Australia Could Make 90% of Its Jet Fuel by 2050

Australia is racing to make its own jet fuel from crops and farm waste as rising fuel costs threaten to ground flights and shut down remote mining operations that keep the economy humming.

The nation currently imports every drop of the 10 billion litres of jet fuel it burns each year. Qantas and Virgin recently slashed domestic flights after fuel costs jumped 150% since conflict erupted in the Middle East.

That price spike has sparked serious investment in sustainable aviation fuel, or SAF, which can be made from canola oil, sugar cane, corn husks, barley stalks, and even food waste destined for landfills. The technology exists and works, but costs remain high.

Australia already grows mountains of canola, then ships it overseas to be turned into biofuel and buys it back as jet fuel. Infrastructure Minister Catherine King calls this approach "nuts" and says the country should refine its own crops at home.

The government launched a $1.1 billion program last year to attract private investment for biofuel facilities. This month, officials announced fast-track approvals for two SAF refineries, signaling the urgency of building domestic production capacity.

CSIRO research shows Australia has enough agricultural feedstocks right now to meet 60% of current aviation fuel demand, about 5 billion litres yearly. Queensland produces sugar cane and corn waste, Western Australia grows canola, and regional Victoria has forestry residues ready to use.

The real challenge is matching different crops to different refinery technologies. Canola needs one process, sugar cane needs another. Each refinery costs over a billion dollars and must run year-round on mixed feedstocks to stay profitable.

The Bright Side

By 2050, when aviation fuel demand reaches 14 billion litres, Australia could supply 90% from domestic sources. That projection assumes new technologies for processing municipal and forestry waste will reach commercial scale within the next decade.

Several billion-dollar SAF refineries are already in planning stages across the country. These facilities will turn local crops and waste into fuel that works in existing aircraft, requiring no changes to planes or engines.

Qantas currently uses 0.2% SAF in its fuel mix and committed to reaching 10% by 2030, even before the current fuel crisis hit. Other global airlines have made similar pledges, creating massive demand for homegrown sustainable fuel.

Building a domestic SAF industry could stabilize flight costs, protect remote mining jobs that depend on air commutes, and keep regional routes flying. Australia is betting its farms can fuel its future in the sky.