Ampol and ENEOS partner on Qld biofuels production

Ampol CEO Matt Halliday (NSW) stands in front of EV with Ampcharge branding (eneos)
Ampol CEO Matt Halliday

Ampol Limited and Japan’s ENEOS have signed a Memorandum of Understanding (MoU) to explore the production of advanced biofuels at the Lytton refinery in Brisbane, Australia.

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.

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Ampol and ENEOS will jointly explore the feasibility of delivering an advanced biofuels manufacturing facility 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.  

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.

Ampol managing director and CEO Matt Halliday said Ampol was committed to supporting the development of a biofuels value chain in Australia and to partnering with likeminded organisations 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.

“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.”

ENEOS representative director president Saito Takeshi said ENEOS looked forward to contributing to decarbonising the aviation industry in the Asia-Pacific region, including Australia and Japan, through the realisation 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 biofuels 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.”

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Initial work on the project will include exploring potential counterparties in Queensland to provide feedstock and demand for product offtake. Ampol and ENEOS will also work with the Queensland Government as part of its strategy to attract clean energy investment. 

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% SAF use to be achieved by 2030.

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