Canberra: The Australian government has committed A$32 million (US$21 million) to support the development of a sustainable aviation fuel (SAF) supply chain that will convert forestry residues into low-carbon jet fuel, as part of efforts to decarbonise the aviation sector and strengthen domestic fuel production.
The funding, announced through the Australian Renewable Energy Agency (ARENA), will be provided to Melbourne-based HAMR Energy to advance a series of low-carbon liquid fuel projects using residual forestry biomass, The Driven reported.
The investment will be released in two stages, with an initial A$12.5 million allocated for the Front End Engineering Design (FEED) phase. A further A$19.5 million will be provided once the company secures the required co-investment to proceed with detailed engineering and design.
The overall project is estimated to cost A$92 million and will support the development of three facilities forming an integrated SAF supply chain.
The first facility, planned in Victoria, will process around 600,000 tonnes of forestry residues annually, including sawdust, bark, woodchips, thinnings and other by-products from timber harvesting and processing.
The biomass will be used to produce renewable methanol at the proposed Portland Renewable Fuels project in Victoria, which is expected to have an annual production capacity of about 300,000 tonnes.
The renewable methanol will then be supplied to a proposed Methanol-to-Jet SAF Energy Park in Gillman, South Australia, where it will be converted into approximately 140 megalitres of sustainable aviation fuel each year.
HAMR Energy, founded in 2020, is developing several SAF projects and has secured partnerships with companies including Thyssenkrupp, Honeywell, OneFortyOne, Qantas and Airbus.
Sustainable aviation fuel is widely regarded as one of the most practical pathways for reducing emissions from aviation, a sector where battery-powered alternatives remain commercially unviable for long-haul flights.
Australian Climate Change and Energy Minister Chris Bowen said the project would help reduce emissions while supporting regional industries and improving the country’s energy security.
“Australia has an abundant supply of forestry waste and turning it into fuel for hard-to-abate sectors like aviation would be a win for emissions, Australian industry and regional jobs,” Bowen said.
He added that expanding domestic production of low-carbon fuels would strengthen Australia’s long-term fuel resilience and reduce its exposure to global energy supply disruptions.
