Another leading analyst has highlighted the opportunities for Australia's oilseeds sector in the biofuel space.
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RaboResearch Australia and New Zealand general manager Stefan Vogel said biofuel, in particular sustainable aviation fuel (SAF), would be in high demand for at least the next decade and that Australian canola producers were in a good position to meet that demand.
Mr Vogel said as airlines looked to decarbonise their supply chains, low emissions feedstocks, such as canola, were an ideal option.
In a two-part report on opportunities for Australian agriculture in the production of SAF, Mr Vogel said the largest contribution to cutting aviation emissions over the next decade would be from the uptake of SAF rather than fossil fuels.
And there is the potential for massive implications for the Australian canola industry.
Mr Vogel said there could foreseeably be structural change right throughout the sector no less significant than when ethanol and biodiesel mandates were introduced in the US and Europe.
The Rabobank-backed report said while the future development of a local SAF-production industry in Australia was far from locked in, Aussie growers were likely to benefit from growing international demand for feedstock for SAF production.
Mr Vogel said it was not only canola growers that would benefit.
"Developing an Australian SAF industry would be beneficial for agriculture, as it could provide another demand outlet for canola, sugar, bagasse, a sugarcane production residue, tallow and potentially grains," he said.
There is massive scope for the industry.
Mr Vogel said within two years, there is planned capacity to produce 17 million tonnes of sustainable aviation fuel around the globe, growing to over 25 million tonnes by 2030.
This would be equivalent to almost half of the global biodiesel volume in 2023.
Mr Vogel said the growth in the industry was likely to come at a perfect time for growers, given the advent of the electric vehicle industry.
"Wiith the biofuel industry likely facing volume reductions in several regions of the world in coming years - due to a higher share of electric and other alternative-fuel vehicles on the road - Australian agricultural sector needs a "new demand driver" like sustainable aviation fuel."
"SAF could offset these volume reductions in road transport biofuels to help keep farmgate prices for feedstocks, like canola and oilseeds in general, but also grain and sugar, at positive farm margin levels," Mr Vogel said.