The Australian Renewable Energy Agency (ARENA) has announced a significant investment of $10.4 million to support the development of sustainable aviation fuels (SAF) in Australia.
This funding, part of ARENA’s SAF Funding Initiative, will be distributed between two innovative projects aimed at reducing emissions in the aviation sector.
Licella, an Australian technology and project developer, will receive $8 million for its $26.1 million ‘Project Swift’ feasibility study.
The project will assess the viability of establishing a biorefinery facility in Bundaberg, Queensland, using Licella’s patented Catalytic Hydrothermal Reactor (Cat-HTR) technology.
This facility aims to convert sugar mill residues into renewable fuels, with the capacity to produce 60 million litres of low-carbon liquid fuels annually, including 40 million litres of SAF.
Viva Energy will receive $2.4 million for its $4.9 million ‘SAF Infrastructure Solutions for the Future’ project.
This initiative involves reconditioning an existing tank at the Pinkenba Terminal to enable blended SAF supply to Brisbane Airport.
Viva Energy will also develop a book and claim system to help customers recognise the carbon reduction benefits of using SAF.
ARENA CEO Darren Miller emphasised the importance of these projects in addressing aviation emissions, which account for approximately 2 per cent of Australia’s greenhouse gas emissions.
“With Australians being among the most prolific flyers in the world, decarbonising this high emissions industry will be vital for us to achieve our net zero targets,” Miller stated.
Viva Energy’s Chief Strategy Officer, Lachlan Pfeiffer, highlighted the significance of this funding in positioning the company as a leader in renewable energy solutions.
“By enhancing our SAF infrastructure, we are not only supporting the aviation industry’s transition to lower carbon emissions but also positioning Viva Energy as a leader in renewable energy solutions,” Pfeiffer said.
Licella CEO Alan Nicholl expressed enthusiasm for the project, stating: “We are delighted to receive ARENA’s support as we move forward with the feasibility studies for our Queensland project.”
Licella’s Executive Chairman, Dr Len Humphreys, emphasised the potential to scale this new SAF pathway through their global partnership with Shell.
These projects are part of ARENA’s broader $33.5 million investment across five projects under the SAF Funding Initiative launched in 2023.
The initiative aims to support the development of domestic SAF production and aviation decarbonisation, with more investments expected beyond the initially allocated $30 million.
The SAF funding initiative builds on ARENA’s 2021 Bioenergy Roadmap, which identified SAF produced from biomass as a key opportunity to reduce aviation emissions in the short to medium term.
According to the CSIRO SAF Roadmap, Australia has sufficient biomass feedstocks to supply more than half of domestic jet fuel demand, highlighting the potential impact of these early projects.
As part of the federal government’s Future Made in Australia Plan, Low Carbon Liquid Fuels have been identified as a priority sector, with ARENA nominated as the delivery agency for the Future Made in Australia Innovation Fund.
