SAFs are typically derived by combining jet fuel with alternatives such as biofuels or recycled oils from industrial food facilities to cut the carbon impact of flying.
The money for the new project will be used to conduct a detailed feasibility study into a facility that will use alcohol-to-jet technology to produce up to 100 million litres of SAF per year.
Qantas and Airbus have previously committed to investing up to $200m to accelerate the establishment of a SAF industry in Australia. Construction on the facility is expected to begin in 2024 and it will be the first project funded under the partnership.
Qantas Group chief sustainability officer Andrew Parker said the early project funding was an important first step towards building a domestic SAF industry, which will power flights around Australia.
“Qantas will be the largest single customer for Australian-made SAF to meet our emissions reduction targets, which is why we’re investing in the ideas...