INDUSTRY super-owned global fund manager IFM Investors, GrainCorp and Ampol have today signed a 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 and work with GrainCorp to explore the supply of homegrown feedstocks.
GrainCorp is already Australia’s largest oilseed crusher, and this MOU includes looking at adding further canola-crushing capacity to supply oil to the future plant.
The 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 (SAF) and renewable diesel (RD) in Australia.
There is growing recognition globally that renewable fuels can materially reduce transport sector emissions, but Australia currently has no material 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, helping drive decarbonisation in the hard-to-abate parts of the transport sector, including aviation as well as heavy and long-haul transport.
Momentum for a domestic SAF industry has grown in 2024, and 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.
“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 Investors global head of asset management Danny Elia said.
“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, and a local SAF industry driven by Australian businesses is crucial to that acceleration.”
GrainCorp managing director and chief executive officer Robert Spurway said GrainCorp was already a key supplier of high-quality feedstocks including tallow and used cooking oil as well as canola oil across Australia and New Zealand.
“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.”
Ampol managing director and CEO Matt Halliday said 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,” Mr Halliday said.
“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.”
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