Australia-headed fuel retail and distribution company Ampol Ltd and Japan-headed energy and nonferrous metals major ENEOS Corporation (ENEOS) have announced the signing of a Memorandum of Understanding (MoU) to explore the production of advanced biofuels at the Lytton refinery in Brisbane, Australia.
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According to a statement, the parties have also executed a separate MoU with the Queensland Government and will continue to engage with the state as work progresses to discuss investment and project development as part of the Queensland Biofutures 10-Year Roadmap.
Ampol and ENEOS will jointly explore the feasibility of delivering an advanced biofuel manufacturing facility at the Lytton refinery with the capacity to generate up to 500 million litres of sustainable aviation fuel (SAF) and renewable diesel annually.
Initial work will consider the use of agricultural, animal, and other waste feedstocks prevalent in the Queensland market and seek to leverage the use of existing refinery manufacturing and distribution infrastructure to produce biofuels for domestic use and for the export market where possible.
Ampol’s Managing Director and CEO, Matt Halliday, said Ampol is committed to supporting the development of a biofuels value chain in Australia and to partnering with like-minded organizations to help drive innovation in future energy.
Biofuels and synthetic fuels have an important role to play in energy transition, particularly in hard-to-abate areas such as aviation and heavy industrial sectors like mining. These are important market segments for Ampol. As we continue our work to build new solutions for customers, we are excited to partner with a global leader like ENEOS to further assess opportunities to repurpose our existing infrastructure and build new supply chains, said Matt Halliday.
Leverage company strengths
The project will leverage each company’s strengths, bringing Ampol’s existing refining and distribution infrastructure and knowledge about Australia’s aviation and broader transport fuels market, together with ENEOS’ expertise in refining technology, energy transition, and leadership in the Japanese aviation and broader transport fuels market.
Lytton has a large and highly skilled workforce, and existing manufacturing infrastructure and capabilities that can be leveraged to deliver these future fuels. Lytton is also located next to a key demand centre, and to the Brisbane River, presenting an opportunity to become an energy hub that can serve major parts of the Queensland economy, Matt Halliday said.
ENEOS’ Representative Director, President, Saito Takeshi, said ENEOS looks forward to contributing to decarbonizing the aviation industry in the Asia-Pacific region, including Australia and Japan, through the realization of value chains and stable supply of biofuels, especially SAF.
Integrated supply chains – from feedstocks to manufacturing and distribution infrastructure – will be critical to the development of a successful and sustainable biofuel industry. Queensland is uniquely positioned given the availability of high-quality feedstocks from established industries. In addition, the location of Ampol’s manufacturing and distribution assets provides a great platform from which to explore SAF production. We are honoured to work with an excellent company like Ampol to jointly consider the best way for SAF production by together bringing the best out of Australia’s SAF production potential, said Saito Takeshi.
Initial work on the project will include exploring potential counterparties in Queensland to provide feedstock and demand for product offtake.
Work with governments
Ampol and ENEOS will also work with the Queensland Government as part of its strategy to attract clean energy investment.
Deputy Premier Steven Miles said the project was another exciting step towards Queensland becoming a clean energy powerhouse.
Queensland’s Energy and Jobs plan sets out our path to a low-emissions future. As part of decarbonization, the Government is working to set Queensland up as the leading location for the production of green jet fuels. We know the world is moving into a low-emissions future and there has been a significant increase in demand for low-carbon aviation fuel. Queensland is recognized internationally as one of the best locations for a SAF supply chain due to our rich supply of feedstock and manufacturing strengths. This project has the potential to unlock significant benefits for our economy by generating good, skilled jobs and opening export opportunities in a new industry. The Queensland Government’s plan is to establish SAF refineries across the state and position ourselves as one of the world’s best SAF suppliers, Deputy Premier Miles said.
Ampol and ENEOS will also consider opportunities for engagement with the Japanese Government’s strategy to invest in projects that can support the country to achieve carbon neutrality by 2050.
In Japan, SAF is expected to be an effective way to reduce emissions, with the Ministry of Land, Infrastructure, Transport, and Tourism setting a target of 10 percent SAF use to be achieved by 2030.
