GrainCorp has released a white paper outlining how Australia could establish a domestic sustainable aviation fuel industry by using existing agricultural and waste-based feedstocks, while calling for policy support to encourage investment in refining capacity.
The report, titled From Paddock to Plane: Feedstock White Paper, was developed as part of GrainCorp's participation on the Australian Federal Government's Jet Zero Council. Its release comes as the government prepares to consult on demand-side measures aimed at encouraging investment in sustainable aviation fuel, or SAF, production.
According to the white paper, Australia's opportunity to develop a competitive SAF industry is not limited by feedstock availability. Instead, the report identifies investment, policy settings and market signals as the primary barriers to expanding domestic production.
The paper also points to Australia's dependence on imported liquid fuels, noting that about 90% of domestic fuel demand is supplied from overseas. Recent disruptions affecting global shipping routes have underscored concerns about the country's fuel security and limited domestic aviation fuel reserves.
GrainCorp's analysis found that existing feedstocks, including canola, tallow and used cooking oil, could support SAF production equivalent to 117% of Australia's projected jet fuel demand in 2030. The report projects that figure could increase to 126% by 2050 as additional feedstocks and technologies become commercially available.
The white paper recommends a three-stage approach to industry development. The first phase would rely on established feedstocks already produced at commercial scale. The second would expand production through increased feedstock supplies, improved crop yields and new agricultural developments. The final stage would incorporate next-generation feedstocks and advanced refining technologies.
Australia's broader feedstock base includes wheat, sugarcane, municipal solid waste, forestry byproducts, crop residues and emerging sources such as carinata, pongamia, perennial crops and algae.
GrainCorp said retaining more of these feedstocks within Australia, rather than exporting them for processing overseas, would strengthen domestic fuel production and improve energy security.
The report estimates a domestic SAF industry could support more than 18,000 jobs and contribute about AU$36 billion to the Australian economy, with much of the economic activity occurring in regional communities.
With aviation fuel demand expected to reach about 14 billion liters annually by 2050, the white paper identifies domestic SAF production as a long-term opportunity for Australia's agriculture and processing sectors.
GrainCorp is also working with Ampol and IFM Investors under a memorandum of understanding announced in 2024 to explore development of what would become Australia's largest liquid fuel manufacturing project, using GrainCorp's feedstock sourcing and supply chain capabilities.
The full white paper can be read here.
Source: GrainCorp, "From Paddock to Plane: GrainCorp outlines pathway for Australia’s sustainable aviation fuel future"