Aviation experts from the University of South Australia (UniSA) will collaborate with their Chinese counterparts over the next two years to develop a sustainable aviation biofuel industry in both countries.
The partnership, announced by the Department of Foreign Affairs and Trade (DFAT) on Saturday, comes on the heels of a $1.7 billion Federal Budget allocation to prioritise renewable fuels for the aviation industry over the next decade.
UniSA Aviation Professor Shane Zhang has been awarded a $230,000 National Foundation for Australia-China Relations grant to spearhead the project.
The initiative aims to explore the commercial opportunities of using bio feedstock to replace conventional kerosene jet fuels with ‘green’ fuel.
Sustainable aviation fuels (SAFs) currently account for less than 1 per cent of jet fuels worldwide.
However, the European Union (EU), Singapore, the US, and the UK are moving towards mandating SAFs within the next few years.
“Sustainable aviation fuels can potentially cut carbon emissions by up to 80 per cent and are essential if we are to achieve net-zero greenhouse gas emissions in Australia by 2050,” stated Zhang.
The alternative liquid jet fuel is derived from various sources, including waste oil and fats, woody residues, algae, and municipal waste.
It needs to be mixed with conventional fuel (50 per cent) to avoid any modifications to the engine and aircraft, in line with international regulations.
While these renewable fuels are not yet produced in Australia, Jet Zero Australia is working with US biotechnology company LanzaJet to build a new SAF facility in north Queensland.
Wagner Sustainable Fuels and Boeing Australia are also collaborating on a site in Toowoomba, and the NSW government has pledged up to $100 million to start local production.
Aside from the $1.7 billion allocation, the federal government has also committed $18.5 million over four years to develop a certification scheme for sustainable aviation fuels and renewable diesel.
An additional $1.5 million will go towards a two-year analysis of the costs and benefits of introducing mandates.
Zhang stated: “There is a lot of potential to produce sustainable aviation fuels in Australia and China, as both countries have large quantities of bio feedstock and the market is untapped.
“Australia is among a handful of countries globally to support the transition to SAFs, but the financial commitment to develop a local industry does not extend to a mandate at this stage,” stated Zhang.
The EU has mandated that 2 per cent of all departing flights from Europe will use green fuels by 2025, increasing to 70 per cent by 2050.
Singapore has set a 1 per cent SAF target for all departing airlines from 2026, rising to 3-5 per cent by 2030, and the UK has mandated that 10 per cent of its airline fleet use SAFs by 2030, increasing to 22 per cent by 2024.
Despite the global momentum, challenges remain.
Sustainable fuels are up to five times more expensive than traditional fuel, and airlines are reluctant to invest until they become cheaper and more readily available.
Biotechnology companies, on the other hand, need a guaranteed market from airlines before committing to developing SAFs.
Zhang and his Chinese colleagues will organise and develop eight events in Australia and China over the next two years, bringing industry, farmers, and stakeholders together to explore how sustainable aviation fuels can be commercialised.
“The technology is ready and mature, and the federal government has sent a clear signal about its support for greener aviation fuels.
“We just need to overcome the challenges and find the right path,” Zhang concluded.
