Australian taxpayers will plough $32m into an Adelaide jet fuel “sustainable” production facility using forest waste to help protect the country from world oil shocks.
The federal government’s Australian Renewable Energy Agency will help fund development of the biomass-to-fuel facility at a yet to be disclosed location.
Commonwealth officials say the project could turn “forestry by-products” into “sustainable aviation fuel”.
The project aims to use forest waste to produce renewable methanol in Australia, which officials say can then be converted into “sustainable aviation fuel, renewable diesel and other low-carbon liquid fuels”.
The forestry waste by-products and residues include sawdust, bark, woodchips, thinnings and other material left over after harvesting and processing.
Experts say this typically has limited use.
Commonwealth officials said the funding would support engineering and development work.
The fuel produced at the proposed facility could offset more than 140 million litres of fossil jet fuel and remove at least 330,000 tonnes of CO2 gas a year.
Funding will be issued in two stages.
Up to $12.5m will be available for the initial phase and the remaining $19.5m conditional on HAMR Energy securing the necessary co-funding to commence detailed feasibility studies.
Federal ministers and Premier Peter Malinauskas announced details at Adelaide Airport on Wednesday.
Federal Energy Minister Chris Bowen said Australia had an “abundant supply of forest waste”.
“Projects like this can help strengthen Australia’s long-term fuel resilience by supporting more domestic fuel production and a more diverse fuel supply, making us more resilient to global energy shocks,” he said.
Mr Malinauskas said SA was at the “forefront of creating a new sovereign jet fuel industry for Australia”.
“Australia cannot afford to rely indefinitely on imported liquid fuels,” he said.
“Developing sovereign sustainable aviation fuel production is about building greater national resilience, supporting our aviation industry and ensuring more of the economic benefits from the energy transition are created here at home.”
Originally published as Australia ploughs $32m into Adelaide jet fuel plant to turn forest waste into plane fuel