A Wide Bay sugar mill will be used to test the feasibility of converting sugar mill waste into sustainable aviation fuel (SAF).
Australian technology developer Licella has secured an $8 million Australian Renewable Energy Agency (ARENA) grant to assess the viability of establishing a biorefinery facility close to Bundaberg.
Federal Energy Minister Chris Bowen said the facility would be co-located with the Isis Central Sugar Mill, which would provide the agricultural residue feedstock.
Minister Bowen said if studies proved successful, the biorefinery would be a boost for the regional economy and create about 300 construction jobs and 100 ongoing operational roles.
He said $2.4 million in funding had also been provided to Viva Energy to demonstrate the storage and use of SAF within the Brisbane Airport.
“The funding will help recondition a fuel tank at the Pinkenba Terminal to enable blended SAF supply into the airport for commercial use.”
Minister Bowen said Australia was in a unique position to capitalise on a local industry with readily available biomass feedstock, willing offtake interest and existing expertise with liquid fuels that could combine to address domestic jet fuel demand in the 2020s.
“This renewable fuel could reduce domestic aviation emissions by up to 80 percent compared to conventional fossil-based fuel, providing a practical and real pathway to net zero for aviation.”
