The three companies have signed a memorandum of understanding (MoU) with an aim to work together towards the production of sustainable bio-jet fuel at Brisbane Airport.
The companies will undertake feasibility study for the bio-port that includes researching of locally available feedstocks in Queensland, cost-effective methods for transporting them and the right technology for converting them into biofuel.
The feasibility study is expected to take 12 months to complete.
SkyNRG managing director Dirk Kronemeijer remarked that Australia is one of the countries that have a high potential to produce sustainable jet fuels.
"We are therefore very pleased that our first announced bio-port outside Europe is going to be in Australia. We will do whatever it takes to turn this into a success by developing a local supply chain for sustainable jet fuel that is one day scalable and affordable," added Kronemeijer.
Virgin Australia chief operating officer Sean Donohue noted: "Virgin Australia is committed to developing a local sustainable supply of biofuel for use in our aircraft and we have set ourselves the target of 5% renewable fuel use from 2020."
