Thursday, 27 March 2025: Virgin Australia and Qatar Airways have agreed to work together with Renewable Developments Australia (RDA) to become key partners on a project that will set out to deliver a homegrown Sustainable Aviation Fuel (SAF) production facility in the Charters Towers Region of North Queensland.
The project aims to establish a fully-integrated Ethanol to Jet (EtJ) facility that converts bioethanol derived from sugarcane grown onsite into 100% SAF, using proprietary PureSAFSM technology supplied from KBR, while also generating all of the project’s energy requirements from renewable sources. This unique vertically integrated and energy self-sufficient approach sets it apart from other SAF and EtJ projects globally.
The facility is expected to produce up to 96 million litres of SAF annually which will be supplied to nearby airports. Early modelling indicates a potential lifecycle greenhouse gas emissions reduction of 70 per cent compared to conventional jet fuel.[1]
For the airlines, this project aligns with the broader Memorandum of Understanding (MoU) signed by Virgin Australia and Qatar Airways in October 2024. The MoU cemented their intent to collaborate on sustainability initiatives that aim to reduce carbon emissions in air travel, and advance the use of SAF and Low Carbon Aviation Fuels (LCAF) in Australia.
In further encouraging support from the broader aviation ecosystem, The Boeing Company (TBC) has endorsed the project through a positive letter of support to RDA and in which TBC outlines its commitment to collaborate in a number of areas, including policy advocacy and the contribution of technical expertise, where relevant.[2]
The project, currently in pre-final investment decision stage, aims to deliver SAF from early 2029.
Commentary from Renewable Developments Australia
Renewable Developments Australia’s Managing Director, Tony D’Alessandro, said the partnership with Virgin Australia and Qatar Airways marks a significant milestone in the development of a sustainable aviation fuel industry in Australia.
“We are proud to be working with two globally recognised airlines that share our vision of creating a domestic supply of Sustainable Aviation Fuel. This project is designed to deliver real, long-term emission reductions while building a new industry in regional Queensland.
“Our Ethanol to Jet SAF facility in the Charters Towers Region will be a fully integrated production site, generating sustainable fuel from bioethanol derived from locally grown sugarcane. Additionally, by repurposing by-products of the SAF production process to generate renewable power onsite, we are setting a new benchmark for sustainability in aviation fuel manufacturing.
“This initiative is more than just a step towards decarbonising air travel; it represents a major investment in Australia’s energy security and regional economic development.”
Commentary from Virgin Australia
Virgin Australia Chief Corporate Affairs and Sustainability Officer, Christian Bennett said the project had close alignment with the priorities in the Virgin Australia and Qatar Airways MoU.
“The commercial aviation sector in Australia – indeed globally – faces an enormous task ahead in working towards a target of net zero carbon emissions by 2050, which we cannot do alone,” he said.
“Working together with industry partners and government to establish a domestic SAF industry in Australia will be essential – not only to achieve these shared emissions goals, but to strengthen Australia’s liquid fuel security by reducing reliance on global supply chains and creating new, secure, jobs for those living in regional Australia.
“We are delighted to be working with our strategic partner, Qatar Airways, and the team at RDA to try and bring this project to life. It is a task strongly aligned with a key priority of our MoU with Qatar Airways, which at its core focuses on advancing SAF and LCAF certification, production, and commercial uptake through strategic collaborations, with a focus on investing in Australia.”
Commentary from Qatar Airways
A Qatar Airways spokesperson said: “The development of SAF infrastructure and of the fuel itself is of vital importance to the long-term sustainability of the aviation sector both in Australia and across the globe.
“This initiative is a testament to the opportunity Qatar Airways Group’s investment in Virgin Australia provides, not just for the two airlines, but in the Australian national interest. Qatar Airways is committed to meeting its environmental obligations and partnerships such as ours with Virgin Australia will be crucial to that.”
Commentary from the Queensland Government
Treasurer and Minister for Energy, David Janetzki said: “Today’s announcement helps position Queensland as a global sustainable aviation fuel leader.
“The new government has committed to progress the sustainable fuels industry, which stands to create opportunities and new jobs in regional Queensland.”
ENDS
FOOTNOTES
[1] Based on a lifecycle assessment completed Stantec using the GREET model.
[2] Virgin Australia and Boeing signed a MoU on sustainability in June 2023, including a specific focus on SAF-related cooperation. All of Virgin Australia’s mainline commercial operations are operated on Boeing 737 aircraft.
NOTES TO EDITOR
- The bioethanol produced as part of the project will be using Tomsa Destil’s technology, and then converted to SAF using KBR’s PureSAFSM technology.
- Tomsa Destil is a Spanish company specialised in engineering and manufacturing of alcohol distillation plants and its derivative products in the international market.
- KBR is a strategic partner with RDA, licensing its proprietary SAF technology (PureSAFSM) and other engineering services.
- KBR deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 38,000 people worldwide with customers in more than 80 countries and operations in over 29 countries.
- The PureSAFSM ATJ technology platform provided by RDA’s strategic partner, KBR, is approved under ASTM D7566 Annex 8, currently allowing for up to a 50% blend, with a pathway to a 100% drop-in fossil fuel replacement.
- Subject to further approval processes currently being undertaken, the SAF produced by the PureSAFSM technology will not require blending with conventional jet fuel prior to use in aircraft and PureSAFSM is the only solution that produces a product that is fully fungible replacement for fossil jet.
About Renewable Developments Australia
RDA is the developer of the EtJ Sustainable Aviation Fuel Project and other Biofuels Projects in Far North Queensland. Under our vertically integrated business methodology we strive to deliver cost competitive, low carbon renewable energy solutions for hard to abate industry sectors including the airline industry via our EtJ SAF Project in Far North Queensland. RDA’s 1st EtJ SAF Project will deliver a renewable energy solution for the airline industry, whilst developing a new industry and economic development for regional Queensland. www.rda.energy
