The Albanese Government on 22 July 2026 announced a AU$32 million package to accelerate HAMR Energy’s plan to turn forestry residues — essentially sawdust, bark and thinnings — into renewable methanol and, ultimately, sustainable aviation fuel (SAF). Funded through the Australian Renewable Energy Agency (ARENA), the grant will cover front-end engineering and design for three linked facilities: a biomass processing hub in Victoria, a renewable-methanol plant at the Port of Portland and a methanol-to-jet plant at Gillman in South Australia. Once operational, the chain could produce 140 million litres of SAF a year, enough to power roughly 2,000 Sydney-to-Los Angeles flights and cut an estimated 330,000 tonnes of CO₂ annually. Why it matters for mobility managers: from 2027 Qantas and Virgin Australia must begin blending SAF on international departures to meet new Jet Zero mandates. Local production would hedge airlines against volatile import costs and give corporates access to Australian-generated SAF certificates that count towards Scope 3 emission targets. The project also aligns with states’ efforts to position Australia as a regional SAF hub servicing trans-Pacific and trans-Tasman routes. For expatriates and frequent flyers, it could mean greener itineraries without the price premium currently attached to imported SAF blends. Next steps include detailed design, feedstock-supply agreements with plantation owners and securing private co-funding. If financial close is reached by late 2027, commercial volumes could flow by 2030, just as ICAO’s stricter CORSIA Phase II obligations bite. That time-line gives travel-procurement teams a window to bake SAF clauses into airline contracts and carbon-budget forecasts.
