ARENA invests $32M in HAMR Energy

• ARENA awarded $32 million to HAMR Energy to convert plantation forestry residues into sustainable aviation fuel.
• The investment marks the first grant under the federal government's $250 million low-carbon liquid fuels initiative.
• HAMR Energy aims to process 600,000 tonnes of forestry waste annually to reduce emissions by 85%.

The Australian Renewable Energy Agency provided $32 million to HAMR Energy to convert forestry residues into sustainable aviation fuel.

The funding marks the initial grant allocated under the federal government's $250 million low-carbon liquid fuel priority programme.

"Australia has an abundant supply of forest waste, and turning it into fuel would be a win," said Federal Minister for Climate Change and Energy Chris Bowen.

HAMR Energy stated that the capital will fund engineering work across its supply chain to produce low-carbon methanol.

The company stated that the Victorian facility has the potential to displace up to 140 million litres of fossil fuels annually.

HAMR Energy expects the Victorian commercial project to cut carbon emissions by 85% compared with conventional fossil fuels.

Following the announcement, the HAMR Energy share price was unchanged as an unlisted private entity.