Queensland project to convert agricultural waste into jet fuel

The Federal and Queensland governments have partnered to support a sustainable aviation fuel (SAF) project that will convert ethanol – made from agricultural waste – into jet fuel.

The project, valued at $36.8 million, would support the development of a Townsville production facility capable of producing about 110 million litres of low carbon liquid fuels (LCLFs) such as SAF and renewable diesel each year.

Jet Zero Australia has formed a consortium of partners to support delivery of the project with the technology to be supplied by LanzaJet with Qantas, Airbus and Idemitsu Kosan among the key investors.

Through the Australian Renewable Energy Agency (ARENA), the Commonwealth has committed $9 million, with the Queensland Government contributing an additional $5 million through the Queensland New-Industry Development Strategy (QNIDS).

The project will include a Front-End Engineering Design (FEED) study and further project development work to assess the viability of a subsequent commercial scale alcohol-to-jet (ATJ) production renewable fuels facility.

This will see agricultural byproduct-based ethanol being converted into low carbon liquid fuels. The project is due for completion in late 2025.

Based on initial modelling, the Townsville plant could cut net domestic aviation carbon emissions by 70 per cent compared to conventional fossil fuel use, displacing up to 225,000 tonnes of carbon dioxide annually.

Domestic aviation accounts for about two per cent of Australia’s greenhouse gas emissions and is viewed as a hard-to abate sector, with the bulk of emissions from medium to long haul flights.

Sustainable fuels will play an important role as global economies transform to net zero, and as part of the $22.7 billion Future Made in Australia package.

LCLFs are a priority sector in the package, with initiatives identified to support the growth of new industries to benefit communities and workers.

Grace Grace, Queensland Minister for State Development and Infrastructure, said the Queensland Government is a supporter of the state’s growing SAF industry.

“We’re proud to be contributing to this exciting project,” she said.

“We know that our investment in SAF will help to deliver significant economic benefits for Queensland, including more jobs and more investment.

“We’re already funding a feasibility study into the new Wagner SAF Refinery as well as Energreen’s new processing facility in Central Queensland, which aims to grow SAF feedstock, and we will continue to build on these investments through our Queensland New Industry Development Strategy.”

For more information, https://arena.gov.au/