Ampol, Graincorp, IFM to study Australia SAF production

London-based fund manager IFM Investors and major east coast Australian grain aggregator GrainCorp will partner with Australian refiner and retailer Ampol to explore establishing an integrated renewable fuels business.

Ampol and IFM plan to assess the feasibility of producing sustainable aviation fuel (SAF) and renewable diesel at the site of Ampol's 109,000 b/d Lytton refinery at the port of Brisbane, in Queensland state, Ampol said on 30 July.

The firms will work with GrainCorp on the supply of feedstocks, including additional crushing capacity to supply canola oil, to the potential plant.

The collaboration builds on an IFM-GrainCorp initial agreement signed last year, where the firms pledged to begin developmental plans for a 720,000 t/yr SAF facility.

With domestic feedstock potential for about 5bn litres/yr of SAF, Australia could become a major producer, the nation's federal science agency CSIRO has said. GrainCorp is a significant exporter of canola oil, tallow and used cooking oil for biofuel production.

Canberra has allocated funds for a low-carbon liquid fuel industry development plan in recent months, agreeing to develop a certification scheme to help establish domestic output.

Australia's aviation white paper which is due for release mid-year is expected to provide further strategic direction on the role of SAF and other emerging technologies in the sector.

Australia's jet fuel imports in 2024 have averaged 127,000 b/d, according to Australian Petroleum Statistics (APS), with Australia's domestic refineries producing 26,000 b/d of jet fuel during the same period.

APS data shows diesel imports of 514,000 b/d for the first five months of 2024, with refineries producing 73,000 b/d.

By Tom Major