A joint project at the site of New Zealand’s former oil refinery in Marsden Point could revolutionize the country’s approach to sustainable aviation fuel (SAF).

Fortescue Future Industries (FFI), the green energy arm of Australian iron ore producer Fortescue Metals, and Channel Infrastructure (formerly known as Refining NZ), have started a pre-feasibility study to explore the possibility of a 300MW plant that produces synthetic sustainable aviation fuel (eSAF) using green hydrogen.

If successful, this plant could generate 60 million liters per year of eSAF for the domestic market, addressing more than 3% of the country’s pre-Covid-19 yearly jet fuel requirements. What sets this project apart is its potential to produce eSAF at scale, a first-of-its-kind initiative globally. Unlike the biomass-based SAFs presently in circulation, eSAF is synthesized by combining green hydrogen with carbon dioxide to produce a hydrocarbon that can be further processed into SAF.

The chosen site, Marsden Point, previously functioned as New Zealand’s sole refinery, churning out 135,000 barrels per day until its transformation into an oil product import facility in 2022. The location, with its deepwater port, is ideal for large-scale operations, prompting FFI to enter an initial agreement with Channel in 2021 to probe hydrogen opportunities at the site.

The project is not merely an exercise in industrial chemistry but also carries strategic implications for New Zealand’s aviation industry. FFI has signed an initial agreement with Air New Zealand to establish a commercial relationship once Marsden Point becomes economically viable. Air New Zealand aims to use 10% SAF by 2030, but the country’s supply chain remains underdeveloped, only accepting its first SAF shipment last year.

With this green hydrogen initiative, New Zealand hopes to overcome recent difficulties with jet fuel supplies, including rationing at Wellington Airport due to off-specification supplies. If successful, the project could help usher in a greener, more sustainable era for the country’s aviation industry.

Share.
Exit mobile version