The Federal Government this week announced new grants to progress sustainable aviation fuel (SAF) manufacturing in Australia.
SAF is created from organic feedstock such as canola and is a potential replacement for Jet-A1 in turbine engines.
The Australian Renewable Energy Agency (ARENA) has granted $8 million to Ampol for the $30.2 million Brisbane Renewable Fuels Pre-FEED Study, which will explore building a renewable fuels facility at Lytton in Queensland to produce SAF and renewable diesel, and a further $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.
"SAF presents a fantastic economic opportunity, especially in regional Australia where our strong agricultural sector could scale up domestic production of renewable fuel for export,” said Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King.
“This could create thousands of high-quality jobs in the regions, while also helping reduce global aviation emissions.”
The government believes the SAF industry could create more than 7000 jobs by 2030, mostly in regional Australia.
“Making domestic aviation fuel from Australian feedstock and renewable energy is good for emissions and reduces our dependence on expensive overseas imports," said Minister for Climate Change and Energy Chris Bowen.
“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.”
ARENA has now committed $23 million across three projects, including a previous $9 million contribution to Jet Zero Australia’s $36.8 million project, which is advancing a new SAF production facility in Townsville.
Although the SAF industry will produce sustainable diesel, the government is focusing on SAF for the airline industry, with electric power rather than diesel considered more viable as an alternative power source for general aviation.