IFM Investors, Ampol and GrainCorp have welcomed the Australian Government’s release of its Securing Australia’s Cleaner Fuels Industry Consultation Paper on establishing a demand-side framework for low carbon liquid fuels, describing it as a critical step towards building a domestic renewable fuels supply chain.
The consultation paper recognises that, alongside supply-side measures, Australia needs clear demand-side policy settings to provide industry with the confidence and certainty required to invest in domestic production at scale.
These measures are critical to strengthening Australia’s fuel security, supporting sovereign fuel capability and manufacturing opportunities, and capturing greater value from Australia’s agricultural feedstocks.
Under the MoU, Ampol and IFM are progressing the feasibility assessment for a renewable fuels’ facility at Ampol’s Lytton Refinery in Brisbane. At the same time, GrainCorp is exploring the feasibility of building a new canola processing facility to supply Australian canola oil to the future plant.
Using Australian-grown feedstocks like canola, alongside used cooking oil and tallow, the project has the potential to produce 750 million litres of sustainable aviation fuel (SAF) and renewable diesel each year. The project could create new demand for Australian agriculture, strengthen regional supply chains and help reduce lifecycle carbon emissions from the aviation, freight and heavy transport sectors.
The companies look forward to contributing to the consultation and continuing to work with the Australian Government to establish the policy settings needed to unlock long-term investment in Australia’s renewable fuels sector and strengthen energy security.
Quotes attributable to IFM Investors Executive Director Infrastructure, Danny Elia:
“A credible demand framework is necessary to provide the confidence we need to invest to establish Brisbane Renewable Fuels, Australia’s largest LCLF refinery.”
“With Australia currently importing around 90% of its liquid fuels, a low carbon liquid fuels sovereign capability is essential to our nation’s long-term resilience.”
“IFM invests in our nation’s airports, and setting up a domestic renewable fuels industry is part of our long-term strategy to protect and grow the retirement savings of Australian workers.”
Quotes attributable to Ampol Managing Director and CEO Matt Halliday:
“The development of an Australian renewable fuels ecosystem will require a coordinated policy framework.”
“The introduction of a suitable demand-side framework will contribute to generating the investment confidence needed to establish domestic production while improving Australia’s long-term fuel resilience.
“Ampol welcomes the opportunity to contribute to this consultation, and we look forward to continuing to work with Government and industry stakeholders.”
Quotes attributable to GrainCorp Managing Director and CEO Robert Spurway:
“Australia has the feedstocks, infrastructure and agricultural capability to become a global leader in low carbon liquid fuels.”
“The right demand-side mechanism will unlock investment across the value chain, creating new markets for Australian growers, supporting regional jobs and strengthening Australia’s fuel security.”
“GrainCorp is well placed to supply the sustainable feedstocks needed to support this emerging industry, and we look forward to working constructively with Government and industry throughout the consultation.”
