HAMR Energy has secured up to $32 million in conditional funding from the Australian Renewable Energy Agency (ARENA) to accelerate the development of its forestry-to-fuels projects across South Australia and Victoria.
The investment will support engineering and development work aimed at converting plantation forestry residues and renewable energy into sustainable aviation fuel (SAF), strengthening Australia’s domestic low-carbon fuels industry.
The funding represents the first investment under the Australian Government’s $250 million Low Carbon Liquid Fuels priority, administered by ARENA through the Future Made in Australia Innovation Fund.
Funding to Support Integrated SAF Supply Chain
The funding will help advance an integrated supply chain spanning forestry residue collection, low-carbon methanol production and sustainable aviation fuel manufacturing.
Key funding details:
- Up to $32 million in conditional ARENA funding
- $12.5 million allocated for the initial project phase
- Additional $19.5 million available following project co-funding
- Supports Front-End Engineering Design (FEED) and engineering activities
The projects are anchored by Australia’s first proposed large-scale methanol-to-jet SAF refinery in Port Adelaide, which will convert low-carbon methanol into SAF, renewable diesel and other low-carbon fuels.
Production Capacity and Environmental Impact
At full scale, HAMR Energy expects the integrated projects to process approximately 600,000 tonnes of plantation forestry residues annually, producing around 300,000 tonnes of low-carbon methanol.
The Port Adelaide refinery is expected to deliver:
- Approximately 140 million litres of SAF each year
- Renewable diesel and additional low-carbon fuels
- Displacement of around 140 million litres of fossil fuels annually
- Abatement of approximately 390,000 tonnes of CO₂ equivalent per year
- Capacity to support around 4.5 million economy passenger trips between Adelaide and Melbourne annually
HAMR Energy estimates the SAF produced from plantation forestry residues could reduce emissions by approximately 85% compared with conventional fossil fuels.
Supporting Australia’s Fuel Security
The projects aim to establish a domestic supply chain using Australian renewable energy and plantation forestry residues, reducing reliance on imported liquid fuels while strengthening national fuel security.
HAMR Energy Co-founder, David Stribley “Our projects bring together plantation forestry residues from the Green Triangle, Australian renewable energy and hydrogen, and proven methanol and refining technologies to produce lower-emissions aviation fuel at commercial scale.
ARENA CEO, Darren Miller, “This investment supports the engineering and development work needed to advance one of Australia’s most promising sustainable aviation fuel opportunities and demonstrates the potential benefits of the energy transition for regional industries.Engineering Progress and Economic Benefits
Following the completion of feasibility studies, HAMR Energy is progressing into FEED and further development across the supply chain. The company expects the projects to create hundreds of construction jobs and more than 200 ongoing positions while supporting opportunities across forestry, renewable energy, engineering, manufacturing and regional industries.
If delivered, the projects would establish Australia’s first large-scale integrated forestry-to-SAF supply chain, supporting lower-emissions aviation, improved fuel security and the long-term development of a domestic low-carbon liquid fuels industry.
Professionals at Hamrenergy: Alex Smith | Darryl S Flukes | Richard Owen OAM | Charlie Singleton | Donald Fraser | Juliette Cody | Liam Taylor | Miriam Blaine | Caitlin Grant | Finn Rindschwentner | Alan Black
