The Qantas Airways Limited (ASX: QAN) share price is lifting on Thursday amid news of the airline's involvement in funding an Australian biofuel refinery.
The refinery is expected to create sustainable aviation fuel (SAF) using sugarcane and other agricultural by-products in Queensland. It's being developed by Jet Zero Australia and will utilise LanzaJet's alcohol-to-jet technology.
Qantas previously committed to using 10% SAF in its overall fuel mix by 2030 in its race to reach net zero by 2050.
Right now, the Qantas share price is $6.575, 1.31% higher than its previous close.
For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.89%. Meanwhile, the company's home sector – the S&P/ASX 200 Industrials Index (ASX: XNJ) – is gaining 0.92%.
Let's take a closer look at the flying kangaroo's home-grown sustainability plan.
Qantas teams up to fund Australian biofuel facility
The Qantas share price is lifting this afternoon amid news the airline, alongside partner Airbus, will help fund Jet Zero Australia's planned biofuel production facility.
The pair will jointly invest $2 million of an initial $6 million capital raise to fund its feasibility study and early-stage development. The Queensland Government will also put in $760,000.
The facility is expected to produce up to 100 million litres of sustainable jet fuel annually. Its construction is anticipated to begin next year.
Qantas and Airbus previously agreed to invest up to US$200 million in the establishment of a SAF industry in Australia. The investment announced today marks the first project under the partnership.
Commenting on the funding agreement, Qantas chief sustainability officer Andrew Parker said:
Qantas will be the largest single customer for Australian-made SAF to meet our emissions reduction targets, which is why we're investing in the ideas and technology that will build a local SAF industry.
This is one of several projects that we are looking to fund this year, all of which will help accelerate the decarbonisation of the aviation industry.
Meanwhile, Queensland deputy premier Steven Miles said the project is "exciting", continuing:
This is another signal to the world that Queensland is ready for take-off as a clean energy powerhouse.
Qantas share price snapshot
This year has been a good one so far for the Qantas share price.
The stock has gained 11% since the start of 2023. It's also currently 25% higher than it was this time last year.
Comparatively, the ASX 200 has gained 2% year to date and has fallen 5% over the last 12 months.
