The Australian Renewable Energy Agency will provide more than $10 million in federal grants for two feasibility studies aimed at advancing sustainable aviation fuel projects with international reach.
The funding, announced by Energy minister Chris Bowen on Wednesday, will flow to recycling tech startup Licella and fuel distributor Viva Energy for two projects in Queensland.
Sustainable aviation fuel (SAF) — a biofuel with a smaller carbon footprint compared with conventional jet fuel — is a priority sector under the Future Made in Australia agenda, namely the net zero transformation stream.
Licella will receive $8 million towards its $26.1 million ‘Project Swift – SAF from Sugarcane Residues’ feasibility study, which will assess the viability of setting up a SAF-focused biorefinery facility in the regional city of Bundaberg.
The facility will house the company’s Catalytic Hydrothermal Reactor (Cat-HTR), which uses a process known as hydrothermal liquefaction to convert sugar mill residues to renewable fuels.
Licella, which last year signed a partnership with Shell, the second largest oil and gas company in the world, expects the refinery will be capable of producing 60 ML of low carbon liquid fuels, of which 40 ML will be SAF.
“We are delighted to receive ARENA’s support as we move forward with the feasibility studies for our Queensland project. This project is a landmark step for Australia’s renewable fuel future,” Licella chief executive Alan Nichol said.
“Our Australian-developed technology will deliver real impact – reducing emissions from hard to abate sectors such as aviation while creating new economic opportunities for regional Queensland.”
Viva Energy, meanwhile, is planning to use its $2.4 million grant to recondition a tank at its Pinkenba fuel storage terminal for the future supply of SAF to Brisbane Airport using the Joint User Hydrant Installation (JUHI) refuelling facility.
“By enhancing our SAF infrastructure, we are not only supporting the aviation industry’s transition to lower carbon emissions but also positioning Viva Energy as a leader in renewable energy solutions,” Viva Energy chief strategy officer Lachlan Pfeiffer said.
Viva Energy last week announced a 12-month trial that will see 5 per cent of the fuel supplied to a Royal Australia Air Force (RAAF) base in the southeast of Melbourne be delivered as SAF.
ARENA chief executive Darren Miller said the projects, funded from the SAF Funding Initiative, are “an important step towards developing opportunities to cut emissions from Australian skies”.
“Aviation is a challenging industry from an emissions reduction perspective with domestic flights currently accounting for approximately 2 per cent of Australia’s greenhouse gas emissions,” Mr Miller said.
“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.”
The SAF Initiative is also supporting Jet Zero Australia’s sustainable aviation fuel facility in Townsville, building on existing federal, state, and private backing from Qantas, Airbus, and Japanese conglomerate Idemitsu Kosan.
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Sounds a bit dodgy.