The Queensland government has announced a AU$25 million investment to produce Australia’s first domestically manufactured renewable diesel at Ampol’s Lytton refinery.
The funding will support the first sustainable production of second-generation low-carbon liquid fuels in the country.
By modifying Ampol’s existing diesel hydrotreater, the facility will co-process conventional diesel with biogenic feedstocks, including waste oils, plant oils, and animal fats, to create a renewable fuel compatible with any standard diesel engine.
Premier David Crisafulli described the investment as a cornerstone of the state government’s broader plan to restore Queensland’s ability to drill, refine, and store fuel locally.
“Fuel security means restoring Queensland’s ability to drill, refine and store – and this project means more fuel produced locally, for Queenslanders,” the Premier said.
“These projects are important to ensure we are never again left at the mercy of foreign nations, at the end of a global supply chain.”
The initiative is the inaugural project funded under the AU$180.6 million Sovereign Industry Development Fund, a flagship program designed to bolster biofuels, biomedical, and defence sectors.
To ensure the project moves ahead without delay, the Deputy Premier has declared the development a Prescribed Project. This status empowers the Coordinator-General to streamline approvals and cut through bureaucratic red tape.
Construction is slated to begin by mid-2027, supporting 40 construction jobs and six ongoing operational roles. Once online in 2028, the refinery will initially produce 20 million litres of renewable diesel annually.
However, the government views this as merely the first step; future stages could see production scale up to 750 million litres of sustainable aviation fuel and renewable diesel by the early 2030s.
Deputy Premier Jarrod Bleijie emphasised that the government’s disciplined approach to the biofuels sector would provide long-term economic growth and secure the state’s energy future.
“Within a few short years, Queensland will be producing hundreds of millions of litres of liquid gold because the right investments were made,” Bleijie said.