The Australian sustainable aviation fuel (SAF) industry has received a massive boost with a major joint investment. A Queensland biofuel refinery being jointly developed by Jet Zero Australia and LanzaJet is to receive investment from Qantas Group, Airbus, and the Queensland Government.
The refinery is looking to produce SAF from agricultural by-products, including sugar cane. The Qantas Group and Airbus will jointly invest AU$2 million of an initial AUS$6 million capital raising, with the Queensland Government contributing AU$760,000, while other Australian and international institutional funds will be providing further funding. The money will be used to conduct a detailed feasibility study and early-stage project development. The proposed facility will utilise LanzaJet's alcohol-to-jet technology to produce up to 100 million litres of SAF per year. Construction is due to start in 2024.
The Qantas Group and Airbus have committed to investing up to AU$200 million to accelerate the establishment of a SAF industry in Australia. The facility is the first project funded under the Qantas and Airbus Australian Sustainable Aviation Fuel Partnership. Sustainable fuels are key to airlines reducing their CO2 emissions as they can be used in today's engines and fuel delivery infrastructure without modification.
Qantas Group Chief Sustainability Officer Andrew Parker said the early project funding was an important first step towards building a domestic SAF industry, which will power flights around Australia. “Qantas will be the largest single customer for Australian-made SAF to meet our emissions reduction targets, which is why we're investing in the ideas and technology that will build a local SAF industry,” Parker said.
Queensland Deputy Premier Steven Miles said this project would be a game-changer for Queensland, and the state's economic future. “With our rich supply of feedstock, Queensland is in the perfect position to capitalise on the global shift to green jet fuels and become the leader of a local SAF industry,” Miles said. (£1.00 = AU$1.85 at time of publication).
