Viva Energy shares rally on renewable fuels funding
Make us a preferred source
Make us a preferred source on Google
The news: Viva Energy shares rallied after the fuel distributor received funding from the federal government's Australian Renewable Energy Agency (ARENA) for a study to develop renewable fuel alternatives for the airline industry.
The numbers: Viva shares were up 4.1% to $1.83 at 1pm AEDT after plummeting 27% on Tuesday following a sharp decline in full-year profit.
Viva will receive $2.4 million towards a $4.9 million project to recondition an existing tank at its Pinkenba terminal to enable blended sustainable aviation fuels (SAF) supply into Brisbane Airport for commercial use.
ARENA has announced total funding of $33.5 million across five projects under its SAF funding initiative, launched in 2023.
The context: Viva said it will work with industry partners to develop a book and claim system so that customers can recognise the carbon reduction benefits of the SAF supplied.
The project will conclude with Viva Energy demonstrating the storage and use of SAF within Brisbane Airport, with a view to supply volumes of SAF to meet customer demand beyond the project.
What they said: "By enhancing our SAF infrastructure, we are not only supporting the aviation industry's transition to lower carbon emissions but also positioning Viva Energy as a leader in renewable energy solutions," said Viva's chief strategy officer Lachlan Pfeiffer.
The source: ARENA media release
