Ampol and ENEOS have signed a memorandum of understanding (MoU) with the Queensland Government to explore advanced biofuels production in Brisbane, including sustainable aviation fuel (SAF) and renewable diesel.
The project, which will be housed at Ampol’s Lytton refinery site, aims to assess the feasibility of producing up to 500 million litres of the biofuels putting Queensland at the forefront of a clean jet fuel market in Australia.
Initial work on the project will include looking at potential feedstock sources and how existing refinery infrastructure can be leveraged for use in domestic and export markets.
Sustainable fuel is one of the strongest tools available to airlines to reduce emissions, but it is not currently being produced in Australia at commercial scale.
SAF can be used in existing aircraft engines to cut carbon emissions by up to 80 per cent.
Deputy Queensland Premier, Steven Miles, said this project is another exciting step towards Queensland becoming a clean energy powerhouse.
“Queensland’s Energy and Jobs plan sets out our path to a low emissions future,” Mr Miles said.
“As part of decarbonisation, the Government is working to set Queensland up as the leading location for the production of green jet fuels.
“We know the world is moving into a low emissions future and there has been a significant increase in demand for low carbon aviation fuel.”
Mr Miles said Queensland is recognised internationally as one of the best locations for a SAF supply chain due to the rich supply of feedstock and manufacturing strengths.
“This project has the potential to unlock significant benefits for our economy by generating good, skilled jobs and opening export opportunities in a new industry,” Mr Miles said.
“The Queensland Government’s plan is to establish SAF refineries across the state and position ourselves as one of the world’s best SAF suppliers.”
Ampol Managing Director and CEO, Matt Halliday, said, “Biofuels and synthetic fuels have an important role to play in energy transition, particularly in hard to abate areas such as aviation, and heavy industrial sectors like mining.
“As we continue our work to build new solutions for customers, we are excited to partner with a global leader like ENEOS to further assess opportunities to repurpose our existing infrastructure and build new supply chains.
“Lytton has a large and highly skilled workforce, and existing manufacturing infrastructure and capabilities that can be leveraged to deliver these future fuels.
“Lytton is also located next to a key demand centre, and to the Brisbane River, presenting an opportunity to become an energy hub that can serve major parts of the Queensland economy.”
ENEOS Representative Director President, Saito Takeshi, said integrated supply chains – from feedstocks to manufacturing and distribution infrastructure – will be critical to the development of a successful and sustainable biofuels industry.
“Queensland is uniquely positioned given the availability of high-quality feedstocks from established industries. In addition, the location of Ampol’s manufacturing and distribution assets provides a great platform from which to explore SAF production,” Mr Takeshi said.
“We are honoured to work with an excellent company like Ampol to jointly consider the best way for SAF production by together bringing the best out of Australia’s SAF production potential.”
Member for Lytton, Joan Pease, said, “The world’s airlines will need green jet fuels in large quantities to reach the goal of net zero emissions by 2050 and Queensland can play a leading role in that journey.
“To be able to do that from right here in Lytton, would be a fantastic achievement and a huge win for the Queensland Government.
“This project is potentially further progress towards our future as the nation’s SAF capital and I’m excited for what the future holds for this region.”
The announcement comes after the Queensland Government brought key industry players together for a roundtable in November 2022 to accelerate the future production of green jet fuels.
Learn more about the Queensland Biofutures Ten-Year Roadmap and Action Plan here.
