With the forecast declining levels of self-sufficiency in oil, the search for alternative, locally produced fuels has become urgent.
Australia's large natural gas resources and coal reserves have the potential to provide security of supply for transport fuels.
But there are significant technological hurdles which must be overcome to establish a viable synfuels industry in Australia, according to gas-to-liquids expert Professor David Trimm from CSIRO Petroleum.
"Many of the technical issues are unique to Australia and therefore demand local solutions – we cannot necessarily rely on imported technology," Trimm said.
"The Federal Government has recognised this and recently allocated $59.6 million to CSIRO to increase research into alternative fuels."
The Synfuel Alternative Symposium, being hosted by the CSIRO, marks the first high level technical conference to address the research needs related to the conversion of gas to liquids, coal to liquids and biomass to liquids, altogether known as XTL.
Producing synthetic fuels from gas, coal and biomass will be a key focus for CSIRO's Energy Transformed Flagship, through the additional funding.
"Our reserves of liquid transport fuels are diminishing and the conversion of natural gas to diesel or gasoline is an obvious solution," said David Lamb, leader for the flagship's low emissions transport research.
"Even a small improvement in Australia's liquid fuel self-sufficiency will deliver significant economic benefits to the nation as we will be less dependent on expensive imported oil.
"In addition, these synthetic fuels have environmental benefits with lower emissions."
CSIRO's research in gas-to-liquids technology is a key focus of the new AusGas initiative, according to CSIRO Petroleum deputy chief Dr David Whitford.
"AusGas is a national alliance of research centres in partnership with industry and government to address the technology challenges of the local gas industry," Whitford said.
"AusGas recognises that the development of Australia's natural gas resources offers the prospect of a secure and competitive supply of transport, domestic and industrial fuels, lower emissions and an opportunity for significant wealth generation – and gas-to-liquids is central to this."
