- Australia and New Zealand are collaborating to develop a sustainable aviation fuel (SAF) industry to reduce carbon emissions.
- The two governments will investigate conditions for a regional SAF industry, remove regulatory barriers, and promote net-zero aviation through initiatives like the Jet Zero Council.
- IFM Investors, GrainCorp, and Ampol plan to explore a renewable fuels industry in Australia, potentially creating over 500 jobs and improving fuel security.
Australia and New Zealand will develop a sustainable aviation fuel (SAF) industry to reduce carbon emissions. The Australian government will partner with New Zealand to decarbonise sectors and enhance the trade of low-emission products.
On Tuesday, July 30, Treasurer Jim Chalmers and Climate Change and Energy Minister Chris Bowen met with New Zealand’s Finance Minister Nicola Willis and Climate Change Minister Simon Watts in Brisbane. They discussed producing low-carbon liquid fuels for trucks, ships, and planes, focusing on SAF for future talks.
“The opportunities are enormous for Australia and New Zealand to be key parts of the supply chain for sustainable aviation fuel across not just our region but the world,” Bowen said.
According to the CSIRO, aviation accounts for 2.5% of global carbon emissions. Decarbonising this sector poses challenges since long-haul flights cannot rely on electric power due to technological limits. Thus, commercial airlines and defence forces will depend on SAF, which is made from biomass, waste, natural oils, and hydrogen.
Global demand for SAF increases, but production remains limited. Australia’s feedstocks and production capabilities could meet this demand.
“We know there are issues around the supply of sustainable aviation fuels,” Chalmers said. “These fuels can benefit workers, airlines, the economy, and the environment, but we must solve supply issues. Australia has a big chance here.”
The two governments will investigate conditions for a regional SAF industry, remove regulatory barriers, and work with sectors to decarbonise. Australia invited New Zealand’s aviation companies to join its Jet Zero Council, which promotes net-zero aviation.
IFM Investors, GrainCorp, and Ampol separately announced plans to explore a renewable fuels industry in Australia. Ampol and IFM will assess a renewable fuels facility at Ampol’s Brisbane refinery, while GrainCorp will investigate supplying feedstocks.
The Australian Workers’ Union supported the memorandum of understanding and urged government investment. National Secretary Paul Farrow said it could create over 500 jobs at the Ampol refinery and improve fuel security.
“Our dependence on imported fuel is a disaster waiting to happen,” Farrow said. “We can’t keep relying on fragile supply chains. We have the resources, facilities, and workers to produce green fuel at a lower cost than the rest of the world.”
The Brisbane talks mark a significant step toward a sustainable aviation fuel industry in the Australia-New Zealand region, promising economic growth and environmental benefits.