The Australian Renewable Energy Agency (ARENA) has announced $14.1 million in funding for two projects under its Sustainable Aviation Fuels (SAF) Funding Initiative aimed at reducing emissions in the aviation sector.
The initiative is set to explore renewable fuel alternatives to fossil jet fuels, advancing Australia’s journey towards net-zero emissions, the agency said in a news release.
ARENA has allocated $8 million to Ampol and $6.1 million to GrainCorp for studies focused on sustainable aviation fuel development.
According to ARENA CEO Darren Miller, these projects are crucial for addressing the challenges of decarbonising the aviation industry.
“Aviation is a persistently challenging industry from an emissions reduction perspective,” 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.”
Ampol will use its $8 million funding for the $30.2 million Brisbane Renewable Fuels Pre-FEED Study.
The project will explore the development of a renewable fuels facility capable of producing over 450 million liters of sustainable aviation fuel (SAF) and renewable diesel annually at its Lytton refinery.
This volume would represent nearly 5 per cent of Australia’s pre-COVID fossil jet fuel consumption in 2019.
GrainCorp’s $6.1 million funding will support its $19.8 million SAF Oilseed Crushing Facility Pre-Deployment Study.
The initiative will assess the establishment of a facility to produce at least 330,000 tonnes of canola oil annually as a feedstock for SAF production.
This output would equate to roughly 12 per cent of Australia’s annual canola exports as of September 2024.
Both projects are key components of a collaborative effort among Ampol, GrainCorp, and IFM Investors to build an integrated renewable fuels industry in Australia.
A recently signed Memorandum of Understanding (MOU) between the three partners underscores their shared commitment to advancing domestic SAF production.
Ampol Managing Director and CEO Matt Halliday emphasised the broader implications of this work.
“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,” Halliday said.
GrainCorp CEO Robert Spurway highlighted the strategic importance of scaling up oilseed crushing operations to support SAF production.
“GrainCorp is advancing plans to scale up our oilseed crush operations, recognising the critical role of feedstocks in a renewable fuels supply chain,” Spurway said.
“In partnership with Ampol and IFM Investors, we are committed to supporting the establishment of a domestic supply chain for SAF as a vital step towards decarbonising Australia’s aviation sector.”
Domestic aviation currently accounts for about 2 per cent of Australia’s greenhouse gas emissions, with international aviation emissions contributing even more significantly.
The SAF Funding Initiative, launched in 2023 with an initial $30 million budget, supports solutions to mitigate these emissions in the short and medium term. Including the latest projects, ARENA has now invested $23 million across three SAF-focused initiatives, with further funding announcements anticipated.
The initiative builds on findings from ARENA’s 2021 Bioenergy Roadmap, which estimated that SAF from renewable biomass could meet up to 19 per cent of Australia’s aviation fuel requirements by 2030.
