The Qantas Group, aerospace firm Airbus and the Queensland Government have invested in a sustainable aviation fuel (SAF) production facility in Queensland, Australia.

Being developed by Jet Zero Australia sustainable aviation fuel technology company LanzaJet, the facility is projected to have annual SAF production capacity of up to 100 million litres.

The Queensland facility will leverage LanzaJet’s Alcohol to Jet (ATJ) technology to convert agricultural byproducts, including waste from sugarcane, into jet fuel.

Construction of the facility, said to be Australia’s first ATJ SAF plant, is slated to commence next year.

LanzaJet CEO Jimmy Samartzis said: “All parties involved in Jet Zero Australia and the Australian SAF Partnership, from global aviation leaders in Qantas Group and Airbus to the Queensland Government, are serious in their commitment to scaling SAF production at the urgency our planet needs.

“LanzaJet looks forward to seeing the impact this project has on Australia’s domestic biofuels industry as well as the larger global impact.”

As part of the project, the Qantas Group and Airbus will jointly invest A$2m ($1.34m) of an initial A$6m ($4m) capital raising, while the Queensland Government will inject A$760,000 ($500,700).

Other Australian and International institutional funds will offer the additional financing.

Qantas Group chief sustainability officer Andrew Parker said: “This investment will help kickstart an innovative project to turn agricultural byproducts into sustainable aviation fuel and create a significant domestic biofuels refinery.

“This is one of several projects that we are looking to fund this year, all of which will help accelerate the development of a local SAF industry in Australia.”

Fuels produced from this facility will be supplied to the country’s domestic market, including flag carrier, Qantas.

Currently, the carrier is buying SAF sourced overseas.

Last month, LanzaJet collaborated with Indian Oil Corporation to explore the production of SAF in India.