The Australian Constructors Association (ACA) has released a report highlighting the crucial role of renewable diesel in decarbonising the construction industry and achieving Australia’s net-zero ambition.
CEO Jon Davies emphasised the sector’s challenges in electrification due to technology constraints, advocating for the rapid adoption of low-carbon liquid fuels.
Renewable diesel is identified as a key transition fuel, enabling emission reductions without machinery modifications.
However, Australia lacks domestic production — leading to cost disadvantages compared to mineral diesel imports.
ACA urges government intervention to accelerate supply and demand for renewable diesel, citing benefits such as lower air pollutants, energy security, and economic growth.
The association calls on the Australian government to develop a low-carbon liquid fuel policy, potentially in the form of a National Renewable Diesel Roadmap, to establish a sustainable domestic industry.
The report emphasises that waiting for electrification to mature is incompatible with net-zero commitments and advocates for a tiered approach to decarbonisation, with renewable diesel as a feasible short-term solution.
A domestic renewable diesel industry is shown to be crucial for achieving emission reduction targets and offers additional benefits — beyond decarbonisation, including job creation, community resilience, and fuel security, particularly in regional areas.
Renewable diesel is a sustainable fuel made from fats and oils, such as soybean or canola oil, processed to be chemically identical to petroleum diesel.
It meets specifications like ASTM D975 in the US and EN 590 in Europe.
Renewable diesel can replace or blend with petroleum diesel, offering benefits like reduced emissions and engine compatibility.
Production methods include hydrotreating, biological sugar upgrading, catalytic conversion of sugars, gasification, pyrolysis, and hydrothermal processing.
Renewable diesel production is increasing rapidly, with significant capacity expansions underway. Brands like Neste MY Renewable Diesel and Esso Supreme 25 per cent Renewable Diesel are notable for their reduced greenhouse gas emissions and meeting BS EN590 specifications.
Overall, renewable diesel is a promising alternative fuel with environmental benefits and increasing availability.
