Australia's Fish and Chip Oil Could Power Cars and Cut Fuel Costs

When Terry Woodcroft needs to fuel his Toyota Hilux, he heads to the local pub—not for a beer, but for the used cooking oil that powers his farm truck.

The retired police officer from southwest Victoria converted his ute five years ago to run on biofuel made from restaurant waste. While petrol prices surge past $3 per litre due to Middle East conflicts, he's driving on refined cooking oil that saves him money and shrinks his carbon footprint.

"It certainly makes quite a dent in the fuel bill," Woodcroft said. His friends joke they can smell him coming because his exhaust smells like fish and chips instead of diesel fumes.

Woodcroft represents a small but growing movement toward biofuel, made from organic waste like used cooking oil, grains, and agricultural leftovers. The fuel works in existing engines with little to no modification, making it accessible for everyday drivers and farmers.

Australia currently produces just a fraction of the 110 million litres of biofuel it could make each year. The nation's largest plant in Barnawartha, Victoria, operates at only 20 percent capacity because production costs exceed diesel prices without government subsidies.

Meanwhile, Australia exports nearly 6 million tonnes of canola annually to be turned into biofuel overseas. Twenty years ago, Australia produced 80 percent of its own fuel. Today, it imports 80 percent, leaving the country vulnerable to global price shocks.

Industry leaders say federal support could change everything. With a proposed $500 million subsidy program, production could jump to 1 billion litres annually, creating thousands of regional jobs and strengthening fuel security.

The government has already established a $1.1 billion fund to stimulate private investment in low-carbon fuels. A 2024 report estimates Australia's biofuel industry could be worth $36 billion by 2050.

The Ripple Effect

Beyond individual drivers like Woodcroft, expanding biofuel production would transform rural Australia. Processing plants would create jobs in regional areas while putting agricultural waste to productive use. Restaurants and farms would gain new revenue streams from materials they currently discard.

The environmental benefits stack up too. Biofuel burns cleaner than fossil fuels and repurposes waste that would otherwise end up in landfills. Every litre produced domestically reduces dependence on imported oil and shields Australians from international conflicts that spike prices at the pump.

"This is not only about fuel security, but regional jobs and regional economic development," said Shahana McKenzie, chief executive of Bioenergy Australia.

With the infrastructure already in place and raw materials readily available, Australia stands ready to turn today's waste into tomorrow's fuel security.