- ARENA allocates $9 million to Jet Zero Australia to enhance sustainable aviation fuel production in Townsville, supporting a $36.8 million FEED study for a new facility.
- The initiative aims to produce 100 million litres of SAF annually, potentially cutting domestic aviation carbon emissions by 70% and creating up to 26,200 jobs by 2030.
- Jet Zero Australia partners with Qantas, Airbus, and Idemitsu Kosan, while Queensland’s government contributes $5 million to bolster local production capabilities and establish SAF value chains.
The Australian Renewable Energy Agency (ARENA) announced a $9 million funding package for Jet Zero Australia to boost sustainable aviation fuel (SAF) production in Townsville. This investment will support a $36.8 million front-end engineering design (FEED) study for a commercial-scale alcohol-to-jet low-carbon liquid fuel (LCLF) facility.
ARENA CEO Darren Miller described the project as a significant step toward domestic SAF production. He stated that Australia stands well-positioned to produce the sustainable aviation fuels needed. He highlighted the country’s abundant feedstocks and renewable energy resources. Miller noted that the funding would explore SAF production in Queensland, aiming to lower greenhouse gas emissions.
He emphasized the importance of sharing lessons learned from the study with the broader industry. This sharing will pave the way for large-scale SAF production in Australia. Alcohol-to-jet fuel production has emerged as a viable method for reducing emissions in the aviation sector. This approach also alleviates feedstock constraints by converting ethanol into a drop-in fuel blend. Currently, aircraft can use blends with up to 50 per cent SAF mixed with traditional jet fuel.
The proposed production facility in Townsville aims to convert ethanol into around 100 million litres of SAF annually. This output will meet the demands of Cairns and Townsville Airports. Projections indicate that sustainable aviation fuels from this initiative could cut domestic aviation carbon emissions by 70 per cent, displacing up to 225,000 metric tons of carbon dioxide each year.
Jet Zero Australia formed a consortium with partners and investors, including Qantas, Airbus, and Idemitsu Kosan, to advance the project. Queensland’s Department of State Development and Infrastructure will contribute $5 million through the Queensland New-Industry Development Strategy. This funding aims to enhance local production capabilities and establish regional SAF value chains.
The alcohol-to-jet technology for this initiative comes from LanzaJet. According to ARENA’s Bioenergy Roadmap, a domestic SAF industry could create $10 billion in annual GDP and generate up to 26,200 jobs by 2030. Most of these new jobs will land in regional Australia, where SAF production will rely on local agricultural feedstocks.
Jet Zero Australia CEO Ed Mason expressed optimism about the funding. He stated it would help create a new commercial pathway to produce over 113 million litres of SAF and renewable diesel from agricultural by-products. Mason underscored that this project would contribute to Australia’s transport sector decarbonization goals and promote fuel security. It will also generate jobs in regional areas.
The project’s FEED activities will conclude by 2025. This announcement marks ARENA’s first initiative under its SAF funding program, launched in 2023. The program aims to support the development of domestic SAF production in Australia.
This funding reflects Australia’s commitment to advancing sustainable aviation fuel technology. It represents a significant investment in both environmental sustainability and regional economic development. By leveraging local resources and innovation, Australia aims to position itself as a sustainable aviation fuel production leader.
This initiative could be critical in reducing greenhouse gas emissions and enhancing energy security in the aviation sector. The collaboration among various stakeholders underscores the growing recognition of the importance of sustainable fuels in addressing climate change and ensuring a sustainable future for aviation.