From Paddock to Plane: GrainCorp Outlines Pathway for Australia’s Sustainable Aviation Fuel Future

July 07, 2026

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(GrainCorp) GrainCorp has today (July 6, 2026) released a new white paper highlighting Australia’s readiness to build a domestic Sustainable Aviation Fuel (SAF) industry, as the Federal Government prepares to consult on a demand-side measure to stimulate investment in refining capacity.

Titled From Paddock to Plane: Feedstock White Paper, the white paper sets out a clear and practical pathway for Australia to leverage existing agricultural and waste-based feedstocks to build a globally competitive SAF industry.

The release comes at a critical time for Australia’s energy resilience. Heightened disruption in the Strait of Hormuz has highlighted the nation’s reliance on imported liquid fuels, with around 90 per cent of domestic fuel demand sourced from overseas and limited onshore aviation fuel reserves.

Developed as part of GrainCorp’s role on the Federal Government’s Jet Zero Council, the white paper finds that Australia’s SAF opportunity is not constrained by feedstock availability, but by the need for investment, policy settings and market signals.

The paper also highlights that existing feedstocks could support SAF production equivalent to 117 per cent of Australia’s projected jet fuel demand in 2030, rising further as new feedstocks and technologies emerge.

GrainCorp Managing Director & CEO Robert Spurway said the findings demonstrate Australia’s ability to secure its aviation future could begin immediately.

“Australia’s competitive advantage begins in the paddock, and it’s an advantage we can act on now,” Mr Spurway said.

“We already produce the feedstocks needed to underpin a domestic SAF industry, including canola, tallow and used cooking oil, supported by established infrastructure, expertise and supply chains.

“The challenge is that those feedstocks are currently undervalued and largely exported, leaving the country reliant on imported fuel.

“Australian growers can play a central role in strengthening the nation’s fuel supply using crops we already produce – but like any industry, they need clear market signals to make long-term commercial decisions.”

Mr Spurway said coordinated policy settings will be critical to unlock investment across the full supply chain.

“The Federal Government has recognised the importance of developing our domestic capacity, and the forthcoming consultation on a demand-side measure is an important step toward providing the certainty needed to attract investment in refining capacity.

“With the right policy framework, Australia can scale refining capacity, reduce reliance on imported fuels and build a globally competitive SAF industry.”

The white paper outlines a practical three-stage pathway for industry development:

Start with existing feedstocks produced at scale, such as canola, tallow and used cooking oil
Scale through expanded feedstock supply, improved crop yields and developments
Optimise through next-generation feedstocks and refining technologies to capture long-term value.

Australia’s extensive feedstock base spans canola, sugarcane, wheat, used cooking oil, municipal solid waste, tallow, crop residues, forestry by-products, and emerging sources such as carinata, pongamia, perennials and algae.

With aviation fuel demand expected to reach approximately 14 billion litres annually by 2050, the white paper finds that domestic SAF industry represents a critical opportunity to capture long-term national value.

GrainCorp is already working with industry partners, including Ampol and IFM Investors under a Memorandum of Understanding announced in 2024, to explore the establishment of Australia’s largest liquid fuel manufacturing project that draws upon GrainCorp’s feedstock origination and supply chain capabilities.

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Key Findings from the Whitepaper

Australia’s SAF opportunity is defined by its feedstock base: Australia already produces the agricultural and waste-based feedstocks required to underpin a domestic SAF industry. The key challenge is capturing, coordinating and retaining these feedstocks within the Australian supply chain.
Existing feedstocks can kickstart a SAF industry now: With the right policy settings, existing feedstocks such as canola, used cooking oil and sugarcane could support SAF production equivalent to 117% of projected 2030 jet fuel demand. This rises to 126% of by 2050 with further development.
Domestic feedstock utilisation strengthens fuel security: Expanding domestic processing would reduce Australia’s resilience on imported refined fuels, and improve resilience to global supply disruptions.
A staged pathway enables long-term industry growth: A domestic SAF industry can be built progressively, starting with existing feedstocks, scaling through new crop development, and optimising through next-generation technologies.
Regional Australia stands to benefit: A domestic SAF industry could support more than 18,000 jobs and contribute approximately $36 billion to the economy, with benefits flowing directly to regional communities.

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Quotes attributable to Qantas Chief Sustainability Officer Fiona Messent: “SAF is the most effective solution we have to reduce aviation emissions and improve our fuel security, and this study is further evidence that Australia has the feedstock and industry needed to build supply at scale.

“We just need policy and industry to move together. We welcome the government’s recent commitments to support SAF development and look forward to working with industry and government to get the balance of demand and supply-side policy right, building an Australian SAF industry alongside a thriving aviation sector.”

Quotes attributable to Sydney Airport CEO Scott Charlton: “Australia is one of the world’s largest canola producers, much of it produced right here in NSW, yet our feedstock is sent overseas for processing. We have an opportunity to keep the value here by turning Australian-grown feedstocks into fuel closer to home.

“Passenger numbers are expected to almost double over the next 20 years, creating a significant opportunity to power more of that growth with home-grown Sustainable Aviation Fuel, supporting industry, creating regional jobs and strengthening our fuel security.”

Quotes attributable to GrainGrowers Limited Chair Rhys Turton: “The development of a domestic sustainable aviation fuel industry presents a significant opportunity for Australian grain growers, creating a valuable new source of demand for agricultural feedstocks while supporting regional development and reducing reliance on imported fuels.”

Quotes attributable to IFM Investors Global Head of Asset Management Danny Elia: “Through our MoU with GrainCorp and Ampol, we are exploring opportunities to build domestic renewable fuels production that can help support Australia’s long-term fuel security.

“Across the supply chain, we have an opportunity to reduce reliance on imported fuels and work towards a new Australian industry built on local expertise, agriculture, and infrastructure.

“IFM Investors invests in airports across Australia and setting up a domestic renewable fuels industry is part of our long-term strategy to protect and grow the retirement savings of Australian workers.”

Read GrainCorp’s SAF Feedstock White Paper, here: https://energy.graincorp.com.au/wp-content/uploads/2026/07/From-Paddock-to-Plane-SAF-Feedstock-White-Paper.pdf. READ MORE

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Excerpt from GrainCorp: GrainCorp, Ampol and IFM Investors have welcomed the Australian Government’s release of its Securing Australia’s Cleaner Fuels Industry Consultation Paper on establishing a demand-side framework for low carbon liquid fuels, describing it as a critical step towards building a domestic renewable fuels supply chain.

The consultation paper recognises that, alongside supply-side measures, Australia needs clear demand-side policy settings to provide industry with the confidence and certainty required to invest in domestic production at scale.

These measures are critical to strengthening Australia’s fuel security, supporting sovereign fuel capability and manufacturing opportunities, and capturing greater value from Australia’s agricultural feedstocks.

Under the MoU, Ampol and IFM are progressing the feasibility assessment for a renewable fuels’ facility 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.

Using Australian-grown feedstocks like canola, alongside used cooking oil and tallow, the project has the potential to produce 750 million litres of sustainable aviation fuel (SAF) and renewable diesel each year. The project could create new demand for Australian agriculture, strengthen regional supply chains and help reduce lifecycle carbon emissions from the aviation, freight and heavy transport sectors.

The companies look forward to contributing to the consultation and continuing to work with the Australian Government to establish the policy settings needed to unlock long-term investment in Australia’s renewable fuels sector and strengthen energy security.

Quotes attributable to GrainCorp Managing Director and CEO Robert Spurway:

“Australia has the feedstocks, infrastructure and agricultural capability to become a global leader in low carbon liquid fuels.”

“The right demand-side mechanism will unlock investment across the value chain, creating new markets for Australian growers, supporting regional jobs and strengthening Australia’s fuel security.”

“GrainCorp is well placed to supply the sustainable feedstocks needed to support this emerging industry, and we look forward to working constructively with Government and industry throughout the consultation.”

Quotes attributable to Ampol Managing Director and CEO Matt Halliday:

“The development of an Australian renewable fuels ecosystem will require a coordinated policy framework.”

“The introduction of a suitable demand-side framework will contribute to generating the investment confidence needed to establish domestic production while improving Australia’s long-term fuel resilience.

“Ampol welcomes the opportunity to contribute to this consultation, and we look forward to continuing to work with Government and industry stakeholders.”

Quotes attributable to IFM Investors Executive Director Infrastructure, Danny Elia:

“A credible demand framework is necessary to provide the confidence we need to invest to establish Brisbane Renewable Fuels, Australia’s largest LCLF refinery.”

“With Australia currently importing around 90% of its liquid fuels, a low carbon liquid fuels sovereign capability is essential to our nation’s long-term resilience.”

“IFM invests in our nation’s airports, and setting up a domestic renewable fuels industry is part of our long-term strategy to protect and grow the retirement savings of Australian workers.”

About Ampol

Ampol is an independent Australian company and supplies one of the country’s largest branded petrol and convenience network as well as refining, importing and marketing fuels and lubricants. Ampol has a deep history spanning over 100 years, having grown to become one of Australia’s largest transport energy providers, including through the AmpCharge electric vehicle charging network and exploration of low carbon liquid fuels, to ensure customers’ evolving needs are met.

About GrainCorp

GrainCorp is one of Australia’s largest integrated agribusinesses operating across the food, feed and fuel value chain, with a market-leading presence in grain storage, handling, processing, edible oils and feedstocks. With high-quality infrastructure assets and operations across Australia and New Zealand, and supported by a global network of offices, GrainCorp has connected regional producers with customers across nutrition, livestock and energy industries for more than 100 years.

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 $291.6 billion AUD as of 31 July 2026, we serve over 880 institutional investors worldwide, operating from 16 offices across Australia, Europe, North America and Asia. READ MORE

Excerpt from Industry Queensland: POSCO International is the latest investor to throw its weight behind Townsville aviation biofuels refinery proponent Jet Zero Australia as the company notches up final development approval for the project.

Jet Zero is also celebrating the completion of a $30 million funding round, managed by Barrenjoey, and supported by investors including Qantas and Airbus.

The proceeds will support completion of front-end engineering design (FEED) for Project Ulysses and its progression towards final investment decision and construction.

The company plans to build a sustainable aviation fuel (SAF) plant at Cleveland Bay Industrial Park with the capacity to process at least 183 million litres per year of ethanol to SAF and renewable diesel fuels. READ MORE