Wedoany.com Report-Sept. 25, Australian chemicals company HAMR Energy has entered into a partnership with forestry and sawmill business OneFortyOne to secure sustainable biomass for renewable methanol production. The collaboration marks an important step in advancing HAMR Energy’s Portland Renewable Fuels Project (PRF Project) in Victoria.

The agreement was formalized through a memorandum of understanding (MoU). Under the arrangement, OneFortyOne will initially supply biomass residues to the PRF Project, with potential for expansion into New Zealand, where OneFortyOne operates forestry assets in the Nelson/Marlborough regions of the South Island. Both companies intend to work on defining optimal biomass specifications and supply chain logistics, with the goal of establishing long-term supply agreements.

Over the next 18–24 months, OneFortyOne will support HAMR Energy’s development by providing sample wood fibre for testing and conducting operational trials to refine feedstock assumptions. These efforts are aimed at ensuring a reliable biomass supply while also progressing towards formal supply contracts.

The PRF Project is designed to produce up to 300,000 tonnes of renewable methanol annually, utilizing forestry residues combined with green hydrogen. The renewable methanol is intended for use in sectors such as maritime and aviation transport, offering a pathway to help decarbonize these industries. The project has recently completed its pre-front-end engineering design (pre-FEED) phase, which was carried out by thyssenkrupp Uhde, a German technology and engineering company.

The estimated investment in the PRF Project is AUD 2 billion (USD 1.3 billion), with operations targeted to begin by 2029. According to David Stribley, Co-Founder of HAMR Energy, the MoU with OneFortyOne represents an important milestone as the company advances its portfolio of low-carbon liquid fuels (LCLF) projects and continues its Series A fundraising efforts.

Nick Chan, Director of Corporate Strategy at OneFortyOne, said: “We are excited to explore how lower-value residues can be transformed into high-impact renewable fuels, supporting emissions reduction efforts in other industries like aviation and shipping.” His remarks highlight the potential for biomass residues, often considered waste, to play a vital role in energy transition strategies.

The partnership also complements the Australian Government’s Cleaner Fuels Program, which allocates AUD 1.1 billion to support the supply and development of low-carbon liquid fuels. This alignment underscores the significance of public and private collaboration in scaling up renewable fuel production.

Through the cooperation between HAMR Energy and OneFortyOne, the PRF Project is set to play a central role in fostering innovation in renewable methanol production. The project is expected to enhance energy security, create new value chains for forestry residues, and contribute to emissions reduction across key transport industries.