The Australian Workers' Union has welcomed the Federal Labor Government's landmark $1.1 billion commitment to low-carbon fuel production, hailing it as a once-in-a-generation opportunity to secure Australia's fuel sovereignty, create thousands of secure jobs, and future-proof key industrial sites like Ampol's Lytton refinery.
The investment will back a new partnership between IFM Investors, Ampol and Graincorp, first outlined in an earlier Memorandum of Understanding, which aims to establish large-scale domestic green fuel production.
AWU Acting National Secretary Chris Donovan said the funding was a critical leap forward in building a sustainable fuel industry that protects Australian jobs and supply chains.
"This is exactly the kind of bold, nation-building investment we've been calling for," Mr Donovan said.
"Backed by $1.1 billion from the Federal Government, this project will help secure more than 500 existing jobs at Lytton, while laying the foundation for thousands more in advanced fuel production across the country.
"For too long, we've left ourselves dangerously exposed by relying on imported fuel from unstable global markets. This announcement marks a turning point — a real commitment to sovereign capability, backed by real dollars.
"Australia has the resources, the workers, and the know-how to be a global leader in clean fuel. With this funding, we're finally putting fuel security and skilled jobs back on the national agenda."
AWU Queensland Branch Secretary Stacey Schinnerl said the investment signals a bright future for industrial jobs in the state and must now be followed up with smart regulation to protect workers and communities.
"This is a huge vote of confidence in Queensland's energy and industrial workforce — and it positions Lytton at the centre of Australia's clean energy transition," Ms Schinnerl said.
"But to make this a truly world-class green fuel industry, we need more than just funding. We need strong regulatory safeguards to ensure these jobs are safe, secure, and unionised — with training pathways that allow workers to upskill and transition with confidence.
"The Future Made in Australia initiative must prioritise low-carbon liquid fuels just as much as hydrogen or critical minerals. That's how we build a balanced, competitive and sovereign energy future."
The AWU is also calling on the Federal Government to:
- Commit to purchasing a portion of green fuel for its own aviation and diesel vehicle fleets; and
- Implement a minimum local supply mandate to help industry reach commercial scale and encourage further private investment.
"This is an excellent first step," Mr Donovan added.
"But to fully realise Australia's potential in green fuels, government and industry must stay the course with long-term investment and smart policy settings."
