Australia funds Queensland study to produce aviation fuel from sugarcane waste

Reuters
02-26
Australia funds Queensland study to produce aviation fuel from sugarcane waste

By Michele Pek

Feb 26 (Reuters) - The Australian Renewable Energy Agency (ARENA) will provide A$8 million ($5 million) to technology firm Licella for a study on a biorefinery in Queensland to produce sustainable aviation fuel (SAF) for the Brisbane Airport.

The project would located at the Isis Central Sugar Mill which will provide the sugar mill waste feedstock, the energy and transport ministries said in a joint statement without providing a production figure or timeline.

Australian refiner Viva Energy VEA.AX will also receive A$2.4 million for trials on storing and using SAF at the airport, they added.

"By making more fuel on Australian shores from Australian renewable energy and feedstock, we can make our fuel supply stronger, cleaner and more secure," said Minister for Climate Change and Energy Chris Bowen.

The Commonwealth Scientific and Industrial Research Organisation (CSIRO), in partnership with Boeing Australia, said in a report last year that there is enough domestic feedstock to supply almost five billion litres of SAF production (3.99 million metric tons) in 2025 even though projects have been slow to proceed. Australia does not currently have a mandate to use SAF to reduce emissions.

Boeing invested in Wagner Sustainable Fuels in August last year to support the development of an SAF refinery in Brisbane.

($1 = 1.5795 Australian dollars)

(Reporting by Michele Pek; Editing by Kim Coghill)

((michele.pek@thomsonreuters.com;))

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