© Reuters. FILE PHOTO: Qantas aircraft at Kingsford Smith International Airport in Sydney, Australia, March 18, 2020. REUTERS/Loren Elliott
SYDNEY (Reuters) – Qantas Airways Ltd and Airbus SE (OTC:) will jointly invest A$2 million ($1.34 million) in a biofuels refinery being built in the Australian state of Queensland that would convert agricultural by-products in sustainable aviation fuel (SAF). .
The funds will be used for a detailed feasibility study and early stage development of the proposed facility jointly developed by Jet Zero Australia and technology firm SAF LanzaJet, Qantas said on Thursday.
The refinery is expected to produce up to 100 million liters of SAF a year, with construction to begin next year.
SAF is a biofuel used to power aircraft that has similar properties to conventional jet fuel without the need to develop new aircraft or engines. It can be blended with conventional jet fuel and can reduce carbon emissions by up to 80%.
Emissions are saved throughout the production process because the raw materials used to make SAF, including agricultural residues and waste from the logging industry, have lower life-cycle emissions than conventional jet fuel.
Qantas and Airbus last year established a $200 million fund to help meet Qantas’ goal of using at least 10% SAF in its fuel mix by 2030 after the airline placed a multi-million dollar order for jets from Airbus narrow and wide fuselage.
The Queensland refinery is the fund’s first investment.
Due to the lack of a sustainable aviation fuel industry in Australia, Qantas now sources SAF at overseas airports, including 10 million liters for flights from London in 2023 and 20 million liters for flights from California from 2025.
The airline is targeting 10% of its fuel from SAF by 2030 and 60% by 2050 to reach its net zero emissions target by then.
($1 = 1.4966 Australian dollars)
