Ampol’s renewable diesel project, which will blend waste and animal fats with traditional diesel, is moving ahead with a $25 million investment from the Queensland government.
Queensland Premier David Crisafulli said the funding was part of the state’s long-term plan to shore up fuel and avoid future supply chain shocks such as the one caused by the war in the Middle East.
An aerial view of the Ampol oil refinery in Brisbane.
Australia has just two oil refineries and gets most of its refined fuel from overseas.
The Ampol oil refinery in Brisbane, where the company is developing renewable diesel.
“These projects are important to ensure we are never again left at the mercy of foreign nations, at the end of a global supply chain,” Crisafulli said.
Ampol’s project will co-process conventional diesel with waste fats and oils, like tallow and canola feedstock, to produce a renewable fuel that can deliver lower CO2 emissions than traditional diesel and can be used in cars and trucks.
“What that means is you can get more bang for your buck.
You can stretch a litre of traditional fuel out a little bit more,” Crisafulli said.
Ampol received $8 million from the Australian Renewable Energy Agency in 2024 to complete a feasibility study for the renewable fuel plant, to be built at its Lytton refinery in Brisbane.
The latest funding, the first investment under Queensland’s $180.6 million sovereign industry development fund, will go towards modifying Ampol’s existing diesel hydro-treater and the construction of the new plant.
Ampol says the refinery will initially be capable of producing 20 million litres of renewable diesel per year from 2028.
Future development could allow it to produce up to 750 million litres of renewable diesel and sustainable aviation fuel by the early 2030s.
Michele Bardy, Ampol’s executive general manager, infrastructure, said the project could help boost local fuel supplies and was also a positive step towards reducing emissions.
“It also produces these products in a way that allows them to be used in existing engines, vehicle fleets and distribution networks,” Bardy said.
“So it’s not a theoretical solution today, it’s actually a practical solution.
The technology exists, and we are confident to deploy it.”
Deputy Premier and Minister for State Development Jarrod Bleijie has declared Ampol’s plan a prescribed project, which allows the coordinator-general to streamline approvals.
The funding will support the construction of a truck handling gantry, heated and insulated storage tanks with blending capability, a secondary tank containment system and system upgrades to process the feedstock.
Ampol expects to begin construction by mid-2027 and says the project will create 46 new jobs.
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