-- The Queensland government has committed 25 million Australian dollars ($17 million) to the Australian renewable fuel company, Ampol, to support the production of renewable diesel at its Lytton refinery, the Australian Broadcasting Company reported on Wednesday.
The initial phase of the project, scheduled for completion by 2028, is expected to produce up to 20 million liters of renewable diesel annually at the Brisbane facility. A second phase could significantly expand output, reaching as much as 750 million liters per year by the early 2030s, according to government projections.
Queensland Deputy Premier Jarrod Bleijie described renewable diesel as chemically identical to conventional diesel, meaning it can be used in existing engines without modification, the ABC report said.
"This is not like ethanol blends where consumers need to choose at the pump," Bleijie said. "Renewable diesel has the same chemical composition as standard diesel."
The funding will be delivered through the state's Sovereign Industry Development Fund and will support infrastructure upgrades at the Lytton refinery, including a secondary tank containment system and improvements to feedstock processing. The project has also been designated a "prescribed project," enabling a streamlined approvals process.
Queensland Cane Growers Organization Ltd. welcomed the decision in a statement on Wednesday, calling it a chance to build a stronger, more resilient economy.