Australia’s OneFortyOne and low-carbon fuels firm HAMR Energy have signed an MoU on supplying sustainable biomass for renewable methanol production in Australia and New Zealand.

The deal supports HAMR’s Portland Renewable Fuels Project in Portland, Victoria, which aims to produce up to 300,000 mt/year of renewable methanol from forestry residues and green hydrogen, OneFortyOne said in a statement on its website on Tuesday.

The project targets renewable methanol demand from the shipping and aviation sectors.

Over the next 18-24 months, OneFortyOne will support HAMR’s development efforts, including supplying sample wood fibre for testing and in-field trials ahead of progressing to long-term supply agreements.

“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,” Nick Chan, director of corporate strategy at OneFortyOne, said.