The creation of a refinery that can produce 100 million litres of sustainable aviation fuel as soon as 2028 is another step toward creating an Australian green industry.
Construction on the renewable fuel refinery in Queensland is scheduled to start in 2026 under the deal between the Queensland government, Boeing and the owners of Toowoomba’s Wellcamp Airport.
It follows a feasibility study funded by the state government.
The project will not be the only sustainable aviation fuel undertaken in Australia, however, with Ampol, GrainCorp and IFM Investors also investigating its production, and BP planning a renewable fuels facility in Western Australia.
Sustainable aviation fuel, which is produced using agricultural and industrial waste, can reduce carbon emissions from air travel by 80 per cent compared to traditional jet fuel.
The fuel is expected to be in high demand worldwide to meet the aviation industry’s goal of achieving net zero by 2050.
The proposed refinery would be constructed in Brisbane following an undisclosed investment from Boeing and a $760,000 grant from the Queensland government.
The project would use LanzaTech and LanzaJet’s technology that could use a variety of feedstocks to create sustainable aviation fuel and renewable diesel.
Wagner Sustainable Fuels chief executive Matt Doyle said the refinery would be the first “fully integrated production facility” in Australia and would help establish a local green fuel industry.
“Aviation uses billions of litres of fossil jet fuel per year and accounts for about 2.1 per cent of global carbon emissions,” he said.
“Australia is in a strong position to reduce and scale renewable liquid fuels to meet this challenge and grow a domestic low carbon fuels industry.”
Mr Doyle said engineering studies for the refinery were already underway, with plans for construction to begin in 2026 and expectations that the refinery would be able to produce 102 million litres of fuel and 12 million litres of renewable diesel each year.
Boeing Australia sustainability lead Dr Kimberley Camrass said the aviation industry was relying on carbon-cutting fuel to reduce emissions from air travel and would need a significant supply in the coming years.
“This project will make a real difference in developing an Australian (sustainable aviation fuel) industry, which is crucial not only to achieve Australia’s own climate goals but also to support the global commercial aviation’s commitment,” she said.
The announcement comes weeks after Ampol announced a partnership with GrainCorp and IFM Investors to investigate a sustainable aviation fuel refinery at Lytton, in Brisbane’s south.
Other projects include Energreen Nutrition’s seed-crushing and processing facility at Yamala, in central Queensland, that could produce fuel feedstocks, and plans for a renewable fuel refinery at BP’s Kwinana Energy Hub in Western Australia.
Analysis by Frontier Economics found an Australian sustainable aviation fuel industry could create more than 7400 jobs and add $2.8 billion to Australia’s economy by 2030.