HAMR Energy reveals SA, Victoria shortlist for $800m green fuel facility

SA is in a battle with Victoria for an $800m sustainable fuel project, with the promise of hundreds of new jobs and a foothold in an emerging industry aimed at slashing emissions in aviation.

South Australia is in a battle with Victoria for an $800m sustainable fuel project, which comes with the promise of hundreds of new jobs and a foothold in an emerging industry aimed at slashing carbon emissions in aviation.

Melbourne-based start-up HAMR Energy has unveiled plans for Australia’s first major methanol-to-jet fuel production facility, and has shortlisted South Australia and Victoria as the two potential locations.

The company’s plans include the development of a facility capable of converting 300,000 tonnes of low carbon methanol – made from wood, bark, branches, sawdust and other forestry residues at its proposed renewable fuels project in Portland – into 125 million litres of sustainable aviation fuel.

It says that would be enough to decarbonise 3.5 million economy-class passenger trips between Sydney and Melbourne each year.

The project is expected to involve an investment of $700m to $800m.

HAMR Energy co-founder David Stribley said that after a successful feasibility study for its technology, the company was now assessing land options across South Australia and Victoria, and was planning to make a decision on its preferred location by the end of September this year ahead of first fuel production in 2030.

Qantas has committed to 10 per cent sustainable aviation fuel use in its mix by the end of the decade. Picture: Supplied

“South Australian is an excellent destination for industrial-scale projects. It has world class existing infrastructure and a proactive state government which can help bring these projects to life,” he said.

“We’re investigating potential sites around Adelaide that have access to transport links and are suitable for industrial development. Securing land is a critical factor in our plans for development of the sustainable aviation fuel industry in Australia.

“With the right policy settings, Australia has the opportunity to build a world class LCLF (low carbon liquid fuels) industry, creating regional jobs, strengthening fuel security, and leveraging abundant renewable energy and biomass resources.”

Mr Stribley said the state’s low renewable power and construction costs were part of the reason South Australia was in the mix to host the facility, which would initially create more than 50 permanent jobs and support hundreds of workers during construction.

The state government is actively exploring the development of sustainable aviation fuel projects as it looks to leverage the state’s renewable energy resources. It is collaborating with Adelaide Airport, Qantas and UK synthetic fuels company Zero Petroleum on a feasibility study for a sustainable aviation fuel production facility in Whyalla.

Airlines are working to meet 2050 net zero targets with sustainable aviation fuel, with Qantas committing to 10 per cent sustainable aviation fuel use in its mix by the end of the decade and 60 per cent by 2050.

HAMR Energy is currently finalising a $10m capital raising to support its ambitious plans to be producing 1 million tonnes of green methanol by 2030.

It expects to begin construction of its flagship green methanol facility in Portland, 100km south-east of Mount Gambier, next year.

Originally published as HAMR Energy reveals SA, Victoria shortlist for $800m green fuel facility