Carnarvon secures 75% of biomass feedstock needed for Western Australia renewable diesel project
Carnarvon Energy Ltd. provided an update July 18 on its renewable diesel business, FutureEnergy Australia, a 50/50 joint venture with Frontier Impact Group, and its first biorefinery project outside Narrogin in Western Australia. The project is scaled at approximately 5 million gallons per year (mgy) and will use a high-temperature pyrolysis process that produces syngas, which must be further processed and distilled to produce renewable diesel.
According to Carnarvon, approximately 75 percent of the woody-biomass and ag-waste feedstock required for the Narrogin project has now been secured for a 10-year period. Negotiations regarding the balance of feedstock are also progressing, the company reported.
“The length and quantum of the contracts for the foundation feedstock enhances the bankability of the Narrogin project with potential lenders and investors,” Carnarvon stated.
Progress has also been made on front-end engineering and design (FEED) by Technip Energies, with final documentation expected this quarter, according to Carnarvon.
The company stated that FutureEnergy Australia continues to receive strong interest for its planned products, namely renewable diesel, biochar and wood vinegar, from the mining, construction, agricultural and power-generation sectors.
“Further interest has also been generated from a number of international trading houses, highlighting the growing global demand for renewable biofuels like renewable diesel and sustainable aviation fuel (SAF),” Carnarvon stated, adding that it plans to be involved in the development of at least 132 mgy of production capacity by 2030.
“Carnarvon plans to deliver sustained long-term shareholder value through building its renewable diesel business,” said Adrian Cook, Carnarvon managing director and CEO. “Our first project in Narrogin, with JV partner Frontier Impact Group, is making material progress towards an important financial-investment decision, wherein the construction period will follow. The attraction of renewable diesel to Carnarvon is the opportunity to continue being a significant, long-term producer of liquid fuels, and in doing so generating value throughout the energy transition. By mid-2030 a sizable portion of Carnarvon’s liquids production could potentially be from renewable biofuels, including renewable diesel, SAF and sustainable marine fuel. As we are currently finding, these renewable biofuels are highly sought after globally, with a significant carbon abatement and ESG premium built into the sales price. Carnarvon sees an opportunity to build a sustainable business, which drives both long-term shareholder value and exceptional ESG outcomes.”