Thursday, August 24, 2023

Issue:

Mackay and Whitsunday Life

Jet Fuel Industry Set To Soar

By Amanda Wright

The Queensland Government has teamed up with Qantas to unlock the state’s potential to produce sustainable aviation fuel (SAF), a critical component in airlines reaching net zero emissions by 2050.

Under a memorandum of understanding signed last week, the Queensland Government and Qantas will work together to further grow a local SAF industry.

This will include exploring how to fully leverage sugarcane and agricultural by-products for biofuels production and the potential for developing new feedstock sources and processes.

More broadly, the parties will focus on developing a Queensland-based SAF supply chain.

SAF is yet to be produced in Australia at commercial scale.

Qantas currently uses green aviation fuel sourced overseas and is targeting 10 per cent SAF in its fuel mix by 2030, and about 60 per cent by 2050.

In March this year, the State Government, Qantas and Airbus announced support for Jet Zero Australia to commence a feasibility study for a new biorefinery in Queensland, which could produce up to 100 million litres of SAF a year.

Deputy Premier Steven Miles said that growing Queensland’s SAF industry is one of those opportunities that will fuel Queensland’s economic future and contribute to decarbonisation targets.

“With our rich supply of feedstock and skilled workforce, Qantas, and the world, has recognised Queensland as an ideal location to establish an Australasian SAF supply chain,” he said.

CANEGROWERS Mackay CEO Kerry Latter said the Deputy Premier’s announcement is positive for the sugar industry.

“This is a great opportunity to have our own sustainable aviation fuel industry and develop fuel security in Australia by manufacturing here in Queensland with a sustainable, locally-grown product,” Mr Latter said.

“It has great potential to develop into an export product.”

Mr Latter added that the government has continued to talk up the Mackay-Whitsunday region as a primary focus for development as a primary bio-futures manufacturing hub, and its sugar industry as a feedstock.

“The important factor is that all in the value chain, from paddock to port are rewarded: this will give growers the incentive to invest and increase their production to meet the demand,” he said.

“Mackay holds a strong position in the biofutures space, having been home for the QUT Bio-commodities Pilot Plant at Racecourse mill, which has been a proving-ground for a range of processes and technologies.

“Mackay is well known for its large cane industry, excellent engineering and manufacturing sector, and port capabilities. We are central to sugar producing regions up and down the coast and so, although a greenfields location for fuel production, certainly offer logistical advantages transporting feedstock.

Mr Latter said the emerging SAF manufacturing sector, as with the emerging plant-based protein food manufacturing sector, both look to sugarcane products as a feedstock.

“There will be opportunities and high demand for the produce of all sugar-producing regions if the biofutures sectors are enabled to become as big as they could be.”

An Australian SAF industry could be worth $3 billion annually by 2030 and could create up to 15,600 jobs – mostly in regional areas – nationwide by 2050.

CANEGROWERS Mackay CEO Kerry Latter

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