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Brisbane Renewable Fuels Pre-FEED Study

Ampol – Brisbane Renewable Fuels Pre-FEED Study

January 2025

Ampol, GrainCorp and IFM Investors have signed a Memorandum of Understanding (MOU) to explore the establishment of a renewable fuels 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 will progress a feasibility assessment of a Brisbane Renewable Fuels (BRF) facility at Ampol’s Lytton Refinery in Brisbane, while working with GrainCorp to build the supply chain necessary to aggregate and process homegrown feedstocks.

Together, we have targeted a 2030 commencement date for this supply chain that is expected to have the capacity to produce over 450 million litres of renewable fuels annually.

Established Technology

The BRF Project will 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).

The technology is considered to be the most mature and commercially viable pathway for renewable fuels production, due to the meat and canola industries producing exportable surplus nationwide, and the maturity of existing supply chains and extraction technology.

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.

Strategically Aligned Parties


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 policy settings in place, there is sufficient feedstock and suitable land to support additional HEFA developments across the east coast of Australia.

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 to feed into the supply chain for the BRF Project.

Australian and New Zealand feedstocks including canola oil, used cooking oil and tallow will be at the center of this feedstock portfolio. Around these central feedstocks, Ampol, GrainCorp and IFM will design a diverse feedstock portfolio which preserves 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 10% SAF usage in 2030 will require use of a wide slate of Australian feedstocks including canola oil and waste oils.

GrainCorp is conducting feasibility work into establishing a large-scale canola crush facility that will aim to ensure a steady supply of high-quality Australian feedstock for the BRF Project.

While some details of the supply chain are yet to be determined, it is expected that the supply chain will incorporate logistics and distribution efficiencies through Port of Brisbane and Brisbane Airport (IFM 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 2025 (subject to substantive policy announcements).

The BRF Project aims to commence operations prior to 2030. This 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.

Policy Consideration

In 2024, the Australian Government announced several key policy measures to support the development of a domestic SAF industry. These include a $1.7 billion investment in the Future Made in Australia Innovation Fund to support net-zero innovations, including SAF.

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 2025 will be essential to continue to progress our 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

scott.maxwell@ampol.com.au

 

Link to ARENA project webpage –

https://arena.gov.au/projects/ampol-brisbane-renewable-fuels-pre-feed-study/

 

Project Partners

IFM Investors: www.ifminvestors.com/en-au/

GrainCorp: www.graincorp.com.au

 

This Project received funding from the Australian Renewable Energy Agency (ARENA) as part of ARENA's Advancing Renewables Program.

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.”

 

Important Disclosures

The following disclosure applies to this material and any information provided regarding the information contained in this material. By accepting or reading this material, you agree to be bound by the following terms and conditions. The material does not constitute an offer, invitation, solicitation, or recommendation in relation to the subscription, purchase, or sale of securities in any jurisdiction and neither this material nor anything in it will form the basis of any contract or commitment.

IFM Investors (defined as IFM Investors Pty Ltd and its affiliates), Ampol (defined as Ampol Limited and its related bodies corporate), and GrainCorp will have no liability, contingent or otherwise, to any user of this material or to third parties, or any responsibility whatsoever, for the correctness, quality, accuracy, timeliness, pricing, reliability, performance, or completeness of the information in this material. In no event will IFM Investors, Ampol, or GrainCorp be liable for any special, indirect, incidental, or consequential damages which may be incurred or experienced on account of a reader using or relying on the information in this material even if it has been advised of the possibility of such damages.

 

Forward-looking Statements

Certain statements in this material may constitute “forward-looking statements” or “forecasts.” Words such as “expect,” “anticipate,” “plan,” “believe,” “scheduled,” “estimate,” “will,” “may,” “intend,” “seek,” “would,” “should,” “could,” “effort,” “budget,” “continue,” “forecast,” “outlook,” “assumption,” “target,” “goal,” “commit,” “guidance,” “objective,” “potential,” “projection,” “probability,” “indicative,” “risk,” “aim,” “ambition,” and variations of these words and similar expressions generally indicate forward-looking statements, which include but are not limited to projections of earnings, performance, and cash flows.

These statements involve subjective judgment and analysis and reflect IFM Investors’, Ampol’s, and GrainCorp’s intent, belief, or current expectations and views. They are subject to known and unknown risks, uncertainties, and assumptions, many of which are outside the control of IFM Investors, Ampol, and GrainCorp. Actual results may vary materially from those expressed or implied by these forward-looking statements. Readers are cautioned not to rely on such statements, the achievement of which is not guaranteed. Targets referred to in this material are aspirational and may not be achieved.

Except as required by law, IFM Investors, Ampol, and GrainCorp assume no obligation to revise or update any forward-looking statements in this material. Past performance does not guarantee future results. The value of investments and the income derived from investments will fluctuate and can go down as well as up. A loss of principal may occur.

 

Important Information Regarding Sustainability

This material contains forward-looking statements and other representations relating to sustainability topics, including but not limited to climate change, net zero, climate resilience, emissions intensity, human rights, and other sustainability-related commitments. These statements rely on metrics, methodologies, and data that are relatively new, rapidly evolving, and subject to significant uncertainties and assumptions.

Sustainability-related strategies may face challenges such as data availability, inconsistencies, and evolving regulations. IFM Investors, Ampol, and GrainCorp may need to re-evaluate their sustainability targets and methodologies as market practices and data quality develop. No guarantees are made regarding the achievement of sustainability-related targets or the positive impact of such strategies.

Relatedly, adherence to sustainability policies may result in missed opportunities, and any assumptions underlying these strategies may change over time. The statements provided in this material should not be considered guarantees or predictions of future performance.

 

Other Important Disclosures

This material does not constitute investment, legal, accounting, regulatory, or taxation advice. It does not consider your financial situation, investment objectives, or individual circumstances. You are solely responsible for forming your own opinions and conclusions on such matters.

References to external sources or websites do not incorporate them by reference. Neither IFM Investors, Ampol, nor GrainCorp assumes responsibility for the accuracy or completeness of information obtained from third-party sources or portfolio companies.

This material is provided to you on the basis that you are a “wholesale client,” “sophisticated investor,” or “professional investor” as defined in the Corporations Act 2001 (Cth). IFM Investors Pty Ltd, ABN 67 107 247 727, AFS Licence No. 284404.