The Australian government has announced enhanced support (as part of a new $1.7 billion Future Made in Australia Innovation Fund) to accelerate the nation’s sustainable aviation fuel (SAF) sector.

As published in the annual 2024-2025 Federal Budget, the new fund will be administered through the Australian Renewable Energy Agency (ARENA) to support projects such as the production of low-carbon liquid fuels. ARENA’s overall work (which includes initiatives in the hydrogen and battery sectors) will receive a total of $7.1 billion under the new budget, building on its track record of “nearly twelve years in delivering transformative projects that accelerate the energy transition,” notes the organisation.

ARENA’s existing Sustainable Aviation Fuel Funding Initiative (announced in July 2023) has received around $30 million to date, with funding allocated from the Federal government in 2021. The new announcement “represents a highly significant boost… and will provide additional co-investment opportunities alongside private equity and state government support in getting more SAF projects to Financial Investment Decision over the next decade,” commented Jet Zero Australia, which is working to develop the country’s first alohol-to-jet (AtJ) SAF facility in Queensland.

The latest funding announcement also includes $2 billion for the second round of the Hydrogen Headstart programme, with recipients expected to be announced later this year. “The current shortlisted applicants from Round One highlight the commitment from the private sector to develop this new industry,” commented ARENA CEO Darren Miller.
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