Virgin Australia and Qatar Airways collaborate on homegrown SAF production facility
April 3, 2025
Qatar Airways and Virgin Australia have further strengthened their alliance, partnering with Renewable Developments Australia (RDA) on a homegrown SAF production facility in Australia.
Following the final go-ahead from the Australian Competition and Consumer Commission earlier this week for Virgin Australia and Qatar Airways to establish a strategic alliance, the two airlines have now further strengthened their collaboration becoming key partners on a project to deliver homegrown sustainable aviation fuel (SAF) production facility in North Queensland, Australia.
Bioethanol production
The project aims to develop a fully-integrated Ethanol to Jet (EtJ) production plant in the Charters Towers Region in Australia, producing up to 96 million litres of SAF annually. The plant will convert bioethanol derived from locally grown sugarcane grown onsite into 100% SAF before delivering the fuel to nearby airports. It will also repurpose by-products of the SAF production process to generate renewable power onsite for all the project’s energy requirements.
The bioethanol will be produced using technology from Spanish company Tomsa Destil. It will then be converted to SAF using PureSAF technology developed by Swedish Biofuels in alliance with US-based technology and engineering firm, KBR. The PureSAF technology platform currently allows for up to a 50% blend, with a pathway to a 100% drop-in fossil fuel replacement.
“This initiative is more than just a step towards decarbonising air travel; it represents a major investment in Australia’s energy security and regional economic development,” explained RDA’s MD, Tony D’Alessandro.
According to RDA’s forecasts, the EtJ facility, for which Boeing has said it will provide policy advocacy and technical expertise, is currently in pre-final investment decision stage and is aiming to deliver SAF from early 2029.
Collaboration essential to achieve net zero goals
Meanwhile, Virgin Australia chief corporate affairs and sustainability officer, Christian Bennett, referenced the “enormous task ahead” for the aviation industry as it looks to achieve net zero emissions by 2050.
“Working together with industry partners and government to establish a domestic SAF industry in Australia will be essential – not only to achieve these shared emissions goals, but to strengthen Australia’s liquid fuel security by reducing reliance on global supply chains and creating new, secure, jobs for those living in regional Australia,” he said.
The project aligns with the key priority of Virgin Australia’s Memorandum of Understanding with Qatar Airways to focus on sustainability initiatives including the scaling up SAF and lower carbon aviation fuel (LCAF) certification, production and commercial uptake.
Queensland’s treasurer and minister for energy, David Janetzki said the partnership positions Queensland as a global SAF leader. “The new government has committed to progress the sustainable fuels industry, which stands to create opportunities and new jobs in regional Queensland.”
While Australia is a significant SAF feedstock producer , SAF is not yet in commercial production in the country. RDA’s Charters Towers project is similar to another Queensland biofuel refinery being developed by Jet Zero Australia in partnership with Qantas, Airbus and US-based SAF producer, LanzaJet., as well as the Queensland government. Located in Townsville and first announced in 2023, this facility aims to produce around 100 million litres of SAF per year.
