The Australian Renewable Energy Agency (ARENA) announced the launch of a $30 million Sustainable Aviation Fuels (SAF) Funding Initiative to reduce emissions in the aviation sector.
ARENA said in a news release that the Sustainable Aviation Fuels (SAF) Funding Initiative intends to help Australia create a SAF industry based on renewable feedstocks.
The initiative will also look at opportunities along the entire supply chain, from the manufacture of final fuel to the supply of renewable feedstock, in order to determine what is needed to support and grow the local SAF industry.
In particular, the open project will accept submissions through a two-stage application process for ARENA grant funds ranging from $1 million to $30 million.
ARENA said it is looking for applications for commercial or pre-commercial SAF production, with funds available to support engineering feasibility and project development activities, as well as funding for pilot scale and pre-commercial demonstrations.
The agency will also solicit proposals for new and scalable supply chain approaches, and this might involve feedstock supply innovation like aggregation or economic structures to support domestic SAF manufacturing.
Proposals must demonstrate the usage or processing of an approved renewable feedstock and production method, underscoring that the Funding Initiative does not fund the development of Power to Liquids (PtL) or E-fuels.
According to McKinsey & Co’s modelling, SAF might result in a net reduction of up to 30 per cent of aviation-related emissions worldwide by 2030.
ARENA CEO Darren Miller stated that the funding program will assist Australia examine how SAF might help decarbonise the aviation industry.
“For a country so reliant on aviation for passenger and freight transport, it’s essential that we find ways to reduce emissions from this critical sector,” Miller said.
He emphasised that Australia has the ability to support a successful domestic biofuel economy thanks to its plentiful agricultural, waste, and residue resources.
ARENA said the SAF effort aims to implement the agency’s Bioenergy Roadmap’s results, which suggested that sustainable aviation fuels made from renewable biomass could meet up to 19 per cent of Australia’s aviation fuel needs by 2030.
Expressions of interest are being accepted for the SAF initiative now, and applications must be submitted by 1 November 2023.
