Australian Renewable Energy Agency has pledged up to A$10.4 million ($6.8 million) in funding for two projects aimed at developing sustainable aviation fuels as part of efforts to cut emissions in the airline industry.
According to a statement issued on Wednesday, ARENA will provide A$8 million to technology developer Licella and A$2.4 million to energy firm Viva Energy for feasibility studies into renewable fuel alternatives for the sector.
“Aviation is a challenging industry from an emissions reduction perspective, with domestic flights accounting for approximately 2 percent of Australia’s greenhouse gas emissions,” ARENA CEO Darren Miller said in the statement.
“These two projects are an important step toward 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.”
Licella will use the funding to assess the feasibility of establishing a biorefinery in Bundaberg, Queensland, using its patented Catalytic Hydrothermal Reactor technology to convert sugar mill residues into renewable fuels.
The proposed facility, part of the A$26.1 million ‘Project Swift’ initiative, would produce up to 60 million liters of low-carbon liquid fuels annually, including 40 ML of SAF.
Viva Energy will receive funding for its A$4.9 million ‘SAF Infrastructure Solutions for the Future’ project. This project aims to repurpose an existing storage tank at its Pinkenba Terminal to enable SAF blending for commercial supply at Brisbane Airport.
The project will also include developing a book-and-claim system that allows customers to recognize emissions reductions from SAF purchases.
Viva Energy Chief Strategy Officer Lachlan Pfeiffer described the funding as a significant milestone in the company’s transition to sustainable fuel.
“By enhancing our SAF infrastructure, we are not only supporting the aviation industry’s transition to lower carbon emissions but also positioning Viva Energy as a leader in renewable energy solutions,” Pfeiffer said.
Licella CEO Alan Nicholl welcomed ARENA’s support, noting that the company’s technology, in partnership with Shell, aims to scale up SAF production in Australia.
ARENA has committed A$33.5 million across five projects under its SAF Funding Initiative, launched in 2023, as part of a broader effort to develop domestic SAF production capabilities.
The agency cited findings from its 2021 Bioenergy Roadmap and CSIRO’s SAF Roadmap, which identified biomass-based SAF as a key opportunity for emissions reduction in the aviation sector.
The initiative aligns with the federal government’s Future Made in Australia Plan, prioritizing low-carbon liquid fuels as part of the country’s transition to cleaner energy sources.
