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Qantas and Airbus To Kick-Start Biofuel Production in Australia

Qantas has invested in a pioneering SAF production facility in Australia 7 photos
Photo: Qantas
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Qantas and Airbus are proving to be a power team. The two aren’t just bringing the longest nonstop passenger flight in the world (Project Sunrise, coming in 2025), but they’re also pioneering a domestic SAF (sustainable aviation fuel) industry in Australia.
Last year, the two partners announced the “Sustainable Aviation Fuel Partnership,” with planned investments of up to US $200 million. The first $2 million will go towards a brand-new production facility, to be set up in Queensland.

Two bioenergy technology companies, Jet Zero Australia and LanzaJet, will develop the future biofuel plant, with Qantas and Airbus as the main investors. The initial investment, plus additional funding from the Queensland government, and up to $6 million capital raising, will be used for the feasibility study, and to kick off the building process.

If things go well, the new facility should be pumping 100 million liters of SAF annually, in a few years. And most of that, if not all, is expected to be gobbled up by Qantas. The airline is determined to switch to SAF-fueled operations, and for that it needs a hefty locally-produced, affordable supply.

For now, the air operator has to rely exclusively on overseas sources. It has an agreement with Air bp, for SAF-powered flights out of London (starting this year), and another one with the California-based Aemetis, for SAF-powered flights out of San Francisco and Los Angeles (coming in 2025).

By the end of the decade, the airline wants to achieve a regular use of 10% SAF in its overall fuel mix. An ambitious goal, which would be impossible without a domestic supply. Once this emerging industry takes root in Australia, Qantas is set to become the largest consumer. There’s enough potential in the country for a strong SAF industry, and Queensland is at the forefront, thanks to its abundance of feedstock.

SAF is the generic name given to alternative fuels that can be obtained from various sustainable sources. In this particular case, we’re talking about ATJ (Alcohol-to-Jet Fuel). Jet Zero Australia makes ATJ from surplus ethanol that comes from agricultural by-products. The future Queensland refinery will officially be the first ATJ plant in Australia.

One of the biggest obstacles right now on the path towards green flights is the low accessibility of SAF. Because it’s still only being produced in a few locations around the world, and in small quantities, it continues to be a costly alternative to standard fuel.

The major players in the industry can make a difference by supporting large-scale production and encouraging domestic suppliers. Qantas is doing its pioneering work in Australia (it has also launched the SAF Coalition together with five other Aussie companies), and United Airlines has signed the biggest SAF purchase agreement in the world, back in the U.S.
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About the author: Otilia Drăgan
Otilia Drăgan profile photo

Otilia believes that if it’s eco, green, or groundbreaking, people should know about it (especially if it's got wheels or wings). Working in online media for over five years, she's gained a deeper perspective on how people everywhere can inspire each other.
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