ARENA funds cleaner aviation fuels developments

The federal government has announced $14.1 million from the Australian Renewable Energy Agency (ARENA) to back projects seeking to develop cleaner, greener aviation fuel options to reduce emissions in the aviation sector.

A domestic Sustainable Aviation Fuel (SAF) industry, with Australian made fuel from local feedstock, could play a key role in making the fuel supply more secure and cutting emissions from aviation.

The industry is expected to create 7,400 jobs by 2030, most of which will be in regional Australia.

The two projects are:

• $8 million to Ampol for the $30.2 million Brisbane Renewable Fuels Pre-FEED Study, which will explore building a renewable fuels facility at Ampol’s Lytton refinery in Queensland to produce SAF and renewable diesel
• And $6.1 million to GrainCorp for the $19.8 million SAF Oilseed Crushing Facility Pre-Deployment Study, which will investigate setting up a facility to produce canola oil as a feedstock for SAF production.

Domestic aviation is responsible for around two percent of Australia’s carbon pollution, with most emissions coming from medium to long-haul flights.

The Minister for Climate Change and Energy Chris Bowen said: “Making domestic aviation fuel from Australian feedstock and renewable energy is good for emissions and reduces our dependence on expensive overseas imports.

“The SAF industry is also an example of the Albanese Government’s Future Made in Australia plan in action – making more things right here and creating quality jobs in the process.”

The SAF Funding Initiative was launched in 2023 with $30 million to support the growth of a domestic SAF industry and identify opportunities to reduce emissions in our aviation sector.

With this new funding, ARENA has now committed a total of $23 million across three projects worth almost $87 million. This includes a previous $9 million contribution to Jet Zero Australia’s $36.8 million project, which is advancing a new SAF production facility in Townsville.

Picture: Ampol