The Australian Renewable Energy Agency (ARENA) has announced up to $10.4 million in funding for two projects under its Sustainable Aviation Fuels (SAF) Funding Initiative to develop renewable fuel alternatives for Australia’s airline industry.

ARENA CEO Darren Miller emphasised the importance of these projects in reducing aviation emissions, noting that domestic flights currently account for approximately 2% of Australia’s greenhouse gas emissions. With Australians among the world’s most frequent flyers, decarbonising this sector is crucial to achieving net zero targets.

The funded projects include:

1. $8 million to Licella for the $26.1 million ‘Project Swift’ feasibility study to assess establishing a biorefinery in Bundaberg, Queensland. The facility would use Licella’s Catalytic Hydrothermal Reactor technology to convert sugar mill residues to renewable fuels, producing approximately 60 ML per annum of low carbon liquid fuels, including 40 ML of SAF.
2. $2.4 million to Viva Energy for the $4.9 million ‘SAF Infrastructure Solutions for the Future’ project to recondition an existing tank at its Pinkenba Terminal, enabling blended SAF supply into Brisbane Airport. Viva will also develop a book and claim system for customers to recognize carbon reduction benefits.

Viva Energy Chief Strategy Officer Lachlan Pfeiffer stated this funding is a crucial milestone in supplying sustainable fuel to Australia’s aviation industry, while Licella CEO Alan Nicholl noted ARENA’s support will help develop a SAF-focused biorefinery targeting agricultural residues in regional Queensland.

ARENA has announced total funding of $33.5 million across five projects under the SAF Funding Initiative launched in 2023, with more investments to be announced beyond the previously allocated $30 million. This initiative builds on ARENA’s 2021 Bioenergy Roadmap, which identified SAF as a key opportunity to reduce aviation emissions in the short to medium term.

The CSIRO SAF Roadmap identified that Australia has sufficient biomass feedstocks to supply more than half of domestic jet fuel demand. Low Carbon Liquid Fuels has been identified as a priority sector in the Federal Government’s Future Made in Australia Plan, with ARENA named as the delivery agency for the Future Made in Australia Innovation Fund.