South Australia has been selected to host HAMR Energy’s proposed $700-800 million sustainable aviation fuel (SAF) production facility, with the company confirming it has received backing from the State Government for the development.
In a media release, HAMR Energy said the project would be the first-of-its-kind methanol-to-jet fuel facility in Australia.
The low carbon liquid fuels (LCLF) producer said it plans to use technology from global engineering firm Honeywell as part of its strategy to produce SAF domestically and contribute to the decarbonisation of air travel.
HAMR Energy is undertaking due diligence on potential sites for the major industrial development, with support from the South Australian Government.
The company said site selection forms a key part of its broader plan to scale SAF production while generating regional employment.
According to HAMR Energy, the facility, once operational, will convert 300,000 tonnes of low carbon methanol into approximately 140 million litres of SAF each year.
The methanol will be produced from plantation forestry residues and hydrogen. The company stated that this output would be sufficient to decarbonise around 4.5 million economy-class passenger trips annually between Adelaide and Melbourne and would contribute toward addressing an estimated global SAF supply shortfall of 10 million tonnes by 2030.
The project is expected to create hundreds of construction jobs and dozens of ongoing operational roles. HAMR Energy said the development would attract hundreds of millions of dollars in investment into South Australia and align with state and federal priorities to establish a domestic SAF industry, strengthen fuel security and support aviation sector emissions reduction targets.
Feedstock for the facility is set to include plantation forestry residues sourced from the Green Triangle region, centred around Mount Gambier. HAMR Energy has signed supply agreements with sustainable forestry companies, including OneFortyOne.
The company said the arrangements would provide an additional revenue stream for the forestry sector and support the regional economy.
David Stribley, co-founder of HAMR Energy, said the project would deliver both economic and energy security benefits.
“We are proud to be strengthening fuel security for the nation, while contributing to the South Australian economy and creating local jobs,” Stribley said.
“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.”
South Australia’s Minister for Trade and Investment, Joe Szakacs, described the project as a significant endorsement of the state’s economic and clean energy credentials.
“Once again we’re seeing South Australia at the forefront of world-leading innovation in the global efforts to decarbonise,” Szakacs said.
“This is a massive vote of confidence in our state and will deliver significant economic impact.
“But most importantly, this investment will create hundreds of secure and well-paid jobs for South Australians.
“An investment of this size doesn’t happen by accident. It follows persistent work and considered planning.
“Our Government warmly welcomes HAMR Energy’s backing of South Australia.”
The announcement follows HAMR Energy’s AUD 10 million Series A funding round, which received support from partners including Airbus, Qantas and thyssenkrupp Uhde.
