$3b biodiesel plant awaits federal fuel-blending mandate decision
A $3 billion biodiesel project by Ampol, GrainCorp and IFM Investors awaits the government's fuel-blending decision.
Ampol, GrainCorp and IFM Investors are waiting for the government to announce mandatory biofuel content in diesel. The partnership plans to build a biodiesel and sustainable aviation fuel plant at Ampol's Lytton refinery in Brisbane.
The project could make about 20 million litres of renewable diesel from waste cooking oil, canola and tallow by 2028. The partners need clear information from the government before they spend money on engineering and design.
Ampol's boss Matt Halliday said the final investment decision will take a couple of years. The federal government allocated $1.1 billion over ten years to encourage low-carbon liquid fuel production.
Transport Minister Catherine King confirmed biofuels will become mandatory in domestic diesel. Currently, about 75 per cent of Australia's canola crop is exported to feed overseas biodiesel refineries.
- $3 billion
- Project cost
- 20 million litres
- Renewable diesel output target
- 2028
- Potential start year
- 75 per cent
- Canola crop exported
Why it mattersA clear government rule would give Ampol the confidence to build the plant. This would make Australian fuel lower-carbon and more homegrown.
AustraliaAustralians could see more domestically-made renewable diesel at the pump, reduced reliance on imported fuel, and new markets for Australian farm products like canola.
✓ Claims checked against the source. checked 10 h ago
