The Australian Renewable Energy Agency (ARENA) has launched the $30 million Sustainable Aviation Fuels (SAF) Funding Initiative to reduce emissions in the aviation sector.
The SAF Funding Initiative aims to foster the establishment of an Australian SAF industry based on renewable feedstocks.
The SAF Funding Initiative will look at opportunities across the supply chain, from renewable feedstock to final fuel production, to identify the requirements to develop and expand a domestic SAF sector.
Through a two-stage application process, the initiative will accept submissions for ARENA grant funding ranging from $1 million to $30 million.
ARENA is seeking applications for commercial or pre-commercial SAF production, with funds available to assist engineering feasibility and project development efforts and financing for pilot scale and pre-commercial demonstrations.
ARENA will also seek proposals for new and scalable supply chain approaches. This might involve feedstock supply innovation like aggregation or business models to support domestic SAF production.
Proposals must demonstrate that an eligible renewable feedstock and production method are used or processed. Power-to-liquids (PtL) or e-fuels manufacturing pathways are not supported under the initiative.
According to McKinsey & Co. modelling, SAF may result in a net decrease in emissions from the global aviation sector of up to 30% by 2030.
ARENA noted that SAF is in great demand across the world, but availability is limited. Although Australia does not currently produce SAF locally, ARENA said it has considerable potential in renewable feedstocks that might be used to address both domestic and global SAF supply demands.
ARENA CEO Darren Miller stated the funding initiative would assist Australia in understanding how SAF may help the aviation sector decarbonise.
“For a country so reliant on aviation for passenger and freight transport, it’s essential that we find ways to reduce emissions from this critical sector,” Miller said.
“With abundant agriculture, waste and residue resources, Australia has the potential to support a thriving domestic biofuel industry. This is about utilising our natural advantages to reduce emissions and make the most of the economic opportunities on offer,” Miller added.
The initiative aims to deliver on the conclusions of ARENA’s Bioenergy Roadmap, which predicted that sustainable aviation fuels made from renewable biomass could provide up to 19% of Australia’s aviation fuel requirements by 2030.
The Bioenergy Roadmap, published in 2021, highlighted how a local bioenergy industry might generate $10 billion in GDP by 2030 and create 26,000 new jobs.
ARENA is now accepting applications, with expressions of interest due by 1 November 2023.
