The funding allocation was made to the CSIRO as part of a $174 million expansion to its National Flagships program to increase the research effort into clean energy, climate adaptation, niche manufacturing and minerals exploration.

Under the expanded program, $59.6 million was allocated to the Energy Transformed National Research Flagship, allowing CSIRO to expand research into alternative transport fuels such as converting coal-to-liquids, gas-to-liquids, biofuels and storage of compressed natural gas for transport.

CSIRO chief executive Dr Geoff Garrett said the work was designed to help secure Australia’s transport fuel future, which is coming under increasing pressure.

The research agency predicts that the country’s oil self-sufficiency will drop from 78% to 49% by 2030.

“The opportunity for Australia, and CSIRO, is to reduce the likelihood of an economic and social shock of a major disruption to oil supplies and to minimise the cost of implementing change in the transport sector,” Garrett said.

“We have to do this while at the same time reducing the transport sector’s contribution to greenhouse gas emissions.”

CSIRO’s National Flagships programs were launched in 2003 to address major national challenges in areas such as energy, water and health and also opportunities for industry development and job creation.

A partnership between the CSIRO and the Bureau of Meteorology was also allocated $43.6 million to establish and manage the Australian Centre for Climate Change Adaptation.