Australia could become a major supplier for greener plane fuel after finance, farming and fuel firms signed a deal to investigate its production.
Ampol revealed its partnership with GrainCorp and IFM Investors on Tuesday, with the agreement expected to speed up progress on its study into a Brisbane renewable fuels facility and feedstocks for it.
The three-way memorandum of understanding comes one day after the Queensland government announced two investments in sustainable aviation fuel projects and a processing facility for the fuel in central Queensland.
Sustainable aviation fuel is in high demand worldwide after major airlines committed to using the fuel to achieve net-zero emissions by 2050, and after forecasts that it could add $2.8 billion to Australia's economy by 2030.
Ampol chief executive Matt Halliday said the company's partnership would build on existing feasibility studies looking at the potential for a renewable fuels facility at Ampol's Lytton refinery in Brisbane's south.
A facility could produce sustainable aviation fuel and renewable diesel using agricultural feedstocks such as sugarcane, tallow, canola and cooking oils.
Studies have shown sustainable aviation fuel could reduce carbon emission from air travel by 80 per cent compared to traditional jet fuel.
"Australia has a compelling competitive advantage in infrastructure, technical expertise and the availability of raw materials necessary to to develop a renewable fuels capability," Mr Halliday said.
"This foundational agreement is a significant step in establishing a renewable fuels industry in Queensland and Australia, creating benefits in energy security, supporting regional development, and stimulating agriculture and manufacturing industries."
In addition to the study, the deal would see the firms work with GrainCorp to investigate ways to increase materials needed to create the fuel.
GrainCorp chief executive Robert Spurway said the creation of a local renewable fuels industry could benefit regional producers as well as the environment.
"Australian growers produce millions of tonnes of feedstocks every year, the surplus of which is currently exported for refining into renewable fuels," he said.
"An Australian renewable fuel-refining industry will build a valuable new domestic market for our nation's growers and feedstock producers with the benefits flowing on to regional communities and consumers."
The announcement comes after the Queensland government announced Energreen Nutrition would establish a seed crushing and processing facility at Yamala, in central Queensland, to produce fuel feedstocks.
The government also issued $760,000 grants to Wagner Sustainable Fuels and Liquid Power to help fund feasibility studies into sustainable aviation fuel projects.
Analysis by Frontier Economics found establishing a local sustainable aviation fuel industry could create more than 7400 jobs and add $2.8 billion to Australia's economy by 2030.
By 2050, when worldwide airlines expect to reach net-zero, that figure could rise to $7.6 billion and more than 15,600 jobs.
