Australia’s Renewable Agency Bets $14 Million on Sustainable Aviation Fuel Projects

The projects are expected to create 7,400 jobs by 2030, with most of these jobs being based in regional Australia.

Workers fuel a plane in Perth, Western Australia, on Oct. 24, 2024. Susan Mortimer/The Epoch Times

The Albanese Labor government has announced funding for two major projects aimed at developing aviation fuel options to reduce emissions in the airline sector.

A total pledge of $14.1 million from the Australian Renewable Energy Agency (ARENA) will be allocated, marking another push towards creating a domestic Sustainable Aviation Fuel (SAF) industry.

According to the government, a local SAF industry using Australian-made fuel from local feedstock, could play a pivotal role in securing the nation’s fuel supply while cutting emissions from commercial airplanes.

The projects are expected to create 7,400 jobs by 2030, with most of these jobs based in regional Australia.

The two projects selected for funding include $8 million for Ampol’s Brisbane Renewable Fuels Pre-FEED Study, and $6.1 million for GrainCorp’s SAF Oilseed Crushing Facility Pre-Deployment Study.

Ampol’s project, which has a total value of $30.2 million, will explore the feasibility of building a facility at its Lytton refinery in Queensland to produce SAF and renewable diesel.

Meanwhile, GrainCorp’s project, valued at $19.8 million, will investigate the potential for a facility that converts canola oil into feedstock for SAF production.

Supporting Local Industry

Minister for Climate Change Chris Bowen said that producing domestic aviation fuel from Australian feedstock and renewable energy would not only reduce emissions but also lessen reliance on overseas imports.

The government highlighted that domestic aviation currently accounts for around 2 percent of Australia’s carbon pollution, with most emissions stemming from medium to long-haul flights.

“The creation of a domestic SAF industry offers multiple benefits, from reducing emissions to ensuring energy security,” Bowen said.

The SAF Funding Initiative, launched in 2023 with $30 million, aims to support the growth of the domestic industry and identify opportunities.

Minister for Transport Catherine King said there were opportunities for regional Australia, particularly the agricultural sectors.

Despite the government’s moves, SAF still has a long way to go before it is commercially viable.

“The biofuel you ask about has less energy value than, say, Jet A1 fuel that most jet aircraft burn. So to produce the same amount of range and thrust, the aircraft needs to burn more fuel to achieve the same outcome, thereby negating the whole process,” one commercial pilot told The Epoch Times previously.

ARENA’s Contribution to SAF Development

With this new funding, ARENA’s total commitment to the SAF initiative has now reached $23 million, spread across three projects worth nearly $87 million.

This includes a previous $9 million contribution to Jet Zero Australia’s $36.8 million project, which is working to develop a new SAF production facility in Townsville.

Jet Zero Australia’s proposed facility, which will convert agricultural waste into jet fuel, has already secured $14 million in funding from both state and federal governments.

This funding will support the engineering work required to build the plant in Townsville, which could produce up to 102 million liters of SAF and 11 million liters of renewable diesel annually by 2027.

According to a study by Frontier Economics, a local SAF industry could create more than 7,400 jobs and add $2.8 billion (US$1.93 billion) to Australia’s economy by 2030.