Oceania Biofuels scraps A$500 million Australia SAF and RD project: EPBC

Oceania Biofuels is abandoning a proposed A$500 million ($339 million) biofuels project in Gladstone for sustainable aviation fuel and renewable diesel, according to a project status report from the Australian government's Environment Protection and Biodiversity Conservation (EPBC).

The company's project status from EPBC stands as "withdrawn".

Also, the company has taken down its website.

The company couldn't be reached immediately for comments.

The project, launched in 2022, was hailed by the Queensland state government as a great boost for the local community as the project was based on the east coast of Australia.

This renewable facility was supposed to come online in 2025, using waste tallow, canola, cotton seed and used cooking oil as feedstock to produce 350 million liters of renewable diesel and sustainable aviation fuel annually. The project was also set to produce bio-naphtha as processed by-product.

The company selected Gladstone's Yarwun Industrial Precinct in northern Queensland, home to the state's LNG export port and Northern Oil's waste-lube-to-base-lube recycling facility, as the site for its upcoming project.

Recently, several renewable and SAF projects worldwide have faced closure. US biofuels company Fulcrum Bioenergy's waste-to-fuel plant near Reno, Nevada, shut down operations in mid-May 2024.

Across the continent reflecting a potential confidence crisis in the renewable energy sector Chevron, Shell, and BP have recently paused their European projects, signaling a shift in strategy.

However, there are still several renewable including SAF projects under development across Australia. These include Northern Oils' advanced biofuels plant at Yarwun in Queensland while Ampol and ENEOS are developing feasibility on an SAF plant in Brisbane.

Moreover, oil major BP also announced biofuels refining capacity at Kwinana in Western Australia scheduled to begin SAF and biodiesel production from 2026.

Further solidifying Australia's commitment to SAF, Qantas and Airbus, key partners in the Jet Zero Project Ulysses, have announced their support for a new biorefinery in Queensland, capable of producing up to 100 million liters of SAF annually.

Jet Zero Australia's second significant initiative involves a joint venture with Singapore's Apeiron Bioenergy. Their goal is to cultivate low-carbon intensity feedstocks in Australia, sourcing waste oils and non-edible crops. These efforts are aimed at producing hydrotreated esters and fatty acids for SAF.

SAF will account for 0.61% of global aviation fuel consumption in 2024, up from 0.31% in 2023, according to S&P Global Commodity Insights. This is expected to rise to 3.24% in 2040 and 24.06% in 2050, with volumes reaching 2.2 million b/d from 20,000 b/d in 2023.

Platts, part of Commodity Insights, assessed SAF production costs (palm fatty acid distillate) in Southeast Asia at $1,605.48/mt on July 15, up $17.95/mt for the day.