Canola Emerges as Key Player in Biofuel Future

A new report from Rabobank suggests Australia’s canola industry could play a significantly larger role in the nation’s future fuel supply, as global energy uncertainty and rising demand for low-emissions fuels reshape international markets.

The report highlights growing demand for renewable diesel and sustainable aviation fuel, particularly across the Asia-Pacific region, as industries look to reduce emissions in sectors reliant on liquid fuels.

It says canola oil is a key feedstock in biofuel production, creating what is described as a strategic opportunity for Australia to expand its role in energy markets.

The analysis also points to a major value gap, with most of Australia’s canola currently exported as raw seed while refined fuels are imported back into the country.

RaboResearch analyst Vitor Pistoia says that represents a missed opportunity to capture more value domestically, including processing capacity, jobs and fuel security.

The report suggests expanding local crushing or increasing exports of processed canola oil could help diversify demand for growers, while strengthening Australia’s position amid ongoing global energy uncertainty.