Australian low-carbon fuel company HAMR Energy has successfully closed a USD$7 million Series A funding round, securing significant investment from aviation leaders Airbus and Qantas, alongside industrial giant thyssenkrupp Uhde. This capital injection is set to accelerate the development of projects that convert plantation forestry residues into sustainable fuels. The initiative marks a critical step in decarbonising the hard-to-abate aviation and shipping sectors while bolstering Australia's domestic energy security.
Strategic Investment to Fuel Decarbonisation
The investment from Qantas and Airbus stems from their joint Australian Sustainable Aviation Fuel (SAF) fund, underscoring a strong industry commitment to fostering a local clean energy ecosystem. This funding is pivotal for HAMR Energy as it advances its pipeline of low-carbon liquid fuel projects. The collaboration aims to establish a reliable supply of sustainable fuels, which is essential for meeting long-term emissions reduction targets in global transport.
At the forefront of these plans is the company's flagship project, Portland Renewable Fuels (PRF), located in regional Victoria. The facility is designed to process residues from the local plantation forestry industry to produce 300,000 tonnes of low-carbon methanol annually. This methanol offers a versatile solution, capable of being used directly as a marine fuel or converted into sustainable aviation fuel to address the industry's growing needs.
Pioneering Technology and Partnerships
A key technological component will be provided by Honeywell, which will license its innovative UOP eFining™ process technology. This marks the first commercial application of the technology in the Pacific region, enabling the efficient conversion of methanol into renewable aviation fuel. This partnership provides a proven and scalable pathway for producing SAF, representing a major breakthrough for the Australian aviation industry's sustainability goals.
HAMR Energy has developed a vertically integrated production model to ensure a consistent and sustainable supply chain. The company has secured Memorandums of Understanding for long-term feedstock supply with partners like sustainable forestry company OneFortyOne. This strategy leverages existing byproducts, offering lower lifecycle emissions than alternative feedstocks and ensuring the production of highly competitive low-carbon fuels.
Projected Economic and Environmental Impact
With global SAF demand projected to reach 500 million tonnes by 2050, HAMR Energy's projects are positioned to play a crucial role in meeting this target. By establishing a domestic production capability, Australia can help close the significant global supply gap. This move not only supports international climate objectives but also significantly enhances the nation's resilience and self-sufficiency in aviation fuel supply.
The development of a domestic SAF sector is expected to deliver substantial economic benefits, according to a study commissioned by Qantas and Airbus. The report estimates the industry could contribute USD$9.3 billion in Gross Value Add to the Australian economy. Furthermore, it is projected to create or sustain as many as 70,000 jobs, stimulating economic growth and regional development across the country.
In addition to the PRF project, HAMR Energy is developing Australia’s first large-scale methanol-to-jet fuel facility. This plant will have the capacity to produce over 135 million litres of SAF annually. The project is expected to create hundreds of construction jobs and up to 130 permanent operational roles, providing a significant boost to regional employment and industry expertise.
This strategic funding round represents a landmark moment for Australia's emerging renewable fuels industry. The powerful collaboration between HAMR Energy, aviation giants, and technology leaders provides a clear pathway to producing low-carbon fuels at scale. The initiative is poised to deliver significant environmental benefits while driving economic growth and establishing Australia as a key contributor to the global energy transition.