Virgin Australia and its new strategic partner, Qatar Airways, have announced a significant collaboration with Brisbane-based Renewable Developments Australia (RDA) to help build a domestic sustainable aviation fuel (SAF) production facility in Charters Towers, a regional area in North Queensland. The venture marks a major step towards strengthening Australia’s aviation fuel security, decarbonising air travel, and fostering regional development.
The proposed facility, subject to final investment approval, will produce up to 96 million liters of SAF annually, beginning in 2029. Located near Charters Towers, around 140 kilometers inland from Townsville, the site has been selected for its strong biomass potential, sustainable water supply, and protection from cyclones—making it ideal for growing sugarcane, the feedstock of choice for the plant.
RDA plans to convert sugarcane-derived bioethanol into jet fuel using an ethanol-to-jet (EtJ) process. The project will use advanced PureSAF™ technology, developed by Swedish Biofuels and exclusively licensed to KBR, a global engineering firm. Bioethanol will be produced with technology supplied by Tomsa Destil, a Spanish company specializing in alcohol distillation systems. The entire SAF production chain will be vertically integrated, energy self-sufficient, and supported by renewable power generated onsite from waste by-products.
Virgin Australia and Qatar Airways confirmed that, pending final conditions, they plan to source jet fuel from this facility. Their involvement follows an October 2024 Memorandum of Understanding (MoU) to collaborate on commercial and sustainability objectives. The MoU outlined their joint commitment to promoting SAF and low carbon aviation fuels (LCAF) in Australia.
The airlines’ engagement comes at a time when Australia’s aviation sector is actively seeking ways to reduce its reliance on fossil fuels. SAF has emerged as a viable alternative, capable of reducing lifecycle carbon emissions by up to 70% compared to conventional jet fuels, according to early modeling from RDA.
The significance of the Charters Towers project is underscored by broader industry involvement. Boeing has offered a formal letter of support, pledging policy advocacy and technical collaboration with RDA. The Queensland government has also welcomed the initiative. Treasurer and Minister for Energy David Janetzki, said the project aligns with the state’s ambition to lead in sustainable fuels and drive job creation in regional areas.
Tony D’Alessandro, the Managing Director of RDA, stated that the project marks a significant milestone in the development of the Australian SAF industry. “This initiative is more than just a step towards decarbonising air travel,” he said. “It represents a major investment in Australia’s energy security and regional economic development.”
Christian Bennett, Virgin Australia’s Chief Corporate Affairs and Sustainability Officer, emphasized the scale of the challenge facing the industry. He noted that net zero by 2050 cannot be achieved without partnerships across sectors. “Working together with industry partners and government to establish a domestic SAF industry in Australia will be essential—not only to achieve these shared emissions goals but to strengthen Australia’s liquid fuel security,” Bennett said.
The project’s location offers key logistical advantages. By placing biomass cultivation, processing, and SAF conversion in close proximity, the plant reduces the risk of supply chain disruptions and price fluctuations. This vertically integrated SAF model is what sets RDA’s project apart from other global initiatives, the company says.
RDA is not alone in targeting Queensland for SAF development. Townsville, a coastal city near Charters Towers, is the site of a separate biofuel project by Jet Zero Australia in partnership with Qantas, Airbus, the Queensland government, and LanzaJet. That project, which also focuses on converting sugarcane into SAF, aims to deliver 102 million liters of fuel annually.
In addition to the Charters Towers initiative, Virgin Australia has launched a trial SAF supply partnership with Viva Energy. Between March and July 2025, the airline will source blended aviation fuel from Viva at Proserpine Airport, located along the North Queensland coast. The fuel includes a 30-40% synthetic component made from waste and residue feedstocks, although the exact volumes and origins have not been disclosed.
Qatar Airways has highlighted the Charters Towers partnership as evidence of the long-term value of its investment in Virgin Australia. The airline described the SAF initiative as being “in the Australian national interest,” in a thinly veiled nod to the federal government’s earlier decision to block Qatar Airways’ request for additional Australian flight routes.
By supporting SAF production onshore, the partnership between Virgin Australia, Qatar Airways, and RDA may help unlock a more resilient and lower-carbon future for Australian aviation. As global demand for SAF continues to grow, regional initiatives like the one in Charters Towers could become essential components of the aviation industry’s decarbonisation journey.
