Construction relies heavily on diesel-powered plant, mobile equipment and temporary site energy systems. For this part of the sector, low carbon liquid fuels (LCLFs) are one option for reducing emissions while electrification, battery-electric equipment and lower emissions site design continue to develop.
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How construction is reducing emissions
Decarbonisation of the construction sector involves a combination of measures rather than a single solution.
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Electrification of light plant
Electrification is the long-term answer for construction emissions, but it will not arrive evenly. Industry estimates suggest electric alternatives may cover only around 40% of construction equipment energy use by 2030, rising to about 60% by 2040, with power availability, duty cycles and utilisation shaping what is practical on any given project .
Fuels for construction
Across much of the sector, the dominant liquid fuel remains conventional diesel. Australian construction guidance increasingly treats low carbon liquid fuels as a practical near-term decarbonisation strategy while electric alternatives continue to scale.
Renewable diesel
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 construction
Often seen as the strongest near-term drop-in low carbon liquid fuel for existing diesel construction fleets
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.
Biodiesel
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 construction
May offer a lower carbon substitute or blend component for diesel construction applications.
Considerations
Usually requires closer attention to blend limits, storage, maintenance practice and OEM requirements.
On-site fuel handling
On construction sites, fuel handling is planned around live plant movements, temporary compounds and changing access routes. Temporary site tanks must be secure, clearly labelled, bunded and positioned away from drains, excavations and high-traffic areas. Mobile refuelling keeps excavators, generators, pumps and other equipment operating efficiently, but should be carried out by trained personnel with spill controls and accurate issue records.
Regular on-site fuel quality checks help identify water, sediment or contamination before they cause downtime, while original equipment manufacturer (OEM) and hire-company approval should be confirmed before switching fuels. Liquid fuels should be stored and labelled separately where required, with fuel specifications, cold-weather performance and compatibility clearly documented.
How fuel moves through the construction industry
Supply & refining
Delivery to site
Secure site storage
Quality checks on site
Controlled fuel
Use in plant & equipment
Policy & regulation
The sections below cover the standards, policy, certification criteria and organisations shaping how low carbon liquid fuels are used across the construction sector, grouped by the role they play.
National industry body representing major contractors and publishing guidance on construction decarbonisation pathways, including renewable diesel and fossil fuel free construction.
Peak industry body for the Australian bioenergy sector, representing producers, technology providers and end-users of low carbon liquid fuels, biogas and bio-based products. Publishes industry strategy.
Peak body for Australia’s civil construction industry and a relevant sector voice on plant, infrastructure delivery and workforce issues.
Peak body for infrastructure sustainability in Australia and Aotearoa New Zealand and operator of the IS Rating scheme used across planning, design, construction and operations.
National WHS policy body whose guidance is relevant to plant safety, diesel exhaust exposure and risk management on construction sites.
Recognised industry organisation representing the European construction equipment sector and engaging on standards, regulation and the sector’s low emissions transition.
A standards organisation that develops and publishes voluntary consensus technical international standards for a wide range of materials, products, systems and services.
An association that brings together the National Standardization Bodies of 34 European countries.
Australia’s Guarantee of Origin scheme, which is administered by the Clean Energy Regulator, 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.
Independent global certification scheme covering sustainable biomass, bio-based materials, renewable fuels and circular economy products. ISCC certification is widely used to demonstrate compliance with European Union renewable fuel requirements, including for renewable diesel.
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