GrainCorp has welcomed the Federal Government’s commitment in the 2026-27 Budget to introduce a demand measure for low carbon liquid fuels (LCLF), alongside the establishment of the $1.1 billion Cleaner Fuels Program to support domestic production capacity.
The commitment represents a significant step towards strengthening Australia’s long-term fuel security and sovereign manufacturing capability, while supporting economic growth across the agricultural and energy sectors.
The proposed demand measure is expected to provide greater certainty to progress the investment needed to establish a clear and credible pathway for the development of domestic manufacturing of LCLF, including sustainable aviation fuel (SAF) and renewable diesel.
GrainCorp Managing Director and CEO Robert Spurway said the announcement highlighted the opportunity to build domestic value-add processing for Australian-grown canola and other agricultural and waste feedstocks.
“Today, around 80 per cent of Australia’s canola crop is exported unprocessed, with much of it used offshore for renewable fuel production,” Mr Spurway said.
“With the right policy settings in place, Australia has an opportunity to capture more of that value domestically by processing our own feedstocks and supporting the development of a sovereign renewable fuels industry.
“Low carbon liquid fuels have the potential to strengthen Australia’s fuel security, support regional jobs and investment, and create a new source of long-term demand for Australian growers.”
The Federal Government’s ten-year Cleaner Fuels Program, announced last year at Ampol’s Lytton Refinery, will provide supply-side incentives designed to accelerate domestic production and investment in cleaner fuel refining capacity.
GrainCorp, alongside Ampol and IFM Investors, is currently exploring the establishment of an integrated renewable fuels supply chain in Australia, under a Memorandum of Understanding announced in 2024.
The collaboration brings together GrainCorp’s feedstock origination and supply chain capabilities, Ampol’s refining and distribution infrastructure, and IFM Investors’ long-term investment expertise to support development of a domestic LCLF industry.
Under the MoU, Ampol and IFM are progressing feasibility assessments for a renewable fuels facility at Ampol’s Lytton Refinery in Brisbane, with capacity to produce more than 750 million litres annually. GrainCorp is separately assessing the feasibility of developing new domestic canola processing capacity to supply Australian-grown canola oil into the proposed facility.
Mr Spurway said coordinated, clear and durable policy frameworks are essential to attracting long-term investment in renewable fuels infrastructure and supply chains.
“Alongside our MOU partners, we’ve consistently advocated for balanced supply and demand-side mechanisms that can help accelerate industry development, support decarbonisation objectives and strengthen Australia’s industrial capability,” he said.
“GrainCorp is committed to working collaboratively with industry and government to help build a sustainable domestic renewable fuels sector that delivers benefits across the value chain, from growers and regional communities through to energy users and consumers.”
GrainCorp has continued to advocate for LCLF policy through industry engagement and participation on the Federal Government’s Jet Zero Council, consistent with its broader sustainability and decarbonisation strategy.
About GrainCorp
GrainCorp is an integrated grain and edible oils business with a market leading presence as the largest grain storage and handling business in ECA and the number one edible oil processor and oilseed crusher in Australia and New Zealand. Over its 100+ year history, GrainCorp has created a global supply chain with high quality infrastructure assets that store, process and facilitate the transportation of grains and edible oils. For future details, please visit the Investors & Media section of our website at www.graincorp.com.au
