UK low carbon fuels developer Carbon Neutral Fuels has partnered with Australian energy developer Energy Estate to explore a sustainable aviation fuel project in North Queensland.
The companies have signed a memorandum of understanding covering the potential development of a SAF facility using sugarcane agricultural waste as its feedstock.
The agreement marks Carbon Neutral Fuels’ first step into the Australian market, with the companies now set to assess feedstock availability, potential project locations, technology pathways and future offtake opportunities.
The collaboration will centre on Energy Estate’s BioNQ Project and builds on the group’s existing relationship with Queensland Cane Agriculture and Renewables, which is focused on developing sugarcane-based bioenergy opportunities in Queensland.
North Queensland has been identified as a potential location to leverage the region’s established sugarcane industry and existing agricultural waste streams, while new energy infrastructure could support broader regional economic development.
For Carbon Neutral Fuels, the partnership provides an entry point into Australia’s emerging low-carbon fuels market, with the company bringing experience from its UK and European projects, including Project Starling, a SAF facility under development in Cumbria.
The companies said the proposed project could contribute to Australia’s fuel security and support the country’s upcoming SAF mandate targets, as demand grows for lower-carbon aviation fuels.
Energy Estate cofounder Simon Currie said the partnership would help accelerate development of BioNQ by drawing on experience from international markets.
With Australia looking to establish a domestic sustainable aviation fuel industry, the BioNQ collaboration adds another potential pathway for turning agricultural waste into lower carbon aviation fuel while supporting regional energy and infrastructure development.
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