HAMR Energy has announced plans to establish Australia’s first large-scale sustainable aviation fuel (SAF) production facility in South Australia, marking a major step forward for the nation’s low-carbon fuel sector.
The $700–800 million project has received support from the South Australian government and will use Honeywell’s technology to produce low carbon liquid fuels (LCLF) at commercial scale.
The facility will convert 300,000 tonnes of low-carbon methanol, derived from plantation forestry residues and hydrogen, into around 140 million litres of sustainable aviation fuel each year.
That is enough to decarbonise about 4.5 million economy‑class passenger trips between Adelaide and Melbourne annually, helping to address an anticipated global SAF supply shortfall of 10 million tonnes by 2030.
HAMR Energy is currently conducting due diligence to identify suitable industrial sites across the state, with the backing of the South Australian government.
The company’s decision follows months of collaboration with industry and government stakeholders as it works to accelerate the decarbonisation of air travel while delivering major regional economic benefits.
The project is expected to create hundreds of construction jobs and dozens of long-term operational roles, injecting hundreds of millions of dollars into the state economy.
It will also strengthen Australia’s fuel security, support the establishment of a domestic SAF industry, and contribute to national and international emissions reduction targets.
A cornerstone of the initiative is HAMR Energy’s partnership with the Green Triangle’s forestry sector.
Plantation residues from the region, centred around Mount Gambier, will be converted into fuel under new supply agreements with sustainable forestry companies, including OneFortyOne, creating an additional income stream for local operators and supporting the regional economy.
David Stribley, Co‑founder of HAMR Energy, said: “We are proud to be strengthening fuel security for the nation, while contributing to the South Australian economy and creating local jobs.
“Selecting South Australia as the home for our large‑scale SAF facility is a strategic decision that builds on our investment in Victoria.
“The state’s world‑class infrastructure, commitment to clean energy, and proximity to sustainable feedstock sources make it an excellent location to accelerate decarbonisation in aviation.”
Hon. Joe Szakacs, Minister for Trade and Investment, welcomed the investment, saying: “Once again we’re seeing South Australia at the forefront of world-leading innovation in the global efforts to decarbonise.
“This is a massive vote of confidence in our state and will deliver significant economic impact.
“But most importantly, this investment will create hundreds of secure and well‑paid jobs for South Australians.
“An investment of this size doesn’t happen by accident. It follows persistent work and considered planning.
“Our government warmly welcomes HAMR Energy’s backing of South Australia.”
The announcement follows HAMR Energy’s $10 million Series A funding round, which secured support from global partners Airbus, Qantas and thyssenkrupp Uhde.
