SCHIPHOL-RIJK (dpa-AFX) - European airplane maker Airbus SE (EADSF.PK, EADSY.PK) and Australia's Qantas Group (QAN.AX, QUBSF.PK) announced Monday an agreement to invest up to $200 million to accelerate the establishment of a sustainable aviation fuel or SAF industry in Australia.
The partnership is initially for five years with options to extend the duration. Qantas' financial contribution to the Australian Sustainable Aviation Fuel Partnership includes A$50 million previously committed to research and development of SAF in Australia.
The Australian Sustainable Aviation Fuel Partnership was signed in Doha by Qantas Group CEO Alan Joyce and Airbus CEO Guillaume Faury ahead of the IATA AGM.
Australia is currently exporting millions of tonnes of feedstock every year, such as canola and animal tallow to be made into SAF in other countries, as the country lacks a local commercial-scale SAF industry.
Qantas, which has committed to using 10 percent SAF in its overall fuel mix by 2030, is sourcing SAF overseas.
The companies expect their partnership will provide funding for locally developed and produced SAF and feedstock initiatives.
Airbus and Qantas agreed to work together on the sustainability initiative part of the airline's recently announced orders. These include the A350-1000 to operate 'Project Sunrise' non-stop flights from Australia to New York and London. It also includes the selection of the A220 and A321XLR under the carrier's 'Project Winton' domestic fleet renewal, as well as lower emission aircraft for its subsidiary Jetstar.
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