Ampol’s Lytton refinery will be the site of a new renewable diesel production facility. Photo: Qld Government

THE QUEENSLAND Government has announced a $25-million investment and a streamlined approvals process for the renewable diesel project at Ampol’s Lytton refinery.

Construction is set to begin on the project by mid-2027, with production to commence by 2028.

The project is related to a memorandum of understanding Ampol signed with GrainCorp and IFM Investors, an institutional investor and asset manager, in July 2024, to develop an end-to-end renewable fuels value chain.

Once complete, the project will enable the first sustainable domestic production of second-generation low-carbon liquid fuels in Australia.

The additional funding partnership will support the modification of Ampol’s existing diesel hydrotreater to co-process conventional diesel, with biogenic feedstocks such as waste and plant oils and animal fats to produce renewable fuel that can be used in any existing diesel engine.

The project also includes construction of a truck-handling gantry, heated and insulated storage tanks with mixing/blending capability, a secondary tank containment system, and system upgrades to process the feedstock.

The project will initially be capable of producing up to 20 million litres of renewable diesel annually through processing of 15,000-20,000 tonnes of feedstock per year.

Qld Premier David Crisafulli at Ampol’s Lytton facility.

Future project stages could produce up to 750 million litres of sustainable aviation fuel and renewable diesel by the early 2030s.

Qld Premier David Crisafulli said the investment formed part of the government’s fuel security plan.

“Fuel security means restoring Queensland’s ability to drill, refine and store – and this projects means more fuel produced locally, for Queenslanders,” Mr Crisafulli said.

“These projects are important to ensure we are never again left at the mercy of foreign nations, at the end of a global supply chain.

“Across the short, medium and long-term we’re getting projects moving to produce oil, refine it and store fuel locally.”

Deputy Premier and Minister for State Development Jarrod Bleijie has declared the initiative a Prescribed Project, which allows the Coordinator-General to streamline approvals.

“Long before this national fuel crisis, the Crisafulli Government had already identified the biofuels sector as a credible, viable and important industry to invest in and secure our fuel future,” Mr Bleijie said.

“Within a few short years, Queensland will be producing hundreds of millions of litres of liquid gold because the right investments were made, and the right partnerships were forged.”

GrainCorp, IFM MOU

The agreement between Ampol, GrainCorp and IFM Investors covers work to advance a broader pipeline of investments beyond the Lytton refinery facility.

According to Ampol’s website, as of February 2026, GrainCorp is exploring a greenfield oilseed crush expansion of up to 1 million tonnes a year to supply locally grown feedstocks, including canola oil, for renewable fuel production at its Lytton refinery.

Canola and used cooking oil and tallow are expected to be at the centre of the feedstock portfolio used at the Lytton plant.

As long-term investors in Australia’s airports, IFM Investors brings long-term capital, scale, and infrastructure expertise to help establish this new industry in Brisbane.

The Ampol website said the Port of Brisbane and Brisbane Airport, both with IFM Investors as a shareholder, would likely form part of the renewable diesel and SAF supply chain.

Ampol also stated that policy measures would be required alongside funding, such as the recent Qld Government announcement, to make the project a success.

“While we welcome these announcements, further policy announcements regarding supply and demand side-measures during 2026 will be essential to continue to progress the project,” Ampol’s website said.

“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.”

GrainCorp and Ampol were contacted for comment.

Source: Queensland Government, Ampol