The Queensland government is investing US$17.8M in developing renewable diesel production at leading Australian fuel and energy company Ampol’s Lytton refinery in Queensland.
As part of the funding partnership, Ampol’s existing diesel hydrotreater would be modified to co-process conventional diesel with biogenic feedstocks such as waste and plant oils, and animal fats to produce renewable fuel for use in existing diesel engines, the government said in a 22 April statement on its official website.
Construction was expected to begin by mid-2027 and, on completion, the project would enable the first sustainable domestic production of second-generation low carbon liquid fuels in Australia, the statement said.
From 2028, the refinery was expected to produce around 20M litres/year of renewable diesel from 15-10 kilotonnes/year of feedstock.
In addition, the investment presented a pathway to unlock future project stages that could produce up to 750M litres of sustainable aviation fuel (SAF) and renewable diesel by the early 2030s, the Queensland administration said.
The project included construction of a truck handling gantry, heated and insulated storage tanks with mixing/blending capability, a secondary tank containment system and system upgrades to process the feedstock.
The project was the first to receive funding under the government’s new flagship US$128M Sovereign Industry Development Fund, which prioritised the potential of biofuels as one of three focus areas in the current national fuel crisis.
Deputy Premier and Minister for State Development Jarrod Bleijie said the fund was attracting investment and securing long-term jobs and economic growth, with biofuels, biomedical and defence as priority sectors.
“Long before this national fuel crisis, the Crisafulli Government had already identified the biofuels sector as a credible, viable and important industry to invest in and secure our fuel future,” Bleijie added.
Ampol – previously Caltex Australia Limited – supplies Australia’s largest branded petrol and convenience network, as well as refining, importing and marketing fuels and lubricants.
As well as the Lytton refinery, the company operates 16 terminals, six major pipelines, 55 wet depots, over 1,800 branded sites (including approximately 690 company-operated retail sites.
The company also has a trading and shipping business that operates out of Singapore and Houston in the USA and operates international storage facilities across the Asia-Pacific region.
