The Nationals have called on the Albanese government to examine if the excess wine stored in Australia could be converted to biofuels to help stymie the effects of a looming fuel supply shortage.
The proposal – to convert excess wine into ethanol – was borne out of a need to address the deepening crisis in the nation’s $51.3bn wine sector that was placing additional social and economic pressure on growers, Nationals leader and opposition trade spokesman Matt Canavan said.
“The government should heed the industry’s calls and urgently review whether Australia’s excess wine stores could help alleviate our fuel supply crisis,” he said.
“This could kill two birds with one stone.”
As of December 2025, Wine Australia recorded an excess supply of about 262 million litres.
Biofuels have previously been suggested as a sustainable alternative to jet fuel. Two fuel tech companies, Australia-based Jet Zero and US-based Lanza Jet, entered in an agreement in 2024 to develop a sustainable aviation fuel plant that converts bioethanol into sustainable aviation fuel and renewable diesel.
Opposition agriculture spokesman Darren Chester echoed this sentiment, saying: “The government should be supporting additional studies to see if it is viable to repurpose the surplus wine for fuel and it should be listening to the industry leaders who have grave concerns for the future of the industry without immediate action.”
He accused the government of being “too slow to act”.
Australian Wine and Grape chief executive Lee McLean claimed growers, winemakers and families were under levels of stress “that haven’t been seen in generations”.
“If government delays, the costs don’t disappear. They re-emerge as business failures, abandoned vineyards, mental health crises and long-term regional decline,” Mr McLean said.
“The cost of inaction will be far greater and borne by regional Australians least able to absorb it.”
A spokesperson for Agriculture Minister Julie Collins said the government acknowledged how critical the grape and wine sector was to Australia.
“Our government is investing in practical, long-term solutions to support the sector’s future and will continue to work closely with industry on future opportunities.” the spokesperson said.
“We have also committed $1.1 billion to help unlock the vast economic opportunities on offer from low carbon liquid fuels.
“The new ten-year Cleaner Fuels Program will stimulate private investment in Australian onshore production of low carbon liquid fuels, such as renewable diesel and sustainable aviation fuel.
“The National Bioenergy Feedstock Strategy will complement this investment by establishing a coordinated, national direction for the sustainable development of bioenergy feedstock production.”
As of March 2024, China had lifted its prohibitive duties on Australian bottled wine, but the industry had yet to recover from the oversupply triggered by those tariffs, Mr McLean told the Rural Press Club this week.
That, in combination with a drop in domestic consumption, has placed increasing pressure on producers.
The US and Israel’s war in Iran has triggered global energy shocks and sent fuel and fertiliser prices skyrocketing around the world.
Prime Minister Anthony Albanese and Energy Minister Chris Bowen have insisted the nation’s fuel stockpile is secure despite ongoing disruptions in the supply chain.
Extracted in full from: https://www.news.com.au/finance/business/other-industries/nationals-push-winetofuel-plan-amid-industry-crisis-shortage-fears/news-story/06285990c75f2d009c05df6fa0a9c8ab
