Natural Resources

The natural resources sector relies heavily on diesel-powered vehicles, mobile equipment and remote power systems across mining, oil and gas, and coal operations. In this part of the economy, low carbon liquid fuels (LCLFs) are one option for reducing emissions while electrification, battery-electric equipment, renewable power and other decarbonisation pathways continue to develop.

Natural resources at a glance

$400 billion

in resource and energy exports a year

Mining, oil and gas extraction, and the services that support them operate in every state and territory .

8 billion litres

of diesel used in mining a year

Diesel powers haul trucks, excavators, drill rigs and remote generators, much of it beyond the electricity grid .

About a quarter

of Australia’s diesel is used in mining

The sector’s share of national diesel use has grown steadily since the start of the century .

4.9% a year

is how fast Safeguard baselines fall

Large industrial facilities must keep the emissions they release directly under a limit that falls each year to 2030. Transitioning fuels is one of the options available .

How the natural resources sector is reducing emissions

Natural resources sector decarbonisation involves a portfolio of measures. The right mix differs by commodity, site, equipment fleet, grid access, haul profile and infrastructure timing .

1

Electrified haulage and on-site equipment

Battery-electric haul trucks, trolley assist, charging infrastructure and electric drills are being developed or deployed where they fit site layouts and duty cycles.

2

Renewable energy and microgrids

Remote and off-grid sites can combine grid connection, on-site renewables, storage and power-system upgrades to reduce stationary energy emissions.

3

Energy efficiency and operational improvement

Mine planning, maintenance, ventilation, dispatch systems and energy management can reduce fuel use and improve productivity.

4

Drop-in low carbon liquid fuels

Renewable diesel and biodiesel blends can support equipment and remote operations where electrification is not yet practical.

Fuels for natural resources

For existing natural resources fleets, the most relevant low carbon liquid fuel options are renewable diesel and biodiesel. Australia’s fuel quality framework distinguishes conventional diesel, paraffinic diesel and biodiesel, and the Resources Sector Plan recognises low carbon fuels as a credible pathway where electrification or renewable infrastructure is not feasible .

A diesel-equivalent hydrocarbon fuel produced from oils, fats and residues through hydrotreating (HVO/HEFA) or through synthetic pathways (PtL). Chemically and functionally different from biodiesel.

How it can fit in natural resources

  • Haul trucks
  • Excavators and loaders
  • Drill rigs
  • Remote power generators
  • Diesel light vehicles

Considerations

It can align with paraffinic diesel specifications and may be suitable for some existing engines, subject to original equipment manufacturer (OEM) approval and operating conditions.

A liquid fuel made by reacting fats or oils, such as vegetable oils, used cooking oil or tallow, with an alcohol. Reacting with methanol produces fatty acid methyl esters (FAME); reacting with ethanol produces fatty acid ethyl esters (FAEE).

How it can fit in natural resources

  • Haul and support fleets (blends)
  • Site generators
  • Light and service vehicles

Considerations

Usually requires closer attention to blend limits, storage, maintenance practice and OEM requirements.

On-site fuel handling

Step 1

Store it safely

Bulk and temporary tanks must be secure, bunded, clearly labelled and sited to protect waterways, haul roads and operating areas. AS 1940 is the benchmark: a bund holds at least 110% of the largest tank, or 25% of all tanks, whichever is greater.

Step 2

Refuel in the field

Mobile refuelling keeps haul trucks, drills, loaders, generators and pumps productive. It needs trained operators, spill response equipment on hand and accurate fuel issue records.

Step 3

Test before use

Fuel that has travelled long distances or sat in storage can pick up water, dust and sediment. Test on site before it reaches equipment. Biodiesel blends absorb water and oxidise, so they need closer watching than renewable diesel.

Step 4

Approve the change

OEM and maintenance teams sign off any fuel change first, covering engines, filters, after-treatment systems and warranty. Renewable diesel (HVO) and conventional diesel each have their own Australian standard, so keep specifications, labelling and supplier approvals documented.

Natural resources fuels today

Across much of the natural resources sector, conventional diesel remains central to extraction and processing operations, especially for mobile equipment and remote power. The Resources Sector Plan identifies fuel combustion emissions from vehicles, equipment and power systems as a major decarbonisation focus .

Conventional diesel remains central

Diesel is used in mobile equipment, service fleets, generators and other high-utilisation site assets.

Remote operations matter

Liquid fuels remain especially relevant where charging infrastructure, grid connection or renewable power systems are limited or still being developed.

Fuel transition is one pathway

Fuel changes can sit alongside electrification, renewable power, energy efficiency and other technology changes.

Policy, regulation and technical guidance

The sections below cover the legislation, standards, policy, certification criteria and organisations shaping low carbon liquid fuel use across the natural resources sector, grouped by the role they play.

Fuel quality and technical standards

These decide whether a fuel is legal to sell in Australia and fit to run in mining and site equipment.

Certification criteria

If a fuel is bought or claimed as low carbon, these schemes decide whether the claim counts and how it is proven.

Key natural resources sector bodies

Industry bodies, regulators and associations that shape natural resources practice, guidance and safety requirements for fuel use on site.

Resources

A selection from the library related to this page.

    • Report
    • 2025

    Opportunities and Priorities for a Low Carbon Liquid Fuel Industry in Australia

    Commonwealth Scientific and Industrial Research Organisation (CSIRO), prepared in partnership with the Australian Government
    CSIRO report, prepared in partnership with the Australian Government, outlining opportunities for a low carbon liquid fuel industry in Australia and identifying priorities to progress projects from development through to commercial scale.
    Read more
    • Report
    • 2025

    Refined Ambitions: Exploring Australia’s low carbon liquid fuel potential

    Clean Energy Finance Corporation (CEFC), prepared by Deloitte
    CEFC’s Refined Ambitions report assesses Australia’s low carbon liquid fuel potential, covering supply chains, investment considerations and policy levers across fuels such as SAF and renewable diesel.
    Read more
    • Report
    • 2025

    Securing our Fuel Future: Resilience Through Low Carbon Liquid Fuels

    Bioenergy Australia, prepared by Deloitte
    Bioenergy Australia report (prepared by Deloitte) outlining how low carbon liquid fuels could support Australia’s fuel resilience and emissions goals, with recommendations on policy, investment and supply-chain development.
    Read more
    • Technical & scientific report
    • 2024

    Update on drop-in biofuel and co-processing commercialization

    International Energy Agency Bioenergy Technology Collaboration Programme (IEA Bioenergy) Task 39
    IEA Bioenergy Task 39 report on progress in drop-in biofuel and co-processing commercialisation, updating its 2022 report on low carbon intensity drop-in fuels. Finds that the hydrotreated esters and fatty acids (HEFA) pathway remains the only fully commercial route to drop-in biofuels, with a substantial increase in announced facilities and in sustainable aviation fuel output driven by supportive policy.
    Read more
    • Roadmap & strategy
    • 2025

    Resources Sector Plan

    Australian Government, Department of Industry, Science and Resources (DISR)
    Australian Government sector plan for the resources industry, setting out priorities for decarbonising mining and processing, including the role of low carbon liquid fuels and electrification in displacing diesel.
    Read more
    • Report
    • 2022

    The Role of Low-Carbon Fuels in the Clean Energy Transitions of the Power Sector

    International Energy Agency (IEA)
    IEA report assessing where low carbon fuels can support power sector transitions, including roles in flexibility and firming, and the technology, cost and infrastructure conditions affecting deployment.
    Read more
    • Report
    • 2025

    Delivering Sustainable Fuels: Pathways to 2035

    International Energy Agency (IEA)
    IEA report outlining pathways to scale sustainable fuels to 2035 across transport and industry, including policy and investment needs and where fuels can complement electrification in hard-to-abate uses.
    Read more
    • Report
    • 2022

    Technology solutions for decarbonisation: Mining in a low-emissions economy

    Clean Energy Finance Corporation (CEFC) and Minerals Research Institute of Western Australia (MRIWA)
    CEFC-MRIWA report identifying technology options to reduce mining emissions, including low carbon liquid fuels, electrification and enabling infrastructure and investment considerations.
    Read more
    • Report
    • 2022

    The compelling case for decarbonisation: Mining in a low-emissions economy

    Clean Energy Finance Corporation (CEFC) and Minerals Research Institute of Western Australia (MRIWA)
    CEFC-MRIWA report setting out why decarbonisation matters for Australia’s mining sector, including key drivers, risks and the role of investment in enabling change.
    Read more
    • Roadmap & strategy
    • 2022

    Roadmap to decarbonisation: Mining in a low-emissions economy

    Clean Energy Finance Corporation (CEFC) and Minerals Research Institute of Western Australia (MRIWA)
    CEFC-MRIWA roadmap translating mining decarbonisation analysis into priority actions for industry and government, including technology deployment, infrastructure planning, collaboration and financing.
    Read more
    • Report
    • 2025

    Decarbonising diesel industries

    Australian Academy of Technological Sciences and Engineering (ATSE)
    ATSE report examining options to reduce conventional diesel use and emissions across Australian mining, freight and agriculture, fisheries and forestry, including technology pathways, enabling infrastructure and policy. Source of the figure that diesel accounts for approximately 84% of on-farm energy consumption in agriculture, at page 9. Note that figure is for on-farm agriculture only, not the three sectors combined, and ATSE attributes it to three secondary sources without giving a year.
    Read more