Viva Energy secures ARENA funding to establish Sustainable Aviation Fuel infrastructure
The aviation industry is rapidly transitioning to cleaner fuel alternatives, and sustainable aviation fuel infrastructure is key to this transformation. With investments in SAF production and distribution, companies like Viva Energy are leading the charge in reducing carbon emissions and advancing sustainable air travel.
Viva Energy is excited to announce it has secured funding from the Australian Renewable Energy Agency (ARENA) to support the development of Sustainable Aviation Fuel (SAF1) infrastructure to supply Brisbane Airport.
The Hon. Chris Bowen MP, Minister for Climate Change and Energy, visited the Viva Energy Pinkenba Terminal today for the announcement.
This initiative is an essential step towards reducing the aviation industry’s carbon footprint—widely recognized as a significant challenge for the sector—as using SAF will be integral in achieving carbon emission reduction targets. This project will provide invaluable learnings for the broader industry as it navigates the energy transition and will be critical to enabling a thriving SAF industry in Australia.
SAF, derived from renewable resources like waste oils and agricultural residues, will be revolutionary for the aviation industry, significantly cutting greenhouse gas emissions compared to conventional jet fuel. SAF is regarded as a drop-in solution with characteristics almost identical to those of conventional jet fuel, making it compatible with existing aircraft and infrastructure when blended with jet fuel and eliminating the need to change or replace equipment.
The $2.39 million funding via ARENA’s Sustainable Aviation Fuel Funding Initiative, out of the total $4.93 million cost of the project, will be used to refurbish and upgrade existing infrastructure, including the reconditioning of a fuel storage tank at the Pinkenba Terminal in Brisbane. The tank will provide dedicated storage for SAF, facilitating its distribution to Brisbane Airport via pipeline.
Additionally, the project will implement a book-and-claim system, enabling customers to trade sustainability certificates and claim the environmental benefits of SAF without necessarily having to purchase the physical fuel. This element of the project will provide critical learnings essential for developing SAF distribution and utilization around Australia, including in regional locations. They will allow a broad range of aviation customers to be involved. Viva Energy is committed to supporting the development of this industry through knowledge sharing, including what is learned from the demonstration outcomes, the development of the book-and-claim system, and the blending of SAF at a terminal.
The key objectives of the project are to:
- Upgrade distribution infrastructure and provide future options: Recondition a fuel storage tank and upgrade pipes and pumps to allow blending and distribution of SAF to the airport. Having an operating SAF supply chain will increase confidence and reduce barriers to the establishment of domestic SAF manufacturing.
- Foster growth in customer partnerships: Adopting a book-and-claim system will enable the decoupling of sustainability benefits from the physical SAF product, allow for effective tracking, and enable customers to realize the carbon benefits.
- Build industry capacity through the pilot program: Provide the initial SAF purchase and blockchain tokens to stimulate customers to pilot the system and generate industry learnings highlighting the use of SAF and the book-and-claim system.
Viva Energy General Manager of Aviation Nick Adams said the funding from ARENA is a crucial milestone in the company’s ability to supply sustainable fuel to Australia’s aviation industry. “By enhancing our SAF infrastructure, we are not only supporting the aviation industry’s transition to lower carbon emissions but also positioning Viva Energy as a leader in renewable energy solutions,” he said. “Viva Energy is well placed to import and supply SAF. We are already a trusted partner to many aviation customers, and our strength lies in deep relationships and a nationwide supply chain backed by Vitol’s international capability.”
ARENA CEO Darren Miller said this project represents an essential step in developing a pipeline of projects that could support the reduction of aviation sector emissions.
“Aviation is a challenging industry from an emissions reduction perspective, with domestic flights currently accounting for approximately 2 percent of Australia’s greenhouse gas emissions,” Mr Miller said.
“With Australians being among the most prolific flyers in the world, decarbonizing this high emissions industry will be vital for us to achieve our net zero targets.”
“This project is an important step towards developing opportunities to cut emissions from Australian skies, and ARENA will be working to ensure the lessons from it help inform the broader development of a sustainable aviation fuels industry in Australia.”
Brisbane Airport Corporation Executive General Manager Raechel Paris said: “By making SAF available at Brisbane Airport, this project will support our airline customers and play a key role in helping the Airport address its scope three emissions. Viva Energy and ARENA are supporting Brisbane Airport to take a leading role in integrating SAF into the future of air travel.”
1 Where mentioned in the article, SAF refers to Sustainable Aviation Fuel, a synthetic blending component blended with conventional jet fuel to produce SAF Blend Jet A1. The maximum blend rate in the final product is set and approved by the relevant annex in the ASTM D7566 standard and subsequently blended with conventional jet fuel and certified to ASTM D1655 (or Defence Standard 91-091) and is supplied as a traditional Jet A-1 fuel.
Media Enquiries:
Michael Cave
T: +61 409 647 910
E: michael.cave@vivaenergy.com.au
About Viva Energy
Viva Energy (ASX: VEA) is a leading convenience retailer, commercial services, and energy infrastructure business with a history spanning more than 120 years in Australia. The Group operates a convenience and fuel network of almost 900 stores across Australia and supplies fuels and lubricants to a total network of nearly 1,500 service stations.
Viva Energy owns and operates the strategically located Geelong Refinery in Victoria and operates bulk fuels, aviation, bitumen, marine, chemicals, polymers, and lubricants businesses supported by more than 20 terminals and about 80 airports and airfields across the country. www.vivaenergy.com.au
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