Technical De-risking of Sustainable Aviation Fuel (SAF) Production in Australia

Australia stands at a pivotal moment in its energy transition journey. With aviation identified as a hard-to-abate sector and a critical component of national transport and freight infrastructure, the development of Sustainable Aviation Fuel (SAF) offers a viable pathway to decarbonisation. Ricardo’s experts explore the technical, economic and strategic dimensions of SAF production in Australia, offering a blueprint for stakeholders seeking to enter or expand in this emerging market.

Why SAF, why now?

Aviation accounts for a significant share of Australia’s transport emissions, and with international passenger volumes rebounding to over 42 million annually, the urgency to decarbonise is growing. SAF presents a near-term solution with the potential to reduce lifecycle emissions by up to 80% compared to conventional jet fuel. With global momentum building and domestic policy support emerging, Australia has the opportunity to become a regional leader in SAF production – if it can overcome key technical and commercial barriers.

Australia’s unique SAF landscape

Australia is well-positioned to produce SAF at scale thanks to its abundant renewable energy resources and diverse bio-feedstocks. However, the market remains in its infancy, and SAF projects face a range of challenges including:

• Low technology readiness levels (TRLs) for many production pathways.
• Geographic dispersion of feedstocks and infrastructure.
• Complex regulatory environments across federal and state levels.
• Limited refining capacity and underutilised industrial assets.

Despite these hurdles, initiatives such as Jet Zero Australia and Ampol’s Brisbane Renewable Fuels Project signal growing national interest. Government consultations under the Future Made in Australia (FMIA) plan and ARENA-administered funding further reinforce the strategic importance of SAF.

De-risking SAF projects

Ricardo’s technical experts have developed a targeted de-risking strategy to support resilient and bankable SAF projects. This blueprint focuses on three core pillars: Feedstock Flexibility, Infrastructure Integration, and Hub Model Development. These strategies are designed to improve investor confidence, reduce technical risk, and accelerate project development timelines.

Driving Australia’s SAF future

To thrive in Australia’s SAF market, organisations must bring a unique blend of capabilities:

• Technical depth in SAF pathways, feedstock processing and infrastructure integration.
• Strategic insight into risk management, project economics and policy alignment.
• Local understanding of Australia’s regulatory, geographic and market conditions.
• Collaborative mindset to engage with government, industry and community stakeholders.

Australia’s SAF journey is just beginning, but the foundations are in place. With the right technical strategies, policy signals and stakeholder collaboration, SAF can become a cornerstone of Australia’s clean energy future. This piece provides the insight and guidance needed to navigate complexity, reduce risk and unlock scalable, low-carbon fuel solutions tailored to Australia’s unique context.

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