Virgin Australia and Qatar Airways have entered into a strategic partnership with Renewable Developments Australia (RDA) to advance the development of a homegrown Sustainable Aviation Fuel (SAF) production facility in the Charters Towers region of North Queensland.
The proposed project will establish a fully integrated Ethanol-to-Jet (EtJ) facility, converting bioethanol derived from sugarcane cultivated onsite into 100% SAF. The process will utilize PureSAF™ technology licensed from global engineering firm KBR and will also generate all required energy from renewable sources, setting a benchmark in sustainable fuel manufacturing.
Once operational, the facility is expected to produce up to 96 million litres of SAF annually, supplying fuel to nearby regional airports. Initial modelling indicates the potential for a 70% reduction in lifecycle greenhouse gas emissions compared to conventional jet fuel.
This initiative aligns with the broader sustainability goals outlined in the Memorandum of Understanding (MoU) signed by Virgin Australia and Qatar Airways in October 2024, which underscores their joint commitment to reducing carbon emissions and accelerating the commercial adoption of SAF and Low Carbon Aviation Fuels (LCAF) in Australia.
The Boeing Company has also endorsed the project, providing a letter of support that outlines its intention to collaborate on policy advocacy and contribute technical expertise to support project execution.
Currently in the pre-final investment decision phase, the SAF facility aims to begin production in early 2029.
Tony D’Alessandro, Managing Director of Renewable Developments Australia, described the partnership as a major milestone for Australia’s sustainable aviation sector:
“We are proud to be collaborating with two globally respected airlines that share our vision for a domestic SAF supply chain. This project will not only deliver significant emissions reductions, but also stimulate regional economic growth and energy resilience. Our Charters Towers facility will serve as a fully integrated site, producing SAF from locally grown sugarcane and generating renewable power from by-products of the process—a model of sustainability for future aviation fuel production.”
Christian Bennett, Chief Corporate Affairs and Sustainability Officer at Virgin Australia, emphasized the importance of industry collaboration:
“The aviation sector globally faces a significant challenge in meeting net-zero carbon emissions targets by 2050—this is not something we can achieve alone. Establishing a domestic SAF industry in partnership with government and industry stakeholders is critical, not only for emissions reduction, but also for enhancing Australia’s liquid fuel security and generating high-quality regional jobs.
“We are excited to work alongside Qatar Airways and RDA on this visionary project, which reflects a core priority of our MoU with Qatar Airways: accelerating SAF and LCAF development, certification, and commercial uptake through strategic collaboration and investment in Australia.”