IFM welcomes Government action to establish an Australian-made low carbon liquid fuels industry and strengthen Australia’s fuel security

IFM Investors, alongside MoU partners Ampol and GrainCorp, has welcomed a commitment to introduce a demand measure that provides certainty for new Australian low carbon liquid fuel production and stimulates investment in new, clean fuel refining capacity as part of a fuel supply and security package in the Federal Budget 2026-27.

Establishing a demand measure is an important step in strengthening Australia’s long-term fuel security and sovereign production capability, while supporting the development of a LCLF industry that has the potential to diversify the nation’s energy mix, boost economic growth and create regional jobs.

A demand measure will provide greater certainty for producers and investors and ensure that there is a clearer pathway to establishing a domestic market for LCLF.

The Federal Budget 2026-27 also includes the $1.1 billion Cleaner Fuels Program to provide production support to the domestic low carbon liquid fuels industry. The ten-year Program, which was announced at Ampol’s Lytton Refinery last year delivers supply-side incentives to boost domestic production of LCLF.

Recent global events have put fuel security and sovereign production capability into sharp focus and a significant opportunity exists to develop a LCLF industry.

Currently, around 80 per cent of Australia’s canola is exported unprocessed, with much of it used overseas for renewable fuel production. With the right settings, we could bring that value-add home and turn our canola into renewable fuels, in support of a future made in Australia.

IFM, Ampol and GrainCorp are working together to explore the establishment of an integrated renewable fuels supply chain in Australia.

This collaboration combines GrainCorp’s feedstock and supply chain capabilities, Ampol’s refining and distribution infrastructure, and IFM’s long-term investment expertise to accelerate the transition to LCLF.

Under the MoU, Ampol and IFM are progressing the feasibility assessment for a renewable fuels facility, with capacity to produce over 750 million litres annually, at Ampol’s Lytton Refinery in Brisbane. At the same time, GrainCorp is exploring the feasibility of building a new canola processing facility to supply Australian canola oil to the future plant. 

The MoU partners have actively championed supply and demand policy mechanisms to stimulate and foster a robust domestic market for LCLF, which will see the establishment of a new Australian industry and support local jobs.

Quotes attributable to IFM Investors Global Head of Asset Management Danny Elia:

“Introducing a demand measure for low carbon liquid fuels has the potential to support long-term fuel security, new jobs across the country and long-term returns for the retirement savings of the working people we invest on behalf of.”

“A domestic mandate for low carbon liquid fuels would send a strong signal to investors and industry, providing the certainty needed to build a robust sovereign energy industry, strengthen fuel security and support Australia’s transition to lower-emissions energy.”

Media contact: Jamila Fontana 0407 251 130 | [email protected] 

About IFM Investors

IFM Investors is a global asset manager, founded and owned by pension funds, with capabilities in infrastructure equity and debt, private equity, private credit, real estate and listed equities. Our purpose is to invest, protect and grow the long-term retirement savings of working people.

With assets under management of approximately $267.6 billion AUD as of 31 March 2026, we serve over 800 institutional investors worldwide, operating from 16 offices across Australia, Europe, North America and Asia.