ARENA funding supports plans for renewable aviation fuel industry
A total of $14.1 million will go towards projects led by Ampol and GrainCorp as part of ARENA’s SAF Funding Initiative.
Two studies to assess the potential for producing sustainable aviation fuels (SAF) in Australia have received a funding boost from the Australian Renewable Energy Agency (ARENA).
Aviation is responsible for about 2% of Australia’s greenhouse gas emissions, with most emissions coming from medium- to long-haul flights. The challenge of reducing aviation emissions is particularly pressing given the added impact of international aviation on Australia’s overall emissions profile.
The funded studies are:
- $8 million for Ampol’s Brisbane Renewable Fuels Pre-FEED Study: The $30.2 million study will examine the feasibility of developing a renewable fuels facility at Ampol’s Lytton refinery. The facility would produce more than 450 million litres of sustainable aviation fuel and renewable diesel per year, equivalent to nearly 5% of Australia’s pre-COVID jet fuel consumption. The funding will support Pre-FEED (Front-End Engineering and Design) work for the proposed project.
- $6.1 million for GrainCorp’s SAF Oilseed Crushing Facility Pre-Deployment Study: This $19.8 million study will explore establishing an oilseed crushing facility to produce a minimum of 330,000 tonnes of canola oil annually as a SAF feedstock. This would account for about 12% of Australia’s recent annual canola exports. The funding will cover pre-FEED engineering, followed by FEED engineering subject to review.
"These two projects are an important step towards developing opportunities to cut emissions from Australian skies and ARENA will be working to ensure the lessons from these projects help inform the broader development of a sustainable aviation fuels industry in Australia,” ARENA CEO Darren Miller said.
Ampol, GrainCorp, and IFM Investors have also signed a Memorandum of Understanding to collaborate on creating an integrated renewable fuels industry in Australia.
Ampol’s Managing Director and CEO Matt Halliday said the funding will help advance the company’s work to establish domestic renewable fuels production. “This funding will further Ampol’s investigations into establishing a domestic renewable fuels capability, which could create benefits in energy security, support regional development and stimulate agriculture and manufacturing industries,” Mr Halliday said.
The SAF Funding Initiative was launched by ARENA in 2023 with an initial budget of $30 million. Including the latest funding for Ampol and GrainCorp, ARENA has invested $23 million across three SAF projects, with further announcements expected. The initiative builds on the findings of ARENA’s 2021 Bioenergy Roadmap, which suggested SAF from renewable biomass could meet up to 19% of Australia’s aviation fuel needs by 2030.
