QANTAS will team with Solena Fuels to investigate the feasibility of constructing the world's second commercial jet biofuel plant in Sydney.
The joint-venture will aim to convert commercial waste to biofuel using a $300 million plant based on the Fischer-Tropsch process already approved to produce jet fuel from coal in South Africa and gas in Qatar.
A similar plant is being built by British Airways in London.
Due to come on line in 2014, the British Airways plant will convert up to 500,000 tonnes of waste a year into 73 million litres of "green" jet fuel, which is enough to power 2 per cent of BA's Heathrow base.
It will use food scraps and other household material, such as grass and tree cuttings, as well as agricultural and industrial waste, as a feedstock for the fuel.
Qantas has had a long-standing interest in biofuels and is a member of the global Sustainable Aviation Fuel Users Group.
Qantas spokeswoman Olivia Wirth said the airline was closely involved with other industry stakeholders in a "road map" study into the outlook for sustainable aviation fuel development in Australia.
Solena Fuels is a US-based fuel supplier.
