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South Australia emerging as international sustainable fuel hub

A six-month feasibility study into SA’s Upper Spencer Gulf as an operations destination for English company Zero Petroleum is set to be undertaken

Whyalla looks set to be the new home of a commercial-scale synthetic fuel production plant run by English company Zero Petroleum.

Plant Zero.SA will be located in South Australia’s Upper Spencer Gulf, and the feasibility study will officially be supported by the state government and run in collaboration with a consortium headed by Adelaide Airport and Qantas.

Whyalla is a key location in the state government’s State Prosperity Project.

The six-month feasibility study will evaluate the technical, economic and environmental viability of a facility capable of producing up to 10 million litres of synthetic aviation fuel, gasoline and diesel annually.

Synthetic fuels, otherwise known as e-fuels, are created by combining renewable hydrogen with carbon dioxide to produce a low carbon fuel compatible with existing aircraft, road vehicles and maritime applications.

This means that although the study is being supported by players in Australia’s aviation industry, it could have roll-on effects to the nation’s road transport sector should plans for the facility progress.

Minister for Infrastructure, Transport, Energy and Mining Tom Koutsantonis says South Australia is well positioned to establish itself as a future fuels leader.

“South Australia’s leadership in renewable energy and renewable hydrogen production makes the state an ideal location for advancing e-fuel innovation,” Koutsantonis says.

“The State Prosperity Project is already starting to see results with companies such as Zero Petroleum recognising the opportunity to leverage our world-leading investments in renewable hydrogen.

“Hydrogen is a game-changer for industries striving to decarbonise, and aviation is no exception.

“By fostering innovative projects such as this and collaborating with major partners such as Zero Petroleum, Qantas and Adelaide Airport, we can drive the transformation to sustainable fuels while cementing South Australia’s position at the forefront of renewable energy and industrial transformation.”

The project has the potential to create up to 150 full-time equivalent jobs during the construction phase, with 20 to 30 ongoing operations positions.

Minister for Trade and Investment, Local Government and Veterans Affairs Joe Szakacs says the progression of the State Prosperity Project in Whyalla will make South Australia a more attractive investment destination.

“South Australia is leading the way in the global energy transition, and now we’re seeing the international business community lining up to set up shop in Whyalla alongside a world-leading renewable hydrogen power plant,” he says.

“We are seizing on the opportunity in front of us to transform South Australia’s economy into a green powerhouse and unlock a pipeline of business opportunities.

“The prospect of creating synthetic fuel in South Australia will make our state a more attractive trade partner and a stronger investment destination.”

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