The Qantas Group and Airbus will invest up to US$200 million to accelerate the establishment of a sustainable aviation fuel (SAF) industry in Australia.
Sustainable fuels cut greenhouse gas emissions by around 80 per cent compared to traditional kerosene and are the most significant tool airlines currently have to reduce their impact on the environment – particularly given they can be used in today’s engines with no modifications.
The Qantas Group, which has committed to using 10 per cent SAF in its overall fuel mix by 2030, is sourcing SAF overseas. This includes 15 per cent of its fuel use out of London currently and 20 million litres each year for flights from Los Angeles and San Francisco to Australia from 2025.
Due to the lack of a local commercial-scale SAF industry, Australia is currently exporting millions of tonnes of feedstock every year, such as canola and animal tallow to be made into SAF in other countries.
“The use of SAF is increasing globally as governments and industry work together to find ways to decarbonise the aviation sector. Without swift action, Australia is at risk of being left behind,” said Qantas Group CEO Alan Joyce.
“With this investment, Qantas and Airbus are putting our money where our mouth is and betting on the innovation and ingenuity of Australian industry.
“Aviation is an irreplaceable industry, especially for a country the size of Australia, and one that’s located so far away from so much of the world. Future generations are relying on us to get this right so they too can benefit from air travel.”
Joyce added that the investment will help kickstart a local biofuels industry in Australia and build more momentum for the industry as a whole.
“It makes a lot of sense for us to put equity into an industry that we will be the biggest customer of,” he said.
“We’re calling on other companies and producers to come forward with their biofuel projects. In many cases, this funding will be the difference between some of these projects getting off the ground.
“The aviation industry also needs the right policy settings in place to ensure the price of SAF comes down over time so that the cost of air travel doesn’t rise. We’ve had some encouraging discussions with the incoming Australian Government given their strong focus on emissions reduction and look forward to that progressing.”
Airbus CEO Guillaume Faury said ensuring a sustainable future for the aviation industry has become a priority for Airbus.
“The increased use of sustainable aviation fuels will be a key driver to achieve net zero emissions by 2050,” he said.
“But we can’t do this without viable industrial systems to produce and commercialise these energy sources at affordable rates and near to key hubs around the world.
“This is especially true for a country like Australia, which is geographically distant and highly reliant on aviation to remain connected both domestically and internationally.”