Australia allocates $735 million to develop biofuel production from rapeseed and sorghum, which will reduce exports and affect the EU market

The Australian government plans to allocate 1.1 billion Australian dollars (735 million US dollars) over 10 years to develop the sustainable fuels industry, which will be welcomed by the country's farmers, who have been seeking support from the state for years, Bloomberg reports.

The allocated funds will stimulate private investment, which will allow the production of biofuels to begin as early as 2029, since the country has sufficient resources for this, in particular rapeseed and sorghum.

Experts believe that the production of low-carbon liquid fuels will open up significant economic opportunities for Australia.

The world's major agricultural exporters, including the US and Brazil, have long been developing clean fuels to reduce emissions and improve profitability, but Australia has not developed this direction. Almost 70% of the country's rapeseed is exported raw and used abroad to produce biofuels, but there is no domestic technology to process the raw material into biodiesel. The new solution will allow the added value to be returned to the country and turn rapeseed into a renewable fuel.

Recall that in the 2024/25 MY, Australia supplied the EU with 3.5 million tons of canola, or 47% of total imports (7.5 million tons).

Canada has previously decided to increase its canola processing capacity to 15-16 million tonnes, which will significantly limit exports. In the previous season, out of 19 million tonnes of canola grown, 12 million tonnes were processed domestically, and the remaining 7 million tonnes were exported.

Ukraine recently introduced tariffs on rapeseed exports, which will also reduce export volumes and promote increased processing.

The UK plans to impose anti-dumping duties on imports of Chinese biodiesel in the amount of 15.68-54.64%. And the German Oilseed and Grain Promotion Association considers the future of biodiesel to be difficult due to certain uncertainties related to the US tariff policy towards the EU, Brazil, Canada and, especially, China.