IFM Investors, Ampol and GrainCorp welcome the Federal Government's announcement today to commit $250 million to low carbon liquid fuels (LCLF) from the $1.7 billion Future Made in Australia Fund.
In July last year, IFM, Ampol and GrainCorp signed a Memorandum of Understanding (MoU) to explore the establishment of an integrated renewable fuels supply chain in Australia.
Since then, the MoU partners have jointly advocated for targeted supply and demand incentives to support the growth of a domestic market for LCLF to support the decarbonisation of hard-to-abate sectors through the production of Sustainable Aviation Fuels (SAF) and Renewable Diesel (RD).
The measures, announced today by Minister for Climate Change and Energy, Chris Bowen, and Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, support industry's efforts to establish an Australian LCLF industry, providing further crucial policy signals to drive investment in local production capacity and feedstock supply chains.
As part of the Future Made in Australia program, the Federal Government has recognised LCLF - including SAF and RD - as being key to Australia's transition to net zero, offering a decarbonisation pathway for many hard-to-abate sectors including aviation, shipping and heavy transport.
Under the MoU, Ampol and IFM are progressing the feasibility assessment for a renewable fuels facility, with capacity to produce over 450 million litres annually, at Ampol's Lytton Refinery in Brisbane, while working with GrainCorp to explore the supply of homegrown feedstocks, including increased crushing capacity for canola oil to the future plant.
Today's announcement builds on ongoing feasibility work by all three partners to develop local feedstock supply and production capacity, ensuring Australia is well-positioned to meet growing global demand for renewable fuels.
Quotes attributable to IFM Investors Global Head of Asset Management, Danny Elia
"We welcome today's announcement by the Federal Government. This 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."
Quotes attributable to Ampol Managing Director and CEO, Matt Halliday
"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."
"Today's announcement by the Federal Government is a welcomed development and a positive step forward."
Quotes attributable to GrainCorp CEO, Robert Spurway
"The Government's investment is a critical step in building an Australian renewable fuels industry, creating new opportunities for agriculture and regional communities."
"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."
"Supporting the development of local supply chains and oilseed processing capacity and will help to unlock long-term value for Australian growers as key suppliers in the global energy transition."
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