Lytton - Wednesday 28 April
Ampol welcomes the Queensland Government's proposed investment towards the establishment of a co-processing renewable diesel capability at our refinery in Lytton.
Co-processing would involve blending biogenic and fossil feedstocks together, to be refined through the existing facility. This would allow Ampol to provide customers with access to a lower lifecycle carbon emission liquid fuel solution, compared with liquid fuel derived from 100% crude oil, without the additional burden of dedicated storage and logistics.
The facility, if progressed, would have the potential to produce up to 20 million litres of Renewable Diesel from renewable feedstocks annually, which will be co-processed through the refinery with hydrocarbon-based diesel. While this is proportionally small compared to the ~2,000 million litres of hydrocarbon-based diesel refined annually at Lytton, it is an important foundational investment in a developing industry.
Ampol continues to progress Front-End Engineering Design and securing the required development approvals. The funding provided by the Queensland Government will assist Ampol with capital expenditure once a final investment decision is made.
Building a lower carbon liquid fuels* industry presents a major opportunity for both Queensland and Australia, offering the potential to strengthen energy security, create skilled jobs, support regional communities, and drive growth in the agricultural sector. Regulatory support is required, including amendments to the NGER rules, to allow customers to claim the benefit of using co-processed renewable diesel.
While the project is still subject to a final investment decision, and work remains to deliver infrastructure of this scale, this is a positive step toward achieving our long-term strategy to establish a viable lower carbon liquid fuels ecosystem.
* Lower carbon liquid fuels and renewable fuels are industry terms used for liquid hydrocarbons made from non-petroleum based renewable feedstocks such as purpose grown biomass, or from waste material such as tallow or used cooking oil. It captures Sustainable Aviation Fuel (SAF) and Renewable Diesel. Lower carbon liquid fuels and renewable fuels have the potential to lower fuel lifecycle emissions compared to traditional hydrocarbon fuels.
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