THE AUSTRALIAN oilseeds sector has welcomed news of a $200 million investment between Qantas and Airbus to develop locally sourced sustainable aviation fuel.
Oilseed crops such as canola, mustard and the Nuseed-developed carinata can all be processed into high quality aviation fuels.
The Australian Oilseeds Federation (AOF) said while it was aware of a likely drop in demand for biodiesel over the next decade as electric vehicles replace internal combustion engines, the opportunity for Australia to supply the sustainable aviation fuel industry will provide an opportunity for the industry.
And the industry is making sure it makes the most of the chance.
The International Sustainability and Carbon Certification (ISCC) program, best known in Aussie circles as a prerequisite to getting product into the European market, also has a module specifically tailored to aviation fuels.
The AOF, through its Sustainable Grain Australia program, is already reviewing the specifics of the requirements for sustainable aviation fuel.
Qantas boss Alan Joyce said he hoped the investment would spark a local biofuel industry.
"This investment will help kickstart a local biofuels industry in Australia and hopefully encourage additional investment from governments and other business and build more momentum for the industry as a whole," Mr Joyce said.
Grain Growers chairman Brett Hosking said the news was a positive for the Australian canola industry.
"It would be great to have a vibrant local biofuel industry competing for our product," Mr Hosking said.
"Biofuels from oilseeds also mean we can consider crops other than canola, such as mustard, which grows better in more marginal areas, while down the track something like carinata could be an option," he said.
"We realise that longer term there will be more focus on electric vehicles and less demand for biofuel but in aviation that is still likely to be a long way away so we'd hope this development could create added opportunities for Australian oilseeds for quite some time."
At present Australian does not have a domestic sustainable aviation fuel industry, in spite of sending canola, along with other feedstock such as animal tallow, elsewhere for use to make the product.
There will be strong demand for the Aussie-produced biofuel, with Qantas committing to using 10pc sustainable aviation fuel by 2030.
It currently sources SAF from international producers.
Qantas said SAFs cut greenhouse gas emissions by around 80 per cent compared to traditional kerosene and are the most significant tool airlines currently have to reduce their impact on the environment - particularly given they can be used in today's engines with no modifications.