Australia's IFM Investors, GrainCorp, and Ampol have signed a three-way Memorandum of Understanding to establish an integrated renewable fuels industry in Australia.

 

The initial priority is the feasibility assessment of a renewable fuels facility at Ampol's Lytton Refinery in Brisbane, with the aim of supplying homegrown feedstocks, including additional crushing capacity for canola oil.

 

The announcement builds on existing feasibility work for developing feedstock supply and production capacity of renewable fuels, including Sustainable Aviation Fuel (SAF) and Renewable Diesel (RD) in Australia.

 

Australia currently lacks the necessary production capacity to meet future demand for renewable fuels, but it has an advantage in producing and supplying feedstocks to develop a large and globally competitive renewable fuels industry.

 

 The Federal Government's measures to support renewable fuel production in Australia are welcomed by Ampol, GrainCorp, and IFM.

 

Danny Elia, Global Head of Asset Management, IFM Investors, said: “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, and a local SAF industry driven by Australian businesses is crucial to that acceleration, he added.”

 

Robert Spurway, Managing Director and CEO of GrainCorp, said: “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, he added.”

 

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.

 

“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, he concluded.” --OGN/TradeArabia News Service