$30m leg up for greener air travel ambitions as Japanese giant invests in Jet Zero Australia
A Japanese giant has come on board with Jet Zero Australia to help make greener air travel a reality.
Business
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The Australian company hoping to become the country’s first major producer of sustainable aviation fuel, has attracted almost $30m in funding.
Jet Zero Australia plans to establish a production plant in Townsville using alcohol-to-jet technology pioneered in the US.
In a major boost, the company has signed one of Japan’s largest energy conglomerates, Idemitsu Kosan, as a strategic shareholder.
It will be Idemitsu’s first investment in a SAF project outside Japan, and representative Masahiko Sawa said it would help strengthen the global SAF supply chain.
“Australia, especially Queensland, is an important business partner and we hope to build a bridge between the two countries in the world of carbon neutrality in addition to the resources business,” said Mr Sawa.
Jet Zero Australia already had the backing of Qantas and Airbus, plus support from the Queensland government for the proposed plant, to be known as Project Ulysses.
It was envisaged the project would deliver more than 100 million litres of SAF a year, which would be sufficient for flights in and out of Townsville.
Qantas chief sustainability officer Andrew Parker said a domestic SAF industry was critical to Australia meeting its emissions reductions target.
“Our early investment in Jet Zero’s project was a vote of confidence in its viability and we’re pleased to see a major international capital partner has now come on-board,” Mr Parker said of Idemitsu’s involvement.
“With the right policy settings and support from governments, we’ll be able to capitalise on the significant benefits and natural advantages that Australia has for SAF production.”
Jet Zero chief executive Ed Mason also welcomed Idemitsu as a “shareholder with significant financial backing and capabilities in project development and renewable fuels”.
“Alongside Qantas and Airbus, the addition of Idemitsu is a huge boost in our ability to fund the success and future development of our Australian SAF projects,” Mr Mason said.
Airbus chief representative Australia Stephen Forshaw described the “continued expansion of Jet Zero” as a crucial first step for the industry.
“Australia will need more SAF in coming years, and more investment to make it happen,” said Mr Forshaw.
“The objective of our initial investment was to test the feasibility of Jet Zero’s alcohol-to-jet approach. With that proven, it is exciting to see the company moving forward and we look forward to supporting it through these crucial milestones.”
Originally published as $30m leg up for greener air travel ambitions as Japanese giant invests in Jet Zero Australia
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