HAMR Energy announced on July 28 that it plans to develop Australia’s first large-scale methanol-to-sustainable aviation fuel (SAF) production facility following the successful completion of a feasibility study, with an estimated project investment of AUD$700 million to AUD$800 million (approximately US$455 million to US$520 million). The project is a key component of HAMR Energy’s strategy to respond to new regulations in the international aviation industry that progressively allow the use of methanol as a feedstock for SAF.

HAMR plans to convert 300,000 tons of low-carbon methanol produced from forestry residues and hydrogen at its Portland-based renewable fuels project into approximately 125 million liters of SAF, which could support approximately 3.5 million carbon-neutral flights per year for economy class passengers between Sydney and Melbourne. The scalability and versatility of methanol as a feedstock for renewable fuels will help alleviate the projected global supply gap of 10 million tons of SAF by 2030, the company said.

South Australia and Victoria were identified as ideal locations based on research, and HAMR’s vertically integrated “biomass-to-fuel” model reduces production costs, making it attractive to airlines looking to lock in a long-term supply of low-carbon fuel.

Company co-founder David Stribble emphasizes Australia’s potential to develop a world-leading low carbon liquid fuels industry that will not only attract significant investment, but also contribute to regional employment and national energy security. HAMR is currently nearing completion of its A$10 million Series A funding round and has the attention of a number of strategic partners.