promises of energy independence are the primary motivator behind public and private investment in Brazil's biofuels sector.

Market Segmentation
Type Insights:
• Biodiesel
• Ethanol
• Others

Feedstock Insights:
• Coarse Grain
• Sugar Crop
• Vegetable Oil
• Others

Regional Insights:
• Australia Capital Territory and New South Wales
• Victoria and Tasmania
• Queensland
• Northern Territory and Southern Australia
• Western Australia

Key Players
• Rio Tinto
• Midway Limited
• Terviva Inc.
• Chevron Renewable Energy Group
• Viva Energy Australia
• Virgin Australia
• Qatar Airways
• Renewable Developments Australia
• Comstock Fuels
• Southern Asian Carbon Limited
• S&W Seed Company
• Shell

Recent Development & News
• May 2025: Viva Energy Australia launched the nation's first commercial biofuel trial for cruise ships using a B20 marine biofuel blend comprised of 80% marine distillate and 20% biodiesel derived from used cooking oil on Royal Caribbean's Celebrity Edge, supporting maritime decarbonization.
• April 2025: Virgin Australia and Qatar Airways, partnered with Renewable Developments Australia, announced plans to build a Sustainable Aviation Fuel (SAF) facility in North Queensland's Charters Towers Region, targeting an annual output of up to 96 million litres of SAF to significantly reduce greenhouse gas emissions.
• September 2024: Comstock Fuels partnered with Southern Asian Carbon Limited to construct three biofuel plants in Australia focusing on Sustainable Aviation Fuel production, with a USD 2.4 Billion investment expected to yield over 160 million gallons annually using advanced biomass refining technology.

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