How Boeing Plans to Make Australia an Aviation World Leader

There's no getting around the fact that the aviation sector is a major contributor to global emissions. What's more, it's a famously hard-to-abate sector, which means that the solutions required to lower its carbon footprint haven't been perfected yet.

Sustainable aviation fuel, otherwise known as SAF, is the basket in which the industry are putting its eggs. 

Boeing has teamed up with CSIRO, an Australian research institute, to scale up SAF once and for all. The collaboration aims to position Australia as a global leader in SAF production.

Released a year after their initial 2023 SAF Roadmap, the latest SAF State of Play report from Boeing and CSIRO outlines significant developments, challenges and opportunities in establishing a domestic SAF industry.

Maria Fernandez, President of Boeing Australia, New Zealand, and South Pacific, highlighted SAF as a cornerstone for the industry’s decarbonisation.

“Around 80% of aircraft carbon emissions come from flights over 1,500 kilometres where alternatives are impractical,” she says.

How the government helped to lay the foundations

Australia’s federal and state governments are taking steps to support the SAF industry, from funding feasibility studies to policy development. In May 2024, the federal government’s Transport and Infrastructure Net Zero Consultation Roadmap incorporated SAF within its decarbonisation measures, and the Aviation White Paper introduced 14 SAF-related actions. These include analyses for a potential SAF mandate and certification frameworks.

State governments have also joined the effort. Queensland allocated funding for SAF feasibility studies and announced plans for new multi-seed processing facilities, while New South Wales launched its SAF Investment Prospectus. These measures are intended to stimulate early-stage investment and build momentum for domestic production.

However, Maria warns that long-term commitments are critical. “Stable policy and government-backed procurement agreements are needed to reassure investors and secure demand,” she says, adding that military adoption of SAF - already trialled successfully - could provide a very useful initial market while the technology scales up.

Is collaboration the key to scaling sustainable aviation fuel?

On the industrial front, partnerships are emerging as a defining feature of Australia’s SAF landscape. Boeing is collaborating with Wagner Sustainable Fuels to establish the country’s first SAF blending facility, set to commence operations by early 2025. In Townsville, LanzaJet and Jet Zero Australia are advancing a plant capable of producing 102 million litres of SAF annually from ethanol.

Yet not all ventures have succeeded. The proposed US$500m Oceania Biofuels project in Gladstone was scrapped in 2024, underscoring the challenges of scaling SAF production. Market uncertainties, such as feedstock supply reliability and competitive pricing, remain significant hurdles.

Kirsten Rose, CSIRO’s Deputy Chief Executive, stressed the need for innovative funding mechanisms. “Achieving cost-competitive SAF solutions requires tailored policy, strategic investment, and industry collaboration,” she said. A finance roundtable convened in September 2024 identified long-term off-take agreements and blended finance models as key to attracting investment.

How to harness Australia’s natural resources

Australia’s abundant resources make it an ideal candidate for SAF production. According to the report, domestic feedstocks could satisfy 60% of local jet fuel demand by 2025, potentially rising to 90% by 2050 as hydrogen integration improves. Feedstock options include agricultural residues, used cooking oils, and municipal solid waste.

However, the competition for these materials, particularly from other biofuel sectors, complicates the equation. Global price volatility adds another layer of difficulty. “We need a national feedstock strategy to optimise resource use and mitigate supply chain risks,” Kirsten suggests.

Innovation, innovation, innovation

Ready for the technical part? Despite its potential, the SAF industry is facing a lot of technological and infrastructural gaps.

We already know that Hydroprocessed Esters and Fatty Acids (HEFA) are effective in producing SAF, but other processes like alcohol-to-jet and gasification require further development to scale efficiently.

The limited refinery capacity of Australia doesn't help matters either. “Leveraging existing infrastructure can help bridge the gap,” Maria explains.

Co-processing SAF at fossil fuel refineries offers a cost-effective short-term solution, but it’s not enough to meet future demand. Significant investment in new biorefineries will be the key to long-term success.

Local efforts, global standards

The report from Boeing and CSIRO spotlights Australia’s efforts within the global SAF landscape.

Countries like the US and the UK are accelerating SAF adoption through mandates and subsidies, creating fierce competition, but Australia’s robust sustainability frameworks and renewable energy resources could give it the upper hand in this race.

Kirsten believes you should keep an eye on what's happening locally, and another on the global conversations. “We must ensure our sustainability credentials are internationally recognised. This not only facilitates exports but also builds consumer and industry trust domestically,” she says.

As the SAF industry matures, its success will hinge on balancing economic viability with environmental impact. As Maria puts it: “Collaboration across sectors and borders will determine whether Australia seizes this opportunity to lead.”

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