The Australian Renewable Energy Agency (ARENA) will provide more than $10 million in federal grants to support two feasibility studies aimed at advancing sustainable aviation fuel (SAF) projects with global potential, reports InnovationAus.com.
Energy Minister Chris Bowen announced the funding on Wednesday, with grants allocated to recycling technology startup Licella and fuel distributor Viva Energy for projects in Queensland.
SAF, a biofuel with a lower carbon footprint than conventional jet fuel, is a key focus under the Future Made in Australia agenda, particularly in the net zero transformation stream.
Licella will receive $8 million for its $26.1 million ‘Project Swift – SAF from Sugarcane Residues’ feasibility study. The project will assess the viability of establishing a SAF-focused biorefinery in Bundaberg, using sugar mill residues to produce renewable fuels.
The facility will feature Licella’s Catalytic Hydrothermal Reactor (Cat-HTR), which employs hydrothermal liquefaction to convert biomass into fuel. The company estimates the refinery will produce 60 million litres of low-carbon liquid fuels annually, with 40 million litres dedicated to SAF.
Licella CEO Alan Nichol welcomed the funding, calling the project a “landmark step” for Australia’s renewable fuel future.
“Our Australian-developed technology will deliver real impact – reducing emissions from hard-to-abate sectors such as aviation while creating new economic opportunities for regional Queensland,” Nichol said.
Viva Energy will use its $2.4 million grant to upgrade its Pinkenba fuel storage terminal, preparing a tank for SAF supply to Brisbane Airport via the Joint User Hydrant Installation (JUHI) refuelling facility.
Lachlan Pfeiffer, Viva Energy’s chief strategy officer, said the project would help the aviation industry transition to lower carbon emissions while positioning Viva Energy as a leader in renewable energy solutions.
The company recently launched a 12-month SAF trial at a Royal Australian Air Force (RAAF) base in southeast Melbourne, where 5% of the supplied fuel will be SAF.
ARENA CEO Darren Miller emphasized the importance of SAF projects in reducing emissions from aviation, which currently accounts for approximately 2% of Australia’s greenhouse gas emissions.
“Australians are among the most frequent flyers in the world, and decarbonising this high-emissions industry will be vital for achieving our net zero targets,” Miller said.
The SAF Initiative is also backing Jet Zero Australia’s sustainable aviation fuel facility in Townsville, further supported by Qantas, Airbus, and Japanese conglomerate Idemitsu Kosan.
