Australian forestry and sawmilling company OneFortyOne and Australian low-carbon fuels company HAMR Energy have entered into a Memorandum of Understanding (MoU) to collaborate on the development of sustainable methanol from forestry residues in Australia and New Zealand.
The MoU marks a significant step forward in the development of HAMR Energy’s flagship Portland Renewable Fuels Project (PRF Project) in Victoria. The project will produce up to 300,000 tons per annum of renewable methanol, derived from forestry residue biomass and green hydrogen, which can be used to fuel planes and ships, helping decarbonize hard-to-abate transport.
The partnership aligns with the Australian Government’s Cleaner Fuels Program, announced earlier this week, which will provide $1.1 billion to support the supply of low carbon liquid fuels (LCLF).
“Our MoU with OneFortyOne is another important milestone as we continue to develop our pipeline of LCLF 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 global chemical design company ThyssenKrupp UHDE, positioning us to move quickly through the next phase of project development.”
Under the MoU, OneFortyOne will work with HAMR Energy to supply biomass residues initially to the PRF Project, with the potential to then leverage the learnings into New Zealand, where OneFortyOne has forestry assets in the Nelson/Marlborough regions in the South Island. The parties will explore optimal biomass specifications and supply chain logistics with the intention to progress to long-term supply agreements in due course.
“This is a pivotal moment for trans-Tasman forestry,” said Nick Chan, Director of Corporate Strategy at OneFortyOne. “We are excited to explore how lower-value residues can be transformed into high-impact renewable fuels, supporting emissions reduction efforts in other industries like aviation and shipping.”
