Made from crops,household waste,animal fat and other biomass,sustainable aviation fuel (SAF) produces about one-fifth of the emissions of conventional jet fuel. Qantas says it wants SAF to account for 10 per cent of its fuel use by 2030 and 60 per cent by 2050,but there’s a global supply issue.
Currently,there’s only enough SAF being produced to replace less than 1 per cent of the global aviation industry,at more than double the price of conventional jet fuel. Qantas spends $5 billion on jet fuel a year.
Qantas and Airbus have committed to investing a combined $307 million to develop a local SAF industry and have lobbied the federal government to do more to create the necessary policy framework and incentives needed to properly boost investment. The Queensland biofuel refinery will be the first project funded under the joint partnership.
From this,the pair will provide $2 million of an initial $6 million capital raising to conduct a feasibility study and develop plans for the Queensland refinery,in addition to a $760,000 investment from the state government. The remaining sum will be provided by institutional funds. The final cost of the refinery development is expected to total millions of dollars.
The Queensland refinery was first floated in April last year. It will produce up to 100 million litres of sustainable aviation fuel a year upon completion,which is not expected until 2026 at the earliest. A location for the refinery is yet to be announced.
Airbus sustainability executive Julie Kitcher said all Airbus aircraft are capable of flying with a sustainable aviation fuel blend of up to 50 per cent.
“There is a growing positive momentum around SAF,and it’s now time to move from commitments to concrete actions,” Kitcher said at an event in Sydney revealing the plans.