Qantas Urges Australia to Adopt Mandatory Sustainable Aviation Fuel (SAF) Blending Mandate
Qantas, the leading Australian airline, is urging the Australian government to emulate Europe, Japan, and the UK by implementing a mandatory blending mandate for sustainable aviation fuel (SAF). This move aims to stimulate local production and capitalize on Australia's advantageous position for SAF manufacturing.
Andrew Parker, Qantas's chief sustainability officer, emphasizes that several countries in which they operate flights have already committed to blending mandates of 5 to 10 percent by 2030. He believes that Australia has the potential to establish a thriving SAF industry and seize a valuable opportunity to develop a new domestic sector.
Parker warns that without appropriate policies and incentives, investment, projects, and resources will likely relocate to countries with robust policy support in place.
Currently, Qantas utilizes SAF-blended fuel for its flights departing from London, and starting from 2025, they have committed to procuring 20 million liters per year for flights originating from California.
Despite these efforts, Qantas notes that Australia lacks a commercial-scale SAF industry, highlighting the necessity for a blending mandate to stimulate investment in scalable production facilities.
In conjunction with its call to the Australian government, Qantas has pledged an additional A$110 million ($71.8 million) toward its Climate Fund. This fund will focus on expanding opportunities in SAF, offsets, and operational efficiency. It supplements the previous A$290 million co-investment made with Airbus, primarily targeted at establishing an alcohol-to-SAF refinery in Queensland.
Qantas reports that it is currently evaluating an additional 12 domestic SAF projects, with over 50 non-disclosure agreements and memoranda of understandings already signed.
Vanessa Hudson, Qantas's chief financial officer and chief executive-designate, affirms the airline's commitment to leadership in this area. She emphasizes the significance of the recent commitments and calls for industry-wide action in the form of a sustainable aviation fuel mandate.
Neste, a Finnish energy company, has previously highlighted the necessity for mandates in the Asia-Pacific region to stimulate investment in SAF production, which lags behind Europe.