In Australia, HAMR Energy Pty Ltd (HAMR Energy), a low-carbon fuels company, has announced he successful close of its AU$10 million Series A funding round, securing investment from major aviation companies Airbus and Qantas Group, as well as leading global industrial firm thyssenkrupp Uhde GmbH.
According to a statement, the investment marks a critical milestone as HAMR Energy advances its pipeline of low-carbon liquid fuel (LCLF) projects, which convert plantation forestry residues into fuel to decarbonise hard-to-abate transport, including shipping and aviation.
This funding round is a pivotal moment for HAMR Energy and for Australia’s clean energy future. With the backing of world-class partners, we are advancing projects to deliver the lowest-cost, lowest-carbon fuels to decarbonise aviation and shipping at scale. This investment will help us play an important part in realising Australia’s goals of establishing an LCLF industry, said David Stribley, Co-Founder of HAMR Energy.
The investment from Qantas and Airbus will be taken from their joint Australian Sustainable Aviation Fuel investment fund, and existing investors have recommitted.
Airbus sees HAMR Energy’s innovative approach to producing SAF from methanol as a very interesting technology pathway, which can help accelerate the industry’s transition to sustainable fuels. We are also excited to support the development of this proposed project in Victoria. Developing low carbon fuel production in more of Australia’s states has the potential to create broad access for offtakers across the country – so important when we consider the reach of our industry, said Stephen Forshaw, Airbus Chief Representative, Australia, New Zealand and the Pacific.
In further support of the project, Honeywell will provide its innovative “UOP eFining” process technology and expertise to enable renewable fuel production from methanol – a breakthrough for the aviation industry.
Honeywell’s extensive technical expertise and practical experience in SAF have enabled us to identify innovative ways in which flexible feedstocks can be used to support aviation’s energy transition. Our agreement with HAMR Energy marks the first commercial license in the Pacific region for SAF production using Honeywell’s eFining process technology. This initiative highlights our commitment to supporting the responsible growth of the global aviation sector and propelling efforts toward a low-carbon future, said Rajesh Gattupalli, President of Honeywell UOP.
Flagship project
HAMR Energy’s flagship project, Portland Renewable Fuels (PRF), in regional Victoria (VIC), will use residues from the local plantation forestry industry to produce 300,000 tonnes per annum of low-carbon methanol.
This methanol can be used directly as a shipping fuel or converted into sustainable aviation fuel (SAF) via a methanol-to-jet (MtJ) route.
This is an important milestone for the future of renewable fuels in Australia. For us at thyssenkrupp Uhde, it’s a great example of how our technology and project delivery capabilities can help turn ambitious concepts into an industrial reality – thanks to the great collaboration with HAMR and all partners involved. Projects like this succeed when developers, technology partners, execution experts, and future offtakers work hand in hand from the very beginning. Joining forces across the entire ecosystem is what creates real-world impact, said Nadja Håkansson, CEO, thyssenkrupp Uhde.
In addition to PRF, HAMR Energy is developing Australia’s first major MtJ facility, which will have the capacity to convert methanol into more than 135 million litres of SAF annually, helping close the global SAF supply gap, strengthening Australian fuel security, and supporting the country’s transition to cleaner energy.
With global SAF demand estimated by the International Air Transport Association (IATA) to reach 500 million tonnes by 2050, HAMR Energy’s projects could play a pivotal role in production in Australia.
The sector will deliver AU$13.1 billion in Gross Value Add and create or sustain 70,000 jobs, according to a 2023 study by ICF and commissioned by Qantas and Airbus.
It will create hundreds of construction jobs and up to 130 long-term operational roles once established, enhancing Australia’s resilience and self-sufficiency in aviation fuel supply.
Building a sustainable aviation fuel supply in Australia is essential to meeting our decarbonisation targets and reducing aviation’s emissions. But the benefits extend well beyond our industry – a domestic SAF sector means jobs, regional investment, and economic growth across Australia. HAMR Energy’s vertically integrated approach represents a significant step forward, and we’re proud to support production that will help establish this critical local industry, said Fiona Messent, Chief Sustainability Officer at Qantas Group.
HAMR Energy’s experienced executive team has designed an innovative, vertically integrated production model to meet the needs of customers by using existing byproducts with Memoranda of Understanding (MoU) for long-term supply agreements with partners, including sustainable plantation forestry company OneFortyOne.
This method offers lower lifecycle emissions than alternative feedstocks and utilises proven technology to produce highly competitive fuels.
The success of HAMR Energy’s project will be a defining moment for the plantation forestry industry in Australia, supporting diversification into new markets for our residual wood products. OneFortyOne is uniquely positioned to lead as a feedstock partner in this low-carbon liquid fuels space, thanks to the sustainability, scale, and consistency of our supply, year-round operations, and well-established infrastructure and supply chains, said Nick Chan, Director of Corporate Strategy at OneFortyOne.
