South Australia to host HAMR Energy’s methanol-to-jet SAF project

HAMR Energy announced March 3 that its AUD$700 million to AUD$800 million (USD$490.3 million to USD$560.5 million) sustainable aviation fuel (SAF) production facility will be located in South Australia after receiving backing from the state government.

The project will be the first-of-its kind in Australia, utilizing global engineering firm Honeywell’s technology.

HAMR Energy said site selection is a key part of its strategy to produce SAF to decarbonize air travel and create hundreds of jobs in the region.

HAMR Energy is now undertaking due diligence on sites suitable for major industrial developments with the support of the South Australian government.

The facility, when up and running, will convert 300,000 metric tons of low-carbon methanol, made from plantation forestry residues and hydrogen, into approximately 140 million liters (approximately 37 million gallons) of SAF.

That is enough to decarbonize around 4.5 million economy-class passenger trips between Adelaide and Melbourne each year and will help close the estimated global SAF supply shortfall of 10 million tons by 2030.

The project will create hundreds of construction jobs and dozens of long-term operational roles, attracting hundreds of millions of dollars of investment to the state, according to HAMR Energy.

It will also support state and federal government priorities to establish a domestic SAF industry, strengthening fuel security while helping the aviation industry meet emission-reductions targets.

The South Australian government and HAMR Energy have both recognized the significant contribution low-carbon liquid fuels can make to the state’s economy.

Plantation forestry residues from the Green Triangle, centered around Mount Gambier, will be converted into fuel by HAMR Energy after it signed supply agreements with local sustainable forestry firms including OneFortyOne.

This in turn will provide an additional revenue source for the forestry industry, supporting the regional economy.

“We are proud to be strengthening fuel security for the nation, while contributing to the South Australian economy and creating local jobs,” said David Stribley, the co-founder of HAMR Energy. “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 decarbonization in aviation.”

Joe Szakacs, South Australia’s minister for trade and investment, added, “Once again we’re seeing South Australia at the forefront of world-leading innovation in the global efforts to decarbonize. 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 comes after HAMR Energy’s AUD$10 million (USD$7 million) Series A funding garnering support from partners Airbus, Qantas and Thyssenkrupp Uhde.