Could Origin benefit from aviation fuel sales?

An article published in The Australian highlights the potential for liquefied natural gas (LNG) producers to create a viable aviation fuel product.

While aviation fuel is unlikely to become a significant earnings stream for major LNG producers such as Origin Energy (ASX: ORG) and Santos (ASX: STO), it could provide a valuable niche. The closure of Shell and Caltex refineries in Australia has the potential to create a hole in supply which LNG producers could fill, should LNG be proved as a viable source for jet fuel.

They won’t be without competition though. Founded in 2007, Algae Tec (ASX: AEB) recently announced a deal with Australia’s largest coal-fired power company, Macquarie Generation, to build an algae carbon capture and biofuels production facility alongside the power station. Not only will this facility create benefits from the capture of carbon but Algae Tec also plans to produce biodiesel and hydrogenated grade-A jet fuel. The facility will be built by engineering contractor Worleyparsons (ASX: WOR), with an expected return on investment within four years.

The Australian Financial Review says “good quality Australian shares that have a long history of paying dividends are a real alternative to a term deposit.” Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.