Virgin Australia, Qatar Airways, and Renewable Developments Australia (RDA) have joined forces to develop a homegrown sustainable aviation fuel (SAF) production facility in the Charters Towers Region of North Queensland. The project will establish an integrated Ethanol to Jet (EtJ) facility, converting bioethanol from locally grown sugarcane into 100% SAF. The facility will also generate all of its energy from renewable sources, making it energy self-sufficient, which distinguishes it from other SAF projects globally.

This facility is expected to produce up to 96 million liters of SAF annually, supplying nearby airports. Initial projections suggest a potential reduction in lifecycle greenhouse gas emissions by 70% compared to conventional jet fuel.

The collaboration is aligned with the Memorandum of Understanding (MoU) signed by Virgin Australia and Qatar Airways in October 2024. The MoU emphasized their joint commitment to sustainability initiatives, including reducing carbon emissions in air travel and increasing the use of SAF and Low Carbon Aviation Fuels (LCAF) in Australia.

Boeing has also expressed support for the project, committing to assist in areas such as policy advocacy and technical expertise.

Currently in the pre-final investment decision stage, the project aims to begin SAF production in early 2029.

Tony D’Alessandro, Managing Director of Renewable Developments Australia, highlighted the significance of the partnership. “We are proud to work with globally recognized airlines that share our vision for a domestic supply of SAF. This project will contribute to long-term emission reductions and regional economic growth.”

Virgin Australia's Chief Corporate Affairs and Sustainability Officer, Christian Bennett, emphasized the importance of collaboration to meet the aviation industry's net-zero emissions target by 2050. “Establishing a domestic SAF industry will be crucial for achieving emissions goals, enhancing fuel security, and creating jobs in regional Australia,” he said.

A Qatar Airways spokesperson added that the development of SAF infrastructure is key to the long-term sustainability of the aviation industry, both in Australia and worldwide. “Our partnership with Virgin Australia is vital for meeting environmental obligations and advancing SAF development,” the spokesperson said.

David Janetzki, Treasurer and Minister for Energy of Queensland, welcomed the project, stating, “This announcement positions Queensland as a global leader in sustainable aviation fuel, creating new opportunities and jobs in regional Queensland.”