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The Australian government is unlocking A$1.7 billion ($1.15 billion) from the “Future Made in Australia Innovation Fund” to support the development of nascent low carbon aviation fuel technologies and new feedstock.
The sustainability initiative was among four the country rolled out in its Aviation White Paper aimed at charting the country’s aviation roadmap for the next 20 years.
This new initiative will build on an existing A$30 million fund allocated to support the development of sustainable aviation fuel (SAF) using feedstocks in Australia.
The government will commence consultation with industry and stakeholders on the optimal policy mix, including the design of production incentives and demand-side options, as well as detailed production costs and market insights to support policy design.
To bolster the rollout, the government said it will consider introducing a low carbon fuel mandate, establishing a robust certification scheme and updating emissions accounting arrangements.
The Australian Jet Zero Council is currently advising the government on the appropriate regulatory mechanisms and arrangements to ensure SAF use is accounted for in emissions reporting schemes.
The White Paper also recognized that SAF feedstock development will provide new markets for Australia’s agricultural industry and may unlock marginal land unsuitable for growing food crops.
“Without establishing domestic SAF refining capacity, Australian-produced feedstocks will probably be exported overseas” the paper said, noting SAF access is crucial as Australian jet fuel demand is projected to increase by 75% from 2023 to 2050.
The paper also emphasized the country must be positioned to adopt new propulsion technologies such as electric or hydrogen, acknowledging that it will not be until the 2030s that short-haul routes utilizing such technology, especially those in New South Wales, Victoria and Tasmania, will be feasible.
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