Fuel Types

Low carbon liquid fuels (LCLFs) are liquid fuels that have lower greenhouse gas emissions across their life cycle than the conventional fossil fuels they replace. They can be made from a range of feedstocks and energy sources, including agricultural biomass, waste oils and fats, and renewable electricity combined with captured carbon dioxide (COâ‚‚). A single production pathway usually makes more than one fuel.

Browse by fuel category

The four categories below group fuels by the conventional fuel they replace and how they are used.

Diesel Fuels

Renewable diesel
Biodiesel

Low carbon liquid fuels that replace or extend conventional diesel in compression-ignition engines.

Sustainable Aviation Fuels (SAF)

HEFA
Fischer-Tropsch
Alcohol-to-jet
SIP
CHJ
HC-HEFA
Co-processing

Aviation turbine fuels that meet a recognised synthetic fuel specification and can be blended with conventional jet fuel for use in existing aircraft and airport infrastructure.

Alcohol Fuels

Bioethanol
Isobutanol
Renewable ethyl tert-butyl ether (ETBE)

Low carbon liquid fuels that replace or extend conventional petrol in spark-ignition engines, including alcohol blends.

Shipping, Industry & Emerging Fuels

Renewable methanol
Renewable dimethyl ether (DME)
Renewable liquefied natural gas (LNG)
Renewable ammonia

Fuels that need dedicated engines, fuel systems and bunkering infrastructure. Their main current market is shipping, but several have additional uses in heavy industry.

Precursors and intermediates

Some products are stepping stones rather than finished fuels. They are made partway along a pathway and then upgraded or converted into the fuels above. A few, such as methanol and ethanol, are also fuels in their own right.

Methanol

A liquid made from syngas, or from renewable hydrogen and captured carbon dioxide. It is a shipping fuel in its own right and a building block for other fuels.

Used to makeDimethyl ether (DME)Petrol-range fuel (methanol-to-gasoline)Sustainable aviation fuel (methanol-to-jet, approved in 2026)

Ethanol

Made by fermenting sugars and starches, and increasingly from crop and forestry residues. It is blended into petrol today and is the starting point for the alcohol-to-jet pathway.

Used to makePetrol blends (E10, E85)Sustainable aviation fuel (alcohol-to-jet)

Syngas

A mixture of hydrogen and carbon monoxide, made by gasifying biomass or waste at high temperature, or from renewable hydrogen and captured carbon dioxide. It cannot be used as a fuel directly.

Used to makeFischer-Tropsch fuels (sustainable aviation fuel, renewable diesel, naphtha)Methanol

Biomethane

Biogas from anaerobic digestion of manure, food waste or sewage, with the carbon dioxide removed so it matches natural gas.

Used to makeBio-LNG (biomethane cooled to a liquid)Bio-methanol (via syngas)Renewable hydrogen

Hydrogen

Made by splitting water with renewable electricity (electrolysis), or from biomass or biomethane, rather than from fossil gas. It is an input to fuel-making rather than a fuel intermediate: it is combined with captured carbon dioxide to make e-fuels, and it is consumed when oils and fats are upgraded.

Used to makeE-fuels (e-methanol, e-diesel, e-jet)Renewable ammoniaRenewable diesel and HEFA SAF (as the hydrogen used in upgrading)

Bio-oil and biocrude

Thick, crude liquids made by heating biomass quickly without oxygen (pyrolysis, giving bio-oil) or in hot pressurised water (hydrothermal liquefaction, giving biocrude). Both must be upgraded with hydrogen, often in an existing refinery, before they can be used.

Used to makeRenewable dieselSustainable aviation fuelCo-processed refinery fuels

Multi-fuel pathways

A single production pathway usually makes more than one fuel. The same facility, using the same feedstock and the same core process, can produce a slate of products that spans the diesel, jet, petrol and specialised fuel categories.

Fuel Category

Diesel fuels

Jet fuels

Petrol fuels

Specialised low carbon fuels

Feedstock

Processing

Intermediate & upgrading

Final fuels

Pathway 1

Hydroprocessed esters and fatty acids (HEFA)

Fats & oils

  • Tallow
  • Used cooking oil
  • Canola oil

Hydroprocessing

Hydrogen and heat strip oxygen from oils, fats and greases to make hydrocarbons.

Hydrocarbon mix

A blend of hydrocarbons is distilled (fractionated) into petrol-, jet- and diesel-range cuts.

Pathway 2

Gasification + Fischer–Tropsch (FT) synthesis

Lignocellulosic biomass

  • Forestry residues
  • Agriculture residues (sugarcane bagasse, cereal straw, cotton gin trash)
  • Energy crops (grasses, woody crops)

Gasification

Biomass is broken down at high heat into synthesis gas.

Fischer–Tropsch synthesis

Hydrogen and carbon monoxide in the syngas are built into long-chain hydrocarbons, then hydrocracked and distilled into fuel cuts.

Pathway 3

Fermentation + alcohol-to-jet (ATJ)

Sugars & starches

  • Sugarcane molasses
  • Grain starch (wheat, corn, barley, sorghum)

Fermentation

Microbes ferment sugars and starch into ethanol.

Ethanol

Used directly as a petrol blend, or upgraded through alcohol-to-jet (ATJ) into jet-range and diesel-range hydrocarbons.

Pathway 4

Electrolysis + fuel synthesis (power-to-liquids / e-fuels)

Renewable electricity + captured COâ‚‚

  • Wind, solar or other renewable power
  • COâ‚‚ from biogenic, industrial or direct-air capture sources

Electrolysis

Electricity splits water into renewable hydrogen.

Fuel synthesis

Renewable hydrogen is combined with captured COâ‚‚ to form liquid fuels.

Standards and certification

Fuel quality standards set the technical specifications a fuel must meet to be used safely in particular equipment. They say nothing about how the fuel was made or what its emissions are. Separate frameworks cover that, and they do different jobs: emissions accounting schemes measure and verify the emissions associated with producing a batch of fuel across its life cycle, while sustainability certification schemes set environmental and social criteria for feedstocks, production and chain of custody. Meeting a fuel quality standard and holding an emissions or sustainability certificate are independent of each other, though fuel supplied into most markets needs both.

Resources

A selection from the library related to this page.

    • Market outlook & country report
    • 2025

    Renewables 2025: Analysis and forecasts to 2030

    International Energy Agency (IEA)
    Global forecasts to 2030 for renewable energy, including biofuel market trends and policy drivers that shape the outlook for low carbon liquid fuels.
    Read more
    • 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
    • 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
    • Report
    • 2021

    Australian Biomass for Bioenergy Assessment 2015-2021

    Australian Renewable Energy Agency (ARENA), prepared by AgriFutures Australia
    ARENA-supported report assessing Australian biomass resources and their relevance to bioenergy and renewable fuels, prepared by AgriFutures Australia.
    Read more
    • Legislation & regulation
    • 2000

    Fuel Quality Standards Act 2000 (Australia)

    Australian Government
    Australian legislation establishing national fuel quality standards and compliance arrangements for fuels supplied in Australia, including standards and determinations relevant to liquid fuels.
    Read more