THE AUSTRALIAN oilseeds sector has welcomed news of a $200 million investment between Qantas and Airbus to develop locally sourced sustainable aviation fuel.
Oilseed crops such as canola, mustard and the Nuseed-developed carinata can all be processed into high quality aviation fuels.
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The Australian Oilseeds Federation (AOF) said while it was aware of a likely drop in demand for biodiesel over the next decade as electric vehicles replace internal combustion engines, the opportunity for Australia to supply the sustainable aviation fuel industry will provide an opportunity for the industry.
And the industry is making sure it makes the most of the chance.
The International Sustainability and Carbon Certification (ISCC) program, best known in Aussie circles as a prerequisite to getting product into the European market, also has a module specifically tailored to aviation fuels.
The AOF, through its Sustainable Grain Australia program, is already reviewing the specifics of the requirements for sustainable aviation fuel.
Qantas boss Alan Joyce said he hoped the investment would spark a local biofuel industry.
"This investment will help kickstart a local biofuels industry in Australia and hopefully encourage additional investment from governments and other business and build more momentum for the industry as a whole," Mr Joyce said.
Grain Growers chairman Brett Hosking said the news was a positive for the Australian canola industry.
"It would be great to have a vibrant local biofuel industry competing for our product," Mr Hosking said.
"Biofuels from oilseeds also mean we can consider crops other than canola, such as mustard, which grows better in more marginal areas, while down the track something like carinata could be an option," he said.
"We realise that longer term there will be more focus on electric vehicles and less demand for biofuel but in aviation that is still likely to be a long way away so we'd hope this development could create added opportunities for Australian oilseeds for quite some time."
At present Australian does not have a domestic sustainable aviation fuel industry, in spite of sending canola, along with other feedstock such as animal tallow, elsewhere for use to make the product.
There will be strong demand for the Aussie-produced biofuel, with Qantas committing to using 10pc sustainable aviation fuel by 2030.
It currently sources SAF from international producers.
Qantas said SAFs cut greenhouse gas emissions by around 80 per cent compared to traditional kerosene and are the most significant tool airlines currently have to reduce their impact on the environment - particularly given they can be used in today's engines with no modifications.
Gregor Heard
Gregor Heard is Fairfax Ag Media's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his ten years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector. Away from work, he is a keen traveller, having spent his long service leave last year in Spain learning the language.
Gregor Heard is Fairfax Ag Media's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his ten years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector. Away from work, he is a keen traveller, having spent his long service leave last year in Spain learning the language.
