Federal paper sets out demand framework for low carbon liquid fuels
A proposed Brisbane renewable fuels project could produce 750 million litres of sustainable aviation fuel and renewable diesel each year. Ampol, IFM Investors and GrainCorp backed the Australian Government’s consultation on low carbon liquid fuels.
The federal paper is titled Securing Australia’s Cleaner Fuels Industry Consultation Paper. It sets out a demand-side framework for low carbon liquid fuels.
Alongside supply-side measures, the paper argues Australia needs clear demand settings. Those settings would give industry more confidence to invest in domestic production at scale.
The three companies called the consultation a critical step toward a domestic renewable fuels supply chain. They linked the policy work to fuel security, sovereign fuel capability, manufacturing and greater value from Australian agricultural feedstocks.
Brisbane Renewable Fuels at Lytton
Under a memorandum of understanding, Ampol and IFM are assessing a renewable fuels facility at Ampol’s Lytton Refinery in Brisbane. At the same time, GrainCorp is studying a new canola processing plant to supply Australian canola oil to the future site.
The project would use Australian-grown canola, used cooking oil and tallow. It could create new demand for agriculture, strengthen regional supply chains and cut lifecycle emissions from aviation, freight and heavy transport.
IFM Investors executive director infrastructure Danny Elia said, “A credible demand framework is necessary to provide the confidence we need to invest to establish Brisbane Renewable Fuels, Australia’s largest LCLF refinery.”
Australia imports about 90% of its liquid fuels. Because of that reliance, the companies argued domestic low carbon liquid fuels capacity would improve long-term resilience.
Elia argued the sector also fits IFM’s long-term strategy because the firm invests in Australian airports. He said domestic renewable fuels can help protect and grow the retirement savings of Australian workers.
Ampol managing director and chief executive Matt Halliday said a coordinated policy framework is needed to build an Australian renewable fuels ecosystem.
He argued a suitable demand-side framework would lift investment confidence for domestic production. In turn, that would support Australia’s long-term fuel resilience.
GrainCorp is exploring the canola supply chain role for the project as consultation continues. Meanwhile, all three companies plan to take part in the federal process and keep working with government on policy settings for renewable fuels investment.
