Australian Renewable Energy Agency (ARENA) announced today that it would $8 million to help fund a study on the feasibility of converting sugar waste into sustainable aviation fuel (SAF).
The project by developer Licella is expected to cost $26.1 million in total, and will examine the viability of building a biorefinery in Bundaberg, QLD, using hydrothermal liquefaction technology to convert sugar mill residues to renewable fuels.
It would be co-located with the Isis Central Sugar Mill, which would provide the residue feedstock.
If successful, ARENA estimates the plant could produce 60 million litres of low carbon liquid fuels (LCLF) per year, of which around 40 million litres would be SAF.
Simultaneously, ARENA also announced a $2.4 million grant to Viva Energy for separate studies to develop renewable fuel alternatives for Australia’s airline industry.
The Viva grant is for reconditioning an existing tank at the Pinkenba Terminal to enable blended SAF supply into Brisbane Airport for commercial use. The Project will conclude with Viva Energy supplying SAF into the Brisbane Joint User Hydrant Installation and demonstrate the storage and use of SAF within the existing airport.
ARENA CEO Darren Miller said the two projects represented an important step towards developing "a pipeline of projects that could support the reduction of aviation sector emissions.
“Aviation is a challenging industry from an emissions reduction perspective with domestic flights currently accounting for approximately 2% of Australia’s greenhouse gas emissions,” Miller said.
“With Australians being among the most prolific flyers in the world, decarbonising this high emissions industry will be vital for us to achieve our net zero targets.
“These two projects are an important step towards developing opportunities to cut emissions from Australian skies and ARENA will be working to ensure the lessons from these projects help inform the broader development of a sustainable aviation fuels industry in Australia.”
LCFLs have been identified as a priority as part of the Federal Government’s Future Made in Australia Plan, which ARENA is the delivery agency for.
So far, ARENA has has announced total funding of $33.5 million across five projects under the SAF Funding Initiative launched in 2023 to support the development of domestic SAF production to support aviation decarbonisation.