Why tourists could boycott Australia over carbon concerns

Australian Financial Review

by Ayesha de Kretser

Boeing and the CSIRO say Australia could source as much as 60 per cent of its jet fuel requirements from sustainable sources in just 18 months – but only if airlines, jet fuel companies and plane manufacturers work with government to unlock supplies of feedstock.

At the same time, Australia’s tourism and aviation industry is growing increasingly conscious of the need to decarbonise to continue attracting tourists down under. In Europe, some countries are weighing up whether they impose carbon quotas on their citizens, which could deter travellers unless Australia can take carbon out of flights.

While airlines globally are scrambling to secure feedstocks to produce or procure sustainable aviation fuels (SAFs), a new road map from Australia’s top scientific research association, CSIRO, says that Australia is in prime position and could quickly leapfrog global competitors.

“By actively working to liberate feedstocks, the road map estimates that Australia is currently sitting on enough resources to produce almost 5 billion litres of SAF by 2025. This could supply nearly 60 per cent of jet fuel demand projected for that year,” CSIRO senior manager and report author Max Temminghoff says.

“That’s enough fuel to power 640,000 Melbourne to Sydney return flights on a Boeing 737.”

The report says a combination of feedstocks and mature technologies drawing on local materials such as farm waste, cooking oil and residues could meet a growing portion of Australia’s jet fuel demand.

To convert these feedstocks into viable jet fuel, the report identifies two processes, including one currently conducted at CSIRO’s Perth laboratory, as ideal technology options to propel a sovereign SAF industry, Temminghoff says.

But he warned the Australian government, industry and research need to work together to address challenges including feedstock availability, supply chain constraints, and aligning to international standards and regulation.

Earlier this year, the federal government established a Jet Zero Council made up of airlines, aircraft manufacturers and other key industry players, including the report’s co-author and plane manufacturer Boeing, which met in Brisbane in mid-August to discuss work streams.

Boeing’s regional sustainability lead for Asia Pacific and report co-author Heidi Hauf says the Australian Defence Force could play in kick-starting Australia’s SAF industry and also ensuring fuel security for the nation.

“Currently, Australia imports 90 per cent of its liquid fuel, including jet fuel, through long supply chains exposed to geopolitical and climate change risks, and delays associated with quality issues, placing the country in a vulnerable position when it comes to jet fuel security,” she says.

“With alternative technologies such as battery and fuel-cell powered planes still limited in long haul capabilities and the increasing competition for carbon offsets, SAF offers the largest potential for reduced aviation emissions in the near-term.”

Transport minister Catherine King chairs the Jet Zero Council, but says the industry will need to lead the approach, despite some players questioning why the government has stopped short of introducing mandates requiring a certain level of jet fuel by a certain date to force investment.

Japan has mandated that all flights in and out of the archipelago must use at least 10 per cent SAF by 2030, and the Japanese Ministry of Land, Infrastructure, Transport and Tourism estimates this will require at least 1.7 billion litres of jet fuel.

Qantas and its subsidiary Jetstar, as well as Virgin Australia, all fly to Japan so will need to quickly secure enough SAF to power these routes.

Qantas has committed to bringing 10 per cent SAF into its fuel mix by 2030 and 60 per cent by 2050. It is already using 10 million litres of SAF on flights out of London and will start sourcing SAF in the United States in 2025.

Qantas has committed $US200 million with Airbus to accelerate a locally developed SAF industry to power flights in Australia and more recently launched a $400 million fund for broader climate projects.

Virgin Australia, meanwhile, signed a memorandum of understanding in Seattle with Boeing in June to boost sustainability across five areas, including the development of a local SAF industry.

Boeing and Virgin Australia said they would prioritise joint advocacy for the development of an Australian SAF industry, supporting domestic policy and supply chain investment to accelerate SAF production.

Virgin Australia marked the milestone by ordering a fuel load blended with 30 per cent SAF for the first leg of its delivery flight for the first of its new 737 MAX aircraft, Monkey Mia, which flew from Seattle to Brisbane.