ARENA Funds Major Steps Towards Sustainable Aviation Fuels

The Australian Renewable Energy Agency (ARENA) has committed $14.1 million to advance the development of Sustainable Aviation Fuels (SAF), aiming to decarbonize the country’s aviation sector. This funding supports two key studies:

1. Ampol’s Brisbane Renewable Fuels Pre-FEED Study

   • Funding: $8 million

   • Focus: Developing a renewable fuels facility at Ampol’s Lytton refinery, targeting annual production of over 450ML of SAF and renewable diesel, equivalent to nearly 5% of Australia’s 2019 jet fuel consumption.

2. GrainCorp’s SAF Oilseed Crushing Facility Study

   • Funding: $6.1 million

   • Objective: Establishing an oilseed crushing facility producing 330,000 tons of canola oil annually to serve as a feedstock for SAF production.

Ampol, GrainCorp, and IFM Investors are collaborating to create an integrated renewable fuels industry in Australia. This initiative could:

• Enhance energy security

• Promote regional development

• Boost agriculture and manufacturing sectors

Ampol CEO Matt Halliday emphasized the potential of leveraging existing infrastructure and expertise to create a national renewable fuels ecosystem. Similarly, GrainCorp CEO Robert Spurway highlighted the importance of scaling oilseed crushing operations to establish a reliable feedstock supply chain.

Aviation contributes approximately 2% of Australia’s greenhouse gas emissions, primarily from long-haul flights. SAF offers a promising solution, with ARENA’s 2021 Bioenergy Roadmap suggesting that SAF could meet 19% of Australia’s aviation fuel needs by 2030.

ARENA CEO Darren Miller underscored the significance of these projects, calling aviation “a persistently challenging industry” to decarbonize but critical to achieving net-zero goals.

Launched in 2023 with a $30 million SAF funding initiative, ARENA has now allocated $23 million across three SAF projects, with more investments to follow. The initiative aligns with findings that SAF derived from renewable biomass is key to reducing aviation emissions in the short and medium term.

The collaboration between Ampol, GrainCorp, and ARENA marks a pivotal step toward decarbonizing the aviation industry. With ongoing government and industry support, Australia is paving the way for a sustainable aviation sector while leveraging its existing infrastructure and resources.

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