Australia
June 20, 2022
The joint announcement today by Qantas and Airbus of a $200 million investment in locally sourced sustainable aviation fuel is likely to provide ongoing support for the Australian oilseeds industry. Brassica crops such as canola, mustard and carinata can all be processed into high quality aviation fuels.
While demand for biodiesel is likely to soften into next decade as electric vehicles replace internal combustion engines, the opportunity for Australia to supply the sustainable aviation fuel industry will provide a solid base for ongoing oilseed production in Australia. In addition, the existing ISCC Sustainability Certification program, already certifying many Australian canola farms, has a module specifically tailored to aviation fuels. The AOF, through its Sustainable Grain Australia program, is already reviewing the specifics of the requirements for sustainable aviation fuel.
“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." says Alan Joyce, CEO of Qantas
“This investment will help kickstart a local biofuels industry in Australia and hopefully encourage additional investment from governments and other business and build more momentum for the industry as a whole.
Qantas/Airbus joint Press Release:
Quantas and Airbus joint investment to kickstart Australian biofuels industry
The Australian Sustainable Aviation Fuel Partnership was signed by Qantas Group CEO Alan Joyce and Airbus CEO Guillaume Faury in Doha yesterday, ahead of the International Air Transport Association (IATA) annual general meeting. The landmark agreement will see the Qantas Group and Airbus invest up to US$200 million to accelerate the establishment of a sustainable aviation fuel (SAF) industry in Australia.
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 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 current fuel use out of London and 20 million litres each year for flights from Los Angeles and San Francisco to Australia from 2025.
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 partnership
The Qantas and Airbus partnership will invest in locally developed and produced SAF and feedstock initiatives. Projects will have to be commercially viable and meet a strict set of criteria around environmental sustainability.
The partnership is initially for five years with options to extend the duration. Qantas' financial contribution to the Australian Sustainable Aviation Fuel Partnership includes AU$50 million previously committed to research and development of SAF in Australia.
Qantas has started a process of talking to its major corporate customers about their interest in accessing SAF offsets for their organisation's flying. This input is shaping the design of a program that could also be extended to individuals in an expansion of the existing offsetting program Qantas already has in place. This new program is expected to launch later this calendar year.
You can read the full statement including comments from Qantas Group CEO Alan Joyce here.
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