The CSIRO and aircraft maker Boeing released an update on Australia's sustainable aviation fuel (SAF) capability on Tuesday, almost one year after delivering a road map for the industry.
While it identified policy changes and projects supporting Australia's green fuel development, the report also warned countries with mandates were moving faster than Australia, while it made only "moderate" progress on four out of five recommendations.
The report comes one week after the UK announced a mandate forcing airlines use two per cent of green fuel in air travel from next year.
Sustainable aviation fuel is made from agricultural feedstocks such as sugarcane. (Dave Hunt/AAP PHOTOS)
Sustainable aviation fuel is made from agricultural feedstocks such as sugarcane, tallow, canola and cooking oils, and has been shown to reduce emissions from aircraft by 80 per cent compared to traditional jet fuel.
The Sustainable Aviation Fuel State of Play report found production of the green fuel would triple worldwide in 2024 and reach 16.9 metric tonnes by 2030.
Seven SAF production facilities had opened during 2024, it found, and America was expected to lead the industry and produce 7.5 metric tonnes of the in-demand fuel by 2030.
Australia had also made significant progress during 2024, CSIRO Futures associate director Max Temminghoff said, but had yet to start producing the fuel.
The country's slower progress could allow other nations to take advantage, he told AAP, and Japan had already signed a deal to produce SAF feedstock on Australian land.
"What we're seeing is that Australia's flat-footedness is being taken advantage of by other countries that do see Australia as a real feedstock powerhouse that has a lot of potential," he said.
"We're conscious that time is ticking when it comes to acting on this opportunity and we hope that we can hold as many of those feedstocks and the jobs that go along with refining before they get taken overseas."
Australia's burgeoning green fuel industry made important progress during 2023 and 2024, the report said, with the establishment of the Jet Zero Council, the federal government's Aviation White Paper, and state-based SAF investments, particularly in Queensland and NSW.
But the report showed Australia had made only moderate progress in areas such as fuel production, consumer education and research, and nations where governments had introduced stronger policies were moving faster, Mr Temminghoff said.
"Where we're seeing activity in this areas is where there are clear government mandates or supply-side incentives," he said.
"That's what we see as being essential for Australia but the form (they take) will be up to the Australian government."
Australian SAF projects under investigation include a refinery planned by Wagner Sustainable Fuels in Queensland, another headed by Ampol in Brisbane, and plans to transform BP's Kwinana Energy Hub in Western Australia.
Green fuel would play "the most significant and rapid role in decarbonising" air transport, Boeing Australia president Maria Fernandez said, adding that it would be key to the industry's goal of achieving net-zero by 2050.
