A new ARENA-backed project could turn forestry byproducts like sawdust and bark into sustainable aviation fuel (SAF), helping cut aircraft emissions while also supporting a new clean fuels industry in Australia.
The $32 million in conditional funding will support HAMR Energy to conduct a Front-End Engineering Design (FEED) and other development activities for a proposed biomass-to-fuel supply chain across Victoria and South Australia. The project aims to convert forestry byproducts into renewable methanol, which can then be used as SAF, renewable diesel and other low-carbon fuel products.
SAF produced by the proposed facility could result in the displacement of 140 million litres of fossil jet fuel and abate approximately 330,000 tonnes of CO2 per annum and support the commercialisation of SAF production.
ARENA CEO Darren Miller said this project could help accelerate Australia’s emerging SAF industry.
“Aviation is one of the most challenging sectors to decarbonise, particularly for long-haul flights where alternatives to liquid fuels remain limited. SAF offers a practical near-term pathway to reduce emissions from aviation using existing aircraft and infrastructure,” Mr Miller said.
“Australia has a significant opportunity to turn underutilised biomass resources into valuable clean fuel products, and this project will help test whether byproducts from existing forestry operations in Australia can be converted into low-carbon liquid fuels at scale.”
“By supporting projects like this, ARENA is helping to test the technical and commercial foundations of a domestic SAF industry, which in the future could strengthen Australia’s fuel resilience, create new regional economic opportunities and reduce emissions from aviation.”
ARENA’s funding will be released over two stages with $12.5 million available for the initial phase and the remaining $19.5 million conditional on HAMR Energy securing the necessary co-funding to commence detailed FEED.
The forestry byproducts used by the project will be sourced from plantation owners in the Green Triangle region that spans Western Victoria and South Australia that meet Australia’s stringent certification schemes for forestry management. Creating a new market for these materials could provide plantation owners with an additional revenue stream alongside their primary products, such as structural lumber being used in the construction sector.
HAMR Energy Co-Founder David Stribley said this funding is a significant milestone in Australia building globally competitive domestic SAF industry.
“The project has the potential to strengthen Australia’s fuel security, reduce aviation emissions and create skilled jobs across construction, engineering, manufacturing and regional supply chains.
“We thank ARENA and the Australian Government for supporting the next stage of engineering and development work required to bring this nationally significant and strategically critical project closer to delivery.”
