Stock Track | GrainCorp Soars 5% as Australia Eyes Leadership in Sustainable Aviation Fuel Production

Stock Track
04-10

GrainCorp Ltd. (GNC.AU) shares are soaring intraday, climbing 5.02% during Thursday's trading session. The surge comes amid growing optimism about Australia's potential to become a major player in the sustainable aviation fuel (SAF) industry, with GrainCorp positioned to play a significant role in this emerging market.

According to IFM Investors, a prominent Australian infrastructure-investment firm, Australia has a unique advantage in SAF production. The firm notes that approximately half of the feedstock used to make these fuels globally, including corn and fish oil, originates from the Asia-Pacific region. This geographical advantage places Australian companies like GrainCorp in a prime position to capitalize on the growing demand for sustainable aviation fuels.

Investors are particularly excited about GrainCorp's collaboration with IFM Investors and transport-fuel provider Ampol "on the establishment of an integrated renewable fuels industry in Australia." This partnership could potentially transform GrainCorp's business model and open up new revenue streams in the rapidly expanding SAF market. With current global SAF production meeting only about 0.5% of total aviation-fuel consumption, the growth potential for companies entering this space is substantial, explaining the enthusiastic market response to GrainCorp's stock.

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