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Posted by David Sexton
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22 April, 2026
THE QUEENSLAND government says it is investing $25 million to produce renewable diesel at Ampol’s Lytton refinery, boosting the state’s fuel security and sovereign capability.
It is said to mark the first sustainable domestic production of second-generation low carbon liquid fuels in Australia.
Some 20 million litres of renewable diesel are expected to be initially produced per year from 2028.
It is the first project to be funded under the new flagship $180.6m Sovereign Industry Development Fund, which prioritised biofuels as one of the three focus areas prior to the current national fuel crisis.
The funding partnership is expected to support the modification of Ampol’s existing diesel hydrotreater to co-process conventional diesel, with biogenic feedstocks such as waste and plant oils and animal fats, to produce renewable fuel that can be used in any existing diesel engine.
Premier David Crisafulli said the investment formed part of the government’s fuel security plan.
“Fuel security means restoring Queensland’s ability to drill, refine and store — and this project means more fuel produced locally, for Queenslanders,” Premier Crisafulli said.
“These projects are important to ensure we are never again left at the mercy of foreign nations, at the end of a global supply chain.”
State development minister Jarrod Bleijie said the Sovereign Industry Development Fund was attracting investment and securing long-term jobs and economic growth.
“Long before this national fuel crisis, the 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.
