One of Australia and New Zealand’s largest forest managers, OneFortyOne, has signed a memorandum of understanding (MOU) with low-carbon fuels developer HAMR Energy, which could result in hundreds of thousands of tonnes of forestry residues being converted into sustainable aviation and marine fuels. Wood Central understands the MOU supports HAMR’s Portland Renewable Fuels Project (PRF Project) and lays the groundwork for expansion into New Zealand.
The PRF Project—backed by the Albanese government’s $1.1 billion Cleaner Fuels Program—will combine forestry biomass with green hydrogen in Victoria’s Green Triangle to produce 300,000 tonnes of renewable methanol every year, targeting low-carbon liquid fuel for hard-to-abate industries like aviation and shipping.
“Our MoU with OneFortyOne is another important milestone as we continue to develop our pipeline of low-carbon liquid fuel projects and finalise our Series A fundraise,” said David Stribley, co-founder of HAMR Energy. “We have MoUs in place to supply all the feedstock for the PRF Project, and recently completed Pre-FEED with ThyssenKrupp UHDE, positioning us to move quickly through the next phase of project development.”
Under the MoU, OneFortyOne will first supply forestry residues to the PRF Project and then apply the lessons learned to its New Zealand operations in Nelson and Marlborough. The partners will collaborate on optimal biomass specifications and supply-chain logistics, with the intention of progressing to long-term supply agreements. Over the next 18–24 months, OneFortyOne will provide sample wood fibre for laboratory testing and in-field trials to refine feedstock assumptions.
“This is a pivotal moment for trans-Tasman forestry – we believe our industry is the logical partner in this LCLF space given the predictability and reliability we offer through scale and consistency of feedstock supply, year-round operations, and utilisation of well-established infrastructure and supply chains,” said Nick Chan, director of corporate strategy at OneFortyOne. “If successful, we will diversify our end-market exposure while working towards decarbonising our supply chain, particularly Scope 3 transport emissions.”
Last week, Wood Central reported that the $1.8 billion project, located on the South Australia-Victoria border, would transform the Green Triangle into a powerhouse for low-carbon liquid fuels. “This funding initiative is an exciting new opportunity for the forestry sector,” according to Cr Karen Stephens, president of Timber Towns Victoria and Mayor of Glenelg Shire Council, “ultimately using the whole of the tree and turning what would have been wasted wood fibre into a valuable low-carbon resource for use in other industries.”
According to Andrew White, CEO of Victoria’s Forest Products Association, timber plantations can underpin a future biofuel economy: “Plantation wood fibre residues and byproducts that might otherwise go to waste will be transformed into renewable low-carbon fuels – helping to decarbonise heavy transport, shipping and aviation,” he said. “Victoria’s plantation timber industry is poised to provide significant volumes of wood residues as feedstock, which will generate new income streams for growers and processors, and support new jobs in low-carbon fuel manufacturing in regional Victoria.”
- To learn more about the push to convert forest waste from Australia’s abundant plantations in the Green Triangle into sustainable aviation fuels, click here for Wood Central’s special feature from June 2023.
