Ampol, GrainCorp, and IFM sign MOU to explore renewable fuels industry in Australia
The Albanese Government has welcomed a new Memorandum of Understanding (MOU) between Ampol, GrainCorp, and IFM to investigate the development of a renewable fuels industry in Australia.
The Government has allocated $1.7 billion over the next decade through the Future Made in Australia Innovation Fund to support innovations aimed at achieving net zero, with low-carbon liquid fuels (LCLFs) being a key area of focus. The aim of using LCLFs is to reduce emissions from Australia's transport sector, including aviation, heavy vehicles, rail, and maritime operations.
A new three-way Memorandum of Understanding between Industry super-owned global fund manager IFM Investors, leading agribusiness and processing company GrainCorp and Australia's largest transport energy provider Ampol will explore the feasibility of growing this industry in Australia.
The focus of this potential industry will be on producing sustainable aviation fuel (SAF) and renewable diesel, both considered advanced biofuels. Unlike conventional biofuels, which often require modifications to existing infrastructure and vehicles, these advanced biofuels are designed to be fully compatible with current fuel infrastructure.
In addition to this financial backing, the Government is investing $18.5 million to develop a certification scheme for these fuels and $1.5 million for an impact analysis to assess demand-side measures. These efforts aim to create a strong foundation for a domestic renewable fuels industry, which could offer cleaner, more affordable fuel options while creating new jobs across the country.
"It’s great to see companies like Ampol, GrainCorp and IFM also recognising the benefits and importance of supporting Australia’s very own industry," Catherine King, Minister for Infrastructure, Transport, Regional Development and Local Government said of the agreement.
"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."
Minister for Climate Change and Energy, Chris Bowen, also highlighted the broader impact of the MOU, stating, "Supporting a renewable fuels industry in Australia is about so much more than slashing transport sector emissions, it’s also about creating a new industry and jobs to ensure we continue to thrive in an ever-changing world."
The feasibility study in Brisbane will be a crucial first step in determining the viability of this industry, with a focus on ensuring a reliable supply of feedstocks from Australian sources. The outcome of this study will help shape the future of renewable fuels in Australia and contribute to the nation’s goals for a cleaner and more sustainable energy landscape.
