GrainCorp (GRNCY), Australia's biggest grain handler on the east coast, is pressing for national biofuel mandates after months of uncertainty from the Iran war exposed Australia's reliance on imported fuels and added pressure across the economy. Chief Executive Officer Robert Spurway said locally produced canola could be used to make biofuels in Australia, including sustainable aviation fuel, while still allowing exports to partners such as the European Union to continue without significant disruption.
Spurway highlighted that Australia imports around 91% of its liquid fuels and more than 85% of its aviation fuel, even as the country exports around 80% of its canola production. Investors may view the proposal as a potential policy catalyst for Australia's agriculture and fuel sectors, especially after fuel disruptions linked to the Iran war pushed inflation higher and threatened winter grain planting in the early months of 2026.
GrainCorp is already involved in a sustainable aviation fuel project in Brisbane with IFM Investors, an investment firm, and Ampol, a fuel company, but IFM warned in May that the project could be scrapped unless airlines are required to use the product. Australia said late last year it would spend A$1.1 billion, or $761 million, to support its first domestic renewable fuel production by 2029, while GrainCorp said current feedstock volumes could meet sustainable aviation fuel demand by 2030, though more long-term government support for investment, research, and development may be needed.