Leading low carbon liquid fuels (LCLF) company HAMR Energy has today announced that its $700-800 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, utilising global engineering firm Honeywell’s world-leading technology and site selection is a key part of HAMR Energy’s strategy to produce SAF to decarbonise 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 for the South Australian Government.

The facility, when up and running, will convert 300,000 tonnes of low carbon methanol, made from plantation forestry residues and hydrogen into approximately 140 million litres of SAF. That is enough to decarbonise around 4.5 million economy-class passenger trips between Adelaide and Melbourne each year and will help close the estimated global SAF supply shortfall 10 million tonnes 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. It will support state and federal government priorities to establishing 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 recognised the significant contribution LCLF can make to the state’s economy. Plantation forestry residues from the Green Triangle, centred 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.

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

“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.”

Hon. Joe Szakacs, Minister for Trade and Investment, said: “Once again we’re seeing South Australia at the forefront of world-leading innovation in the global efforts to decarbonise.

“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 Series A funding garnering support from partners Airbus, Qantas and thyssenkrupp Uhde.