ARENA backs new fuel
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Australia is investing in homegrown sustainable aviation fuel to cut carbon emissions.
The Australian Renewable Energy Agency (ARENA) has announced $9 million in funding to Jet Zero Australia to support a project in Townsville aimed at producing low carbon liquid fuels (LCLFs).
This funding will contribute to a $36.8 million front-end engineering design (FEED) study, which will assess the viability of the proposed alcohol-to-jet fuel facility.
Jet Zero's plant is expected to produce around 100 million litres of sustainable aviation fuel (SAF) annually, enough to supply Cairns and Townsville airports.
Using ethanol from agricultural by-products, the SAF can be blended with traditional jet fuel, cutting aviation emissions by up to 70 per cent.
Based on ARENA’s estimates, the plant could eliminate 225,000 metric tonnes of carbon dioxide emissions each year.
ARENA CEO Darren Miller called the project a major step for Australia’s SAF production. “With abundant feedstocks and vast renewable energy resources, Australia is well placed to produce the sustainable aviation fuels we need, right here at home,” he said.
He says ARENA will share insights from the project to benefit the broader industry.
Jet Zero Australia has formed partnerships with Qantas, Airbus, and Idemitsu Kosan, while the Queensland Government has also pledged $5 million to help grow the state's SAF industry.
According to Jet Zero CEO Ed Mason, the project will help Australia decarbonise its transport sector, improve fuel security, and generate jobs in regional areas.
The engineering study is set for completion in 2025, and if successful, could lead to broader SAF production across the country.
ARENA's Bioenergy Roadmap suggests that by 2030, a domestic SAF industry could be worth $10 billion annually, creating over 26,000 jobs, with regional Australia seeing the greatest benefit.
Minister for Climate Change and Energy Chris Bowen reaffirmed the government's commitment to sustainable aviation, noting the investment is part of the government’s $30 million plan to support SAF projects.
He highlighted Townsville's renewable energy resources as key to the project’s success. Minister for Infrastructure Catherine King added that the project will support job creation and reduce the carbon footprint of Australia's aviation sector.