Miles Government support for sustainable aviation fuel takes off
Published Monday, 29 July, 2024 at 04:51 PM
Minister for State Development and Infrastructure, Minister for Industrial Relations and Minister for Racing
The Honourable Grace Grace
- Extra support from the Miles Government to grow Queensland’s emerging sustainable aviation fuel (SAF) industry.
- The government’s Industry Partnership Program will support Energreen’s multi-seed crushing and processing facility in Central Queensland.
- Further $1.52 million in seed funding to support two more SAF proposals.
Queensland’s growing sustainable aviation fuel (SAF) industry is about to take another step forward with the establishment of a new processing facility in Central Queensland with Industry Partnership Program funding from the Miles Government.
State Development and Infrastructure Minister Grace Grace said Energreen Nutrition Australia Pty Ltd (Energreen) will establish a new multi-seed crushing and processing facility at Yamala in the Central Queensland Inland Port at Emerald.
The Miles Government is supporting the exciting project with funding from its Industry Partnership Program (IPP), with planning for the facility already underway.
When complete it will have the capacity to process 70,000 tonnes a year, with a longer-term vision for Pongamia oil production – a potential SAF feedstock.
The new Energreen facility is estimated to represent $22.2 million worth of investment, creating 60 direct new jobs along with additional supply chain jobs.
The Miles Government is also providing funding to both Wagner Sustainable Fuels and Liquid Power, with grants of $760,000 each (total of $1.52m), for feasibility studies to develop the case for investment in their own SAF proposals.
The SAF industry is poised to be worth $3 billion annually by 2030, creating up to 15,600 jobs – mostly in regional areas – nationwide by 2050.
Queensland is recognised internationally as one of the best locations to establish an Australasian SAF supply chain because it already produces significant SAF feedstock and has a State Government prepared to back the industry.
As well as collaborating on the growth of a Queensland SAF industry through a key partnership with Qantas, the Miles Government provided support for Jet Zero’s feasibility study for a biorefinery in the Townsville State Development Area.
The Miles Government is also working with Ampol to investigate the production of renewable diesel and SAF at its Lytton refinery in Brisbane.
IPP funding has now reached $415.5 million and is focused on growing priority industries, strengthening local supply chains, encouraging collaboration between all levels of government and industry, and leveraging private sector investment.
Quotes attributable to Minister for State Development and Infrastructure Grace Grace:
“I am proud to see us pioneering practical solutions that promise a cleaner, greener aviation future, while delivering significant economic benefits for Queenslanders.
"Through IPP we supported Jet Zero Australia with $760,000 for a feasibility study, who have since leveraged that support to attract significant investment from partners like Qantas, Airbus Industries, and Japanese industrial giant Idemitsu Kosan. Jet Zero has now announced their intention to establish a SAF processing facility in the Townsville Region.
"The Miles Government can play a key role in supporting emerging industries like biofuels to secure early stage investment from the private sector.
“Growing our SAF industry will not only contribute to decarbonisation targets, but it will also create more good jobs, especially in Queensland’s regions.
“We are well on the way to establishing Queensland as a green jet fuel hub for the Asia-Pacific region.”
Quotes attributable to Qantas Group Chief Sustainability Officer Andrew Parker:
“We have a target of using 10% SAF by 2030, which is around 600 million litres each year, and the four projects in the Queensland pipeline could made a significant contribution to these requirements.
“A Queensland based biofuel refinery was the first project that Qantas invested in through our $400 million Climate Fund and we’ll continue to invest in and advocate for Australian SAF production.
“Australia needs to keep pace with other leading jurisdictions who are introducing SAF mandates and supply-side policies to capitalise on job creation, economic growth and national fuel security.”
Quotes attributable to Wagner Sustainable Fuels CEO Matt Doyle:
“Wagner Sustainable Fuels is delighted to partner with the Queensland Government to advance the Wagner SAF Refinery, Brisbane.
“This exciting facility further highlights the Queensland Government’s leadership in advancing SAF in Australia.
“It is also a further step forward for Wagner Sustainable Fuels following our commencement of a SAF blending facility at the Wellcamp Airport to support Wagner Corporation’s climate positive commitments for the Wellcamp Airport and Business Park and our recent partnership announcement with Boeing to advance the SAF industry in Australia.”
Quotes attributable to Energreen Nutrition Australia Pty Ltd Director Gary Seaton:
“Energreen’s new multi oilseed crushing facility will process oilseeds for the dual purposes of producing edible oils and bio-fuel feedstock.
“Energreen is working closely with local farmers and plant breeders to rejuvenate the oilseeds industry in Queensland. These oilseeds include cottonseed, sunflower seed, soybeans, and canola seeds.
“Our ongoing Pongamia trial is a key component of our strategy to integrate SAF into our operations. The trial's success will pave the way for large-scale SAF production, supporting the aviation industry's transition to more sustainable fuel sources.
“We are proud to be at the forefront of efforts to reduce carbon emissions and promote sustainable energy solutions in the food and feed industry, as well as in sustainable bio-fuel feedstock production systems, to build domestic capacity in Australia.”
Quotes attributable to Liquid Power Development Director Brendan Giles:
“Liquid Power is grateful for Queensland Government’s support as we expand our sustainable fuels capabilities in Queensland.
“As an emerging industry, assistance at this early stage is critical to establishing our first production facility and growing our low-carbon fuel platform.”
Further information:
- Queensland produces significant feedstock needed to make SAF, including tallow, sugarcane waste pulp and cereal cropping residues.
- SAF can be used in existing aircraft engines and airport refuelling infrastructure to cut carbon emissions typically by up to 80% on a life cycle basis.
- Sustainable aviation fuel (SAF) is critical for airlines to reach net zero emissions by 2050.