A jet biofuel industry based on forestry ‘waste’ is taking a step closer to reality after Canberra gave $32 million to the Australian Renewable Energy Agency (ARENA).
The funding will allow the agency to help HAMR Energy convert the ‘biowaste’ into methanol which can then be converted into sustainable jet fuel.
The announcement was made at Adelaide Airport yesterday (July 22) by Federal Transport and Infrastructure Minister Catherine King.
There are two phases to the funding: $12.5m will go to an early Front End Engineering Design phase and another $19.5m subject if HAMR Energy can find matching funding to start the design phase.
The total cost of the project stands at $92m, Canberra says, and it involves turning the ‘waste’ into methanol, which is then converted into aviation fuel, renewable diesel and other low-carbon liquid fuels.
FORESTRY WASTE: is defined as byproducts and residues such as sawdust,
bark, woodchips, thinnings and other material left over after harvesting.
The project involves a biomass plant in Victoria to process 600,000 tonnes of biowaste, the Portland Renewable Fuels methanol plant in Victoria to produce about 300,000 tonnes and a jet fuel plant in Gillman, South Australia, to convert that methanol into about 140 megalitres of aviation fuel (all annual targets).
NEW JET FUEL’S BENEFITS
HAMR says the biofuel that is produced for aircraft could reduce 320,000 tonnes of CO2 a year, equal to 4.2 million passenger trips.
Catherine King says new clean fuel projects in South Australia and Victoria will benefit the forestry, manufacturing, engineering and aviation sectors.
“We are proud to be investing in this project that turns waste into fuels. This investment is part our Low Carbon Liquid Fuels Innovation Fund, which will support the development of biofuel industries.”
Click here to learn more about ARENA
Federal Energy Minister Chris Bowen says Australia has “an abundant supply of forest waste” and turning into fuel for sectors like aviation would be a win for industry and regional jobs.
“Projects like this can help strengthen long-term fuel resilience by supporting more domestic fuel production and a more diverse fuel supply, making us more resilient to global energy shocks,” he says.
South Australian Premier Peter Malinauskas says his state is at the forefront of efforts to create a domestic jet fuel industry.
“Australia cannot afford to rely indefinitely on imported liquid fuels,” he says.
“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 at home.”
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