Homegrown Sustainable Aviation Fuel industry

With around 40% of Australia’s aviation fuel supplied at Sydney Airport, fuel security is a priority, as is shifting to lower-emissions alternatives.

That’s why we welcome the recent Federal Budget commitment to accelerate the uptake of low-carbon fuels, including Sustainable Aviation Fuel (SAF).

SAF is a cleaner alternative to traditional jet fuel which has the potential to reduce emissions by 80 percent over their lifecycle.

Sydney Airport CEO Scott Charlton said:

“SAF is a once-in-a-generation opportunity to revitalise Australian sovereign capability and reduce our reliance on imported liquid fuels. SAF can be made in Australia, using Australian feedstocks, helping create and sustain Australian jobs.”

The federal package includes a commitment to introduce a measure to drive greater demand for low carbon liquid fuels and encourage investment in a new, domestic SAF refining capacity.

Aussies say “yes” to Sustainable Aviation Fuel

Australia has the potential to be a world leader in producing SAF, but currently we depend on overseas imports for supply, while local feedstocks like canola are largely exported to turn it into fuel overseas. With the right support, SAF could be produced here.

Results from research commissioned by Sydney Airport in March 2026 have found strong community support for building a domestic SAF industry in Australia, with 72 percent of Australians on board.

So, why are people backing SAF? Cutting aircraft emissions was the number one reason, nominated by 57 percent of Australians. Other benefits include improving Australia’s fuel security and supporting Australian manufacturing.

Sydney Airport has an ambition for SAF to make up half of all jet fuel used at our airport by 2050, which will help provide greater fuel security for Australia and reduce emissions.

Australia needs the right policy settings to produce SAF locally – and the Federal Budget was an important next step to get us there.

What is SAF and how is it produced?

SAF is a cleaner alternative to traditional jet fuel that could help reduce emissions from air travel.

Instead of being made from fossil fuels, SAF can be produced from a range of renewable and waste-based materials, including homegrown canola, used cooking oil, agricultural waste, and even household waste.

Some forms of SAF have the potential to cut greenhouse gas emissions by up to 80 percent or even higher across their lifecycle compared to conventional jet fuel.

Today, SAF is blended with traditional jet fuel and can already be used safely in today’s aircraft. As technology continues to improve, higher SAF blends are expected in the future.

Another big advantage is that SAF works with existing fuel systems and infrastructure, meaning Sydney Airport is already equipped to support its use. In May 2025, nearly two million litres of SAF arrived at Sydney Airport – the largest commercial delivery of its kind in Australian history. Once blended, this single delivery of fuel could power the equivalent of 900 flights from Sydney to Auckland on a Qantas 737 aircraft, reducing the resulting carbon emissions by those flights by an estimated 3,400 tonnes – this is roughly the annual emissions generated by 800 cars.

Buidling a domestic SAF industry

Sydney Airport CEO Scott Charlton said Australia has a strong opportunity to build a domestic SAF industry, delivering emissions reductions while supporting regional jobs and fuel security.

“Locally producing SAF may reduce aviation emissions while creating jobs, supporting farmers, and strengthening Australia’s fuel security,” Mr Charlton said.

“Australians want to see this industry built here because they recognise the benefits for farmers, regional communities and Australia’s long-term fuel security.”

Following the 2026 Federal Budget announcement to introduce a low‑carbon liquid fuel demand‑side measure, Mr Charlton said close collaboration between government and industry would be essential.

“We congratulate the Government on putting forward an ambitious policy package covering both demand and supply, which industry has long advocated for,” Mr Charlton said.

“We look forward to participating in the policy design process alongside government and industry partners to help ensure Australia develops an effective and globally competitive SAF policy framework.”

Find out more about the steps Sydney Airport is taking on decarbonisation.