Qantas boss Alan Joyce challenges government to invest in sustainable aviation
Published Thu 27 Oct 2022
Sydney Morning Herald
27 October 2022
Qantas chief executive Alan Joyce has challenged the government to invest in sustainable aviation fuel production or risk missing the chance to become market leaders in the industry’s ticket to a carbon-neutral future.
Joyce told CBA’s sustainability conference that Australia’s landmass presented a natural advantage if only the government prioritised early investment in the fuel’s production, adding it would create at least 15,000 jobs.
“Australians are the most competitive people I’ve ever come across. We should be leading the world on this. We should be making it into a world cup of how we produce [sustainable aviation fuel]. I think we’d win if that were the case,” Joyce told the conference on Thursday.
In addition to Australia’s landmass, the country’s range of assets provided an advantage over other regions who had already begun production, he said.
Replacing jet-fuel with a sustainable fuel made from a mix of feedstocks and household waste would mitigate more than 65 per cent of the sector’s emissions by 2050. There’s now only enough produced to replace less than one per cent of the world’s flying, at more than double the price of jet fuel. Qantas currently spends $5 billion on jet fuel a year.
The global aviation industry is responsible for about 2.5 per cent of the world’s carbon emissions - a bigger contribution than Australia. Governments in Europe and the US have prioritised sustainable fuel production and the International Air Transport Association - of which Qantas is a member - has called on all governments to support sustainable fuel investment.
So far, Qantas has invested $307 million into developing Australia’s sustainable aviation fuel industry with Airbus and has committed to transition to 10 per cent by 2030 and 60 per cent by 2050. Joyce argues the challenge for overseas production is sourcing the feedstock, but Australia already exports household waste products to countries including India.
“We could be keeping it here, creating jobs and having a massive impact [on carbon emissions],” Joyce said.
Joyce said he was encouraged by discussions with Energy Minister Chris Bowen and his attempts to set up a net-zero council for the country’s aviation industry. Queensland announced the country’s first sustainable aviation fuel biorefinery in April, but construction won’t begin until 2023, and it’s unlikely to be operational until 2025 at the earliest.
“To submit your shareholders and employers to change, you need the right settings around government... It’s critical,” Joyce said.
Voluntary carbon offsetting programs are used by many airlines globally but rarely by passengers. About 10 per cent of Qantas passengers offset the carbon cost of their seat, which is significantly higher than the global average of one per cent.
Another aviation decarbonisation measure is the electrification of aircraft. A recent partnership between domestic carrier Regional Express and Australian aviation start-up Dovetail Electric Aviation hopes to electrify Rex’s fleet.
Rex’s deputy chairman, John Sharp, said last week the operating cost of short flights would drop as much as 50 per cent if electric and hydrogen-powered aircraft were embraced.
Under the partnership, the carrier will start trials in 2024 using King Air 200 planes before testing its fleet of Saab 340s. Airbus is also trying to develop a hydrogen aircraft, which is expected to be ready in 2025.
Joyce said the size of the battery required to power an aircraft on a long-haul domestic flight meant it was not a viable solution for Qantas and investing in hydrogen aircraft came with extensive storing requirements.
“Sustainable aviation fuel is the best way forward. Its problem is that the policy settings aren’t here the way they are at California and Europe. We need to treat it like we did solar power and provide incentives.”