Airfares to soar, QLD jobs missed, unless new industry backed like hydrogen

The Courier Mail

January 18 2023

Airfares to soar, QLD jobs missed, unless new industry backed like hydrogen

Queensland has all the ingredients to become the “epicentre for South East Asia” for a key $3 billion industry, but failure to invest could cost thousands of jobs, experts say.

Domestic airfares would soar and Queensland would miss out on a $3 billion, job-creating industry if governments fail to invest in sustainable aviation fuel in the same way they have in hydrogen technology, according to the biofuel industry.

Industry representatives have said the state could be the “epicentre for South East Asia”, but is at risk of being caught out by other countries snapping up the product first.

All major airlines have signed up to net zero emissions by 2050, which has created huge interest in sustainable aviation fuel – an emissions reducing, jet-fuel additive that is made from products like used cooking oil and “trash” left over from sugar cane harvest.

The sustainable aviation fuel industry could take off in Queensland, if the industry is given support. Picture: NCA NewsWire/Jono Searle

Bioenergy Australia CEO and founder of Sustainable Aviation Fuel Association of Australia and New Zealand Shahana McKenzie said the industry would create 8000 jobs if properly set up.

But she said Australia was lagging behind despite having the right agricultural produce to create the feedstock needed for making the fuel, particularly in Queensland.

Ms McKenzie said other countries were already locking in long-term contracts up to 20-years long for Australian feedstock to create the fuel, while Australia was yet to set up a single domestic refinery.

“If Australia doesn’t develop its own domestic industry we will rely on importing sustainable aviation fuel made with our own exports,” Ms McKenzie said.

“We don’t want to end up with Australia being at risk of a fuel shortage.”

She said international airlines were able to purchase SAF while their planes were overseas, where as domestic airlines would not have the same option, which would put pressure on flight costs.

“Queensland could literally be the sustainable aviation fuel epicentre for southeast Asia,” she said.

“This could be big for the Queensland economy and future-proofing the state, including the tourism sector and aviation sector.”

A spokeswoman for Transport Minister Catherine King said the SAF industry was a “tangible opportunity” for the aviation sector to cut emissions and that it can be safely used in existing aircraft.

“The Albanese Government is committed to establishing a Jet Zero Council, and that commitment was then reflected in the federal budget last month,” she said.

“This group will provide a more formal opportunity for government and industry to work together towards reducing greenhouse gas emissions from the aviation sector.”

The minister is expected to host the first meeting of the Jet Zero Council before July.