Ampol, GrainCorp and IFM explore Australia’s renewable fuels industry

Ampol, GrainCorp and IFM explore Australia’s renewable fuels industry.

Ampol, GrainCorp and IFM Investors (IFM) have signed a three-way Memorandum of Understanding (MoU) to explore the establishment of an integrated renewable fuels industry in Australia.

An initial priority under the MoU will be to assess the feasibility of a renewable fuels facility at Ampol’s Lytton Refinery in Brisbane. The companies will also explore the supply of homegrown feedstocks, such as canola oil, to the future plant.

The announcement comes as the demand for domestic renewable fuels increases.

Australia’s emerging renewable fuels industry

The establishment of Australia’s renewable fuels industry is gaining momentum.

An Australian renewable fuels industry would include both sustainable aviation fuel (SAF) and renewable diesel (RD). The industry would significantly reduce emissions and provide cheaper, cleaner and more reliable fuels to the transport sector. This helps drive decarbonisation in the hard-to-abate parts of the sector, including aviation as well as heavy and long-haul transport.

The growth of the industry is also being driven by Australia’s national and state strategies. This includes the Sustainable Aviation Fuel Roadmap, which identifies opportunities to produce and scale production using Australian feedstocks.

Australian Government fast-tracks support

There are significant opportunities for investors to help Australia meet its renewable fuel demands.

The Australian Government has a range of measures to fast-track a renewable fuels industry. This includes the following Budget commitments:

• A$1.7 billion over the next decade in the Future Made in Australia Innovation Fund, to support net zero innovations including low-carbon liquid fuels such as SAF and RD.
• A$18.5 million to develop a Guarantee of Origin certification scheme for renewable fuels.
• A$1.5 million for an impact analysis in relation to demand-side measures.

The Australian Government has also established the Australian Jet Zero Council to lead efforts to deliver net zero aviation in Australia. The Council comprises senior stakeholders from across the aviation sector and its supply chains.

SAF and SAF feedstock projects in Australia include:

• Idemitsu’s recent investment in Jet Zero, supporting the development of Australia’s first alcohol-to-jet-fuel facility in Queensland.
• Northern Oils began constructing an advanced biofuels plant at Yarwun in Queensland. The plant will use local produce as feedstock.
• Ampol and ENEOS have started a feasibility study on an SAF plant in Brisbane.
• BP is set to build biofuels refining capacity at Kwinana in Western Australia. The biorefinery will produce SAF and biodiesel from 2026.
• INPEX, ANZ Bank and Qantas are evaluating a project that brings together carbon farming and renewable biofuels in Western Australia.
• Cargill and CBH have announced plans to work on a large-scale oilseed crushing plant adjacent to BP’s Kwinana, Western Australia site.

Funding is also available from the Clean Energy Finance Corporation, the Australian Renewable Energy Agency and the Northern Australia Infrastructure Facility.

Find out more about Australia’s growing low carbon liquid fuels industry.

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