The Australian Renewable Energy Agency (ARENA) has announced up to $10.4 million in funding for two projects aimed at advancing sustainable aviation fuel (SAF) production, as part of its SAF Funding Initiative.
In a news release, ARENA said it is allocating $8 million to Australian technology and project developer Licella and $2.4 million to Viva Energy for separate feasibility studies exploring the development of renewable fuel alternatives for the aviation industry.
ARENA CEO Darren Miller emphasised the significance of these projects in reducing emissions within the aviation sector.
“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,” 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.”
Licella will use its funding to conduct feasibility and front-end engineering design (FEED) studies for Project Swift, a $26.1 million initiative that aims to establish a biorefinery in Bundaberg, Queensland.
The proposed facility would utilise Licella’s patented Catalytic Hydrothermal Reactor (Cat-HTR) hydrothermal liquefaction technology to convert sugarcane residues into renewable fuels.
If developed, the plant would have the capacity to produce approximately 60 million litres per year of low-carbon liquid fuels, of which about 40 million litres would be SAF.
Viva Energy, meanwhile, will use its funding to recondition an existing tank at its Pinkenba Terminal in Brisbane.
The $4.9 million project seeks to enable the supply of blended SAF into Brisbane Airport for commercial use.
The company will also work with industry partners to develop a “book and claim” system to ensure customers can recognise the carbon reduction benefits of the SAF supplied.
Upon completion, the infrastructure will be capable of supplying SAF to meet growing demand.
Viva Energy Chief Strategy Officer Lachlan Pfeiffer said the funding is a crucial milestone in the company’s efforts to support a lower-carbon aviation industry.
“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,” Pfeiffer said.
Licella CEO Alan Nicholl welcomed ARENA’s backing for the Queensland project, stating that the funding would support the rollout of its commercial-ready Cat-HTR platform in Australia.
“We are delighted to receive ARENA’s support as we move forward with the feasibility studies for our Queensland project,” Nicholl said.
Licella Executive Chairman Dr Len Humphreys also pointed to the potential for expansion, citing the company’s partnership with Shell to develop an integrated biomass-to-advanced biofuels commercial solution.
“Through our global partnership with Shell, we are advancing an integrated biomass-to-advanced biofuels commercial solution, one which is targeting high volumes of low-cost, low-carbon SAF,” Humphreys said.
ARENA has now committed a total of $33.5 million across five projects under its SAF Funding Initiative, which was launched in 2023 to foster the domestic production of SAF.
The agency has exceeded its initial allocation of $30 million for the initiative and expects to announce further investments in the sector.
The initiative builds on ARENA’s 2021 Bioenergy Roadmap, which identified biomass-derived SAF as a key opportunity to cut aviation emissions.
The CSIRO SAF Roadmap has further highlighted Australia’s capacity to produce more than half of its domestic jet fuel demand using available biomass feedstocks.
