The Australian government has committed $32 million to support the development of a project that will convert forestry residues into sustainable aviation fuel (SAF), as part of efforts to strengthen domestic fuel security and reduce reliance on imported liquid fuels.
The funding, provided through the Australian Renewable Energy Agency (ARENA), will support HAMR Energy’s project to convert forest waste into renewable methanol, which can then be processed into sustainable aviation fuel, renewable diesel and other low-carbon liquid fuels, Australian Flying reported.
ARENA will provide the funding in two phases, with $12.5 million allocated for the Front End Engineering Design (FEED) stage and a further $19.5 million available once the company secures co-funding for the detailed engineering phase.
The project, with a total estimated cost of $92 million, will prepare three facilities for future investment decisions. These include a biomass processing plant in Victoria capable of handling around 600,000 tonnes of forestry residues annually, the Portland Renewable Fuels facility that will produce about 300,000 tonnes of renewable methanol each year, and a Methanol-to-Jet plant in Gillman, South Australia, designed to manufacture around 140 megalitres of sustainable aviation fuel annually.
The feedstock will consist of forestry residues such as sawdust, bark, woodchips and thinning material left after timber harvesting. These by-products currently have limited commercial value, offering plantation owners an additional revenue stream while supporting renewable fuel production.
The Australian government said the project would help reduce emissions from the aviation sector, where sustainable aviation fuel is regarded as one of the most practical options for decarbonising long-haul flights.
Climate Change and Energy Minister Chris Bowen said Australia has abundant forestry residues that can be converted into clean fuels for difficult-to-decarbonise sectors such as aviation.
He said the project would reduce emissions while supporting regional employment and industrial development.
Infrastructure, Transport, Regional Development and Local Government Minister Catherine King said producing low-carbon fuels in South Australia and Victoria would create opportunities across the forestry, manufacturing, engineering and aviation sectors. She added that the investment forms part of the government’s Low Carbon Liquid Fuels Innovation Fund.
South Australian Premier Peter Malinauskas said the project would help establish a domestic jet fuel industry and reduce Australia’s long-term dependence on imported liquid fuels, strengthening the country’s energy security.
