RICHARD Branson's Virgin Australia airline will power part of its fleet using biofuel made from gum trees.
The company aims to build a full-scale plant in Western Australia, where mallee eucalypts will be processed.
Virgin Australia chief executive John Borghetti said the company would aim to progressively replace traditional aviation fuel.
"It aligns with our commitment to supporting the Australian economy and environment, and encouraging Australian innovation," Mr Borghetti said.
The trees would have a positive effect on land and water management and provide habitat for native wildlife, he said.
Future Farm Industries chief executive Kevin Goss said mallees could be planted on crop and livestock operations.
