SAFAANZ response to Ampol and Eneos partnership

Response to Media Release: AMPOL AND ENEOS PARTNER TO EXPLORE ADVANCED BIOFUELS PRODUCTION IN QUEENSLAND

The Sustainable Aviation Fuel Alliance of Australia and New Zealand (SAFAANZ) welcome the joint announcement from Ampol and ENEOS to explore production of advanced biofuels at the Lytton refinery, a deal that could see up to 500 million litres of Sustainable Aviation Fuel and renewable diesel refined every year at the Brisbane facility.

This venture is a significant step towards the development of a domestic Sustainable Aviation Fuels industry, which would give Australia a crucial foothold in the booming renewable fuels global market.

Australia is in an enviable position to capitalise on its vast agricultural and industry might and emerge as a global leader in the development of SAF and Renewable Diesel, creating thousands of jobs and accelerating economic growth in regional Australia.

More jobs, more economic growth, enhanced fuel security, less emissions.

This project is particularly important for Queensland where growers and producers, without any domestic options, have been exporting their high-quality feedstock overseas to refiners, putting Australia in the odd position of importing renewable fuel made by its own exports, grown in its own soil.

SAFAANZ Chair Terri Butler said today’s announcement is an exciting step towards the development of a domestic SAF industry.

“The Ampol and Eneos partnership and feasibility study have the potential to benefit not just Queensland, but all of Australia, as the world transitions to a renewable future.

“A domestic supply of Sustainable Aviation Fuel and Renewable Diesel will not only enable greater emissions reduction in the aviation and transport sectors, it will also present Australia with an incredible economic opportunity and enhance Australia’s fuel security position,” said Terri.

“It is heartening to see this acknowledgement of the potential for the industry in Queensland, leveraging the abundant and diverse feedstocks in the area while exploring the role of biofuels in decarbonising aviation,” Terri said.

Queensland now stands to reap an enormous economic dividend as a domestic renewable fuels industry becomes a reality. It has the potential to not only lead the region in the production of renewable fuel, but the world.

Sustainable Aviation Fuel can no longer be a problem for others to solve and act on.

Failure to build our own sovereign capability will leave Australia at the mercy of foreign markets, elevated prices, and availability that could undermine the genuine decarbonisation efforts of our aviation and transport sectors.

Despite advances in fuel efficiency and fleet modernisation, emissions from the Australian aviation sector are increasing. The challenge is immense, and the avenues for abatement are few.

“SAFAANZ are unapologetically focussed on advocating for SAF and as the world progresses in this space it is critical that Australia is not left behind; the environmental and economic implications of inaction cannot be ignored,” said Terri.

With further support for the early deployment of pre-commercial SAF production plants, Australia’s Bioenergy Roadmap, released by the Federal Government in November 2021, estimates production potential of up to 1908 ML per annum, representing 18 per cent of the aviation fuel market.

To realise the full benefits of that production, is to realise an economic windfall.

It is estimated the establishment of a genuine Australian SAF industry would create 7400 jobs by 2030 and up to 15,600 jobs by 2050, mostly in regional areas, while generate a $2.8 billion contribution to GDP per year by 2030, rising to $7.6 billion per year in 2050.