Can a A$400k Grant Unlock Australia-China's Sustainable Aviation Future?

The Australian Federal Government has awarded Adelaide University a significant A$400,000 grant. This funding is aimed at boosting Australia China sustainable aviation fuel (SAF) cooperation. The two-year initiative will accelerate SAF development and deployment.

This project is named the Australia-China Cooperation for Sustainable Aviation (ACCSA). It is funded by the National Foundation for Australia-China Relations (NFACR). The NFACR operates under the Department of Foreign Affairs and Trade (DFAT). The grant was announced by Minister for Foreign Affairs, Senator Penny Wong. It is one of 22 grants supporting cooperation between the two nations.

Project Scope and Goals

The ACCSA project seeks to strengthen collaboration among key stakeholders. This includes researchers, airlines, fuel producers, and investors. Its core goal is the commercial deployment of SAF across the region.

Key activities planned over the two-year period include:

• Major SAF conferences held in five cities: Beijing, Adelaide, Brisbane, Hong Kong, and Sydney.
• Establishing a long-term industry networking platform.
• Launching a student exchange and competition program.

This effort aligns with Australia's "Future Made in Australia" priorities. It supports the growth of a domestic SAF industry.

SAF Policy and Market Context

Sustainable aviation fuel is critical for aviation decarbonisation. It can reduce lifecycle carbon emissions by up to 80%.

Australia's Domestic Push

Australia is actively working to establish a local SAF industry. The Australian Federal Government launched the Cleaner Fuels Programme. This program pledges A$1.1 billion over ten years. The funding will support local SAF and renewable diesel production. Australia also established the Jet Zero Council in 2023. Major carriers have set aggressive targets. For example, Qantas targets 10% SAF use by 2030. Their long-term goal is 60% SAF use by 2050. Airlines like Virgin Australia and Chinese carriers operating the Australia–China air corridor are also affected.

China's Growing Role

China is the world's second-largest aviation market. The Civil Aviation Administration of China (CAAC) has set goals. The 14th Five-Year Plan targets 20,000 tonnes of SAF consumption by 2025. China's long-term goal is 45 million metric tonnes by 2050. China is a major producer of used cooking oil (UCO). This is a key feedstock for SAF production. The ACCSA project aims to leverage this massive potential.

Industry Impact and Challenges

The Asia-Pacific SAF market is a major focus for global decarbonisation. The region is forecast to produce 40% of the world's SAF by 2050, according to IATA. However, SAF production remains a global challenge. Global SAF production reached only 0.6% of jet fuel consumption in 2025. The high cost of SAF, which can be two to four times that of fossil jet fuel, is a key barrier.

This grant provides a platform for both countries to address these issues. The ACCSA project will connect Australian feedstock expertise with China's production capacity. This collaboration is seen as a positive step. It helps compartmentalise climate goals from broader geopolitical tensions. Ultimately, the project seeks to lower costs and increase SAF supply. This will help airlines meet their net-zero pledges.

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