Boeing Invests in Australian Sustainable Aviation Fuel Project Amid Push to Cut CO2 Emissions

While airlines have pushed hard to explore sustainable aviation fuel options, the industry is still young.

The nose of a Boeing commercial airliner is seen in Sydney, Australia on March 14, 2019. Cameron Spencer/Getty Images

Global aerospace company Boeing is developing sustainable aviation fuels in Australia amid the push toward net zero emissions.

The Chicago-based company is assisting Wagner Sustainable Fuels to develop a production facility in Brisbane, Queensland.

Sustainable aviation fuels are a type of petrol made from waste oils, agricultural residues, and non-food crops.

When used, renewable fuel is supposed to cut carbon dioxide emissions by as much as 84 percent compared to regular jet fuel.

Currently, according to Boeing, sustainable fuel only accounts for 0.1 percent of global jet fuel use.

Boeing Australia and New Zealand sustainability lead Kimberly Camrass explained the project will help Australia reach its climate goals.

“Accelerating local Sustainable Aviation Fuel supply enables Australia’s own climate goals and supports the global commercial aviation industry’s commitment to net zero CO₂ emissions by 2050.

“We’re proud to invest in this project because it will make a real difference in developing a Sustainable Aviation Fuel industry in Australia,” Camrass said.

Camrass added that Wagner’s new Brisbane site will also strengthen Australia’s fuel security.

The country currently imports 90 percent of its liquid fuel, including jet fuel. This demand is expected to rise by 75 percent as 2050 draws closer, she explained.

Queensland Government Contributing to Project

The Queensland government has reportedly provided $760,000 for a feasibility study with the overall project slated to cost up to $1.7 billion.

Meanwhile, Wagner Sustainable Fuels CEO Matt Doyle said the investment from the Queensland government and Boeing will underpin Australia’s first facility.

“It will create local jobs, contribute to fuel security and reduce greenhouse gas emissions from aviation,” he said.

In April, Boeing and Wagner announced a Memorandum of Understanding to kick-start the industry.

It comes amid a June 2024 pledge from the state government to inject a mammoth $26 billion of taxpayer funds into renewable energy over four years.

The government has also legislated emissions reduction targets to cut carbon emissions by 75 percent by the year 2035.

Meanwhile, in response to the Boeing announcement, Qantas Chief Sustainability Officer Andrew Parker said the national carrier said its $400 million climate fund was also part of the project.

“We have a target of using 10 percent Sustainable Aviation Fuel by 2030 and have invested in Queensland biofuel production through our $400 million Climate Fund,” he said.

The airline has committed its fleet to use 10 percent sustainable aviation fuel by 2030, and 60 percent by 2050.

Converting Waste Carbon to Renewable Fuel

The Brisbane facility will use technology developed by U.S.-based companies LanzaTech Global and LanzaJet. CirculAir, converts waste carbon and renewable power into sustainable aviation fuel.

LanzaTech CEO Jennifer Holmgren said there was enough carbon above ground to transition the 100 billion gallons of fossil fuel jet fuel consumed each year, to jet fuel made from recycled carbon.

“The flexibility of the CirculAir platform makes it possible for this project to unlock carbon from the myriad waste-based resources available in Australia to meet local demand,” she said.

Further, LanzaJet CEO Jimmy Samartzis said the Brisbane project would allow Australia to stand out as a leader in the field.

“The combination of LanzaJet’s leading Sustainable Aviation Fuel solution with the front-end of LanzaTech’s proven and commercialised carbon recycling technology, makes it possible to create a domestic Sustainable Aviation Fuel supply in Australia using local renewable waste sources,” he said.

An Immature Industry

A study published in the journal Renewable Energy on Aug. 9 pointed out that the market for sustainable fuel was “currently limited.”

The authors said widespread sustainable fuel was more expensive to produce than jet fuel due to the high cost of the refining process.

“Sustainable Aviation Fuel widespread adoption faces several challenges, including feedstock availability, high production costs, few regulatory frameworks, and the need to scale up production to meet the increasing demand for air travel,” the study noted.

The study said addressing these challenges would require intensive effort from the aviation industry, including “subsidies, incentives, and mandates.”