Skift Take
Qantas is currently sourcing its sustainable fuel from outdoors Australia. This collaboration with Airbus will offer it much higher control in the house to meet those super-aggressive targets for converting to more environmentally friendly fuel.
Tom Lowry
Qantas Airways and Plane said on Sunday they would invest up to $200 million to speed up the advancement of a sustainable aviation fuels (SAF) industry in Australia to help fulfill the airline’s goal of decreasing carbon emissions.
The contract, announced on the sidelines of global airline market body IATA’s yearly conference in Doha, remains in line with Qantas’ target of using 10% SAF in its fuel mix by 2030 and follows it put a multi-billion dollar order for Plane narrowbody and widebody aircrafts last month.
The global airline company market, aiming to reach net absolutely no emissions by 2050, is depending on SAF use to increase from around 100 million litres (26 million gallons) a year in 2021 to at least 449 billion litres a year within three years, a massive and expensive endeavor.
Qantas is sourcing SAF in London and Los Angeles however not in Australia.
“The issue is there is no sustainable air travel fuel market in Australia and we would like to purchase this in scale,” Qantas President Alan Joyce told reporters. “We believe the way to do that is to put our money where our mouth is.”
The investment, which includes A$ 50 million ($35 million) of funding formerly committed by Qantas, might go to a mix of start-up firms and more established operators and might consist of equity financial investments, Joyce stated.
The funding will be divided in between Qantas and Jet with a smaller sized contribution from Raytheon Technologies-owned engine maker Pratt & Whitney, he added. Qantas has actually ordered Pratt & Whitney engines for its brand-new Airplane narrowbody fleet.
Airbus president Guillaume Faury said the deal with Qantas was “distinct” due to its recent airplane order and Australia’s isolated location and was not expected to be reproduced with other airline companies.
The SAF financial investment partnership will last for a preliminary 5 years with a choice to extend, the companies said.
Joyce stated he hoped it would encourage the Australian government to improve the policy structure and aid fund the advancement of a local SAF market.
He stated Qantas had held promising initial talks with the new centre-left federal government elected last month.
($1 = 1.4430 Australian dollars)
(Reporting by Jamie Freed in Doha; Modifying by William Mallard and Louise Heavens)
This short article was composed by Jamie Freed from Reuters and was legally certified through the Industry Dive Material Market. Please direct all licensing questions to [email secured]
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