IFM Investors may abandon a proposed A$3 billion ($2.2 billion) sustainable aviation fuel project in Australia unless the government introduces rules requiring airlines to use the cleaner-burning fuel, Bloomberg reported Monday.
Danny Elia, IFM's global head of infrastructure asset management, said the company needs "demand-side" policy support to proceed with plans to produce sustainable aviation fuel from local agricultural feedstock.
"Within the next six or so months, we are really going to need to see some finality around the policy framework," Elia said in an interview with Bloomberg. "We actually need a demand-side mandate."
Sustainable aviation fuel, or SAF, is viewed by airlines as a key tool to reduce aircraft emissions, though production remains limited globally due in part to the lack of supportive policies.