How Boeing is Supporting SAF Development in Australia
The aviation industry is notoriously hard-to-abate and responsible for around 4% of global warming. Something has to change.
Boeing and Australian research institute CSIRO have partnered to boost sustainable aviation fuel (SAF) production in Australia, aiming to make it a world leader in the field.
Released a year after their initial 2023 SAF Roadmap, Boeing and CSIRO's SAF State of Play report shows the challenges and opportunities for cultivating a SAF industry in the country.
Maria Fernandez, President of Boeing Australia, New Zealand and South Pacific, explains: "Around 80% of aircraft carbon emissions come from flights over 1,500 kilometres where alternatives are impractical.”
This leaves SAF as the only currently available option to reduce emissions from air travel.
The government's role in SAF development
Australian federal and state governments are providing strong backing for the SAF initiative, from funding feasibility studies to crafting precise policies.
The federal government's Transport and Infrastructure Net Zero Consultation Roadmap, released in May 2024, includes SAF as a part of its decarbonisation strategies.
In addition, the Aviation White Paper introduced 14 actions geared toward SAF development which encompass potential mandates and certification frameworks.
Support is evident at the state level too. Queensland has allocated funds for SAF feasibility studies and revealed plans for new multi-seed processing facilities, while New South Wales has unveiled its SAF Investment Prospectus, aiming to ignite early investments and boost local production.
However, Maria warns that long-term commitments are critical. “Stable policy and government-backed procurement agreements are needed to reassure investors and secure demand,” she says, adding that military adoption of SAF - already trialled successfully - could provide a very useful initial market while the technology scales up.
Collaborative ventures in SAF
On the industrial front, strategic collaborations are vital.
Boeing is working with Wagner Sustainable Fuels to establish the first SAF blending facility in the country, projected to start operations by early 2025.
Meanwhile, in Townsville, LanzaJet and Jet Zero Australia are developing a facility poised to produce 102 million litres per year of SAF from ethanol.
However, the journey has its setbacks, as illustrated by the shelved US$500m Oceania Biofuels project in Gladstone in 2024.
Kirsten Rose, CSIRO’s Deputy Chief Executive, says: “Achieving cost-competitive SAF solutions requires tailored policy, strategic investment, and industry collaboration."
A finance roundtable convened in September 2024 identified long-term off-take agreements and blended finance models as key to attracting investment.
Australia's wealth of natural resources
Australia's rich natural resources present a significant advantage for domestic SAF production.
The report suggests that local feedstocks could support 60% of the country’s jet fuel demands by 2025, with potential growth to 90% by 2050 as hydrogen integration advances.
The primary sources include agricultural residues, used cooking oils and municipal solid waste.
However, the demand from other biofuel sectors and global price volatility add complexity to the scenario.
“We need a national feedstock strategy to optimise resource use and mitigate supply chain risks,” Kirsten suggests.
Technological and infrastructural advancements remain critical. While hydroprocessed esters and fatty acids (HEFA) have proven effective for SAF production, other methods like alcohol-to-jet and gasification need more development to scale efficiently.
Positioning for global competitiveness
The report emphasizes that while Australia is making substantial progress, it must also stay vigilant regarding international developments.
The limited refinery capacity of Australia doesn't help matters either. “Leveraging existing infrastructure can help bridge the gap,” Maria explains.
Countries like the US and the UK are accelerating SAF adoption through mandates and subsidies, creating fierce competition, but Australia’s robust sustainability frameworks and renewable energy resources could give it the upper hand in this race.
“Collaboration across sectors and borders will determine whether Australia seizes this opportunity to lead," Maria says.
Explore the latest edition of Energy Digital Magazine and be part of the conversation at our global conference series, Sustainability LIVE.
Discover all our upcoming events and secure your tickets today.
Energy Digital is a BizClik brand
