IFM Investors, Ampol, and GrainCorp have signed a three-way memorandum of understanding to explore the establishment of an integrated renewable fuels industry in Australia.
The initial priority under the agreement will see Ampol and IFM progress the feasibility assessment of a renewable fuels facility at Ampol’s Lytton Refinery and work with GrainCorp to explore the supply of homegrown feedstocks – including additional crushing capacity to supply canola oil – to the future plant.
According to IFM, the announcement 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 (RD) in Australia.
However, IFM said that Australia currently has no material production capacity to support expected future demand, despite the growing recognition of the role that renewable fuels can play in materially reducing transport sector emissions.
“Australia has an advantage in producing and supplying the feedstocks needed to help develop a large and globally competitive renewable fuels industry, helping drive decarbonisation in the hard-to-abate parts of the transport sector, including aviation as well as heavy and long-haul transport,” the global fund manager said.
As a major investor in airports, IFM global head of asset management Danny Elia underscored the firm’s significant interest in facilitating cleaner flying.
“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,” Elia said.
“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.”
Managing director and CEO of Ampol, Matt Halliday, said that Australia brings a competitive advantage to the development of 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,” Halliday said.
“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.”
