Wedoany.com Report-Feb 26, The Australian Renewable Energy Agency (ARENA) has allocated $8 million to support a study on using sugar waste to create sustainable aviation fuel (SAF). Developer Licella will lead the project, which carries a total cost of $26.1 million. The study will assess the potential of establishing a biorefinery in Bundaberg, Queensland, employing hydrothermal liquefaction technology to transform sugar mill residues into renewable fuels.

The facility would be positioned alongside the Isis Central Sugar Mill, which will supply the necessary residue materials. If the project succeeds, ARENA projects the biorefinery could yield 60 million liters of low carbon liquid fuels annually, including approximately 40 million liters of SAF.

At the same time, ARENA has granted $2.4 million to Viva Energy for separate research into renewable fuel options for Australia’s aviation sector. This funding will support upgrades to an existing tank at the Pinkenba Terminal, enabling the supply of blended SAF to Brisbane Airport for commercial purposes. The effort will conclude with Viva Energy delivering SAF into the Brisbane Joint User Hydrant Installation, demonstrating its storage and application within the airport’s current infrastructure.

ARENA CEO Darren Miller commented on the significance of these initiatives, stating: “Aviation is a challenging industry from an emissions reduction perspective with domestic flights currently accounting for approximately 2% of Australia’s greenhouse gas emissions. 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. These two projects are an important step towards 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 in Australia.”

Low carbon liquid fuels are a key focus of the Federal Government’s Future Made in Australia Plan, with ARENA overseeing its implementation. Since launching the SAF Funding Initiative in 2023, ARENA has committed $33.5 million across five projects to advance domestic SAF production and support the aviation industry’s decarbonization efforts.