
The Australian Renewable Energy Agency (ARENA) is stepping up efforts to reduce emissions from aviation, allocating $14.1 million to two major studies under its Sustainable Aviation Fuel (SAF) Funding Initiative.
ARENA has awarded $8 million to Ampol for its $30.2 million Brisbane Renewable Fuels Pre-FEED Study. The project will investigate the feasibility of producing over 450 million liters annually of SAF and renewable diesel at Ampol’s Lytton refinery. This would equate to nearly 5% of Australia’s 2019 pre-COVID jet fuel consumption.
“These two projects are an important step towards developing opportunities to cut emissions from Australian skies.” — Darren Miller, CEO of ARENA
In addition, $6.1 million has been granted to GrainCorp for its $19.8 million SAF Oilseed Crushing Facility Pre-Deployment Study. The study aims to establish an oilseed crushing plant capable of producing at least 330,000 tonnes per year of canola oil, representing approximately 12% of Australia’s annual canola exports as a SAF feedstock.
ARENA CEO Darren Miller emphasized the importance of these projects for achieving Australia’s net-zero goals. “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,” he said.
Ampol CEO Matt Halliday highlighted the broader benefits of a domestic renewable fuels industry. “This funding will further Ampol’s investigations into establishing a domestic renewable fuels capability, which could create benefits in energy security, support regional development, and stimulate agriculture and manufacturing industries.”
GrainCorp CEO Robert Spurway underlined the critical role of feedstock supply for SAF production. “GrainCorp is advancing plans to scale up our oilseed crush operations, recognising the critical role of feedstocks in a renewable fuels supply chain,” he said.
Both projects align with ARENA’s 2021 Bioenergy Roadmap, which found that SAF could meet up to 19% of Australia’s aviation fuel requirements by 2030. Domestic aviation accounts for roughly 2% of Australia’s greenhouse gas emissions, with international flights further contributing to the sector’s environmental impact.
The SAF Funding Initiative, launched in 2023 with $30 million in funding, aims to support scalable solutions to decarbonize Australia’s aviation industry.