An agreement between IFM Investors, Graincorp and Ampol to explore the creation of a renewable fuel industry in Australia is a major step on the path to net zero for the tourism and aviation sectors, Tourism and Transport Forum (TTF) CEO Margy Osmond said today.

Ms Osmond described today’s announcement that IFM, GrainCorp and Ampol have signed a Memorandum of Understanding to work together and prioritise a feasibility assessment on establishing a manufacturing facility at Ampol’s Lytton Refinery as real progress.

“This is such a positive step, especially coming so soon after the recent announcements in the Federal Budget of key initiatives to support SAF,” Ms Osmond said.

“Federal Government support and private sector investment like this collaboration will be critical in developing sufficient manufacturing capacity in Australia to meet our future needs.”

“The establishment of commercial manufacturing plants for renewable fuels such as Sustainable Aviation Fuel (SAF) will help safeguard the future of Australia’s tourism, transport and aviation sectors, as consumer demand for more sustainable travel increases.”

Ms Osmond said the importance of developing feedstock supply could not be underestimated and commended the focus of the IFM, Graincorp, Ampol collaboration on exploring the supply of homegrown feedstocks, including additional crushing capacity for the supply of canola oil to the future plant.

“Australia has a material advantage in terms of our access to feedstocks and it is critically important that we quickly take advantage of this supply before other countries with already developed manufacturing capacity start looking to this country for their feedstock supply,” she said.

“It is also very pleasing to hear that the feasibility study for the proposed plant will also explore renewable diesel production. Sustainable diesel will play a major part in work across the nation on the decarbonisation of public transport.”

“Consumers are increasingly demanding more sustainable options across all transport modes but there has been a significant spotlight on a greener future for aviation particularly on long haul routes to destinations like Australia.”

“Government support starting with the recent budget measures and private sector investment like this collaboration will help Australia remain competitive in one of the toughest tourism markets our industry has ever faced.”

“As a long-haul destination, Australia cannot afford to be left behind other developed countries which are prioritising support for SAF, like the USA, Europe, UK, Singapore, Japan and Canada.”

ENDS