The Federal Government is welcoming the announcement today on investing $250 million from the Future Made in Australia Fund towards Low Carbon Liquid Fuels (LCLF) development. This is a part of their $1.7 billion investment plan.
Last year July, IFM with Ampol and GrainCorp signed a Memorandum of Understanding (MoU) to evaluate the construction of an integrated renewable fuels supply chain in Australia.
Since then, the partners of the MoU have successfully lobbied for the provision of deliberate supply and demand subsidies designed to foster the growth of a domestic industry for LCLF, particularly aimed at decarbonization through the production of Sustainable Aviation Fuels (SAF) and Renewable Diesel (RD).
The measures announced today by Minister Chris Bowen, and Minister Catherine King further enable the efforts of the Industry and the Australian LCLF markets, providing more signals towards investment in domestic production infrastructure, supply chains, and production resources.
Recognizing the importance of LCLF, LCLF fuels such as SAF and RD for the Australian economy, in terms of reducing emissions, leveraging many multifactor obstacles, the Federal Government incorporated them into the Future Made in Australia fund and programs as the most significant economical decarbonization opportunity towards net zero.”
Ampol and IFM are working on a feasibility study for a renewable fuels’ facility, capable of producing more than 450 million liters annually, in collaboration with GrainCorp for the supply of indigenous feedstocks, including additional canola oil crushing capacity for the new plant, located in Brisbane at Ampol’s Lytton Refinery.
The announcement today is the result of all three partners’ previous work integrating feasibility assessments along with local feedstock supply and production capacity to ensure Australia can fulfill the increasing international market’s requirements for renewable fuels.
Quoted section attributed to IFM Investors Global Head of Asset Management, Danny Elia
We applaud the announcement made by the Federal Government today. This advanced investment moves the industry towards growth and is, indeed, progress.
We will continue to collaborate with the Government and our MoU partners to focus on superannuation funding in the energy transition and in areas that offer appropriate risk-return alignment for our stakeholders and their millions of members.
Quoted section attributed to Ampol Managing Director and CEO, Matt Halliday
A working collaboration between the industry and government is necessary to achieve the optimal policy frameworks needed to harness the complete potential of a domestic renewable fuels supply chain infrastructure and the benefits it could bring to the nation.
The announcement today by the Federal Government is a promising advancement and positive development in the right direction.
Quoted section attributed to GrainCorp CEO, Robert Spurway
The Government’s investment is foundational to accelerating the development of an Australian renewable fuels industry and advancing the agriculture and regional boom.
Oilseeds, especially canola, will be key contributors in providing the feedstock for Sustainable Aviation Fuel and Renewable Diesel production in the country.
Developing the local supply chains and oilseed processing capacity will greatly benefit Australian growers in the long term because they will have the opportunity to become important suppliers in the international market during the energy transition.
