Industry super-owned global fund manager IFM Investors, leading agribusiness and processing company GrainCorp, and Australia’s largest transport energy provider Ampol have signed a three-way Memorandum of Understanding to explore the establishment of an integrated renewable fuels industry in Australia.
As the initial priority under the MOU, Ampol and IFM will progress the feasibility assessment of a renewable fuels facility at Ampol’s Lytton Refinery in Brisbane. They will work with GrainCorp to explore the supply of homegrown feedstocks, including additional crushing capacity to supply canola oil to the future plant.
This announcement builds on the existing feasibility work conducted by each of the parties to develop feedstock supply and production capacity of renewable fuels, including sustainable aviation fuel and renewable diesel in Australia.
There is growing recognition globally that renewable fuels can materially reduce transport sector emissions. However, Australia currently lacks significant production capacity to support the expected future demand.
Australia has an advantage in producing and supplying the feedstocks needed to help develop a large and globally competitive renewable fuels industry. This industry would help drive decarbonisation in the hard-to-abate parts of the transport sector, including aviation and heavy and long-haul transport.
Momentum for a domestic SAF industry has grown in 2024. Ampol, GrainCorp, and IFM welcome the Federal Government’s range of measures to help support the production of renewable fuels, such as SAF, in Australia.
Quotes Attributable to Danny Elia, global head of asset management at IFM Investors:
“As a major investor in airports, we have a significant interest in facilitating cleaner flying, so we are proud to support this significant step in developing a SAF industry right 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.
“Alongside our industry super partners, we have been working closely with the Government to identify ways to accelerate investment in Australia’s energy transition. A local SAF industry driven by Australian businesses is crucial to that acceleration.”
Quotes Attributable to Robert Spurway, MD and CEO of GrainCorp:
“GrainCorp is already a key supplier of high-quality feedstocks across Australia and New Zealand, including canola oil, tallow, and used cooking oil.
“Australian growers produce millions of tonnes of feedstocks every year, the surplus of which is currently exported for refining into renewable fuels.
“An Australian renewable fuel refining industry will build a valuable new domestic market for our nation’s growers and feedstock producers, with the benefits flowing on to regional communities and consumers.”
Quotes Attributable to Matt Halliday, MD and CEO, Ampol:
“Australia has a compelling competitive advantage in infrastructure, technical expertise, and the availability of raw materials necessary to develop a renewable fuels capability.
“A combination of Ampol’s existing infrastructure and capabilities, such as the Lytton site and Ampol’s broader distribution network with established channels to market and strong customer relationships, can play a pivotal role in creating a national renewable fuels ecosystem.
“The Australian-led team of Ampol, IFM, and GrainCorp brings together expertise in complex infrastructure development, manufacturing and distribution, and supply chains.
“This foundational agreement is a significant step in establishing a renewable fuels industry in Queensland and Australia – creating benefits in energy security, supporting regional development, and stimulating agriculture and manufacturing industries.”
For more information visit www.graincorp.com.au
