Commodities
Home›Commodities›Energy Transition›Australia seeks demand framework for low-carbon liquid…
Australia seeks demand framework for low-carbon liquid fuel investment
The consultation is tied to feasibility work for renewable fuels at Ampol’s Lytton refinery and a canola processing plan that could supply SAF and renewable diesel at 750 million liters per year.
The Australian government is seeking public feedback on a plan to set up a demand-side framework for low-carbon liquid fuels, through its Securing Australia’s Cleaner Fuels Industry Consultation Paper. World Grain reports the effort is intended to complement supply-side measures with clearer demand policy settings to give industry confidence to invest in domestic production at scale.
GrainCorp, Ampol, and IFM Investors welcomed the consultation, saying demand-side policy is needed to strengthen Australia’s fuel security, support sovereign fuel capability, and create manufacturing opportunities, while capturing more value from Australian agricultural feedstocks.
Under a memorandum of understanding signed in July 2024, Ampol and IFM are advancing a feasibility assessment for a renewable fuels facility at Ampol’s Lytton Refinery in Brisbane. GrainCorp is also exploring the feasibility of a new canola processing facility to supply Australian canola oil to the future plant.
Using Australian-grown feedstocks such as canola, plus used cooking oil and tallow, the companies said the project could produce 750 million liters of sustainable aviation fuel and 750 million liters of renewable diesel each year. GrainCorp CEO Robert Spurway said the right demand-side mechanism would unlock investment across the value chain, create new markets for growers, support regional jobs, and further strengthen fuel security.