February 2026
Ampol, GrainCorp and IFM Investors have signed a Memorandum of Understanding (MOU) to explore the establishment of a renewable fuels1 supply chain that could play a key role in Australia’s transition to net zero.
An Australian renewable fuels industry has the potential to create benefits in energy security, support regional development, support new jobs, and stimulate agriculture and manufacturing industries.
The opportunity to develop a domestic renewable fuels industry will only be realised if industry and government work together to achieve the right policy settings.
Project Overview
In July 2024, AMPOL, GrainCorp, and IFM signed an MOU to explore the establishment of an integrated renewable fuels industry in Australia.
The announcement builds on the existing feasibility work conducted by each of the parties to develop feedstock supply and production capacity of renewable fuels, including Sustainable Aviation Fuel (SAF) and Renewable Diesel (RD) in Australia.
As the initial priority under the MOU, Ampol and IFM Investors will progress a feasibility assessment of a Brisbane Renewable Fuels (BRF) facility at Ampol’s Lytton Refinery in Brisbane, while working with GrainCorp on the feasibility of the supply chain necessary to aggregate and process homegrown feedstocks. The BRF facility could have the capacity to produce up to 750 million litres of renewable fuels annually.
This early phase of the Project received funding from the Australian Renewable Energy Agency (ARENA) as part of ARENA's Sustainable Aviation Fuel Initiative. The views expressed herein are not necessarily the views of the Australian Government, and the Australian Government does not accept responsibility for any information or advice contained herein. Refer to the ARENA Project webpage here - https://arena.gov.au/projects/ampol-brisbane-renewable-fuels-pre-feed-study/.
Strategically Aligned Parties
Ampol, IFM Investors and GrainCorp are working together to explore the creation of an end-to-end Australian renewable fuels value chain.
Together, we aim to explore:
• Boosting Australia’s fuel security
• Securing and scaling renewable feedstock supply chains
• Expanding processing and refining capacity at Lytton Refinery
• Advocating for policy measures to enable a domestic renewable fuels industry
• Supporting the development of certification schemes that verify the sustainability criteria of renewable fuels.
• Creating economic opportunity and jobs in regional Australia.
Ampol, in conjunction with IFM Investors, is investigating building a separate renewable fuels plant adjacent to the existing Lytton refinery. The project if it goes ahead could support the creation of SAF and RD through the established market-leading Hydrotreated Esters and Fatty Acids (HEFA) process. The plant could have the capacity to produce up to 750 million litres of SAF and RD annually. The Lytton Refinery is close to Brisbane Airport and the Port of Brisbane.
IFM Investors brings long-term capital, scale, and infrastructure expertise to help establish this new industry in Brisbane. IFM are long-term investors in Australia’s airports, including Brisbane Airport, Sydney Airport, Adelaide Airport, NT Airports and Australia Pacific Airports Corporation, which takes in Melbourne and Launceston Airports. IFM has a track record of supporting decarbonisation activities across the aviation sector.
GrainCorp is investigating a greenfield oilseed crush expansion, of up to one million tonnes per year, to supply locally grown feedstocks, such as canola oil, for the production of renewable fuels at Ampol’s Lytton Refinery.
Supply Chain Overview
As one of Australia’s oldest and largest aggregators of agricultural commodities and waste, GrainCorp has a diverse and extensive feedstock portfolio which could feed into the supply chain for the BRF Project.
Australian and New Zealand feedstocks including canola oil, used cooking oil and tallow could be at the centre of this feedstock portfolio which would aim to preserve existing Australian food supply chains by drawing on exportable, fuel-bound surplus feedstock.
With forecast demand for jet fuel in Australia to reach circa 10bn litres per annum in 2030, achievement of meaningful progress towards SAF usage will require use of a wide slate of Australian feedstocks including canola oil and waste oils.
It is expected that the supply chain will incorporate logistics and distribution efficiencies through the Port of Brisbane and Brisbane Airport (IFM Investors is a shareholder in both businesses).
The BRF Project commenced Pre-Front End Engineering & Design (Pre-FEED) in 2024 and will seek to determine the optimal specifications for the plant and make an Initial Investment Decision (IID) during 2026 (subject to substantive federal government policy announcements).
The estimated timeline allows for comprehensive feasibility studies, engineering, policy implementation, construction, and commissioning phases that aim to ensure the facility meets all necessary regulatory and operational standards.
Established Technology
The BRF Project would utilise the Hydrotreated Esters and Fatty Acids (HEFA) technology to produce SAF and RD, collectively, renewable fuels. HEFA uses biogenic fats and oils feedstocks such as tallow, used cooking and vegetable oil from oil seed crops (e.g. canola).
HEFA is the most technologically and commercially mature SAF pathway, accounting for approximately 80% of current SAF production2 .
The first step of the HEFA process involves the removal of oxygen by hydrodeoxygenation before the straight-paraffinic molecules are cracked and isomerized to the appropriate chain length for either SAF or RD.
This process is well-suited for integration with existing refinery supporting infrastructure, making it an efficient and scalable solution for renewable fuels production. With the right federal government policy settings in place, there is sufficient feedstock and suitable land to support additional HEFA developments across the east coast of Australia.
Policy Consideration
In 2024 and 2025, the Australian Government announced several key policy measures to support the development of a domestic low carbon liquid fuels (including SAF and RD) industry. These include a $1.7 billion investment in the Future Made in Australia Innovation Fund with $250 million specifically allocated for low carbon liquid fuels, and $1.1 billion in production linked incentives under the Cleaner Fuels Program (CFP).
Additionally, $18.5 million has been allocated to develop a certification scheme for renewable fuels, and $1.5 million for an impact analysis on demand-side measures.
While we welcome these announcements, further policy announcements regarding supply and demand side-measures during 2026 will be essential to continue to progress the project.
We look forward to continuing to work with the Government and industry to shape the right policy to establish a market and address pricing-return challenges.
Contact Details
Scott Maxwell
Project Partners
IFM Investors: www.ifminvestors.com/en-au/
GrainCorp: www.graincorp.com.au
Footnotes:
- Renewable fuels is an industry term used for liquid hydrocarbons made from non-petroleum based renewable feedstocks such as purpose grown biomass, or from waste materials such as tallow or used cooking oil. It captures Sustainable Aviation Fuel (SAF) and Renewable Diesel (RD). Renewable fuels have the potential to lower fuel lifecycle emissions compared to traditional hydrocarbon fuels.
- IATA, Ramping up SAF through standalone HEFA facilities, 2024. www.iata.org/en/publications/economics/chart-week/15-november-2024/
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