A MEMORANDUM of understanding was signed yesterday (30 July) between industry super-owned global fund manager IFM Investors, agribusiness and processing company GrainCorp and Australian transport energy provider Ampol.
The MoU aims to explore the possibility of establishing an integrated renewable fuels industry in Australia.
An initial priority under the MoU is to assess the feasibility of a renewable fuels facility at Ampol’s Lytton Refinery in Brisbane.
The parties will also work with GrainCorp to explore the supply of homegrown feedstocks, including additional crushing capacity to supply canola oil, to the future plant.
The announcement follows 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.
SAF and RD are both considered renewable fuels for their ability to be produced from non-petroleum based renewable feedstocks, and their potential to reduce greenhouse gas emissions.
There is growing understanding that renewable fuels can reduce transport sector emissions, but Australia currently has limited to no material production capacity to support expected future demand.
The announcement of the MoU underpinned the parties’ belief that Australia has an advantage in producing and supplying the feedstocks needed to help develop a large and globally competitive renewable fuels industry.
They believe this would in turn help drive decarbonisation in “hard-to-abate” parts of the transport sector, including aviation as well as heavy and long-haul transport.
Managing director and CEO of GrainCorp, Robert Spurway said, “GrainCorp is already a key supplier of high-quality feedstocks across Australia and New Zealand, including canola oil, tallow and used cooking oil.
“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.”
The Federal Government also welcomed the memorandum, with Minister for Infrastructure Catherine King MP commenting: “It’s great to see companies like Ampol, GrainCorp and IFM also recognising the benefits and importance of supporting Australia’s very own industry.”
“As part of the Future Made in Australia plan, the Government is fast-tracking support for a local renewable fuels industry – from farm and feedstock to bowser – to help ensure our aviation, heavy vehicle, rail and maritime sectors are sustainable.”
Matt Halliday, managing director and CEO of Ampol said: “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.”
