Australia launches Green Fuels Accelerator for SAF, biofuel projects

Australia launched a Green Fuels Accelerator to advance commercial-scale low-carbon liquid fuel production, with seven projects selected to receive tailored regulatory, technical, commercial and finance advisory support aimed at accelerating final investment decisions, project developer Cyan Ventures said.

Funded by the Australian Renewable Energy Agency, with support from industry partners including Qantas and Boeing, the accelerator will provide targeted commercialization support to de-risk projects and unlock domestic low-carbon fuel supply, while reducing Australia's reliance on imported fuel, which frequently exceeds two-thirds of domestic demand, Cyan Ventures said June 10.

"The Green Fuels Accelerator is about converting Australia's natural advantages into operating projects. We have the feedstocks, the innovative capacity, and willing partners across the supply chain to become a leader in low carbon fuel technology and production," Fraser Thompson, managing partner at Cyan Ventures, said in the statement.

"The benefit of a thriving domestic SAF industry is clear. What's missing is the targeted support to get early-stage projects across the line -- the financing structures, the offtake agreements and the regulatory guidance that turns potential into production," Thompson said.

The pilot initiative will work with seven identified low-carbon liquid fuel projects, providing specific commercialization support in areas such as financing and commercial offtake, Cyan Ventures said. Industry partners, including Qantas, Boeing, Mission Possible Partnership, Climate Tech Partners and SYSTEMIQ, will provide project advisory support.

The seven selected projects span conversion technologies and integrated feedstock-to-fuel facilities across Queensland, Western Australia and New South Wales, according to the statement. Each project will receive bespoke advisory support tailored to its technology, feedstock and commercial stage.

"Qantas is committed to reducing the emissions of Australian aviation and scaling a domestic sustainable aviation fuel industry is central to that goal," Fiona Messent, chief sustainability officer at Qantas, said in the statement. "We're pleased to provide our commercial and technical expertise to help the most promising projects reach production."

"Boeing's partnership on the Green Fuels Accelerator initiative marks a pivotal step towards securing Australia's energy independence, growing regional economies, lowering long term fuel costs and advancing decarbonization across the aviation sector," Kimberly Camrass, head of sustainability APAC at Boeing, said in the statement.

Feedstock development

"Australia has the potential to manufacture our own low carbon liquid fuels. We have abundant feedstocks, strong research capability and growing demand from sectors like aviation," Darren Miller, chief executive officer at the Australian Renewable Energy Agency, said in the statement. "What's needed now is the support to help promising projects navigate the final steps to commercial scale."

Western Australia is funding genetic research to develop higher-yielding canola varieties that can better withstand frost and acidic soils, aiming to strengthen domestic biodiesel feedstock supplies while improving food production, according to a June 5 statement on the Western Australia government website. The state's Department of Primary Industries and Regional Development is leading three projects backed by the Grains Research and Development Corp. that target key production constraints limiting canola output across Australia's grain belt.

The New South Wales government will invest A$225 million ($161 million) to expand domestic low-carbon manufacturing as part of efforts to position the state as a supplier of renewable energy equipment and clean technologies, the government said June 2. The investment will support projects manufacturing renewable energy components, as well as low-carbon products such as blended cement, cross-laminated timber and biofuels.

The federal government in May committed A$1.1 billion under its Clear Fuels Program to boost domestic low-carbon liquid fuel production, with consultations on national biofuel blending mandates expected to begin soon. Only New South Wales and Queensland currently mandate blending of ethanol and biodiesel.