HAMR Energy to Build Major SAF Plant in South Australia

HAMR Energy has announced plans to construct a significant Sustainable Aviation Fuel (SAF) production facility in South Australia, a project valued between $700-800 million AUD. The plant is set to become a cornerstone of Australia's domestic biofuel production, aiming to enhance fuel security and accelerate the decarbonisation of the aviation sector.

According to a company press release, the facility will convert 300,000 tonnes of low-carbon methanol into approximately 140 million litres of SAF each year. This output is substantial enough to decarbonise an estimated 4.5 million economy-class passenger trips between Adelaide and Melbourne annually. The project represents a critical step for a nation that currently imports the majority of its jet fuel, addressing both environmental targets and strategic vulnerabilities in the supply chain.

Technology and Feedstock

The plant will employ a Methanol-to-Jet (MtJ) conversion process, a pathway gaining traction for its scalability and feedstock flexibility. Specifically, the project will utilize Honeywell's UOP eFining™ process technology, which converts eMethanol—derived from green hydrogen and recycled carbon dioxide—into a high-yield jet fuel. This technology is a key enabler for producing Low-Carbon Liquid Fuels (LCLF) at a commercial scale.

Feedstock for the methanol production will be sourced from plantation forestry residues from the Green Triangle region, a key forestry zone spanning parts of South Australia and Victoria. This vertically integrated approach, which leverages waste biomass, is central to the business model of HAMR Energy, whose name stands for Hydrogen Assisted Molecular Recycling. The company's flagship Portland Renewable Fuels (PRF) project in Victoria will convert forestry residue into the methanol that will supply the new South Australian SAF facility.

David Stribley, Co-founder of HAMR Energy, commented on the strategic location. “We are proud to be strengthening fuel security for the nation, while contributing to the South Australian economy and creating local jobs,” he stated. “Selecting South Australia as the home for our large-scale SAF facility is a strategic decision that builds on our investment in Victoria. The state's world-class infrastructure, commitment to clean energy, and proximity to sustainable feedstock sources make it an excellent location to accelerate decarbonisation in aviation.”

Industry Backing and Economic Impact

The project is supported by significant investment from major aviation industry players. HAMR Energy recently closed a $10 million AUD Series A funding round with participation from Airbus, Qantas, and technology partner thyssenkrupp Uhde. This backing from an original equipment manufacturer (OEM) and a major airline underscores the industry's confidence in the MtJ pathway and the urgency to secure a reliable supply of SAF.

This investment aligns with ambitious airline commitments. Qantas has pledged to use 10% SAF in its overall fuel mix by 2030 and approximately 60% by 2050. The development of a domestic production capability is essential to meeting these targets without relying on volatile international markets. The Australian government, through bodies like the Australian Renewable Energy Agency (ARENA), has also been actively funding studies and projects to cultivate a sovereign SAF industry.

The economic benefits for the region are expected to be substantial. The project is projected to create hundreds of jobs during its construction phase and dozens of skilled, long-term operational roles once the facility is commissioned.

Why This Matters

This facility marks a pivotal development for Australia's aviation industry. It directly addresses the dual challenges of carbon emissions and fuel import dependency by creating a large-scale, domestic supply chain for a lower-carbon alternative. The project's use of proven MtJ technology and its backing by key players like Airbus and Qantas signal a maturing market for SAF production, moving from pilot projects to commercially significant infrastructure.

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