Qantas, Airbus to jointly invest up to $200mn to help create a SAF industry in Australia

Qantas, Airbus to jointly invest up to $200mn to help create a SAF industry in Australia

Australian carrier Qantas and Europe’s Airbus Group have committed to jointly invest up to $200mn to help create a sustainable aviation fuel (SAF) industry in Australia.

“The Australian Sustainable Aviation Fuel Partnership” was signed in Doha on Sunday, ahead of the annual general meeting (AGM) of the International Air Transport Association (IATA). It is initially for five years and could be extended.

Qantas is sourcing SAF in London and Los Angeles but not in Australia.

"The problem is there is no sustainable aviation fuel industry in Australia and we would like to buy this in scale," Qantas chief executive Alan Joyce told reporters. "We think the way to do that is to put our money where our mouth is." The investment, which includes a $35mn of funding previously committed by Qantas, could go to a mix of start-up firms and more established operators and could include equity investments, Joyce said.

SAF is considered the most important way to decarbonise airline operations in the next few decades, before alternatively powered aircraft can be widely deployed in commercial operations. Compared to conventional jet fuel, SAF can reduce up to 100% carbon emissions on a lifecycle basis, depending on the SAF technology used. Aircraft today are