Ampol and Eneos team up on biofuel research

AMPOL Limited and Japanese based Eneos Corporation have announced the signing of a memorandum of understanding (MOU) that will see the duo explore the production of advanced biofuels at the Lytton refinery in Brisbane.

Separately, the pair have also executed an 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.

According to a statement issued by Ampol and Eneos, the companies 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, the duo seeking 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 says the project will draw on its existing refining and distribution infrastructure as well as its knowledge of Australia’s aviation and broader transport fuel markets, while simultaneously utilising Eneos’ refinery expertise and energy transition technologies.

“Biofuels and synthetic fuels have an important role to play in the energy transition, particularly in hard to abate areas such as aviation, and heavy industrial sectors like mining,” explained Ampol managing director and CEO Matt Halliday.

“These are important markets for Ampol. As we continue our work to build new solutions for customer, 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.

“(It 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 and president Saito Takeshi said his firm looks forward to contributing to the decarbonisation of the aviation industry throughout the Asia-Pacific region through the realisation of value chains and the stable supply of biofuels.

“Integrated supply chains … will be critical to the development of a successful and sustainable biofuels industry,” he said.

“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 provide a great platform from which to explore SAF production.”

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 cooperate with the Queensland government as part of its strategy to attract clean energy investment.

“Queensland’s Energy and Jobs plan sets out our path to a low emissions future,” said Queensland deputy premier Steven Miles.

“As part of decarbonisation, 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 recognised 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."

Ampol and Eneos said they are also considering 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 per cent SAF use to be achieved by 2030.

Queensland could join Tasmania in becoming a base for e-fuel production, the island state the location of choice for Chile-based firm Highly Innovative Fuels Global.