Low-carbon liquid fuels (LCLF) firm HAMR Energy will build a $700-800 million sustainable aviation fuel (SAF) production facility in South Australia.
Touted as the first of its kind in Australia, the plant will convert low-carbon methanol from forestry residues and hydrogen into SAF. It comes after HAMR secured funding from Qantas and Airbus for a Victorian project to create the methanol supply.
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“We are proud to be strengthening fuel security for the nation, while contributing to the South Australian economy and creating local jobs,” said David Stribley, co-founder of HAMR Energy.
“Selecting South Australia as the home for our large‑scale SAF facility is a strategic decision that builds on our investment in Victoria.
“The state’s world‑class infrastructure, commitment to clean energy, and proximity to sustainable feedstock sources make it an excellent location to accelerate decarbonisation in aviation.”
According to HAMR, the plant will be able to convert 300,000 tonnes of methanol per year into 140 million litres of SAF.
“That is enough to decarbonise around 4.5 million economy-class passenger trips between Adelaide and Melbourne each year and will help close the estimated global SAF supply shortfall 10 million tonnes by 2030,” the company said.
“The project will create hundreds of construction jobs and dozens of long-term operational roles, attracting hundreds of millions of dollars of investment to the state.
“It will support state and federal government priorities to establishing a domestic SAF industry, strengthening fuel security while helping the aviation industry meet emission reductions targets.”
The South Australian Government has backed the project, which will use forestry residues from the Green Triangle near Mount Gambier. Joe Szakacs, SA Minister for Trade and Investment, said it will put the state “at the forefront of world-leading innovation in the global efforts to decarbonise”.
“This is a massive vote of confidence in our state and will deliver significant economic impact. But most importantly, this investment will create hundreds of secure and well-paid jobs for South Australians,” he said.
“An investment of this size doesn’t happen by accident. It follows persistent work and considered planning. Our Government warmly welcomes HAMR Energy’s backing of South Australia.”
HAMR last month announced $10 million of investment into its Portland Renewable Fuels (PRF) project in Victoria, which will convert forestry residue to methanol. Funding from Qantas and Airbus was sourced from their joint Australian Sustainable Aviation Fuel investment fund.
“Airbus sees HAMR Energy’s innovative approach to producing SAF from methanol as a very interesting technology pathway, which can help accelerate the industry’s transition to sustainable fuels,” said Stephen Forshaw, Airbus’ chief representative for Australia, New Zealand and the Pacific.
“Developing low-carbon fuel production in more of Australia’s states has the potential to create broad access for offtakers across the country – so important when we consider the reach of our industry.”
SAF demand is expected to reach over 500 million tonnes by 2050 and deliver over $13 billion (AUD) in gross value, according to Qantas and Airbus.
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