Queensland invests $25 million in Ampol’s Lytton refinery to produce renewable diesel from 2028

The Queensland government has committed $25 million to support a renewable diesel production project at Ampol’s Lytton oil refinery in Brisbane, with the facility also holding the potential to expand into sustainable aviation fuel (SAF) production in future phases, Biodiesel Magazine reported on April 27, 2026.

The investment, announced on April 22, will fund modifications to Ampol’s existing diesel hydrotreater to co-process conventional diesel with biogenic feedstocks. Associated infrastructure to be constructed includes a truck handling gantry, heated and insulated storage tanks with mixing and blending capability, a secondary tank containment system, and system upgrades to handle the incoming feedstock. The government funding will also cover the streamlining of necessary regulatory approvals for the project.

The initial conversion is expected to enable production of 20 million litres per year (MMly), equivalent to 5.28 million gallons per year, of renewable diesel. Construction is scheduled to commence in mid-2027, with operations expected to begin in 2028. According to the government, future phases of the retrofit project could scale production up to 750 MMly of renewable diesel and SAF combined by the early 2030s.

The Lytton refinery, which began operations in 1965, is one of only two remaining oil refineries in Australia. Ampol had considered shutting the facility several years ago before a federal government support scheme in 2021 enabled it to continue operations until at least 2027. In 2023, the company began exploring the feasibility of retrofitting Lytton to produce renewable fuels, and those plans have now advanced to a committed investment stage.

Once operational, the Lytton biorefining project is set to become the first facility in Australia to produce second-generation, low-carbon liquid fuels domestically. It is also the first project to receive funding under Queensland’s $180.6 million Sovereign Industry Development Fund, which identified biofuels as one of three priority focus areas ahead of the country’s current national fuel supply challenges.