Australian chemicals firm HAMR Energy has entered into an agreement with forestry and sawmilling business OneFortyOne to secure sustainable biomass for its Portland Renewable Fuels Project (PRF Project) in Victoria.
The two companies have signed a memorandum of understanding under which OneFortyOne will provide forestry residue to the PRF Project.
The arrangement also opens the door to future cooperation in New Zealand, where OneFortyOne operates forestry assets in the Nelson and Marlborough regions.
Over the next 18 to 24 months, OneFortyOne will supply sample wood fibre for testing and take part in operational trials aimed at refining feedstock specifications and supply chain logistics, with a view to reaching long-term supply agreements.
The PRF Project is designed to produce up to 300,000 tonnes of renewable methanol each year using forestry residues and green hydrogen.
The $A2 billion development recently completed its pre-front-end engineering phase, carried out by German engineering group thyssenkrupp Uhde, and is expected to be operational by 2029.
David Stribley, Co-Founder of HAMR Energy, said the agreement marked “another important milestone as the company continues to develop its pipeline of low-carbon liquid fuels projects and finalise its Series A fundraise.”
Nick Chan, Director of Corporate Strategy at OneFortyOne, added: “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.”
The partnership also reflects the aims of Australia’s Cleaner Fuels Program, which will provide $1.1 billion in support for the production and supply of low-carbon liquid fuels.
HAMR Energy signs biomass supply deal for renewable methanol project
