Labor to hand out $1.1bn in grants to boost production of low-carbon liquid fuels

Program aims to replace liquid fuels - which make up a third of Australia's emissions - with cleaner alternatives made from canola, sorghum and sugar

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The Albanese government will invest $1.1bn to drive local production of low-carbon liquid fuels under a new push to decarbonise hard-to-abate sectors that threaten its climate goals.

The government will on Wednesday announce a 10-year grants program to encourage private sector investment in on-shore production of lower-emissions fuels, such as so-called renewable diesel and sustainable aviation fuels.