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The Australian Renewable Energy Agency (Arena) has announced its updated low-carbon liquid fuels (LCLF) funding round under the Future Made in Australia (FMA) innovation fund, focusing on sustainable aviation fuel (SAF), renewable diesel (RD), and methanol while excluding biodiesel, biomethane, hydrogen, and ammonia-based fuels. The A$250 million ($174 million) fund aims to support projects with the highest innovation potential for hard-to-electrify sectors like aviation and maritime transport, marking a shift from previous bioenergy programs.

The funding includes commercial-scale SAF and RD plants, grants for pre-commercial demonstrations, and capital support for supply chain enablement and biogenic feedstock trials. Additionally, the Australian government will invest A$1.1 billion to bolster LCLF production, emphasizing deployment with grants of up to A$50 million aligned with sustainability schemes.