The federal government announced funding for two sustainable aviation fuel (SAF) projects in Queensland on Tuesday, according to a joint media release.
The Australian Renewable Energy Agency (ARENA) is providing $8 million to Australian technology developer Licella to assess the viability of establishing a biorefinery facility in the Bundaberg region. The facility would convert sugar mill waste into sustainable aviation fuel and would be co-located with the Isis Central Sugar Mill, which would provide the agricultural residue feedstock.
If studies prove successful, the biorefinery could create about 300 construction jobs and 100 ongoing operational roles for the regional economy.
In a separate project, Viva Energy will receive $2.4 million to demonstrate the storage and use of SAF within Brisbane Airport. The funding will help recondition a fuel tank at the Pinkenba Terminal to enable blended SAF supply into the airport for commercial use.
According to the government, this renewable fuel could reduce domestic aviation emissions by up to 80 per cent compared to conventional fossil-based fuel, providing a pathway to net zero for aviation.
Minister for Climate Change and Energy Chris Bowen said: “This ARENA funding is another demonstration of our government’s commitment for a Future Made in Australia – using our natural resources to build industry, cut emissions from planes, and create real jobs right now.”
Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King added that the development of a local sustainable aviation fuel industry is “a necessity, but also a huge opportunity for job creation in the regions.”
Picture: credit Chris Bowen/Facebook