Jet Zero Australia has received an Aus$29m investment for renewable fuel production in Queensland, Australia. The investors include: Airbus, Qantas and Idemitsu Kosan, marking their first investment in sustainable aviation fuel (SAF) outside Japan.
The funding should advance the engineering activities of Project Ulysses, the Alcohol-to-Jet (AtJ) production facility in North Queensland, as well as other renewable fuel projects.
“We are delighted to see Jet Zero Australia’s continued expansion, and the confidence from others in its planning process as it moves toward key decisions on its first SAF production facility in Australia,” said Stephen Forshaw, chief representative, Australia, New Zealand and the Pacific, Airbus. “This is a crucial first step, but Australia will need more SAF in coming years, and more investment to make it happen. The objective of our initial investment was to test the feasibility of Jet Zero’s Alcohol-to-Jet approach. With that proven, it is exciting to see the company moving forward and we look forward to supporting it through these crucial milestones.”
Andrew Parker, chief sustainability officer, Qantas commented: “Our early investment in Jet Zero’s project was a vote of confidence in its viability and we’re pleased to be able to continue that support at this funding round and we’re pleased to see a major international capital partner has now come onboard.” Producing fuel onshore could create 18,000 jobs and generate $13bn in economic benefits annually by 2040 in addition to increasing Australia’s domestic fuel security, he added.
Project Ulysses has completed a feasibility study, backed by a grant from the Queensland government of Aus$760,000. It is now seeking a further grant from the federal government to assist with the development into Front End Engineering and Design (FEED).
“Queensland’s renewable energy advantage means we can protect and grow regional jobs in high tech sectors like this one,” said Grace Grace, state development minister, Queensland. “We are leading the nation in this area, and the Miles Government is focused on securing our state’s future as a trailblazer in the sustainable aviation fuel industry. We look forward to our continuing work with Jet Zero to progress this game changing opportunity for Queensland.”
Jet Zero has made further a further application to the Queensland Government’s Industry Partnership Program to help the project move towards Final Investment Decision (FID), facility construction and operation.
“Project Ulysses will play a very important role in the growing momentum towards decarbonising the Australian aviation sector while providing fuel security and also developing a new industry in North Queensland,” said Ed Mason, CEO, Jet Zero Australia. “The ongoing support from Qantas and Airbus, two leaders in the Australian and international aviation sectors, as well as ongoing investment from our existing shareholders Chancery Hill, Dragonfly Enviro Capital and Audacy has remained crucial to the project’s success.” We welcome Idemitsu as a strategic shareholder with their financial backing and capabilities in project development and renewable fuels. Alongside Qantas and Airbus, the addition of Idemitsu boosts our ability to fund Australian SAF projects, he added.
“This investment agreement represents our first investment in an overseas SAF project and will contribute to the establishment and strengthening of the global SAF supply chain.” added Masahiko Sawa, managing executive officer, assistant to chief executive officer, (Manufacturing & Technology, Basic Chemicals and Carbon Neutral Transformation), head of CNX Strategy Headquarters. “Australia, especially Queensland, is an important business partner, and we hope to build a bridge between the two countries in the world of carbon neutrality in addition to the resources business.”
Project Ulysses aims to produce 102m litres of SAF and 11m litres of renewable diesel once operational.
