Diesel Fuels

HomeLearnFuel TypesDiesel Fuels

Diesel powers heavy freight, agricultural machinery, mining equipment, rail rolling stock, marine vessels and a substantial share of light commercial vehicles in Australia. Conventional diesel is a middle-distillate hydrocarbon fuel made from crude oil. Low carbon liquid fuel (LCLF) alternatives, including drop-in replacements and diesel blending components, reduce greenhouse gas emissions from these uses by using renewable or non-conventional feedstocks.

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Renewable diesel Biodiesel Resources

Renewable diesel

Also known as

HVO (Hydrotreated Vegetable Oil)
HDRD (Hydrogenation-Derived Renewable Diesel)
Hydrotreated renewable diesel / hydrogenated renewable diesel
Paraffinic diesel

Renewable diesel can be used in existing diesel engines and fuel infrastructure without modification, because it is a hydrocarbon fuel that meets the specifications those engines and supply chains are built around. It is generally a paraffinic fuel, produced from oils and fats, from lignocellulosic biomass and wastes, or from renewable hydrogen combined with captured COâ‚‚, then upgraded to meet a diesel specification. Some pathways, including co-processing, hydrothermal liquefaction and fast pyrolysis, produce a renewable diesel that meets the conventional diesel specification rather than the paraffinic diesel standard.

Key standards and certifications
Technical

Australian fuel quality regulations under the Fuel Quality Standards Act 2000

Australian Government

Fuel Quality Standards (Paraffinic Diesel) Determination 2025

Sets minimum quality requirements for paraffinic diesel sold in Australia.

Fuel Quality Standards (Paraffinic Diesel) Information Standard 2025

Sets labelling requirements at point of sale for paraffinic diesel and conventional/paraffinic blends in Australia.

Fuel Quality Standards (Conventional Diesel) Determination 2025

Australian regulation for conventional (fossil) diesel. Relevant to renewable diesel where it is blended with conventional diesel.

EN 590

Automotive fuels – Diesel – Requirements and test methods

European standard for conventional automotive diesel. Australian on-road diesel aligns with EN 590 as a 10 ppm ultra-low sulfur diesel. Relevant to renewable diesel where it is blended into conventional diesel, because the finished blend must meet this standard.

EN 15940

Automotive fuels – Paraffinic diesel fuel from synthesis or hydrotreatment – Requirements and test methods

European standard for paraffinic diesel produced by hydrotreatment of oils/fats (HVO) or synthesis from gasification (BtL, GtL). Applies wherever renewable diesel is marketed as a paraffinic product.

ASTM D975

Standard Specification for Diesel Fuel Oils

Standard for diesel fuel oils used in compression-ignition engines. Renewable diesel meeting paraffinic limits also complies with this standard. Applies in the United States and many ASTM-aligned jurisdictions.

Certifications and schemes

International Sustainability and Carbon Certification (ISCC)

ISCC System GmbH

Voluntary, globally recognised certification covering biofuel sustainability, GHG emissions and chain of custody. ISCC EU compliance enables product sale into European markets under RED II/III.

Guarantee of Origin scheme

Australian Government (Clean Energy Regulator)

Voluntary Australian scheme that provides a transparent, publicly accessible record of the emissions associated with the production of key commodities. The scheme is being expanded to cover low carbon liquid fuels.

Roundtable on Sustainable Biomaterials (RSB)

Global certification standard for sustainable biomaterials, biofuels and biomass production.

Multi-stakeholder voluntary standard covering sustainability of biofuel feedstocks, conversion and chain of custody.

Production pathways

Standards and approvals
  • Fuel Quality Standards (Paraffinic Diesel) Determination 2025
  • EN 15940
  • ASTM D975
Maximum blend
Up to 100% drop-in
Main feedstocks
Used cooking oil, tallow, vegetable oils, other waste oils and fats
Oils and fatsUCO, tallow, vegetable oils
→
Pretreatment
→
Hydroprocessingwith Hâ‚‚
→
Isomerisation and cracking
→
Distillation to diesel

Same hydroprocessing platform also produces SAF (HEFA-SPK), bio-naphtha and renewable LPG

Standards and approvals
EN 590
ASTM D975

Fuel Quality Standards (Conventional Diesel) Determination 2025
Def Stan 91-091 (for jet co-product)
Maximum blend
Up to 100% in the finished diesel. There is no blend limit on the diesel output, provided the finished fuel meets the diesel standard. Where a jet fraction is also produced and certified as aviation fuel, the renewable share of the refinery feed is limited by the applicable aviation fuel standard.
Main feedstocks
Used cooking oil, tallow, vegetable oils; Fischer-Tropsch hydrocarbons; hydroprocessed lipid-derived hydrocarbons

Fats, oils and greases (FOG) in refinery hydrotreaters

Renewable feedstock + petroleum
→
Refinery hydrotreaterco-processing
→
Hydrotreated stream
→
Distillation
→
Jet + diesel + other cuts

Co-processing produces renewable diesel, petrol-range cuts and other refinery products alongside the diesel fraction.

Fischer-Tropsch hydrocarbons in refineries

FT hydrocarbons + petroleum
→
Refinery hydrotreater
→
Hydrotreated stream
→
Distillation
→
Diesel + other cuts
Standards and approvals
  • Fuel Quality Standards (Paraffinic Diesel) Determination 2025)
  • EN 15940
  • ASTM D975
Maximum blend
Up to 100% drop-in
Main feedstocks
Lignocellulosic biomass (forestry & agricultural residues, energy crops), municipal solid waste, certified non-recyclable plastic wastes
Biomass or waste
→
Gasification
→
SyngasCO + Hâ‚‚
→
Fischer-Tropsch synthesis
→
Distillation to diesel

This pathway also produces sustainable aviation fuel and naphtha-range co-products

Standards and approvals
  • Fuel Quality Standards (Paraffinic Diesel) Determination 2025
  • EN 15940
  • ASTM D975
Maximum blend
Up to 100% drop-in
Main feedstocks
Renewable electricity + water (for electrolytic hydrogen) + captured COâ‚‚ (point-source or direct air capture)
Renewable electricity + water
→
Electrolysis
→
Green hydrogen + COâ‚‚
→
Reverse water gas shift
→
SyngasCO + Hâ‚‚
→
Fischer-Tropsch synthesis
→
Distillation to diesel

PtL is feedstock-flexible at the front end: any source of low carbon hydrogen and COâ‚‚ can be used

Standards and approvals
Pre-commercial in Australia; covered by the Biodiesel Determination 2025, which is written broadly enough to include ethyl esters.
Maximum blend
Up to 100% drop-in once upgraded
Main feedstocks
Wet biomass: algae, sewage sludge, food waste, manure, woody biomass slurries
Wet biomass slurry
→
Hydrothermal liquefaction reactor
→
HTL biocrude
→
Hydrotreating + upgrading
→
Distillation to diesel

Co-products include naphtha-range hydrocarbons and aqueous and gas phases that can be recycled or further processed.

Standards and approvals
Pre-commercial in Australia; covered by the Biodiesel Determination 2025, which is written broadly enough to include ethyl esters.
Maximum blend
Up to 100% drop-in once upgraded
Main feedstocks
Lignocellulosic biomass (dried and ground) – forestry residues, agricultural residues, energy crops. Unlike HTL, which uses wet slurries, fast pyrolysis requires the feedstock to be dried and milled before processing
Lignocellulosic biomass
→
Drying + grinding
→
Fast pyrolysis
→
Pyrolysis oilbio-oil
→
Hydrotreating + upgrading
→
Distillation to diesel

Bio-oil is established commercially for stationary heat and power applications

Biodiesel

Also known as

FAME (Fatty acid methyl ester)
B100, B20, B7, B5
Methyl ester

A non-paraffinic diesel substitute produced by transesterification of fats and oils with an alcohol, usually methanol. Biodiesel is chemically distinct from conventional diesel and from renewable diesel and is generally used as a blend rather than as a drop-in fuel.

Key standards and certifications
Technical

Australian fuel quality regulations under the Fuel Quality Standards Act 2000

Australian Government

Fuel Quality Standards (Biodiesel) Determination 2025

Australia’s biodiesel fuel quality regulation. Defines biodiesel broadly as a diesel fuel obtained by esterification of plant or animal oil, covering both methyl and ethyl esters.

Fuel Quality Standards (Conventional Diesel) Determination 2025

Relevant to biodiesel because it sets a maximum of 5.0% by volume biodiesel in conventional diesel and in conventional diesel/paraffinic diesel blends. Any biodiesel component must meet the Biodiesel Determination 2025 before blending. Fuel above this level is not supplied as conventional diesel and falls under the Biodiesel Determination.

ASTM D6751

Standard Specification for Biodiesel Fuel Blendstock (B100) for Middle Distillate Fuels

US specification for B100 biodiesel as a blendstock with diesel fuels. Defines six grades by sulphur content, low-temperature performance and metals. The reference biodiesel standard in North America.

ASTM D7467

Standard Specification for Diesel Fuel, Biodiesel Blend (B6 to B20)

US standard for biodiesel blends at the pump (B6 through B20). Three grades by sulphur content. The biodiesel component must already comply with D6751 before blending.

EN 14214

Liquid petroleum products – Fatty acid methyl esters (FAME) for use in diesel engines and heating applications

European standard for FAME biodiesel at 100% concentration (B100) and as a blendstock.

Certifications and schemes

International Sustainability and Carbon Certification (ISCC)

ISCC System GmbH

Voluntary, globally recognised certification covering biofuel sustainability, GHG emissions and chain of custody. ISCC EU compliance enables product sale into European markets under RED II/III.

Guarantee of Origin scheme

Australian Government (Clean Energy Regulator)

Voluntary Australian scheme that provides a transparent, publicly accessible record of the emissions associated with the production of key commodities. The scheme is being expanded to cover low carbon liquid fuels.

Roundtable on Sustainable Biomaterials (RSB)

Global certification standard for sustainable biomaterials, biofuels and biomass production.

Multi-stakeholder voluntary standard covering sustainability of biofuel feedstocks, conversion and chain of custody.

Production pathways

Standards and approvals
  • Fuel Quality Standards (Biodiesel) Determination 2025
  • ASTM D6751
  • ASTM D7467
  • EN 14214
Maximum blend
• Typically B5 (5%) or B20 (20%) in conventional diesel
• B100 in dedicated applications (selected fleet vehicles, some stationary engines)
Main feedstocks
Vegetable oils (canola, soy, palm), animal fats (tallow, lard), used cooking oil
Oils and fats
→
Pretreatment
→
Transesterificationmethanol + KOH/NaOH catalyst
→
Separation and washing
→
FAME + glycerol
Standards and approvals
Fuel Quality Standards (Biodiesel) Determination 2025
Maximum blend
Typically B5 (5%) or B20 (20%) in conventional diesel Same technical constraints as FAME
Main feedstocks
Vegetable oils (canola, soy, palm), animal fats (tallow, lard), used cooking oil
Oils and fats
→
Pretreatment
→
Transesterificationethanol + catalyst
→
Separation and washing
→
FAEE + glycerol
Keep exploring
Conversion and upgrading Fuel certification Road

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
    • 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
    • Position & advocacy paper
    • 2024

    Renewable diesel position paper
    Australian Constructors Association (ACA)
    Australian Constructors Association position paper on the role of renewable diesel in decarbonising the construction sector, including supply, cost and policy considerations.
    Read more
    • Guidance
    • 2025

    Regulating Australian fuel quality
    Australian Government, Department of Climate Change, Energy, the Environment and Water (DCCEEW)
    DCCEEW webpage explaining how fuel quality is regulated in Australia, including standards, determinations and compliance information relevant to petrol and diesel supply.
    Read more
    • Report
    • 2020

    Biomass-Based Diesel
    Fuels Institute
    Fuels Institute report explaining biomass-based diesel (including renewable diesel) and its feedstocks, properties and production pathways, with discussion of infrastructure compatibility and market and policy drivers.
    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
    • Report
    • 2022

    The diesel transition: Petroleum diesel alternatives for the Australian agriculture, fisheries and forestry sector
    AgriFutures Australia
    AgriFutures Australia report on alternatives to conventional diesel for agriculture, fisheries and forestry, covering low carbon liquid fuels and other options such as electrification and hydrogen.
    Read more
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