AMPOL LTD (ALD.AU) saw its stock price soar by 5.49% in Thursday's trading session, as investors reacted positively to news of Australia's potential to become a major player in the sustainable aviation fuel (SAF) industry. The surge in AMPOL's shares comes as the company positions itself at the forefront of this emerging market.

According to a report by IFM Investors, Australia has significant advantages in SAF production, with about half of the global feedstock used to make these fuels originating from the Asia-Pacific region. AMPOL, in collaboration with IFM Investors and agribusiness company GrainCorp, is working on establishing an integrated renewable fuels industry in Australia. This strategic move aligns AMPOL with the growing demand for sustainable aviation fuels and positions the company for potential long-term growth.

The enthusiasm surrounding AMPOL's stock is further fueled by the current limited supply of SAF globally. IFM Investors reports that only 77 SAF refining facilities worldwide produced an estimated 502 million gallons last year, accounting for a mere 0.5% of total aviation fuel consumption. This highlights the substantial growth potential in the SAF market, with AMPOL well-positioned to capitalize on this opportunity. As countries and airlines increasingly focus on reducing carbon emissions, AMPOL's early entry into this market could prove to be a significant driver of future revenue and profitability.