Qantas has called on the federal government to consider mandates and subsidies for producers of sustainable aviation fuel to get a domestic industry off the ground, saying it could generate $13 billion a year by 2040 and provide a boost for cane farmers.

Sustainable aviation fuel, which comes from non-fossil sources, is a direct alternative to jet kerosene. It can be made from biogenic sources such as used cooking oils, council waste, plant oils and agricultural residues, including byproducts from sugar cane.