Australia's Queensland invests in biodiesel to cut reliance on fuel imports

The government of Queensland, Australia, has announced a A$25 million investment in a renewable diesel project aimed at reducing the state’s dependence on imported fuel and strengthening long-term energy security. The move comes as Australia faces high fuel prices and supply concerns linked to global oil market disruptions caused by conflict in the Middle East.

The investment will support renewable diesel production at the Lytton refinery in Brisbane, operated by Ampol. The project will convert waste materials, vegetable oils, and animal fats into 20 million litres of renewable diesel annually starting from 2028, providing a cleaner fuel alternative while reducing reliance on traditional fossil fuel imports.

Queensland officials said biofuels are a strategic priority and indicated that further funding could be deployed to scale production to hundreds of millions of litres by the early next decade. Premier David Crisafulli stated that such projects are critical to ensuring the state is not left vulnerable to disruptions at the end of global supply chains.

The initiative also supports Australia’s agricultural sector, which has long pushed for stronger biofuel development using domestic feedstocks. By linking renewable fuel production with waste reuse and local industry growth, Queensland aims to improve sustainability outcomes while building a more resilient and self-sufficient energy system. Twenty million litres of biofuel is roughly equivalent to 10% of Australia’s daily oil usage.

Queensland's biodiesel investment is part of a broader Australian push to reduce fuel-import exposure while unlocking value in waste feedstocks - animal fats, used oils, agricultural residue. Our energy-transition and supply-chain-and-operations teams help clients evaluate biofuel opportunities against sustainable-sourcing frameworks like RSB and ISCC, particularly for exports into EU markets where EUDR and CBAM increasingly shape acceptance.