Qantas Boosts Investment in Sustainable Aviation Fuel with AU$100 Million Commitment

Key takeaways

• Qantas imported nearly 2 million litres of unblended SAF in May 2025 for blending and airport use in Sydney.
  
• Blended at about 18%, the shipment will power roughly 900 Sydney–Auckland flights and cut ~3,400 tonnes CO2.
  
• Qantas committed >100 million litres/year from Los Angeles for three years and directs AU$100M+ to SAF projects.
  

(SYDNEY) Qantas has stepped up its clean-fuel push with a run of 2025 moves that put sustainable aviation front and center on trans‑Tasman and long‑haul routes, while pressing Canberra for policy support to build a homegrown supply chain.

In May, working with Sydney Airport and Ampol, the carrier completed Australia’s largest-ever commercial importation of SAF, landing nearly 2 million litres of unblended SAF from Malaysia for blending and use in Sydney’s fuel system. The batch is being blended at about 18% with conventional jet fuel and is set to power roughly 900 Qantas and Jetstar flights between Sydney and Auckland. Qantas estimates those operations will cut about 3,400 tonnes of carbon dioxide—roughly the same as taking 800 cars off the road for a year—showing how targeted use of sustainable aviation fuel can deliver real, near-term cuts even as wider industry change takes time.

Qantas Boosts Investment in Sustainable Aviation Fuel with AU$100 Million Commitment

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Recent commitments and operational context

Qantas says this is not a one-off. In August, the airline announced it will use more than 100 million litres of SAF per year from Los Angeles International Airport for the next three years, a major boost to its international uptake.

Over the past financial year (July 2024–June 2025), Qantas reported:

• Lower fuel costs overall but higher total fuel consumption.

• Average SAF use of 181 barrels per day (about 0.2% of total fuel burned), up 5% from 172 barrels per day the prior year.

This is a small share but represents a steady lift in a system that depends on strict testing, supply chain adjustments, and airport infrastructure.

Funding, partnerships and strategic goals

Qantas frames these steps as part of a broader climate plan anchored by its AU$400 million Climate Fund. More than AU$100 million from that pool is now directed at SAF and other decarbonisation work.

Key strategic elements:

• Scale up supply quickly where possible.
  
• Prove demand through real-world use on scheduled flights.
  
• Help build first local plants able to produce large volumes at competitive prices.
  

Notable investments and partnerships:

• In April 2025, Qantas and Airbus invested AU$15 million in Climate Tech Partners, a venture fund focused on early-stage SAF technologies.

• Sydney Airport signed a Memorandum of Understanding with Qantas targeting 50% of all fuel uplift at the airport coming from SAF by 2050.

Coalition building and demand signaling

Qantas leads a SAF coalition with 15 major Australian and global companies, including Australia Post, Accenture, ANZ, BCG, Commonwealth Bank, Deloitte, Fortescue, IMC, ING Australia, PwC Australia, Raytheon Australia, Sydney Airport, Woodside Energy, and Xero.

Many coalition members use a book‑and‑claim model—an accounting approach that lets them pay to support SAF used on certain flights even if their employees’ flights do not physically use that exact fuel. The aim is to speed demand signals while the physical supply chain catches up.

Targets and regulatory context

Public targets:

• 10% SAF in Qantas’s total fuel mix by 2030
  
• 60% by 2050
  
• Net Zero by 2050
  

These align with global aviation regulator direction and international mandates such as Europe’s ReFuelEU policy and the UK’s planned SAF mandate, which are raising blend levels and driving production targets.

Economic and national benefits of onshore production

Qantas argues onshore production could deliver broad national benefits:

• Potentially add about AU$13 billion to GDP per year by 2040
  
• Support around 13,000 jobs in feedstock supply
  
• Create about 5,000 roles at new facilities
  

Benefits include fuel security, turning local waste streams and sustainable crops into jet fuel to buffer against global oil shocks and supply bottlenecks. Fiona Messent, Qantas’s Chief Sustainability Officer, called SAF the airline’s most workable near-term decarbonisation tool, stressing jobs, resilience, and long-term cost control from building capacity onshore.

Airbus partnership and government asks

Airbus has become a close partner. Julie Kitcher, Airbus’s Chief Sustainability Officer, has said scaling SAF requires new ways of working across the sector and that Australia is well placed to lead.

Joint asks to government:

• Direct incentives and research grants for the first two to three domestic producers.
  
• Ongoing support for 10–15 years to lower investment risk and accelerate industry build-out.
  

Existing SAF contracts and passenger impact

SAF history and supply:

• Qantas began buying SAF in 2022 (London Heathrow and California).
  
• Current contracts supply around 10 million litres/year from Heathrow and 20 million litres/year from California.
  
• New Los Angeles commitment: >100 million litres/year for three years (starting 2025).
  

Passenger experience:

• The shift is largely invisible to passengers: blended fuel meets strict standards, burns cleanly in existing engines, and requires no changes to aircraft hardware.
  

How SAF is processed and delivered at Sydney

The process at Sydney follows a clear chain:

1. Importation: Unblended SAF arrives at a local terminal such as Ampol’s Kurnell facility.
   
2. Blending: SAF is mixed with conventional jet fuel at about 18%.
   
3. Testing and Certification: Strict lab testing and certification to meet aviation standards.
   
4. Distribution: Certified blend enters the airport’s supply network and is loaded onto aircraft.
   
5. Usage and Reporting: Airlines use the blend on scheduled flights and track emissions savings.
   

This May shipment will power about 900 Sydney–Auckland flights, providing a pilot large enough to deliver measurable emissions cuts and to prove operational readiness.

Scale-up: from imports to industry build‑out

Qantas’s Climate Fund (AU$400 million) plus AU$100 million+ directed to SAF aims to bridge early pilots and steady supply.

The airline’s pitch to government:

• Focus support on a limited number of first producers to reach commercial output sooner.
  
• Align Australia with the US and Europe, where public policy already drives early SAF plants.
  

Analysis from VisaVerge.com notes that markets with long-term support attract the first commercial refineries, while late movers face higher catch-up costs or continued import reliance.

Regional economic and workforce impacts

Qantas forecasts:

• AU$13 billion annual GDP boost by 2040
  
• Roughly 18,000 combined jobs across feedstock and facilities
  

Skills needed range from chemical engineering and quality control to logistics and project finance, requiring training programs and regional planning to match plant build-outs.

Policy stakes and recommendations

Industry position:

• Targeted production incentives
  
• Support for research and early engineering
  
• Clear, bankable rules lasting 10–15 years
  

Environmental groups welcome momentum but urge:

• Faster action
  
• Robust feedstock rules to ensure sustainability and prevent competition with food production
  

For a plain-language primer on SAF from international sources, see the U.S. Department of Energy: Sustainable Aviation Fuel: https://www.energy.gov/eere/bioenergy/sustainable-aviation-fuel

Market dynamics and corporate demand

• Corporate travel buyers are monitoring SAF closely; many have emissions goals and can use book‑and‑claim to support SAF now.
  
• As volumes grow, corporations will expect broader physical access to blended fuel and routes covered by SAF, including across Asia.
  
• Qantas’s coalition provides a forum to coordinate demand and share costs to keep the early market viable.
  

Technical, logistical and safety considerations

The May import shows the detailed nuts-and-bolts required:

• Import paperwork, blending, lab testing, certification, and on‑airport distribution must align.
  
• Each step includes safety checks to ensure blended fuel meets global standards.
  
• Operational data from the Sydney–Auckland flights will help engineers and teams refine processes before larger volumes arrive.
  

Important

Be aware: early SAF supply relies on imports and pilot projects—infrastructure upgrades and policy support are still evolving; delays or policy shifts could affect availability and costs.

Airports and energy companies will need hardware upgrades as blends rise:

• Storage tanks, pipelines, and blending equipment must meet safety and quality rules.
  
• Sydney’s early moves, supported by Ampol, indicate upgrades are manageable with planning.
  

Timeline and next milestones

Planned and expected developments:

• Planned biofuel facilities in Queensland and New Zealand, with output expected around 2028.
  
• To reach 10% SAF by 2030, local plants must feed major Australian airports within a few years, complementing imports.
  
• Australian government may announce production incentives and R&D backing within 12–18 months—policy certainty would help final investment decisions.
  

Summary — headline numbers and outlook

Key figures:

• Nearly 2 million litres of unblended SAF imported into Sydney (May 2025).
  
• Blended at about 18%, supporting roughly 900 flights and trimming ~3,400 tonnes of CO2.
  
• Qantas SAF average: 181 barrels per day in 2024–25 (up 5% year on year).
  
• >100 million litres/year locked in from Los Angeles for three years.
  
• AU$100 million+ committed to SAF from the AU$400 million Climate Fund.
  
• AU$15 million invested with Airbus into a venture fund for early-stage tech.
  
• MoU with Sydney Airport aimed at 50% SAF uplift by 2050.
  

These moves will not deliver net zero overnight but show a practical path to cutting aviation emissions while protecting long‑haul connectivity. If government policy supports the first local plants with incentives and R&D backing, Australia could transition from buyer of imported blends to regional producer—supporting jobs, fuel security, and more affordable SAF over time.

For travelers: aircraft, pilots and safety standards remain the same — the change is in the tanks. As more airports carry blended fuel, more routes can fly with a smaller carbon footprint.