The Queensland family best known for building an airport in under two years has turned its attention to the desperate need for sustainable aviation fuel with plans to build a $1.7bn refinery in Brisbane.

The Wagner Corporation, headed by Toowoomba Wellcmap Airport owner John Wagner, has teamed up with Boeing and the Queensland Government for the “massive project” with a goal of producing SAF from 2028.

In the first instance, the government was providing $760,000 for a feasibility study, but the entire project was expected to cost between $1.5bn and $1.7bn.

Made from construction and agricultural waste, SAF was considered the airline industry’s best chance to decarbonize aviation as it reduced CO2 emissions by 84 percent.

There was currently no SAF being made in Australia, and refineries in the US, Europe, and Singapore were only producing enough for about 0.5 percent of the airline industry’s fuel needs.

Mr Wagner said they were motivated to get SAF production going in Australia by their commitment to Boeing to establish a carbon-neutral business park and final assembly facility for futuristic MQ-28 ghost bat aircraft.

“We’ve been working on that now for 18 months and as a result of our research into that, we looked at what we could do with SAF,” said Mr Wagner.

“We went round the world a few times to have a look at different technologies, and we’ve landed on municipal solid waste and construction demolition waste to jet fuel.”

He said increasing the production of SAF was “critical to decarbonization” as airline travel grows.

The Wagner refinery would incorporate 20ha of stainless steel pipes over eight storeys and deliver 102 million liters per year at full production.

But Mr Wagner warned, in the absence of federal government support by way of incentives and/or a mandate, every last drop could be exported.

In the US, the government was providing incentives equivalent to 68c per liter for producers to deliver clean fuel and make it more affordable for airlines.

“If our federal government doesn’t have something similar to the US, all our SAF production will go offshore, which would be a tragedy,” said Mr Wagner.

“At this point, it would be California because it won’t stack up financially for the airlines in Australia.”

In the lead-up to SAF production, Mr. Wagner revealed Toowoomba Wellcamp Airport planned to offer blended SAF, using biofuel imported from Singapore, so airlines and the military could “test it out”.

“We’re doing that without any government support,” he said.

“We’ll be the only airport in the country to my knowledge to have SAF available and that will be a good place to start while we’re doing the design work and raising the capital to build the SAF refinery in Brisbane.”

Queensland Minister for State Development and Infrastructure Grace Grace said the Wagner refinery was a “game-changing opportunity” for the state.

Boeing sustainability lead for Australia and New Zealand Kimberly Camrass said the manufacturer was proud to be an early investor in establishing the facility in Brisbane.

“This project will make a real difference in developing an Australian SAF industry which is crucial not only to achieve Australia’s own climate goals but also to support the global commercial aviation commitment of net zero CO2 emissions by 2050.”

Qantas chief sustainability officer Andrew Parker said the airline aimed to use 10 percent SAF by 2030 and was investing in production through a $400m Climate Fund.

Virgin Australia chief corporate affairs and sustainability officer Christian Bennett congratulated Wagner Sustainable Fuels, the Queensland Government, and Boeing on their efforts to develop Australia’s “first integrated SAF refinery” in Brisbane.

“Australian SAF production is key to unlocking the domestic airline industry’s 2050 net zero emissions target, so this is a very positive announcement,” said Mr Bennett.

Soucre: https://www.theaustralian.com.au