Ampol, Graincorp to receive govt funding for sustainable aviation fuels
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The news: The Australian Renewable Energy Agency (ARENA) has announced up to $14.1 million in funding for two projects from its sustainable aviation fuels (SAF) funding initiative.
The numbers: ARENA is providing $8 million in funding to fuel supplier Ampol and $6.1 million to agriculture group GrainCorp for separate studies to develop renewable fuel alternatives for Australia’s airline industry.
The funding will contribute to Ampol's $30.2 million 'Brisbane Renewable Fuels Pre-FEED Study' which will investigate developing a renewable fuels facility for SAF and renewable diesel production at the company’s Lytton refinery.
ARENA's funding to GrainCorp will contribute to its $19.8 million 'SAF Oilseed Crushing Facility Pre-Deployment Study' to investigate the establishment of an oilseed crushing facility, with the aim of producing canola oil as a feedstock input for SAF production.
ARENA’s SAF funding initiative was launched in 2023 with $30 million to support the development of a domestic SAF industry considering short and medium term solutions to emissions reduction for Australia’s aviation industry.
The latest commitment brings ARENA’s total investment to $23 million across three projects with more investments to be announced beyond the previously allocated $30 million.
Ampol (-0.6%) and Graincorp (-0.5%) both edged lower in early trading as the ASX 200 rose 0.5%.
What they said: "Aviation is a persistently challenging industry from an emissions reduction perspective," said ARENA CEO Darren Miller.
"With Australians being among the most prolific flyers in the world, decarbonising this high emissions industry will be vital for us to achieve our net zero targets.
"These two projects are an important step towards developing opportunities to cut emissions from Australian skies and ARENA will be working to ensure the lessons from these projects help inform the broader development of a sustainable aviation fuels industry in Australia."
Ampol managing director and CEO Matt Halliday said: "This funding will further Ampol's investigations into establishing a domestic renewable fuels capability, which could create benefits in energy security, support regional development and stimulate agriculture and manufacturing industries".
GrainCorp CEO Robert Spurway said: "GrainCorp is advancing plans to scale up our oilseed crush operations, recognising the critical role of feedstocks in a renewable fuels supply chain."
"Our feasibility work focuses on proximity to oilseed sources, fuel refining capacity, customer demand, and export potential for canola meal," he said.
The source: ARENA media release
