As a vast island nation, Australia relies on a strong and growing aviation sector to connect us with each other and the world. The significant and essential economic and social benefits of aviation come with an environmental impact. As Australia’s biggest international gateway, at SYD we recognise the role we can play with other industry leaders, in mitigating this impact and we are actively looking at ways we can continue to grow travel without growing emissions.

SYD considers one of the most impactful steps that could be taken to reduce long-term carbon emissions from flying is the adoption of Sustainable Aviation Fuel.

About Sustainable Aviation Fuel

Sustainable Aviation Fuel – commonly known as SAF – is a cleaner alternative to conventional jet fuel.

Unlike fuel made from fossil fuels, SAF is produced from a range of feedstocks and waste-derived sources, like used cooking oil, agricultural residues and even council-collected waste. These types of SAF, known as biogenic SAF, have the potential to reduce greenhouse gas emissions by up to 80 percent over their lifecycle compared to conventional jet fuel. They may also have the added productivity benefit of converting waste which would otherwise be landfilled, burned or left to decay into high-value sustainable energy production, potentially unlocking new revenue streams and reducing disposal costs.

Once processed, SAF is blended with conventional jet fuel at rates of up to 50 percent. It can then be used as a drop-in replacement to conventional jet fuel, meaning it can be used by today’s aircraft and airport infrastructure.

SAF is not currently produced in Australia. Sydney Airport is advocating for the development of a domestic SAF industry to reduce carbon emissions.

Image courtesy of GrainCorp

Australian-made future fuels

Australia has a once-in-a-generation opportunity to become a world leader on SAF, with a domestic SAF industry having the potential to be a significant job creator while enhancing our economic resilience.

Research by Qantas and Airbus indicates domestic SAF production has the potential to contribute approximately $13 billion to the Australian economy by 2040 while supporting nearly 13,000 jobs in the feedstock supply chain and 5,000 new jobs to construct and run the SAF production facilities¹. Much of these benefits would be felt in the regional communities where SAF feedstocks are located.

Domestic SAF production could also reduce Australia’s reliance on imported fuel. Currently, 80 percent of Australia’s liquid fuels including petrol and diesel are imported from overseas, and 70 percent of our jet fuel is imported from just three countries. This arguably leaves Australia vulnerable to fuel insecurity and supply chain concentration, with a single disruption having the potential to threaten critical fuel supplies².

Meanwhile, global demand for SAF is expected to increase, with governments moving quickly to support domestic production to meet local mandates and targets. Competitive advantages could see Australia – and NSW in particular – become a leading jurisdiction for SAF production, including:

• an abundance of feedstock, with an estimated 21 million tonnes a year in NSW alone;
• an advanced agricultural sector;
• a significant existing workforce with complementary skills and a strong pipeline of future skills; and
• a strong research and development capability through NSW’s universities.

Why does Sydney Airport care about SAF?

For emissions under Sydney Airport’s operational control, we are committed to achieving net zero Scope 1 and 2 greenhouse gas emissions by 2030. As at July 2025, we have delivered 85 percent of our net zero roadmap, including achieving 100 percent renewable electricity in January 2025.

However, Sydney Airport’s Scope 1 and 2 emissions are only 1 percent of our total emissions footprint. The remaining 99 percent are Scope 3 emissions, and 95 percent of those Scope 3 emissions come from the burning of aircraft fuel.

Sydney Airport is committed to playing an active role to address the long-term emissions at our airport, including Scope 3 emissions. This includes an ambition for 50 percent SAF in our airport fuel mix by 2050.

The former Kurnell Refinery in NSW is an example of a facility which could be retrofitted for SAF production. Producing SAF and other low carbon liquid fuels in Australia could also help to build Australia’s sovereign capability to produce our own fuel. With an existing aviation fuel import terminal and pipelines directly connected to the airport, Kurnell is a potential site for NSW’s first SAF refinery.

Making history with Australia’s biggest SAF import

Sydney Airport does not want to be a bystander when it comes to Australia’s SAF opportunity. Almost 40 percent of Australia’s jet fuel usage happens at Sydney Airport³.

That’s why we were proud to have partnered with Qantas to deliver the single biggest importation of SAF into Australia while a domestic production industry prepares to get underway.

In May 2025, almost two million litres of unblended SAF was imported from Malaysia and mixed with conventional jet fuel before being uplifted onto flights out of Sydney Airport. This one delivery was capable of powering the equivalent of 900 flights from Sydney to Auckland on Qantas’ 737 aircraft, once blended to a ratio of approximately 18% SAF⁴, reducing greenhouse gas emissions by an estimated total of 3,400 tonnes⁵. This is roughly equivalent to the annual emissions generated by 800 cars.

While this import was just one step in the journey to Sydney Airport’s long-term ambition for 50 percent SAF in our airport fuel mix, it showed that SAF can be used today to meaningfully reduce carbon emissions from flying.

What's next?

Sydney Airport will continue supporting the development of a domestic SAF industry through industry partnerships, government advocacy, and public awareness. Our recent milestone shows that progress is possible.

In order to make Australia’s SAF opportunity a reality, Sydney Airport is encouraging governments at a state and federal level to implement supportive policy settings, including:

• demand-side policy measures, such as low carbon liquid fuel standards;
• supply-side policy measures, such as production tax credits; and
• continuation of project and R&D funding.

¹ Qantas and Airbus, Developing a SAF industry to decarbonise Australian aviation, November 2023.

² Bioenergy Australia, Securing our Fuel Future: Resilience Through Low Carbon Liquid Fuels, March 2025.

³ Department of Climate Change, Energy, the Environment and Water, Australian Petroleum Statistics, 2023.

⁴ Final blend ratio subject to testing.

⁵ On a lifecycle basis.