Eneos, Ampol to study SAF production options in Queensland

Japanese oil and metals conglomerate Eneos Holdings Inc (TYO:5020) has teamed up with Australian petroleum company and transport fuel distributor Ampol Ltd (ASX:ALD) to jointly explore the production of sustainable aviation fuel (SAF) and renewable diesel in Australia.

The duo will conduct a feasibility study on a plan for producing up to 500 million litres (132m gallons) of fuel per year, Eneos said on Thursday.

As a first step in the joint work, Eneos and Sydney-based Ampol will explore the usage of agricultural, animal and other waste feedstocks in the northeastern state of Queensland, where they will seek existing refinery manufacturing facilities and distribution infrastructure to produce biofuels. The potential output would be used both for local consumption and for export.

Initial work will also include exploring potential counterparties in Queensland to provide feedstock and demand for product off-take. The partners will use Ampol’s Lytton refinery in Brisbane for the project.

Separately, the duo has signed a Memorandum of Understanding (MoU) with the government of Queensland to ensure the state’s engagement. Opportunities for engagement with the Japanese government are considered, as well, Eneos said.

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