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Australia's energy system is heavily reliant on liquid fuels, which account for over half of its energy consumption and approximately 30% of emissions. With over 50 billion liters of petroleum products imported annually, the country is exploring low-carbon liquid fuels (LCLF) for energy resilience and emissions reduction.

CSIRO is examining two pathways for LCLF production: Power-to-Liquid (PtL), which combines hydrogen and carbon dioxide, and biogenic fuels derived from biomass and waste. These efforts aim to support aviation, shipping, and heavy industry sectors, while also enhancing energy security.

Research focuses on reducing costs and managing risks associated with new technologies. Investment in large-scale facilities requires confidence in technology and long-term policy stability.