Melbourne-founded HAMR Energy has secured up to $32 million from the Australian Renewable Energy Agency (ARENA) to plan a supply chain that would turn plantation forestry waste into sustainable aviation fuel, the federal government announced in July 2026.
Aviation is one of the hardest sectors to decarbonise because batteries are too heavy for long-haul flights, leaving liquid fuels as the main near-term option. ARENA chief executive Darren Miller said sustainable aviation fuel (SAF) offered “a practical near-term pathway to reduce emissions from aviation using existing aircraft and infrastructure”, Australian Aviation reported. The grant is the first investment under the government’s $250 million low carbon liquid fuels allocation.
The supply chain
HAMR’s plan links three projects. A biomass processing facility in Victoria would take about 600,000 tonnes a year of forestry residue, the branches, bark and offcuts left behind after a plantation harvest. The Portland Renewable Fuels project in Portland, Victoria, would use renewable electricity and hydrogen to turn that material into about 300,000 tonnes of renewable methanol a year.
A methanol-to-jet refinery at Gillman, in Adelaide’s north-west, would then convert the methanol into about 140 million litres of SAF a year. HAMR estimates the fuel could cut emissions by about 85% compared with fossil jet fuel, or about 390,000 tonnes of carbon a year, according to Australian Aviation.
The funding
The ARENA money is staged. The first $12.5 million covers early engineering and design, with a further $19.5 million available once HAMR secures co-funding for detailed design. The overall project is valued at $92 million.
Earlier in 2026, HAMR raised $10 million from Qantas and Airbus to support the Victorian methanol project.
The founders
Engineers Alex Smith and David Stribley founded HAMR in Melbourne in 2020. Stribley described the funding as “a significant milestone in Australia building globally competitive domestic SAF industry”.
Energy Minister Chris Bowen said “Australia has an abundant supply of forest waste”, while Transport Minister Catherine King said the government was “proud to be investing in this project that turns waste into fuels.”
Jack’s take
Aviation is one of the hardest things on earth to run without fossil fuel, so part of the answer might be wood we’ve been leaving on the ground. The real test is the co-funding. The second tranche only lands if HAMR finds partners willing to put their own money in.