The Australian Renewable Energy Agency (ARENA) has announced a significant investment of $14.1 million to support two groundbreaking studies aimed at developing sustainable aviation fuels (SAF) in Australia.
This funding is part of ARENA’s Sustainable Aviation Fuels Funding Initiative, which seeks to reduce emissions in the country’s aviation sector.
ARENA is providing $8 million to Ampol for its Brisbane Renewable Fuels Pre-FEED Study, which will explore the development of a renewable fuels facility at the company’s Lytton refinery.
This facility could potentially produce over 450 million litres of SAF and renewable diesel annually, equivalent to nearly 5 per cent of Australia’s pre-COVID jet fuel consumption.
GrainCorp will receive $6.1 million for its SAF Oilseed Crushing Facility Pre-Deployment Study.
This project aims to investigate the establishment of an oilseed crushing facility, capable of producing at least 330,000 tonnes of canola oil per year as feedstock for SAF production.
Ampol, GrainCorp, and IFM Investors have recently entered into a Memorandum of Understanding to explore the creation of an integrated renewable fuels industry in Australia.
This collaboration aims to leverage existing infrastructure and expertise to develop a national renewable fuels ecosystem.
ARENA CEO Darren Miller emphasised the importance of these projects in addressing the challenges of reducing emissions in the aviation sector.
“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.
Domestic aviation currently accounts for approximately 2 per cent of Australia’s greenhouse gas emissions, with the majority coming from medium to long-haul flights.
The impact is even greater when considering international aviation emissions.
The SAF Funding Initiative, launched in 2023 with an initial $30 million, has now committed a total of $23 million across three projects.
ARENA plans to announce additional investments beyond the originally allocated amount.
This initiative builds on ARENA’s 2021 Bioenergy Roadmap, which projected that sustainable aviation fuels produced from renewable biomass could meet up to 19 per cent of Australia’s aviation fuel requirements by 2030.
As these studies progress, they are expected to play a crucial role in developing a domestic SAF industry and identifying opportunities to reduce emissions in Australia’s aviation sector, contributing significantly to the country’s climate goals and energy security.
