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Highlights
- Viva Energy (VEA) secures government funding to advance sustainable aviation fuel (SAF) infrastructure.
- Shares rebound after previous sharp decline, reflecting market optimism on future prospects.
- Project aims to enhance SAF supply at Brisbane Airport, supporting the aviation sector’s sustainability shift.
Shares of Viva Energy (ASX:VEA) saw an upward movement after securing financial backing from the Australian Renewable Energy Agency (ARENA) for a sustainable aviation fuel (SAF) project. The initiative is set to enhance the availability of SAF at Brisbane Airport, reinforcing efforts to transition toward cleaner energy alternatives in the aviation industry.
Following a sharp drop in share price earlier in the week due to a significant decline in annual profit, the latest funding announcement appeared to restore investor confidence. Shares climbed 4.1% to $1.83 by midday AEDT, bouncing back from the previous 27% decline.
Driving the Sustainable Aviation Fuel Initiative
The Australian government’s renewable energy agency is allocating $2.4 million to Viva Energy as part of a $4.9 million project aimed at reconditioning an existing fuel storage tank at the company’s Pinkenba terminal in Queensland. This initiative will allow the blending and supply of SAF for commercial flights operating out of Brisbane Airport.
The funding is part of a broader initiative under ARENA’s SAF program, which was launched in 2023 with a total funding allocation of $33.5 million across multiple projects. This highlights a national effort to support the aviation sector’s shift toward lower carbon emissions.
Viva Energy has emphasized its commitment to sustainability by working with industry partners to establish a book-and-claim system. This system is designed to provide customers with transparency regarding the carbon reduction benefits associated with SAF usage.
Positioning for Future Growth in Renewable Energy
The project is set to conclude with Viva Energy demonstrating the operational capability of SAF storage and supply within Brisbane Airport. The company has also indicated plans to scale up SAF supply in response to increasing demand from commercial aviation operators.
Commenting on the development, Viva Energy’s Chief Strategy Officer, Lachlan Pfeiffer, highlighted the company’s efforts to lead in renewable energy solutions. "By enhancing our SAF infrastructure, we are not only supporting the aviation industry's transition to lower carbon emissions but also positioning Viva Energy as a leader in renewable energy solutions," he stated.
With sustainability becoming a focal point for industries worldwide, Viva Energy’s latest move aligns with broader efforts to integrate cleaner energy sources into traditional fuel supply chains. This development not only underscores the company’s commitment to environmental responsibility but also strengthens its position in the evolving energy landscape.
