Queensland is another step closer to becoming the nation’s sustainable aviation fuel (SAF) hub with Ampol and ENEOS set to explore advanced biofuels production in Brisbane.
Under a memorandum of understanding signed with the Palaszczuk Government today, the companies will assess the feasibility of delivering the project at Ampol’s Lytton refinery site.
The plant would have the capacity to generate up to 500 million litres of SAF and renewable diesel a year – putting Queensland at the forefront of a clean jet fuel market in Australia.
Initial work on the project will include looking at potential feedstock sources and how existing refinery infrastructure can be leveraged for use in domestic and export markets.
Sustainable fuel is one of the strongest tools available to airlines to reduce emissions, but it is not currently being produced in Australia at commercial scale.
SAF can be used in existing aircraft engines to cut carbon emissions by up to 80 per cent.
The announcement comes after the Palaszczuk Government brought key industry players together for a roundtable in November to accelerate the future production of green jet fuels.
Queensland’s Deputy Premier Steven Miles said the project was another exciting step towards Queensland becoming a clean energy powerhouse.
Miles continued: “Queensland’s Energy and Jobs plan sets out our path to a low emissions future.
“As part of decarbonisation, the Government is working to set Queensland up as the leading location for the production of green jet fuels.
“We know the world is moving into a low emissions future and there has been a significant increase in demand for low carbon aviation fuel.
“Queensland is recognised internationally as one of the best locations for a SAF supply chain due to our rich supply of feedstock and manufacturing strengths.
“This project has the potential to unlock significant benefits for our economy by generating good, skilled jobs and opening export opportunities in a new industry.
“The Queensland Government’s plan is to establish SAF refineries across the state and position ourselves as one of the world’s best SAF suppliers.”
Ampol Managing Director and CEO Matt Halliday said: “Biofuels and synthetic fuels have an important role to play in energy transition, particularly in hard to abate areas such as aviation, and heavy industrial sectors like mining.
“As we continue our work to build new solutions for customers, we are excited to partner with a global leader like ENEOS to further assess opportunities to repurpose our existing infrastructure and build new supply chains.
“Lytton has a large and highly skilled workforce, and existing manufacturing infrastructure and capabilities that can be leveraged to deliver these future fuels.
“Lytton is also located next to a key demand centre, and to the Brisbane River, presenting an opportunity to become an energy hub that can serve major parts of the Queensland economy.”