The Federal Government has announced a $250 million investment in low-carbon liquid fuels (LCLF) from its $1.7 billion Future Made in Australia Fund.
The funding aims to support the production of Sustainable Aviation Fuels (SAF) and Renewable Diesel (RD) to help decarbonise hard-to-abate sectors, including aviation, shipping, and heavy transport.
IFM Investors, Ampol, and GrainCorp – who signed a Memorandum of Understanding (MoU) in July last year to explore an integrated renewable fuels supply chain – have welcomed the announcement.
Danny Elia, Global Head of Asset Management at IFM Investors’, said the investment is a step in the right direction and moves the industry closer to take-off.
“We will continue to work with the Government and our MoU partners to accelerate superannuation investment in the energy transition in areas that can generate risk-adjusted returns for our clients and their millions of members.”
Under the MoU, Ampol and IFM are assessing the feasibility of a renewable fuels facility at Ampol’s Lytton Refinery in Brisbane, with a projected annual capacity of over 450 million litres. GrainCorp is exploring increased domestic feedstock supply, including expanding canola oil crushing capacity.
Matt Halliday, Managing Director and CEO of Ampol, said the announcement is a welcomed development and a positive step forward.
“The development of a domestic renewable fuels supply chain and unlocking the many benefits it could bring to Australia can only be realised if industry and Government work together to achieve supportive policy settings.”
Robert Spurway, CEO of GrainCorp, highlighted the benefits for Australian agriculture and regional communities.
“The Government’s investment is a critical step in building an Australian renewable fuels industry,” he said. “Crop-based oils, like canola, will play a key role in supplying the feedstocks needed for the domestic production of Sustainable Aviation Fuel and Renewable Diesel.”
To stay up to date on the latest industry headlines, sign up to the C&I e-newsletter.