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Australia’s aviation sector may be famous for its long distances and even longer runways, but when it comes to fuel security, the nation is still taxiing rather than taking off.

Two new reports released this week have delivered a clear message to policymakers and industry leaders alike: Australians want a home-grown Sustainable Aviation Fuel (SAF) industry, and they want it sooner rather than later.

The research, commissioned by Sydney Airport and complemented by a major Asia-Pacific benchmark study from the Low Carbon Fuels Alliance of Australia and New Zealand, reveals strong public support for locally produced aviation fuel and warns that Australia risks falling behind regional competitors unless investment accelerates.

The findings come at a time when global fuel supply chains remain fragile, and aviation demand continues its relentless climb back to, and beyond, pre-pandemic levels.

In other words, the timing could hardly be more relevant.

Australians want their aviation fuel made at home

Australians are increasingly comfortable with the idea of aircraft running on cleaner fuels, and they appear equally keen for those fuels to be produced domestically.

Sydney Airport’s research found that nearly 70 per cent of Australians support the use of Sustainable Aviation Fuel, and 60 per cent back the development of a domestic SAF industry once they understand how the fuel works.

Even more telling is the willingness among travellers to put their money where their boarding passes are.

A majority of respondents indicated they would accept small contributions through airline ticket prices to accelerate the rollout of SAF technology.

According to Sydney Airport CEO Scott Charlton, the results reveal a public appetite for an industry that delivers both environmental and economic benefits.

“Locally producing SAF would reduce aviation emissions while creating jobs, supporting farmers, and strengthening Australia’s fuel security,” Charlton said.

The airport operator has been advocating for stronger demand measures as part of the Australian Government’s $1.1 billion low-carbon liquid fuels investment program, arguing that policy certainty is needed to attract global capital into the sector.

Charlton also pointed to rising geopolitical tensions as a reminder that energy resilience is no longer an abstract policy debate.

“The current conflict in the Middle East highlights the importance of mandates that attract global investment and secure a domestic fuel supply,” he said.

Regional jobs and farmers could be major winners

Unlike many clean-energy technologies, SAF does not rely on rare minerals or complex supply chains.

In fact, much of the raw material required to produce it already exists across Australia.

Feedstocks can include:

agricultural crops
farming residues
used cooking oil
forestry by-products
municipal waste

Australia produces significant volumes of these materials, yet much of it is currently exported overseas, where it is processed into renewable fuels before being sold back into global markets.

It’s a scenario that has prompted industry leaders to suggest Australia is effectively exporting its clean-fuel opportunity.

The public appears to recognise that paradox.

Among survey respondents, the strongest motivation for supporting SAF development was reducing aircraft emissions (57 per cent). But economic considerations were close behind.

Australians also cited the value of:

using renewable Australian resources (49%)
environmental and climate benefits (48%)
improved fuel security (45%)
support for domestic manufacturing (43%)
job creation and economic growth (42%)

Frequent flyers and business travellers, hardly the usual suspects in climate debates, showed particularly strong support.

Environmental concerns also played a role, with 48 per cent of Australians expressing worry about the environmental impact of aviation fuel emissions.

Transparency matters to travellers

One notable insight from the research is the importance of clear communication.

Public support increased dramatically once people understood how SAF works, how it is produced, and how safety standards are applied.

In other words, once the industry explains the science, passengers are far more comfortable with the concept.

That finding could prove significant as airlines and airports begin incorporating SAF into their operations.

Transparency around emissions reductions, production methods and sustainability standards will likely play a major role in building public trust.

Charlton believes Australians see the broader national benefits.

“Australians want to see this industry built here because they recognise the benefits for farmers, regional communities and Australia’s long-term fuel security,” he said.

Benchmark report warns Australia risks falling behind

While public support appears strong, the policy landscape is still evolving.

A new Asia-Pacific benchmark report released by Bioenergy Australia highlights both the opportunity and the urgency.

The APAC Low Carbon Fuels Benchmark Report, released during the Renewable Fuels Summit in Sydney, assessed 19 economies across the Asia-Pacific region and compared them across four critical indicators:

government policy ambition
feedstock availability
production capability
carbon accounting maturity

The study places Australia in a category labelled “constrained leaders”, alongside countries such as Japan, South Korea, China and Singapore.

These economies have favourable conditions for renewable fuel development, but have yet to establish large-scale production.

Meanwhile, nations including Indonesia, Malaysia and Thailand were identified as “high-potential leaders”, thanks to strong feedstock supplies, clear policy frameworks and growing project pipelines.

The implication is clear: Australia has the ingredients, but the recipe still needs cooking.

Heavy reliance on imported fuels

Australia’s vulnerability to global fuel disruptions remains one of the key drivers behind the push for domestic renewable fuels.

The nation imports the majority of its liquid fuels, leaving the economy exposed to geopolitical shocks and price volatility.

Shahana McKenzie said renewable fuels could provide a practical solution.

“Australia imports the majority of its liquid fuels, which leaves our economy exposed to global supply disruptions and price volatility,” McKenzie said.

“Renewable fuels produced from Australian feedstocks provide a practical pathway to strengthen fuel security while reducing emissions in sectors like aviation, shipping and heavy transport that are difficult to electrify.”

Those sectors, particularly aviation, represent some of the most challenging parts of the global decarbonisation puzzle.

Battery-powered aircraft remain decades away from large-scale commercial viability, making SAF one of the few realistic pathways for reducing aviation emissions in the near term.

A $10 billion industry waiting to happen

Industry analysis suggests Australia’s renewable fuel potential could be substantial.

Estimates indicate the country has enough feedstock resources to support a renewable fuels sector worth more than $10 billion annually.

Such an industry could generate over 26,000 jobs, many of them located in regional areas where agricultural feedstocks originate.

The opportunity extends beyond aviation.

Renewable fuels could also help decarbonise:

maritime shipping
heavy freight transport
industrial processes

These are sectors where electrification is either impractical or prohibitively expensive.

Yet building the necessary infrastructure does not happen overnight.

According to Charlton, developing fuel production facilities can take close to a decade from investment decision to operational production.

“With global aviation demand continuing to grow, the window to establish a domestic Sustainable Aviation Fuel industry is now,” he said.

Asia-Pacific fuel mandates gathering momentum

Another factor pushing the industry forward is the rapid emergence of SAF mandates across the Asia-Pacific region.

Several governments have already moved to require airlines to use a percentage of sustainable aviation fuel on departing flights.

For example:

Singapore plans to introduce a 1 per cent SAF requirement
South Korea will implement a mandate from 2027
Thailand has already introduced blending rules

Australia currently has no national SAF mandate, although voluntary airline commitments and state-based policies are beginning to emerge.

The benchmark report notes that governments across the region are increasingly using blending mandates and demand-side policies to stimulate investment in renewable fuels.

Without similar policy signals, Australia risks watching the global SAF industry take off elsewhere.

Feedstocks becoming strategic resources

The report also highlights a growing global competition for feedstocks.

Materials such as used cooking oil and agricultural residues are quickly becoming strategic resources as demand for renewable fuels rises.

Several countries have already introduced export restrictions or supply controls to ensure domestic industries have access to these raw materials.

For Australia, the challenge is particularly relevant.

While the country has abundant feedstock potential, including sugarcane bagasse, forestry by-products and municipal waste, a significant portion of those resources is still exported.

If domestic processing facilities are not developed, Australia could find itself importing renewable fuels made from its own raw materials.

The runway ahead

The momentum behind Sustainable Aviation Fuel in Australia appears to be building.

Public support is rising. Industry players are advocating for clearer policy signals. And regional competitors are already moving ahead with mandates and investment incentives.

For a nation that prides itself on aviation connectivity from the red centre to the far corners of the globe, the stakes are significant.

As McKenzie put it, the opportunity is unmistakable.

“With abundant feedstocks, strong research capability and growing investor interest, Australia has the ingredients to become a regional producer of renewable fuels,” she said.