SYDNEY, AUSTRALIA — Agribusiness GrainCorp, global fund manager IFM Investors, and transportation energy provider Ampol have signed a three-way memorandum of understanding (MOU) to explore the establishment of an integrated renewable fuels industry in Australia.

While renewable fuels can materially reduce transport sector emissions, Australia currently has no material production capacity to support the expected future demand, the partners said.

Under the MOU announced July 30, Ampol and IFM will advance the feasibility assessment of a renewable-fuels facility at Ampol’s Lytton Refinery in Brisbane and work with GrainCorp to explore the supply of homegrown feedstocks, including additional crushing capacity to supply canola oil, to the future plant.

GrainCorp is an integrated grain and edible oils business with the largest grain storage and handling business in East Coast Australia and is the top edible oil processor and oilseed crusher in Australia and New Zealand.

“GrainCorp is already a key supplier of high-quality feedstocks across Australia and New Zealand, including canola oil, tallow and used cooking oil,” said Robert Spurway, managing director and chief executive officer of GrainCorp. “Australian growers produce millions of tonnes of feedstocks every year, the surplus of which is currently exported for refining into renewable fuels.

“An Australian renewable fuel refining industry will build a valuable new domestic market for our nation’s growers and feedstock producers, with the benefits flowing on to regional communities and consumers.”

The MOU 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 in Australia.

Australia can produce and supply the feedstocks needed to help develop a large and globally competitive renewable fuels industry, the partners said, helping drive decarbonization in the hard-to-abate parts of the transportation sector, including aviation as well as heavy and long-haul transportation.

Ampol is an independent Australian company that supplies the country’s largest branded petrol and convenience network, as well as refining, importing and marketing fuels and lubricants. It is Australia’s largest transportation energy provider.

“A combination of Ampol’s existing infrastructure and capabilities, such as the Lytton site and Ampol’s broader distribution network with established channels to market and strong customer relationships, can play a pivotal role in creating a national renewable fuels ecosystem,” said Matt Halliday, managing director and chief executive officer of Ampol. “The Australian-led team of Ampol, IFM and GrainCorp brings together expertise in complex infrastructure development, manufacturing and distribution, and supply chains.”

Momentum for a domestic SAF industry has grown in 2024, and Ampol, GrainCorp and IFM said they welcome the federal government’s range of measures to help support the production of renewable fuels, such as SAF, in Australia.

Owned by a group of Australian industry super funds, IFM Investors has approximately A$222 billion ($144.8 billion) under management with offices in Melbourne, Sydney, London, Berlin, Zurich, Amsterdam, Milan, New York, Houston, Hong Kong, Seoul and Tokyo.