From Farm to Fuel Tank: Exploring Australia’s Biofuel Potential

Australia imports all of the 10 billion litres of jet fuel it consumes annually. With fuel costs rising—jet fuel prices have increased by 150 per cent since the war in the Middle East began—the aviation industry is under pressure. Airlines like Qantas and Virgin have already reduced domestic flights, and further cost increases could make air travel more expensive or lead to route cancellations. Around 10 per cent of Australia’s economy depends on air travel, particularly for workers commuting to remote mine sites and gas rigs.

One proposed solution is sustainable aviation fuel (SAF), a type of biofuel made from oilseeds like canola, sugar cane, agricultural residues (such as corn husks and barley stalks), and even municipal organic waste. While SAF is already used in small amounts by airlines, it is not currently produced in Australia. Stephen Forshaw, representing Airbus in Australia, noted that the technology exists but remains expensive. "We have the ability to do this," he said.

Australia’s Jet Fuel Demand and SAF Potential

Australia’s annual jet fuel consumption is around 10 billion litres, with projections suggesting a 75 per cent increase by 2050. SAF use has been gradually increasing as airlines seek to reduce emissions, though its environmental benefits are debated. Qantas, for example, currently uses SAF for about 0.2 per cent of its fuel mix and has committed to increasing this to 10 per cent by 2030, aligning with global industry trends.

Currently, Australia exports large volumes of canola and other agricultural feedstocks to overseas refineries, which process them into SAF before selling the fuel back to Australia. Infrastructure Minister Catherine King described this as inefficient, stating, "The fact that we basically grow canola here, then we ship it overseas, turn it into sustainable aviation fuel and then buy it back, is nuts." While Australia has six refineries producing biodiesel and ethanol, none are dedicated to SAF production.

Challenges and Alternative Feedstocks

The shift to domestic SAF production faces hurdles, including cost and feedstock availability. SAF remains significantly more expensive than conventional jet fuel, and Australia’s agricultural sector would need to adapt to supply the necessary raw materials. Beyond canola and corn, researchers are exploring alternative feedstocks such as algae and waste oils. However, these options are still in early development stages, with commercial-scale production likely years away.

For now, Australia’s biofuel ambitions depend on balancing economic realities with the need for a stable, long-term fuel supply. While the technology exists, scaling up production will require investment, policy support, and collaboration between government, industry, and farmers.

Source: Australian Broadcasting Corporation.