HAMR Energy enters biomass supply deal for renewable fuels production

Australian chemicals company HAMR Energy has teamed up with compatriot forestry and sawmill business OneFortyOne for the supply of sustainable biomass for renewable methanol production in “a significant step forward” in the development of its flagship Portland Renewable Fuels Project (PRF Project).

The collaboration was formalized with a memorandum of understanding (MoU) under which 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 plan to explore optimal biomass specifications and supply chain logistics with the intention to progress to long-term supply agreements in due course.

As explained, over the next 18–24 months, OneFortyOne will support HAMR’s development efforts, including supplying sample wood fibre for testing and in-field operational trials to refine feedstock assumptions, in addition to progressing supply agreements.

Located in Victoria, HAMR Energy’s PRF Project is designed to produce up to 300,000 tonnes per annum of renewable methanol, derived from forestry residue biomass and green hydrogen, which can be used to fuel and help decarbonize maritime and aviation transport.

The project recently completed the pre-front-end engineering design (pre-FEED) phase, conducted by German technology and engineering company thyssenkrupp Uhde.

The $AUD 2 billion (around $USD 1.3 billion) project is expected to be operational by 2029.

David Stribley, Co-Founder of HAMR Energy, said the MoU with OneFortyOne represents another important milestone as the company continues to develop its pipeline of low-carbon liquid fuels (LCLF) projects and finalize 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 between the two companies aligns with the Australian Government’s recently announced Cleaner Fuels Program, which will provide $1.1 billion to support the supply of LCLF.