Qantas hopes algae will play a part in its sustainable fuel strategy

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Australia's Qantas Airways hopes algae will play a part in its strategy to source as much as 5% of its jet fuel from sustainable sources by 2016.

To this end, the carrier this year signed an agreement with California-based renewable energy company Solazyme to develop a business case for introducing algae-based aviation fuel technology to Australia.

In the 12-month study, the two companies will examine the possibility of using a locally grown biomass source - most likely sugar cane - as a feedstock to produce Solazyme's microalgae-derived Solajet aviation fuel in Australia.