$500 million diesel and biofuel refinery to be built in Queensland

A renewable diesel and aviation fuel biorefinery facility is to be built in Queensland, with the State Government today confirming the $500 million project.

It will be the first commercial site of its kind in Australia, creating around 60 jobs directly with a further 500 regional roles expected during its construction – which is slated to begin in 2023.

The site, to be located in Gladstone on the state’s central coast, was selected by Oceania Biofuels and an agreement is now under contract with Economic Development Queensland.

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The purpose-built plant will use locally sourced waste and sustainable feedstock such as tallow, canola and used cooking oil to produce more than 350 million litres of sustainable aviation fuel and renewable diesel per year.

“Oceania Biofuels were attracted to Queensland because of our commitment to develop a biofuels industry in this state,” said Acting Premier Steven Miles at today’s announcement.

“This project, in addition to Northern Oil’s Advanced Biofuel Pilot Plant, is growing this emerging industry in Gladstone, and strengthens our work towards creating a sustainable, export-orientated industrial biotechnology sector for Queensland, fuelling our economic future and contributing to our decarbonisation targets.

“Queensland has a great opportunity to gain a strong international reputation as the location for biofuels production in the western pacific region and this new plant will signal to the world we are ready.”

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Queensland’s Minister for Regional Development and Manufacturing, Minister for Water and Member for Gladstone, Glenn Butcher, added: “Internationally, fuel security is a major issue, so this biorefinery will help improve Australia’s sovereign capability to produce and distribute finished fuels.”

In addition to the Gladstone facility, the Sunshine State is also home to Stanwell Corporation’s renewable hydrogen facility and Fortescue Future Industries’ hydrogen equipment manufacturing hub.

“We are thrilled to be bring this world class project to Queensland. These greener alternative fuels will help reduce emissions from our planes and heavy vehicles, while creating a bridge to a more sustainable future,” said Mike Everton, CEO of Oceania Biofuels.

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“This is good news for Queensland and an exciting leap for Australia’s energy industry, creating regional jobs and a new export industry that will provide decarbonised fuel options.

“Gladstone is the ideal location for us as it has a highly skilled workforce and access to a deep-water port, furthering our export potential.”

The State Government’s announcement, which is part of its plan to invest $1 billion in the sector over 10 years, comes on the same day as Prime Minister Scott Morrison revealed his Government will hand over a further $250 million to Australia’s two oil refineries in Geelong and Brisbane to shore up domestic supply.

The Queensland Government also announced yesterday that Gladstone will play home to a proposed multi-billion complex producing green hydrogen and green ammonia.

It will be capable of producing up to three gigawatts of electrolysis and up to 5000 tonnes per day of green ammonia from 2025, and will use 100 per cent renewable energy from new-build solar and wind resources in the Queensland region.

Developer The Hydrogen Utility (H2U) will run the production plant, supplying green ammonia to mining and infrastructure solutions provider Orica at its manufacturing facility.

H2U and Orica estimate the “H2-Hub”, as it will be known, could create a total of more than 2500 jobs and attract a $4.7 billion investment during its phased construction.

Yesterday the two organisations signed a Memorandum of Understanding, with the possibility of exploring opportunities for a potential green ammonia export terminal at the Port of Gladstone also on the cards.