Kwinana Smart Fuels

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Overview

Opportunity Snapshot

Kwinana Smart Fuels Pty Ltd (KSF) is a uniquely purposed entity formed to develop a large demand driven Net Zero Carbon Fuels (NZCF) Refinery project in Western Australia. The Refinery project will produce 900 million litres per annum of Jet and Automotive fuel for Australian markets, using Australian Natural Gas, sustainable Wood chips, renewable power, and hydrogen as feedstock for the Refinery … as opposed to crude oil.  At full production, the Refinery will generate over AUS $2.7b in revenue, with estimated EBITDAs over AUS $1.8b, annually.

 The Kwinana Refinery will carry NO carbon footprint (Net Zero) and will be sustainably cheaper to produce fuel, compared to conventional crude oil fuel production. The project, to build and commission the Refinery, has been specifically developed to address the transition and mounting demand for low carbon fuels to underpin insatiable low carbon energy needs, eliminating 50+ million tons of CO2 from the global carbon cycle during its lifetime, about 1.3% of global output.

Moreover, the exigency for carbon-based fuels (chiefly Jet & General transport) is forecast to increase globally before a peak in 2040, whereinafter electrification and other energy developments are predicted to then dominate. Notwithstanding, the demand for Jet and Automotive fuels will continue to increase beyond peak carbon-based demand.  

Australia also has a dangerously diminished capacity to produce aviation and transport fuels, relying upon Asia, the Middle East, and USA for over 90% of its fuel supply, creating sovereign risk and reliance upon volatile market pricing.     

the Importance of the Project

The project is an integrated, next generation, zero carbon transportation fuels Refinery, incorporating a suite of commercially proven technologies into a fiscally robust operating system.

The KSF project transforms wood to Syngas and gas derived from hydrogen methanation technologies to product very low carbon Jet and Automotive fuels, at a fraction of the cost of crude oil-based feedstock.

Syngas to methanol, using natural gas as feedstock, has been applied globally for some time with over 100 billion litres of production from plants currently operating around the world. Operating plants using these proven technologies reside in the US, Canada, Germany, Netherlands, Sweden, Denmark, Japan, China, and India.

Investment Drivers:  

  • High Aust sovereign risk on Jet & Automotive fuels 
  • Demand for carbon fuels will increase for 16+ years 
  • Aust has abundant sources of refinery feedstock
  • Technology being deployed is proven and reliable
  •  Australian demand versus supply delta is enormous
  • Project will accelerate government carbon reduction goals
  • Crude-oil fuels are expensive & use fickle markets
  • Technology can use multiple feedstocks (No Crude)
  • Global crude-oil refineries are aging & expensive
  •    High EBITDA, ROCE, & free cash flow project metrics  

Secured project partners

  • Arcadis
  • HLB Mann Judd
  • Fluor
  • Haldor Topsoe
  • Trafigura
  • Landari
  • Energy Matrix Group

Each of our partners will endorse the viability and integrity of the Kwinana Refinery project, relative to their respective skills and experience

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