National carrier Qantas Airways Ltd (ASX:QAN) is looking to build a $300 million commercial jet biofuel plant in Sydney with US bioenergy company Solena.

The two team up with an aim to convert commercial waste to biofuel using an already approved process that transforms coal and gas into commercial-grade aviation fuel. Potential sources of biofuel include food scraps, packaging and tree cuttings.

Qantas said it expects to complete a feasibility study for the waste-based aviation fuel plant within a year. Should it become feasible, the biofuel will be trialled on aircraft.

“While we are still in the early stages of this project, the possibilities are exciting. We hope to announce further details soon,” a spokeswoman, Olivia Wirth, said.

The plant is one of two that Qantas is considering to build in order to meet aviation industry guidelines of a 1.5 per cent improvement in fuel efficiency per year to 2020. It would become the second commercial waste biofuel plant in the world and could create up to 1,200 jobs.

A similar plant is being built by British Airways in London.