Ampol (ASX:ALD) and GrainCorp (ASX:GNC) Drive Sustainable Fuel Plans

3 min read | December 17, 2024 05:41 PM AEDT | By Team Kalkine Media

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Ampol (ASX:ALD) and GrainCorp (ASX:GNC) Drive Sustainable Fuel Plans — Image source: shutterstock

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Highlights

Ampol (ALD) and GrainCorp (GNC) secure funding for sustainable aviation fuel projects

Government aims to support renewable fuel alternatives for Australia’s aviation sector

Funding enhances efforts to decarbonise high-emission industries

The Australian Renewable Energy Agency (ARENA) has announced funding for two major projects led by Ampol (ASX:ALD) and GrainCorp (ASX:GNC) under its Sustainable Aviation Fuel (SAF) initiative. The move underscores Australia’s commitment to building a domestic SAF industry, which is aimed at reducing emissions in the aviation sector.

ARENA will contribute $14.1 million in funding across two separate studies. Ampol (ALD) has secured $8 million to support its $30.2 million ‘Brisbane Renewable Fuels Pre-FEED Study.’ This study will focus on investigating the potential to develop a renewable fuels facility for SAF and renewable diesel at Ampol’s Lytton refinery. The company’s effort aligns with broader strategies to explore cleaner energy solutions and strengthen Australia’s energy security.

On the other hand, GrainCorp (GNC) will receive $6.1 million to advance its $19.8 million ‘SAF Oilseed Crushing Facility Pre-Deployment Study.’ This project is set to explore establishing an oilseed crushing facility to produce canola oil, a key feedstock for SAF production. The study emphasizes location advantages such as proximity to oilseed sources, refining capacity, and export opportunities for byproducts like canola meal.

These initiatives fall under ARENA’s SAF funding program, launched with a $30 million budget in 2023 to facilitate short- and medium-term pathways to emissions reduction. Following this announcement, ARENA’s total investment in SAF development has reached $23 million across three projects. Additional funding is expected as the government continues its push for cleaner alternatives in energy-intensive industries.

ARENA CEO Darren Miller highlighted the significance of these efforts, stating that aviation remains one of the most challenging sectors for emissions reduction. With Australians being frequent travelers, Miller emphasized the importance of transitioning to sustainable fuels to meet net-zero goals.

Ampol’s CEO Matt Halliday reinforced the benefits of renewable fuels, including boosting regional development and supporting agriculture and manufacturing. GrainCorp CEO Robert Spurway echoed similar sentiments, highlighting the importance of feedstock availability in scaling renewable fuel production.

Ampol (ALD) and GrainCorp (GNC) remain pivotal players as Australia explores solutions to decarbonise the aviation industry and achieve its climate targets. These projects mark a crucial step towards fostering sustainable fuel capabilities while stimulating economic growth across key sectors.

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