Sustainable aviation fuel

The use of sustainable aviation fuel (SAF) is one of the central levers to achieving our net zero by 2050 target. With long-haul routes accounting for the majority of the Group's emissions profile, SAF is currently the only viable technology/decarbonisation option available for Qantas' long-haul flights.

Currently, SAF comprises 0.2% of our fuel use and is being accessed by Qantas for our Heathrow flights. Our target is for 10% of our fuel use to come from SAF by 2030 (around 600ML of unblended SAF a year) and approximately 60% by 2050.

The use of SAF is currently modest but in line with current industry production outputs, and is increasing globally - particularly in Europe, the UK, and the US - as governments and industry work together to find ways to reduce the environmental impact of the aviation sector. We need to see this type of collaboration in Australia.

Qantas has a number of initiatives in train to help kickstart a domestic SAF industry, including our $400 million Climate Fund, and Corporate SAF program.

The Group is part of the Federal Government’s Jet Zero Council and continues to advocate for a SAF blending mandate as part of a broader framework of industry policies such as supply side subsidies, grants and credits, similar to those already announced in other jurisdictions. 

To support this, the Group engaged ICF International, in partnership with Airbus, to model a policy roadmap for Australia. The Developing a SAF industry to decarbonise Australian aviation report (PDF) recommends the government:

• Implement a SAF mandate.
• Deploy $1.5 billion in capital grants and production incentives tied to carbon emission reduction. 

This policy suite, if successful in catalysing a domestic low carbon fuel sector, has the potential to contribute over $12 billion to the economy by 2040 creating or sustaining over 70,000 jobs.

As part of the 2024-2025 Federal Budget, several measures were introduced to support the development of a domestic low carbon fuel sector, including elevating low carbon fuel into one of the prioritised sectors with potential access to the $1.7bn Future Made in Australia Innovation Fund. 

SAF is non-conventionally derived aviation fuel that is made by blending traditional fossil derived jet fuel with fuels made from sustainable biogenic and non-biogenic sources. These include not just cooking oils, but also council waste, plant oils, agricultural residues and non-biological sources such as green hydrogen, renewable electricity and CO2.

Biogenic SAF has the potential to reduce emissions on a lifecycle basis, typically by up to 80% compared with conventional jet fuel. Non-biogenic SAF or synthetic fuel is a pathway which utilises carbon dioxide, hydrogen and significant amounts of renewable electricity to synthesise a liquid fuel with favourable sustainability characteristics (emissions can be reduced on a lifecycle basis by up to 90% compared to fossil fuels).

It is important to note that SAFs do not eliminate the CO2 emissions at the point of combustion – there are still emissions out of the 'tail pipe'. The emission reduction occurs upstream as a result of the method in which the SAF is produced. These are known as lifecycle emissions.

For example, for SAFs produced from oil seeds, the plants absorb CO2 and act as a 'carbon sink' during their growth phase. When a lifecycle analysis is conducted, the emission reduction attributed to the biogenic feedstock production result in typically around 80% less CO2 when compared with fossil jet fuel. A SAFs emission reduction and sustainability credentials are certified by a number of independent, global bodies. The overall emission reduction of the SAF used in an aircraft will also be impacted by the blending rate. 

In addition to the reduction of total life cycle CO2 emissions, the combustion of SAF typically produces very low levels of sulphur and can reduce the emission of particulate matter by up to 90%, compared with conventional jet fuel. Reducing these emissions can improve local air quality, particularly in areas with a high density of flight movements, such as airports.

^{Image: Key SAF production pathways. View full size graphic (jpg).}

Further information on our SAF strategy and how we're supporting the development of a local SAF industry can be found in our Sustainability Report.

At an industry level, the primary challenge with SAF is scaling it to the level required for  airlines to meet their ambitious usage targets. The International Air Transport Association (IATA) recently noted that there was a tripling of global SAF production in 2024 but that this still only represented 0.53% of the global airline fuel consumption.

IATA further estimated that over the whole transition period (2024-2050), the global transition cost for the aviation industry could reach US$4.7 trillion (with SAF transition being the majority of the that cost); and between approximately 3000 - 6000 new SAF refineries would be required globally.

The development of SAF is therefore best viewed as not just a transportation issue, but as part of the challenge of transitioning a global energy system. Given early production constraints, SAF currently comprises only a small amount of our fuel use, as it is not yet commercially available in Australia. However, we purchase SAF for some of our flights out of London and we have plans to expand this usage over time, including at our US ports. For the SAF we acquire in Heathrow, the SAF is delivered into common user fuel infrastructure rather than directly into our aircraft.

Watch the video to learn from our team about our goals, including how we're supporting the establishment of a SAF industry in Australia.

• In December 2021, Qantas became the first Australian airline to purchase SAF on an ongoing basis, which is being delivered at London Heathrow Airport.
• As part of the Group's widebody renewal program with both Airbus and Boeing, Qantas has contractually secured access rights to SAF volume from a number of projects (including in the USA) that, subject to reaching a final investment decision, aim to commence producing SAF prior to 2030.    

If these US projects proceed, we anticipate that the SAF volume that the Group can procure from these projects will enable us to meet the majority of the Group's interim SAF target for 2030.

Our program supports the development of an Australian SAF industry by providing a strong corporate demand signal for SAF derived emission reduction, while also helping corporations to take steps to lower business travel emissions that arise from their employees travelling by air.

As a member of the Qantas SAF Coalition, participating corporations contribute to the incremental cost of SAF being purchased by Qantas, initially out of Heathrow. As a member, corporates are allocated a volume of scope 3 emission reductions associated with a parcel of SAF the cost of which they have contributed to.

These partnerships are crucial to making SAF affordable, which can be several times more expensive than traditional jet fuel, and in turn assist in the scaling of the SAF industry to meet the airline industry's SAF usage targets.