IFM welcomes demand-side push for low carbon liquid fuels

IFM Investors along with Ampol and GrainCorp have welcomed the government's push to establish a demand-side framework to increase the supply of low carbon liquid fuels (LCLF) in Australia.

The government consultation paper, Securing Australia's Cleaner Fuels Industry Consultation Paper, recognises that alongside supply-side measures, Australia needs demand-side policy settings to provide industry with the confidence and certainty required to invest in domestic production at scale.

In 2024, the three organisations signed a Memorandum of Understanding (MoU) to explore the establishment of an integrated renewable fuels supply chain in Australia.

Under the MoU, Ampol and IFM are progressing the feasibility assessment for a renewable fuels' facility at Ampol's Lytton Refinery in Brisbane. At the same time, GrainCorp is exploring the feasibility of building a new canola processing facility to supply Australian canola oil to the future plant.

"A credible demand framework is necessary to provide the confidence we need to invest to establish Brisbane Renewable Fuels, Australia's largest LCLF refinery," IFM Investors executive director infrastructure Danny Elia said.

"IFM invests in our nation's airports, and setting up a domestic renewable fuels industry is part of our long-term strategy to protect and grow the retirement savings of Australian workers."

These measures are critical to strengthening Australia's fuel security, supporting sovereign fuel capability and manufacturing opportunities, and capturing greater value from Australia's agricultural feedstocks, IFM said.

GrainCorp managing director and chief executive Robert Spurway said Australia has the feedstocks, infrastructure and agricultural capability to become a global leader in low-carbon liquid fuels.

"The right demand-side mechanism will unlock investment across the value chain, creating new markets for Australian growers, supporting regional jobs and strengthening Australia's fuel security," Spurway said.

Ampol chief executive Matt Halliday added the development of an Australian renewable fuels ecosystem will require a coordinated policy framework.

"The introduction of a suitable demand-side framework will contribute to generating the investment confidence needed to establish domestic production while improving Australia's long-term fuel resilience," Halliday said.