The South Australian Government will support Zero Petroleum to undertake a feasibility study exploring the development of a sustainable aviation fuel (SAF) production facility in Whyalla.
The six-month feasibility project will evaluate the technical, economic and environmental viability of a facility capable of producing up to ten million litres of synthetic aviation fuel, gasoline and diesel annually.
It will be conducted in collaboration with an aviation industry consortium led by Adelaide Airport and Qantas Airways, with the State Government signing a Letter of Intent to provide support in a facilitating role.
The commercial-scale production plant – Plant Zero.SA – will be located in South Australia’s Upper Spencer Gulf.
The South Australian Government said Whyalla is at the epicentre of its State Prosperity Project, which will see the construction of a world-leading renewable hydrogen facility, positioning the Upper Spencer Gulf as a hub for emerging industries that will leverage hydrogen production at scale, helping to significantly reduce emissions.
Synthetic fuels, or e-fuels, are created by combining renewable hydrogen with carbon dioxide to produce a low carbon fuel compatible with existing aircraft, road vehicles and maritime applications.
The State Government said sustainable fuels are the key means for airlines to reduce emissions and will be critical to achieving the industry’s goal of net zero by 2050.
The project is expected to create up to 150 full-time-equivalent jobs during the construction phase, spanning engineering, technical and trade roles, with 25 to 30 ongoing operational positions.
South Australian Minister for Energy and Mining, Tom Koutsantonis, said the state’s leadership in renewable energy and renewable hydrogen production makes it an ideal location for advancing e-fuel innovation.
“The State Prosperity Project is already starting to see results with companies such as Zero Petroleum recognising the opportunity to leverage our world-leading investments in renewable hydrogen.
Mr Koutsantonis said hydrogen is a game-changer for industries striving to decarbonise, and aviation is no exception.
“By fostering innovative projects such as this and collaborating with major partners such as Zero Petroleum, Qantas and Adelaide Airport, we can drive the transition to sustainable fuels while cementing South Australia’s position at the forefront of renewable energy and industrial transformation.”
South Australian Minister for Trade and Investment, Joe Szakacs, said, “South Australia is leading the way in the global green transition, and now we’re seeing the international business community lining up to set up shop in Whyalla alongside a world-leading renewable hydrogen power plant.
“This agreement is a direct result of the Memorandum of Understanding that the South Australian Government signed with Zero Petroleum earlier this year, and the ongoing work done by Invest SA to promote the investment opportunities in South Australia.”
Mr Szakacs said the State Government is seizing on the opportunity in front of it to transform South Australia’s economy into a green powerhouse and unlock a pipeline of business opportunities.
“The prospect of creating synthetic fuel in South Australia will make our state a more attractive trade partner and a stronger investment destination.”
Qantas CEO, Vanessa Hudson, said Australia has the potential to be a global leader in the production of SAF and it’s going to be critical for the future of the aviation industry.
“These projects not only reduce emissions but also create more jobs, more economic benefit and fuel security,” Ms Hudson said.
“We’re already backing Australian projects through a partnership with Airbus that will accelerate an onshore SAF industry and look forward to working with the South Australian Government to kickstart a local SAF industry in the state.”
Zero Petroleum Founder and CEO, Paddy Lowe, said, “Sustainable aviation fuels are among the greatest tools we have for achieving the aviation industry’s ambitious climate goals, and since Zero’s process uses just air and water to produce synthetic liquid fuels, we believe South Australia’s advanced hydrogen industry and savvy government support provides a unique opportunity to scale up for mass adoption.
“We are excited to make Plant Zero.SA a reality, in collaboration with the South Australian Government, Adelaide Airport Limited and Qantas, to create new jobs and strengthen the region’s position as one of the world leaders in sustainable energy.”
Adelaide Airport Managing Director, Brenton Cox, said the International Air Transport Association estimates that sustainable aviation fuels could reduce 65 per cent of aviation emissions, so global aviation is heavily invested in the successful development of a significant sustainable aviation fuels industry.
“This includes Adelaide Airport, as aviation fuel consumption represents 88 per cent of our Scope 3 carbon emissions,” Mr Cox said.
“By leveraging green hydrogen, South Australia has a significant opportunity to be a leader in sustainable aviation fuels production.”
