Australian-made jet fuel produced from forest waste is a step closer to powering flights, thanks to a $32 million investment from the Albanese Labor Government, making our fuel supply more resilient and less vulnerable to overseas shocks.
Through the Australian Renewable Energy Agency (ARENA), the Government is providing $32 million to help develop HAMR Energy's project to turn forestry residues to jet fuel.
ARENA's funding is in two stages, with $12.5 million available for the early Front End Engineering Design phase, and a further $19.5 million subject to HAMR Energy securing the necessary co-funding to commence the detailed design phase.
The project aims to use forest waste to produce renewable methanol in Australia, which can then be converted into sustainable aviation fuel, renewable diesel and other low-carbon liquid fuels.
The forestry waste consists of byproducts and residues such as sawdust, bark, woodchips, thinnings and other material left over after harvesting and processing has occurred that typically have limited other markets. This will generate additional revenue to plantation owners alongside their existing primary products.
With a total project cost of $92 million, the funding will be used to undertake development and design work to prepare three facilities for future investment decisions:
- A biomass processing facility located in Victoria will process approximately 600,000 tonnes a year of forestry residues.
- The Portland Renewable Fuels methanol project located in Portland, Victoria will produce approximately 300,000 tonnes a year of renewable methanol
- A Methanol-to-Jet project located in Gillman, South Australia will use the methanol to produce approximately 140 megalitres of sustainable aviation fuel each year.
Liquid fuels make up around half of Australia's national energy use, and replacing these fossil fuels with cleaner alternatives can deliver a significant climate and economic opportunity. Sustainable aviation fuel is one of the best ways of reducing emissions from aviation, particularly on long-haul flights where alternatives are limited.
This project could support the development of a new Australian low carbon liquid fuels industry, more jobs and investment opportunity across the forestry, manufacturing, engineering and aviation sectors.
The Government is committed to growing Australia's low carbon liquid fuels industry by supporting local production and helping build demand for these fuels. to maximise the economic and industrial benefits of the energy transition.
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Quotes attributable to Climate Change and Energy Minister Chris Bowen:
"Australia has an abundant supply of forest waste, and turning it into fuel for hard-to-abate sectors like aviation would be a win for emissions, Australian industry and regional jobs.
"Projects like this can help strengthen Australia's long-term fuel resilience by supporting more domestic fuel production and a more diverse fuel supply, making us more resilient to global energy shocks."
Quotes attributable to Infrastructure, Transport, Regional Development and Local Government Minister Catherine King:
"Producing new clean fuels here in South Australia and over the border in Victoria, will create new opportunities across the forestry, manufacturing, engineering and aviation sectors.
"We are proud to be investing in this project that turns waste into fuels. It brings together a range of industry partners and investors with Australian expertise in aviation, fuels and engineering who will help us take the next step with these biofuels.
"This investment is part our Low Carbon Liquid Fuels Innovation Fund, which will support the development of biofuel industries across the country."
Quotes attributable to Minister for Agriculture, Fisheries and Forestry Julie Collins:
"Australia's foresters have always been innovators. That's why our Government is backing new opportunities through significant investments in low-carbon liquid fuel.
"This will mean more opportunities taking flight for our proud forestry industry, backing jobs in regional communities.
"Producing more low-carbon liquid fuels right here in Australia doesn't just benefit our fuel security and emissions reduction, it supports Australian foresters and our regions."
Quotes attributable to South Australian Premier Peter Malinauskas:
""South Australia is at the forefront of creating a new sovereign jet fuel industry for Australia.
"This innovative new project will position our state as a national leader in producing sustainable aviation fuel, strengthening our nation's fuel security while attracting new investment to South Australia and creating highly skilled jobs and advanced manufacturing opportunities for decades to come.
"Australia cannot afford to rely indefinitely on imported liquid fuels. Developing sovereign sustainable aviation fuel production is about building greater national resilience, supporting our aviation industry and ensuring more of the economic benefits from the energy transition are created here at home."
