What condition has IFM set for proceeding with its A$3 billion sustainable aviation fuel project in Australia?

IFM Investors Pty has stated it will scrap the proposed A$3 billion sustainable aviation fuel project unless the Australian government introduces a demand-side mandate requiring airlines such as Qantas Airways Ltd. to use the fuel; as Danny Elia, IFM’s global head of infrastructure asset management, emphasized, 'Within the next six or so months, we are really going to need to see some finality around the policy framework' and 'We actually need a demand-side mandate.'

Why does IFM consider government-mandated airline uptake essential for the viability of its sustainable aviation fuel project?

IFM considers a government mandate essential because, according to Elia, 'You will not see a project of any significance get up at all without demand-side support,' reflecting the current global shortfall in SAF production — less than 1% of global jet fuel consumption last year — and the lack of commercial incentives for producers in the absence of guaranteed off-take; the company has already spent at least two years assessing the project and cannot indefinitely hold preferred sites like the proposed refinery location in Brisbane’s Lytton suburb.

IFM Warns It Will End A$3 Billion Fuel Project Without New Rules

May 11, 2026

IFM Investors warns it may cancel a $3 billion sustainable aviation fuel project in Australia without government demand mandates. The initiative, partnered with GrainCorp and Ampol, requires policy support to overcome high costs and low global supply volumes.

bloomberg

2026-05-11

IFM Warns It Will End A$3 Billion Fuel Project Without New Rules

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