The Australian Renewable Energy Agency (ARENA) is investing $10.4 million in two projects to develop sustainable aviation fuel (SAF) in Australia, supporting efforts to reduce emissions in the aviation sector and a clearer sky.
Licella will receive $8 million for Project Swift, a $26.1 million feasibility study in Bundaberg, Queensland. Using its Catalytic Hydrothermal Reactor (Cat-HTR) technology, Licella aims to convert sugarcane residues into 60 million litres of low-carbon fuel per year, with 40 million litres dedicated to SAF.
Viva Energy will receive $2.4 million for its SAF Infrastructure Solutions for the Future project, a $4.9 million initiative to upgrade fuel storage facilities at Brisbane Airport. This includes reconditioning an existing tank at the Pinkenba Terminal to enable blended SAF supply and introducing a book-and-claim system to help customers track carbon reduction benefits.
ARENA chief executive Darren Miller highlighted aviation as a high-emissions sector, contributing 2 per cent of Australia’s greenhouse gas emissions.
“With Australians being among the most frequent flyers in the world, reducing aviation emissions is critical to achieving our net zero targets,” Miller said.
“These projects mark an important step in decarbonising our skies, and ARENA will ensure lessons learned contribute to further SAF development.”
Viva Energy chief strategy officer Lachlan Pfeiffer said the funding is crucial in expanding SAF supply.
“Enhancing our SAF infrastructure supports the aviation industry’s transition to lower carbon emissions while positioning Viva Energy as a leader in renewable energy,” he said.
Licella executive chairman Len Humphreys noted the role of its partnership with Shell in scaling SAF production.
“Through our partnership with Shell, we are advancing an integrated biomass-to-biofuels solution, targeting high volumes of low-cost, low-carbon SAF,” Humphreys said.
Since launching its SAF Funding Initiative in 2023, ARENA has committed $33.5 million across five projects to develop domestic SAF production.
The initiative builds on ARENA’s 2021 Bioenergy Roadmap, which identified biomass-derived SAF as a key solution for aviation decarbonisation.
The CSIRO SAF Roadmap found that Australia has sufficient biomass resources to supply more than half of its domestic jet fuel demand.
The investment aligns with the Federal Government’s Future Made in Australia Plan, which prioritises low-carbon liquid fuels. ARENA has been appointed as the delivery agency for the Future Made in Australia Innovation Fund, reinforcing its commitment to cleaner, greener aviation.
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