Queensland is on track to become a leading biofuel producer generating up to 500 million litres of sustainable aviation fuel and renewable diesel a year.

Advanced biofuels will be manufactured from agricultural, animal and other waste feedstocks at Brisbane’s Lytton refinery under the state government’s deal with Ampol and ENEOS to manufacture

The plant will be capable of producing 500 litres of fuel per year as part of the ambitious Queensland Biofutures 10-Year road map.

The biofuels will be manufactured for the domestic and export market using existing refinery manufacturing and distribution infrastructure.

“Lytton has a large and highly skilled workforce and existing manufacturing infrastructure and capabilities that can be leveraged to deliver these future fuels,” Ampol’s Managing Director Matt Halliday said.

“Lytton is also located next to a key demand centre and to the Brisbane River, presenting an opportunity to become an energy hub that can serve major parts of the Queensland economy.”

The ready availability of high-quality agriculture feedstocks would be essential to becoming a player in the booming renewable fuels global market.

“Queensland is uniquely positioned given the availability of high-quality feedstocks from established industries,” Saito Takeshi ENEOS representative director president said.

“Integrated supply chains – from feedstocks to manufacturing and distribution infrastructure – will be critical to the development of a successful and sustainable biofuels industry.”

Sustainable aviation fuel (SAF) is used in existing aircraft engines to slash carbon emissions by up to 80 per cent but is not currently being produced commercially in Australia.

Deputy Premier Steven Miles said the Lytton refinery could be the first of many across the state.

“Queensland is recognised internationally as one of the best locations for a SAF supply chain due to our rich supply of feedstock and manufacturing strengths,” Mr Miles said.

“This project has the potential to unlock significant benefits for our economy by generating good, skilled jobs and opening export opportunities in a new industry.

“The Queensland government’s plan is to establish SAF refineries across the state and position ourselves as one of the world’s best SAF suppliers.”

The venture was seen as a significant step in the development of the domestic Sustainable Aviation Fuels industry, according to the Sustainable Aviation Fuel Alliance of Australia and New Zealand.

The Australian agricultural industry previously exported high-quality feedstock to refineries overseas and imported renewable fuel made by its own exports.

“A domestic supply of Sustainable Aviation Fuel and Renewable Diesel will not only enable greater emissions reduction in the aviation and transport sectors, it will also present Australia with an incredible economic opportunity and enhance Australia’s fuel security position,” SAFAANZ Chair Terri Butler said.

It is estimated the establishment of a genuine Australian SAF industry would create 7400 jobs by 2030 and up to 15,600 jobs by 2050, mostly in regional areas.

It could generate a $2.8 billion contribution to GDP per year by 2030, rising to $7.6 billion in 2050.