Airbus and Qantas Support HAMR’s Low-Carbon Fuel Expansion with Series A Investment

Melbourne-based renewable fuels developer HAMR Energy has secured AUD10 million, approximately USD7.1 million, in Series A financing, with participation from Qantas, Airbus, and thyssenkrupp.

The investment strengthens HAMR’s position as it advances projects designed to convert plantation forestry residues into low-carbon liquid fuels. The company’s focus is on decarbonising transport segments that are difficult to electrify, including aviation and maritime shipping.

 

Converting Forestry Residues into Scalable Fuel Supply

 

Founded in 2020, HAMR is developing a pipeline of facilities aimed at transforming sustainably sourced plantation waste into renewable fuels. Its anchor project in Victoria is expected to produce 300,000 tonnes per year of low-carbon methanol. This product can be used directly as a marine fuel or further processed into sustainable aviation fuel.

The company is also working on what it describes as Australia’s first major methanol-to-jet fuel facility. Once operational, the plant is projected to convert methanol into more than 135 million litres of sustainable aviation fuel annually. This approach leverages forestry by-products that might otherwise remain underutilised, linking regional resource streams to national decarbonisation objectives.

HAMR leadership has indicated that the Series A funding will accelerate project development and help position its fuel offerings as competitive on both cost and carbon intensity.

 

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Alignment with National SAF Strategy

 

The participation of Qantas and Airbus comes through their joint Australian Sustainable Aviation Fuel investment fund, announced in 2022 with a commitment of up to AUD200 million to stimulate domestic SAF production capacity. By backing early-stage producers, the fund aims to strengthen local supply chains and reduce reliance on imported sustainable fuels.

For aviation stakeholders, domestic production capacity is increasingly viewed as critical to achieving sectoral emissions targets. Developing geographically distributed fuel production also enhances supply security and supports regional economic activity.

Airbus has emphasised that expanding low-carbon fuel production across multiple Australian states can broaden access for airlines and other offtakers. Greater distribution flexibility is seen as essential for scaling adoption within an industry characterised by nationwide and international connectivity.

 

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Addressing Hard-to-Abate Transport Emissions

 

Shipping and aviation remain among the most challenging sectors to decarbonise due to high energy density requirements and long asset lifecycles. While electrification has progressed in other areas of transport, alternative liquid fuels are widely regarded as essential for these industries in the medium term.

Low-carbon methanol and sustainable aviation fuel offer pathways to reduce lifecycle emissions without requiring immediate fleet overhauls. By developing conversion infrastructure domestically, HAMR aims to contribute to Australia’s broader clean energy transition while supporting export potential.

The Series A funding round underscores growing corporate engagement in alternative fuels, as industrial and aviation players seek practical solutions capable of delivering emissions reductions at commercial scale.