<article><p class="lead">Australia's Qantas Airways has formed an alliance with five of its domestic corporate customers, which have committed to contribute to the cost of the airline buying sustainable aviation fuel (SAF) to reduce their greenhouse gas (GHG) emissions.</p><p>Qantas has launched the SAF Coalition programme with state-owned Australia Post, Boston Consulting, KPMG Australia, Australian investment bank Macquarie Group and Australian independent Woodside Energy signing on as foundation members. Members will pay a premium to reduce around 900t of their GHG emissions generated from their staff flying each year by contributing to the incremental cost of SAF, rather than using traditional carbon offsets, Qantas said. </p><p>The coalition will initially contribute to the incremental cost of up to 10mn litres (172 b/d) of SAF sourced by Qantas at London's Heathrow Airport, which represents around 15pc of the fuel Qantas consumes on flights out of London. From 2025 a further 344 b/d each year will be sourced out of Los Angeles and San Francisco. The SAF represents a fraction of the 77,000 b/d of jet fuel consumed domestically in Australia and for international flights departing Australia.</p><p>Qantas is currently in negotiations with a number of offshore suppliers to buy additional supplies of SAF, which the airline said it would prefer to source domestically.</p><p><a href="https://direct.argusmedia.com/newsandanalysis/article/2342799">Qantas together with European aviation firm Airbus</a> in June invested up to $200mn to get a domestic SAF industry under way, including funding for new feedstock and refining projects.</p><p>SAF is produced from certified bio feedstock, including used cooking oil, energy crops, forestry residues, animal tallow and other waste products. It is blended with normal jet fuel and produces up to 80pc less emissions on a life cycle basis when compared with traditional jet-kerosine, Qantas said.</p><p>The airline has committed to using <a href="https://direct.argusmedia.com/newsandanalysis/article/2317266">10pc SAF in its overall fuel mix by 2030</a> and around 60pc by 2050.</p><p class="bylines">By Kevin Morrison</p></article>
