Australian airports body pushes SAF as national fuel security priority

The Australian Airports Association has called on Canberra to make sustainable aviation fuel a national strategic priority, arguing that Australia's heavy reliance on imported jet fuel poses a security risk that domestic SAF production could help address alongside aviation decarbonization goals.

The policy position, representing more than 340 airports and aerodromes and over 150 corporate members, argues SAF is "the only scalable, near- to medium-term pathway" to cut aviation emissions materially, given the sector lacks a viable electrification alternative, unlike road transport.

The AAA said 80% of Australia's liquid fuel supply is imported, with 77% of jet fuel sourced from China, South Korea and Singapore.

While Australia has so far been relatively insulated from Middle East-linked disruption given its proximity to Asia, the association warned that any disruption through the South China Sea or the Strait of Malacca "would have significant and far-reaching consequences," citing the long-term decline in domestic refining capacity as a structural vulnerability.

Feedstock potential

Citing CSIRO modeling under the CSIRO-Boeing SAF Roadmap, the AAA said Australia could meet up to 85% of national jet fuel demand with domestic SAF by 2050, equivalent to 12 billion-13 billion liters/year, given the country's feedstock base, including used cooking oil, tallow and canola — of which Australia is currently a net exporter.

A joint analysis by Qantas and Airbus cited in the paper estimates that a domestic SAF industry could support about 13,000 jobs across feedstock and agricultural supply chains, plus a further 5,000 jobs in production, construction and operations, mostly in regional areas. Separate analysis commissioned by the Clean Energy Finance Corporation put the value of the broader low-carbon liquid fuels sector at up to A$36 billion ($23.8 billion).

The AAA's position sets out six objectives: making SAF a national strategic priority; supply-side incentives to close the cost gap with conventional jet fuel; phased demand-side mechanisms aligned with supply growth; open-access airport fuel infrastructure investment; a nationally consistent, internationally aligned SAF accounting framework; and cross-jurisdictional policy coordination.

Supply-side mechanisms sought

On supply, the AAA backed a transparent, scalable production incentive such as a production tax credit or contract-for-difference, alongside capital grants, concessional finance and loan guarantees to de-risk project delivery. It called for support to be predictable, staged to match the maturity of emerging production pathways and benchmarked against US, EU and UK policy frameworks.

The paper also urged investment in feedstock aggregation and logistics, streamlined planning approvals, and equitable open access to airport fuel storage and distribution infrastructure, noting that access currently varies across the network.

The AAA welcomed the government's May 2026 Federal Budget announcement of a forthcoming low-carbon liquid fuel demand-side measure to be developed in consultation with industry, and said it intends to participate actively in that process.

The association cautioned that any mandate must be calibrated to realistic, scalable supply and avoid disproportionate cost impacts on regional air services, including potential exemptions for regional routes to protect connectivity and affordability. It also called for the government travel procurement policy to act as an early demand anchor supporting bankable offtake agreements.

Certification, accounting framework

The AAA said credible, internationally aligned life cycle emissions accounting is essential to attracting investment and preserving access to international SAF markets, calling for frameworks that address indirect land-use change and align with the greenhouse gases Protocol, ICAO's CORSIA, and emerging global SAF registries, while avoiding double counting of emissions reductions.

The paper argued accounting settings should allow airlines to recognize SAF benefits under Scope 1 emissions while simultaneously enabling airports to claim credit under Scope 3 Category 11 and business travelers under Scope 3 Category 6, an approach the AAA said requires secure, proportionate data-sharing across producers, fuel suppliers, airlines and airports.

The position follows the government's establishment of the A$1.1 billion Cleaner Fuels Program and the start of consultation on its design, which the AAA said provides "a positive foundation for industry growth" as Australia works to build a domestic SAF sector from what is currently minimal low-carbon liquid fuel output and no domestic SAF production.

Platts, part of S&P Global Energy, assessed sustainable aviation fuel HEFA-SPK FOB Straits at $2,425/mt July 6, unchanged from July 3, tracking adjacent market information and maintaining the spread between the SAF FOB Straits and FOB China assessments at $25/mt.