NSW kick starts green aviation industry

New South Wales is stumping up $100m to encourage local production of sustainable aviation fuel (SAF), considered the only realistic option for decarbonising air travel.

SAF can be made from renewable and sustainable feedstocks such as plant-based oils, agricultural residues, algae or organic waste materials.

There is no SAF production in Australia, although there are plans for a refinery in Townsville, and BP hopes to be producing biofuels at Kwinana, south of Perth, by 2026.

Worldwide, SAF production accounts for less than half a per cent of the fuel used by airlines with a mere 600 million litres made in 2023.

It’s estimated at least 17.5 billion litres will be needed by 2030 for airlines to reduce carbon intensity by 5 per cent.

With airlines desperate to source SAF, it’s been estimated that local production could generate billions of dollars for Australia and provide fuel security.

In an effort to get the ball rolling, the NSW Government has released a Sustainable Aviation Fuel Investment Prospectus outlining the state’s potential to drive the industry in Australia.

Modelling revealed that SAF could account for more than half of all aviation fuel in Australia by 2050, with a market value of $11.9bn nationwide, and $4.8bn in NSW.

As of now, $100m from the low carbon product manufacturing stream was on the table for projects that could progress the production of SAF. The step follows a report saying Australia has enough agricultural waste to meet 60 per cent of its jet fuel needs by 2025.