Boost for SAF production in Queensland
The Australian Renewable Energy Agency (ARENA) has announced an AUD$9 million investment to accelerate the development of sustainable aviation fuel (SAF) production in Queensland.
The funding will support Jet Zero Australia’s efforts to advance the project, which aims to reduce carbon emissions in the aviation sector through the production of low-carbon liquid fuels.
Jet Zero Australia is set to embark on a $36.8 million front-end engineering design (FEED) study, assessing the viability of a commercial-scale alcohol-to-jet fuel facility.
This project is seen as a crucial step towards a final investment decision for the production of SAF, which could transform the aviation industry’s approach to emissions reduction.
Alcohol-to-jet fuel is a process that offers an alternative production pathway for sustainable aviation fuel. One of the key advantages of this method is its ability to convert ethanol into a drop-in fuel blend, which can be used alongside traditional jet fuel.
Currently, aircraft are certified to use blends containing up to 50% SAF, which could significantly cut emissions without requiring changes to existing engines.
The new Townsville facility, once operational, is expected to produce approximately 100 million litres of SAF annually—enough to meet the fuel needs of both Cairns and Townsville Airports.
Jet Zero Australia estimates that this could reduce domestic aviation carbon emissions by up to 70%, displacing as much as 225,000 metric tons of CO2 each year.
ARENA CEO Darren Miller said: “With abundant feedstocks and vast renewable energy resources, Australia is well placed to produce the sustainable aviation fuels we need, right here at home.
“ARENA is funding Jet Zero Australia to investigate producing sustainable aviation fuel in Queensland to reduce our greenhouse gas emissions.
“We’ll be taking an active role in making sure the lessons from Jet Zero Australia’s study are shared with the industry at large, helping build a path to large-scale production in Australia.”
The project has garnered substantial backing, with support from major partners including Qantas, Airbus, and Japanese energy giant Idemitsu Kosan. The Queensland government has also contributed $5 million through its New-Industry Development Strategy, aiming to build local production capacity and develop a robust SAF supply chain in the region. LanzaJet, a leading player in SAF technology, will provide the alcohol-to-jet technology under licence.
According to ARENA’s Bioenergy Roadmap, the Australian SAF industry could add $10 billion to the nation’s GDP by 2030 and create as many as 26,200 jobs. Much of this growth is expected to benefit regional Australia, where agricultural feedstocks will play a key role in SAF production.
