The Australian Renewable Energy Agency (ARENA) has announced a AUD$9 million investment to boost sustainable aviation fuel (SAF) production in Queensland.
This funding will support Jet Zero Australia in its efforts to advance a project aimed at lowering carbon emissions in aviation through the creation of low-carbon liquid fuels. Jet Zero Australia is launching a $36.8 million front-end engineering design (FEED) study to evaluate the feasibility of a commercial-scale alcohol-to-jet fuel facility.
This initiative is considered a critical step toward making a final investment decision on SAF production, which could revolutionize how the aviation industry approaches emissions reduction. The alcohol-to-jet fuel process provides an alternative pathway for producing sustainable aviation fuel, converting ethanol into a blend compatible with traditional jet fuel.
Currently, aircraft are certified to operate on blends containing up to 50% SAF, allowing for significant emissions reductions without modifications to existing engines.
The new facility in Townsville is expected to produce around 100 million liters of SAF annually, enough to satisfy the fuel requirements of both Cairns and Townsville Airports. Jet Zero Australia anticipates this could lead to a reduction of domestic aviation carbon emissions by as much as 70%, displacing approximately 225,000 metric tons of CO2 each year.
ARENA CEO Darren Miller stated, “With abundant feedstocks and extensive renewable energy resources, Australia is well positioned to produce the sustainable aviation fuels we need domestically. ARENA is funding Jet Zero Australia to explore SAF production in Queensland to help lower our greenhouse gas emissions. We will actively share the insights gained from Jet Zero Australia’s study with the broader industry to facilitate large-scale production in Australia.”
The project has received significant support from key partners, including Qantas, Airbus, and the Japanese energy company Idemitsu Kosan. The Queensland government has also contributed $5 million through its New-Industry Development Strategy to enhance local production capacity and develop a strong SAF supply chain in the region. LanzaJet, a leader in SAF technology, will provide the alcohol-to-jet technology under a licensing agreement.
According to ARENA’s Bioenergy Roadmap, the Australian SAF industry could contribute $10 billion to the national GDP by 2030 and create up to 26,200 jobs, with much of this growth benefiting regional Australia through the use of agricultural feedstocks in SAF production.
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