Objective

The main purpose of this feasibility study was to extend upon the work completed during previous research by various parties. The study aimed to identify the environmental and economic challenges of the development of an Australian sustainable aviation fuel (SAF) industry. ​

Description

​In 2013 Qantas and Shell Australia completed a landmark piece of research to understand the economic viability of producing aviation biofuel in Australia on a commercial scale.

The study, conducted with the support of the Federal Government, found that an aviation biofuel industry is technically viable but significant obstacles remain. Identifying natural oils as a proven source material, the study modelled a plant capable of producing 1.1 billion litres of renewable fuels, including jet fuel and diesel, per year using existing supply chain infrastructure.

To complete the study, the partners used a 3,000 tonnes-per-day reference facility, which would produce approximately 20,000 barrels of renewable hydrocarbons (diesel, SAF, naphtha and refinery gas) per day. Since Australia does not have existing hydroprocessing equipment that can be converted, the construction put capital expenditure at AUS$1 billion (2012). It was determined that, depending on the size of the facility and the process configuration used, between 5-35% of Qantas’ domestic fuel demand could be reached at a 50:50 blend (2013). 

Partners

Qantas, Shell Australia, (Sinclair Knight Merz) SKM, SkyNRG, AltAir Fuels, Solena, ARC Centre of Excellence in Plant Cell Walls, University of Adelaide​

Achievements to date

​The group was able to determine three main conditions that would need to be met in order to establish a commercially viable SAF industry in Australia:

1. Access to substantial and rateable volumes of existing natural oil and/or tallow feedstock at significantly less than current market prices;
2. The ability to ramp up emerging and non-food domestic feedstock production programs to provide rateable feedstock volumes at attractive prices, which reflect a weaker price correlation between feedstock and crude-oil; and
3. A balanced policy environment that incentivises the production of all renewable transport fuels equally.

Contact information

Feasibility study of Australian feedstock and production capacity to produce sustainable aviation fuel:

http://www.qantas.com.au/infodetail/about/environment/aviation-biofuel-report.pdf​