The State Government is investing $25 million to produce renewable diesel at Ampol’s Lytton refinery in Brisbane in a project due to start construction next year.

The project is expected to give the refinery the capability to produce up to 20 million litres of renewable diesel a year from 2028, processing 15-20 kilotons of feedstock per year.

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

The project is the first to be funded under the Crisafulli Government’s flagship $180.6 million Sovereign Industry Development Fund. 

The funding partnership will support the modification of Ampol’s existing diesel hydrotreater at Lytton to co-process conventional diesel with biogenic feedstocks such as waste, plant oils and animal fats.

The renewable fuel that results from the process will be able to 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.

Deputy Premier and State Development Minister Jarrod Bleijie said the Sovereign Industry Development Fund was attracting investment and securing long-term jobs and economic growth; with biofuels, biomedical and defence as priority sectors.

“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.”

Total Lytton refinery production for the first quarter of this year was 1434 million litres, up 10 per cent compared to the same time last year when 10 days of production was lost due to Cyclone Alfred.

The Lytton refinery processes a different grade of crude oil (known as ‘light sweet’ crude) to that sourced from the Persian Gulf (‘sour’ crude).

Consequently, suitable crudes for Lytton remain available in the face of the oil market turmoil caused by the conflict in the Middle East.

In an update to the market today, Ampol said its crude purchases were secured into July in line with normal purchasing patterns, albeit at higher landed cost.

You may also like: