The Australian Renewable Energy Agency (ARENA) has established a $30 million fund to support the development of sustainable aviation fuels.
The Sustainable Aviation Fuels (SAF) Funding Initiative will offer grant funding between $1 million and $30 million for technologies across the supply chain from renewable feedstock supply to final fuel production.
ARENA will select winning projects via a two-stage application process which is open to proposals from commercial or pre-commercial SAF production. Funding may support feasibility studies, front end engineering design work, project development activities or funding for pilot scale and pre-commercial demonstrations.
Only those with eligible feedstocks supplies may apply for the funding. Power to Liquids or E-fuels production pathways are not classed as eligible.
The aviation industry accounts for around 1 per cent of Australia’s greenhouse gas emissions and currently has no means of abating the carbon dioxide generated from the burning of jet kerosene fuel on commercial flights. For most individuals, flying accounts for the largest proportion of their carbon dioxide emissions.
If sustainable fuels are commercialised, they could help reduce emissions from the aviation sector globally by up to 30 per cent by 2030, modelling from McKinsey & Co estimates.
ARENA’s Bioenergy Roadmap published in 2021 found that sustainable aviation fuels produced from renewable biomass could supply up to 19 per cent of aviation fuels needed in Australia by 2030. The industry could contribute around $10 billion in additional GDP and create 26,000 new jobs by this date.
“With abundant agriculture, waste and residue resources, Australia has the potential to support a thriving domestic biofuel industry. This is about utilitising our natural advantages to reduce emissions and make the most of the economic opportunities on offer,” ARENA chief executive Darren Miller said.
Interested parties can lodge expressions of interest between now and 1 November 2023.