GrainCorp backs government push on renewable fuel
GrainCorp chief executive Robert Spurway has backed the Albanese government’s launch of a consultation process on developing an Australian renewable fuels industry.
GrainCorp chief executive Robert Spurway has backed the federal government’s launch of a consultation process on incentives needed to develop an Australian renewable fuels industry.
The announcement was made on Thursday by Infrastructure Minister Catherine King at GrainCorp’s terminal at the Port of Newcastle in NSW.
The consultation process is the next step in the development of a low carbon liquid fuel refining industry in Australia following a range of renewable energy incentives announced in the May budget as part of the government’s Future Made in Australia policy.
As Australia’s largest grain handler, GrainCorp stands to benefit from the development of the industry, which has the potential to provide a new source of revenue for the grains industry.
Ms King announced on Thursday that the government was seeking feedback from the sector on options for production incentives and other measures to help the development of the sector.
Mr Spurway said the consultation process was “further recognition from the government of the crucial role that sustainable aviation fuel (SAF) and renewable diesel play in decarbonising the Australian transport sectors”.
He said it would “provide Australian growers, domestic feedstock supply chains and SAF refiners with the confidence to invest and build capacity to decarbonise our transport sectors”.
Mr Spurway said the development of a SAF industry in Australia presented “a unique opportunity for Australia to make the most of its comparative advantage in agriculture capability, sustainable farming practices and land availability”.
GrainCorp has announced plans to expand its canola seed crushing capacity, an investment that is expected to cost as much as $500mn, although it has yet to announce the location of the project.
Measures announced in the federal budget to support the sector included $18.5m over four years to develop a certification scheme for low-carbon fuels, and another $1.5m over two years for a study on the costs and benefits of potential support measures.
GrainCorp and industry super fund investment vehicle IFM Investors did a deal in November last year to co-operate on a feasibility study for sustainable fuel production using local oil waste.
Mr Spurway said there was potential to “onshore a valuable market for canola growers and feedstock producers, who are already exporting our surplus homegrown materials overseas for refining into biofuels”.
He said GrainCorp and IFM Investors were working closely with the federal and state l governments, as well as the Jet Zero Council and major airports, to support the policy solutions needed to enable investment in the industry.
GrainCorp operates the largest grain storage and handling business on the east coast and is also the largest edible-oil processor and oilseed crusher in Australia and New Zealand.
The industry consultation period ends on July 12, with plans to use this as the basis for an aviation white paper and the development of the federal government’s net zero “roadmap” for the transport and infrastructure sector.
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