SYDNEY, AUSTRALIA -- GrainCorp has been provided A$6.1 million by the Australian Renewable Energy Agency (ARENA) from its Sustainable Aviation Fuels Initiative, one of two grants to help study renewable fuel alternatives for Australia's airline industry and reduce emissions.
An additional A$8.1 million from ARENA will fund a separate study by transportation energy provider Ampol. GrainCorp, Ampol and global fund manager IFM Investors entered a memorandum of understanding in July to explore the establishment of an integrated renewable fuels industry in Australia.
GrainCorp's A$19.8 million SAF Oilseed Crushing Facility Pre-Deployment Study will investigate the establishment of an oilseed crushing facility that, in alignment with GrainCorp's feasibility assessment, may produce a minimum of 330,000 tonnes per year of canola oil as a feedstock input for SAF production.
This would represent about 12% of the 6.13 million tonnes of canola exported from Australia in the last year to Sept. 30, ARENA said in its Dec. 17 funding announcement. The funds will be provided over two stages, first for pre-front end engineering design (FEED) engineering and then, subject to review, FEED engineering.
"GrainCorp is advancing plans to scale up our oilseed crush operations, recognizing the critical role of feedstocks in a renewable fuels supply chain," said Robert Spurway, managing director and chief executive officer of GrainCorp. "Our feasibility work focuses on proximity to oilseed sources, fuel refining capacity, customer demand, and export potential for canola meal.
"In partnership with Ampol and IFM Investors, we are committed to supporting the establishment of a domestic supply chain for SAF as a vital step toward decarbonizing Australia's aviation sector."
Ampol's A$30.2 million Brisbane Renewable Fuels Pre-FEED Study will investigate developing a renewable fuels facility of greater than 450 million liters annually for SAF and renewable diesel production at the company's Lytton refinery. The 450 million liters of SAF would be equivalent to almost 5% of Australia's 2019 (pre-COVID) fossil jet fuel consumption. The funding will support pre-FEED engineering for Ampol's Brisbane Renewable Fuels facility.
"The combination of Ampol's existing liquid fuels infrastructure and capabilities, the expertise of our MOU partners IFM Investors and GrainCorp, along with ongoing government support, has the potential to create a national renewable fuels ecosystem and unlock Australia's competitive advantage in infrastructure, technical expertise and the availability of raw materials," said Matt Halliday, managing director and CEO at Ampol.
ARENA's SAF Funding Initiative was launched in 2023 with A$30 million to support the development of a domestic SAF industry considering short- and medium-term solutions to emissions reduction for Australia's aviation industry.
Domestic aviation accounts for roughly 2% 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. This emissions impact is even higher when considering Australia's international aviation emissions.