Australia’s largest transport energy provider Ampol has joined IFM Investors and GrainCorp to explore the development of integrated renewable-energy facilities in Australia.
The parties said an initial priority would be the feasibility assessment of a renewable-fuels facility at Ampol’s Lytton Refinery in Brisbane and working with agribusiness and processing company GrainCorp to explore the supply of homegrown feedstocks, including additional crushing capacity to supply canola oil, to the future plant.
The partnership 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 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.
Matt Halliday, managing director and CEO, Ampol, 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.”
Danny Elia, global head of asset management at IFM Investors said as a major investor in airports, it had a significant interest in facilitating cleaner flying.
“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.”
Robert Spurway, managing director 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,” said Spurway.
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