The Australian Government has announced a significant step towards establishing a domestic renewable fuels industry.
A memorandum of understanding (MOU) has been signed between Ampol, GrainCorp, and IFM Investors to explore the creation of an integrated renewable fuels sector in Australia.
The initial focus under the MOU will be on conducting a feasibility assessment for a renewable fuels facility at Ampol’s Lytton Refinery in Brisbane.
This facility will utilise locally sourced feedstocks, such as canola oil, to produce sustainable aviation fuel (SAF) and renewable diesel (RD). This initiative aims to reduce emissions and provide cleaner, more secure fuel options for the transport sector.
The announcement aligns with the Albanese Government’s recent budget commitments, which include a $1.7 billion investment over the next decade in the Future Made in Australia Innovation Fund.
This fund supports net-zero innovations, including low-carbon liquid fuels.
Additionally, the government has allocated $18.5 million for developing a certification scheme for these fuels and $1.5 million for an impact analysis related to demand-side measures.
The collaboration between Ampol, GrainCorp, and IFM Investors is seen as a crucial step in developing a renewable fuels industry that leverages Australia’s competitive advantages in infrastructure, technical expertise, and raw material availability.
The industry is expected to create new jobs, stimulate regional development, and enhance energy security.
Representatives from the involved companies have expressed their commitment to this initiative.
Danny Elia, Global Head of Asset Management from IFM Investors said the company has a significant interest in facilitating cleaner flying so it is proud to support this significant step in developing a SAF industry here in Australia.
“IFM’s long term investment approach is key to this emerging industry – we bring the scale, skill and dependability needed to support our iconic Australian partners, GrainCorp and Ampol, to kickstart a new industry that will create new jobs and economic opportunity,” Elia said.
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