Emission Control: Queensland biofuel refinery to turn agricultural byproducts into sustainable aviation fuel

Emission Control is Stockhead’s fortnightly take on all the big news surrounding developments in renewable energy.

Agricultural by-products such as sugarcane will be turned into jet fuel at a Queensland biofuel production facility being developed by Jet Zero Australia and leading aviation fuel tech company, Lanza Jet.

The proposed facility will utilise LanzaJet’s alcohol-to-jet technology (ATJ) to produce up to 100 million litres of sustainable aviation fuel (SAF) per year with construction expected to start in 2024.

The Qantas Group and Airbus will jointly invest $2 million of an initial $6 million capital raising, with the Queensland Government contributing $760,000 and other Australian and international institutional funds providing additional funding, which will be used to conduct a detailed feasibility study and early-stage project development.

Sustainable fuels to power flights

Sustainable fuels are the most significant tool airlines currently have to reduce their emissions, particularly given they can be used in today’s engines and fuel delivery infrastructure with no modifications.

SAF sourced overseas is currently purchased by The Qantas Group, including 10 million litres for flights out of London in 2023, and from 2025, 20 million litres per year for flights out of California.

But domestically produced SAF will be a key part of Qantas reaching its commitment to use 10 per cent SAF in its overall fuel mix by 2030 and achieve net zero emissions by 2050.

“This is a first but significant step towards turning agricultural and sugarcane byproducts into aviation fuel to power flights around Australia,” Qantas Group chief sustainability officer Andrew Parker said.

“SAF is a drop-in solution that we can use with current technologies and it’s critical to the decarbonisation of the aviation industry.”

Queensland’s take-off as a clean powerhouse

The Queensland project is projected to be the country’s first sustainable aviation fuels plant, one which has been described by Queensland deputy premier Steven Miles as a “game changer”.

“With our rich supply of feedstock, Queensland is in the perfect position to capitalise on the global shift to green jet fuels and become the leader of a local SAF industry,” he said.

“It’s exciting to think Queensland could be producing the millions of litres of SAF needed to power flights across Australia and around the globe, creating more regional jobs in the process.”

Who’s got news out?

ORIGIN ENERGY (ASX:ORG)

US investment giant Brookfield has entered into a Scheme Implementation Deed with ORG, valuing Australia’s largest integrated power generator and energy retailer at an enterprise value of $18.7 billion.

The purchase price of $8.91 per share represents a 53.4% premium to the company’s unaffected share price.

Origin’s board has stated that it is unanimously recommending that Origin shareholders vote in favour of the Scheme in the absence of a superior proposal, and subject to an independent expert concluding the Scheme is in the best interests of shareholders.

Brookfield says the business plan for Origin Energy Markets contemplates at least $20 billion of additional investment during the next decade to construct up to 14GW of new renewable generation and storage facilities in Australia.

This is expected to enable the retirement of one of Australia’s largest coal-fired power generation plants, Eraring, and will be undertaken with the highest regard for network reliability and security.

“Origin Energy Markets’ existing 3.1GW fleet of gas-fired generation and pumped hydro storage provides reliable capacity at peak periods and at times when renewable generation is intermittent,” Brookfield said in a statement on Monday.

“This firming capacity is critical to the build out of scale renewable capacity and will facilitate Australia’s transition to net zero.”

Group 6 Metals (ASX:G6M)

G6M, formerly King Island Scheelite, has entered into an MoU with Fortescue Future Industries for the potential provision of renewable energy, heat energy and hydrogen to G6M’s wholly owned Dolphin Tungsten Mine on King Island, Tasmania.

The company says partnering with FFI to explore these potential opportunities advances its objectives of securing clean, green energy to meet its current and future power needs for its mining operations on King Island.

FFI will undertake the preparation of a concept and feasibility studies in respect of the project but both parties will endeavour to complete commercial, planning, financial, technical and legal due diligence activities.

Subject to the outcome of these due diligence activities, G6M says it aims to progress to definitive agreements as soon as is reasonably possible.