Hazer expands into renewable diesel, SAF with Continual Renewable Ventures in Australia

Hazer Group Ltd., an Australian company whose technology enables the production of clean and economically competitive hydrogen, announced May 12 that it has entered into a nonbinding memorandum of understanding (MOU) with Continual Renewable Ventures to assess opportunities for developing low-carbon liquid fuels (LCLF) production in Australia.

LCLF is an emerging sector focused on decarbonizing jet fuel and diesel with lower-emission alternatives, including sustainable aviation fuel (SAF) and renewable diesel.

The production of both SAF and renewable diesel requires biobased feedstock and hydrogen.

The MOU with CRV is Hazer’s first step into Australia’s emerging clean-fuels industry.

“The number of sectors reaching out to Hazer to partner with us is increasing, including locally here in Western Australia,” said Hazer CEO Glenn Corrie. “Recent world events have brought into focus the need for Australia to not just be a primary producer and exporter of raw materials, but to move back into domestic processing and production of refined products, including diesel and jet fuels. We have everything we need to produce these products in Australia from locally grown canola and affordable clean hydrogen, which Hazer can produce. Partnering with CRV makes perfect sense to Hazer. As an Australian company, CRV understands the imperative to produce locally and they bring the know-how of proven technology and production operations. The time to act in establishing our domestic clean fuels and diesel supply chain is now.”

Renzo Petersen, CRV’s founder and managing director, added, “We are a proud Australian company that is passionate about decarbonization of the fuel industry and supporting Australia in improving its energy security. As the exclusive Australian license holders of proven tech from XCF Global, we are uniquely positioned to help Australia when it comes to low-carbon liquid fuels aspire to energy independence. Currently, a significant portion of Australia’s canola is exported, some of which is then processed into SAF outside Australia. By teaming up with Hazer, which provides the low-emission hydrogen, and local Australian farmers, who provide the core feedstock of canola oil, we can produce SAF in Australia. The Kwinana region is an excellent location for Australia’s first SAF and renewable diesel production facility, the New Rise ANZ Project 1. It is located near the farms that produce canola, has great infrastructure and is relatively close to major aviation hubs. Our long-term intention is to grow from our first full-scale SAF and renewable diesel facility in Kwinana, to expand across Australia and New Zealand to create a low-carbon liquid fuels network. We think the time is right for Australia to start its journey back to energy independence and look forward to working with Hazer to support this journey.”

CRV holds the exclusive Australian and New Zealand license for a proven hydroprocessed esters and fatty acids (HEFA) technology from XCF Global.

The technology is already operating commercially in the U.S. and enables the production of SAF and renewable diesel using low-emission feedstocks including hydrogen and other inputs.

CRV is looking to develop a renewable diesel and SAF production facility in the Kwinana region of Western Australia using canola and hydrogen as feedstock.

Kwinana was selected because of its proximity to local canola production, a government that promotes industry diversification, employment and relative proximity to heavy industry.

Hazer has the ability to deliver the low-cost and low-emissions hydrogen as a key feedstock required for low-carbon liquid fuels production in Kwinana.

Hazer, through its proprietary process, produces low-emissions hydrogen and solid graphite from natural gas, without generating carbon dioxide in the process.

Hazer’s low-emissions hydrogen can be incorporated into SAF production facilities such as CRV’s HEFA biorefinery, where the hydrogen is used to deoxygenate the canola oil and other HEFA oils to create SAF and renewable diesel.

The resulting fuels can then be distributed through existing supply chains to nearby airports, transport networks and industrial customers.

Strong international support remains for the decarbonization of the aviation industry, with blending mandates already existing in some jurisdictions.

Jet-fuel combustion alone accounts for approximately 2 percent to 3 percent of global emissions.

SAF is a lower-emissions alternative to jet fuel, which can be utilized without modifications to existing aircraft.

One of the more advanced SAF production pathways is the HEFA process, which requires hydrogen to convert oils and fats such as canola into drop-in ready aviation fuel.

The hydrogen removes the excess oxygen and the resulting SAF is chemically equivalent to jet fuel.

Importantly, the emissions profile of SAF depends heavily on the hydrogen production pathway used in the process.

Australia is increasingly focused on strengthening domestic fuel security and rebuilding sovereign refining capability, with recent federal government support targeting the development of low-carbon liquid fuels industries, including SAF and renewable diesel.

The MOU commits both parties to collaborate across technical workstreams, on a nonexclusive basis, to assess the integration of the Hazer process and the viability of SAF biorefineries in Australia, including at Kwinana, Western Australia.

The term of the MOU is two years and includes other standard terms and conditions customary for a nonbinding contract at this stage.

Each party bears its own costs associated with the agreement.

Further binding agreements would be needed before either party makes significant financial commitments.