Australian Government launches $30m SAF funding initiative

The Australian Renewable Energy Agency (ARENA) has launched a $30m funding initiative to support the development of the Sustainable Aviation Fuels (SAF) industry in Australia. The SAF Funding Initiative by ARENA is supported and funded by the Australian Government.

ARENA is seeking proposals for commercial or pre-commercial SAF production with funding provided to support engineering and project development activities. The initiative is open to applications seeking ARENA grant funding between $1m and $30m.

Darren Miller, CEO, ARENA said the funding initiative will help the government understand how SAF can play a role in decarbonising the aviation industry. “For a country so reliant on aviation for passenger and freight transport, it’s essential that we find ways to reduce emissions from this critical sector,” said Miller. “With abundant agriculture, waste and residue resources, Australia has the potential to support a thriving domestic biofuel industry.”

According to ARENA, Australia’s aviation industry accounts for around 1% of the nation’s greenhouse gas emissions. Most of these are from medium and long-haul flights.

The SAF Funding Initiative will examine opportunities across the supply chain from renewable feedstock supply to final fuel production and what is needed to enable and scale a domestic SAF industry.

ARENA will seek proposals with scalable approaches across the Australian supply chain. This includes innovation in domestic feedstock supply or business models that enable domestic SAF production. Proposals must also be able to demonstrate that they use an “eligible renewable feedstock”. Power to Liquids (PtL) production is not supported under the initiative.

“This is about utilising our natural advantages to reduce emissions and make the most of the economic opportunities on offer,” added Miller.

Applications for the SAF initiative are open now until November 1st, 2023.