Under Federal mandates, Ampol has to reduce the sulphur emissions from its fuel and must do it by the end of 2024, a timetable it regarded as “aggressive’. Those mandates would mean cleaner fuel.

A cost of the project has not been revealed, but it would reduce the fuel emissions specification to 10 parts per million from the current 150 ppm in 91 fuel and 50 ppm in 95 fuel.

The company did reveal that it was negotiating with the Federal Government for grant funding and said it would be a “significant undertaking” for Ampol.

“It’s an emissions reduction program and that will allow for cleaner vehicles to come into Australia in future,” Ampol said.

It’s a major step for the refinery which was being considered for closure three years ago before a major turnaround in margins and a record profit last year.

To help achieve the Federal Government timeline the State Government has granted the project prescribed project status which would allow for development approvals to be granted in the time Ampol needs them.

Acting Premier Steven Miles said the company would need changes to existing approvals.

“This will make fuel more secure and cleaner. That program and grant is helping to keep Ampol here,” he said.

“It delivers cleaner air for Queenslanders. Fuel security is very important to fuel prices.”

The work to be done at Lytton includes upgrades, expansion and associated works on land owned by Ampol.