Oil & Gas

Australia’s state of Queensland plans to invest A$25 million in a biodiesel production project as it works to reduce reliance on imported fuel. The move comes amid a severe supply crunch linked to the war in the Middle East, which has exposed vulnerabilities in global energy supply chains.

The investment—equivalent to about $18 million—will support a local refinery expected to produce around 20 million litres of biodiesel annually starting in 2028, according to Reuters. This output is roughly equal to 2,000 tons, representing a modest but strategic addition to domestic fuel supply.

Queensland Premier David Crisafulli emphasized the importance of such projects, saying they help ensure the state is not left dependent on foreign nations during global disruptions. Still, the planned biodiesel capacity—about 125,000 barrels of crude equivalent—amounts to only a fraction of Australia’s daily oil consumption.

At the same time, Queensland is backing expanded oil production, including support for the Taroom Trough project west of Brisbane. The state has urged federal authorities to fast-track approvals, while early output from the site is already entering the domestic market through processing partnerships with Shell. Together, these efforts reflect a broad strategy to strengthen energy security by developing both traditional fuels and alternatives like biodiesel.