Melbourne-based HAMR Energy has confirmed South Australia as the site of its $700–800 million sustainable aviation fuel production facility, the first commercial-scale methanol-to-jet (MtJ) SAF plant in Australia. The announcement follows backing from the South Australian State Government and a completed AUD $10 million Series A funding round with investors including Airbus, Qantas, and thyssenkrupp Uhde. Site selection is underway with SA Government support, targeting locations suitable for major industrial development.
The project marks the first time Airbus and Qantas — two of the largest institutional stakeholders in global aviation decarbonisation — have co-invested in an Australian SAF production asset. Their participation signals commercial confidence in the MtJ pathway and in the domestic feedstock economics HAMR has assembled. Australia has the natural resource base and policy infrastructure to become a significant SAF producer, and a $700–800 million facility using locally sourced feedstock is a concrete step toward that potential.
When operational, the plant will process 300,000 tonnes of low-carbon methanol per year into approximately 140 million litres of SAF — enough, by HAMR’s estimate, to decarbonise around 4.5 million economy-class passenger trips between Adelaide and Melbourne annually. The methanol feedstock will be produced from plantation forestry residues sourced from the Green Triangle region centred around Mount Gambier, combined with green hydrogen. Supply agreements are already in place with local sustainable forestry operators including OneFortyOne.
The conversion technology is Honeywell UOP’s eFining™ methanol-to-jet process — the same platform Verso Energy selected for its seven-site European and North American eSAF buildout. Honeywell’s eFining technology is emerging as a standard reference design for commercial MtJ projects, with its standardised plant configuration reducing capital costs and compressing engineering timelines. The Methanol Institute has identified MtJ as one of the few SAF pathways capable of large-scale deployment as HEFA feedstocks tighten after 2030 — a framing that positions HAMR’s facility not just as an Australian first but as a globally relevant proof point for the pathway.
“Selecting South Australia as the home for our large-scale SAF facility is a strategic decision that builds on our investment in Victoria,” said David Stribley, Co-founder of HAMR Energy. “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.”
“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.”
— Hon. Joe Szakacs, Minister for Trade and Investment, South Australia
The project is expected to generate hundreds of construction jobs and dozens of permanent operational roles. South Australia was selected over Victoria, where HAMR has existing operations — a competitive outcome for the SA Government, which has been actively courting clean energy manufacturing investment.
HAMR Energy now moves into site selection and detailed development planning. With feedstock agreements signed, state government backing secured, technology licensed, and institutional investors from within the aviation sector already on the register, the project has assembled the building blocks that have caused comparable SAF developments to stall in earlier stages. The remaining milestones — site confirmation, project financing, and final investment decision — will determine whether Australia’s first MtJ facility enters construction on the timelines HAMR has outlined.
Source: HAMR Energy
