Air New Zealand and LanzaJet Unveil Study on Sustainable Aviation Fuel (SAF) from Woody Waste, Aiming to Boost Fuel Security and Economic Growth

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Air New Zealand, in collaboration with LanzaJet, has announced promising initial findings from a joint feasibility study investigating the use of woody waste and low-value wood products to produce sustainable aviation fuel (SAF) in New Zealand.

Unveiled with support from the New Zealand Government, Scion, Z Energy, and WoodBeca, this project could set a new benchmark in aviation sustainability by tapping into New Zealand’s renewable resources to locally produce an alternative to fossil-based jet fuel. The study’s results highlight the potential for SAF production to meet up to 25% of New Zealand’s domestic aviation fuel demand, fostering economic growth, job creation, and enhanced fuel resilience.

A Transformative Shift for New Zealand’s Aviation Industry

As global aviation grapples with the environmental impact of fossil fuels, SAF offers a viable alternative with a lower carbon footprint over its lifecycle. In response, countries and airlines worldwide are exploring ways to increase SAF production and usage, with Air New Zealand and LanzaJet now leading efforts in New Zealand. SAF, although chemically similar to fossil jet fuel, produces significantly fewer emissions from raw material production to combustion, making it an effective tool to combat climate change. In fact, Air New Zealand’s June delivery of 500,000 liters of SAF had an impressive 89% life-cycle emissions savings compared to traditional jet fuel.

Kiri Hannifin, Air New Zealand’s Chief Sustainability and Corporate Affairs Officer, expressed optimism about the study’s findings, emphasizing the importance of securing domestic resources for SAF production. “These initial findings support that alternative jet fuel can be produced here in Aotearoa from our own locally-grown woody waste, which is very positive for a country that is heavily reliant on long-haul aviation and trade and currently imports 100 percent of its jet fuel,” Hannifin stated. She also stressed the need to stimulate a local sustainable aviation fuel market to prevent valuable raw materials like woody waste from being used by other markets instead of benefiting New Zealand.

Economic Potential and Regional Job Creation

The economic implications of SAF production in New Zealand are substantial. According to the study, SAF derived from woody waste could contribute hundreds of millions of dollars to the national economy annually and create numerous jobs in regional areas. This would not only bolster New Zealand’s aviation sector but also support the growth of a new, sustainable industry based on renewable resources. However, significant infrastructure investments will be necessary to bring this vision to life, including facilities for processing woody waste and converting it into aviation-grade fuel.

The feasibility study, funded by Air New Zealand and the government, aligns with New Zealand’s broader goals of fostering renewable energy sources and reducing carbon emissions. By leveraging locally sourced woody biomass, New Zealand can reduce its dependence on imported fossil fuels, thereby enhancing its fuel security and resilience. This initiative marks a significant step toward a more sustainable and self-sufficient aviation industry, underscoring New Zealand’s commitment to innovative solutions in renewable energy.

LanzaJet’s Role and the CirculAirTM Production Approach

LanzaJet, a global leader in sustainable aviation fuel technology, played a pivotal role in the study, bringing its expertise in sustainable fuel production to the project. The sustainable aviation fuel production approach assessed, known as CirculAirTM, combines the technologies of LanzaTech and LanzaJet. This process involves converting gasified forestry residues into ethanol using LanzaTech’s carbon recycling technology, followed by LanzaJet’s proprietary alcohol-to-jet (ATJ) technology to transform the ethanol into SAF.

LanzaJet’s CEO, Jimmy Samartzis, emphasized the potential of this approach for New Zealand. “Building a new industry requires developing a broad ecosystem for SAF in New Zealand, anchored in technology and supported by policy, capital, and demand to help attract funding and make it at a price airlines can afford,” he said. Samartzis underscored the need for policy and investment mechanisms to support SAF production, especially as other countries are moving swiftly to establish their own SAF capabilities. For New Zealand, the CirculAirTM approach offers a proven pathway to turn local woody biomass into a valuable fuel source for the aviation industry.

Addressing Carbon Emissions and Strengthening Sustainability Goals

For New Zealand, a country heavily reliant on long-haul aviation, finding ways to reduce carbon emissions from air travel is crucial. While sustainable aviation fuel is already used in limited quantities by airlines globally, its high cost remains a barrier to wider adoption. Hannifin noted that “alternative jet fuel such as SAF is currently the only real tool available to address carbon emissions from long-haul aviation.” She also pointed out that reducing SAF costs through increased production is essential for making it a viable, long-term solution for the aviation industry.

The study’s findings underscore the importance of regulatory support to establish a SAF market in New Zealand, allowing for competitive pricing and sustained investment in the sector. If successful, New Zealand could avoid the risk of losing its raw materials to other markets that have already established SAF production, ensuring that local resources benefit the nation’s economy and environment.

Future Prospects: Municipal Solid Waste as a Feedstock

The first phase of the study has demonstrated the technical feasibility of producing SAF from woody waste, but the collaboration is far from over. A second phase, expected to be completed in the coming months, will explore the potential of municipal solid waste, such as household and commercial waste, as an additional feedstock for the LanzaTech carbon recycling process. This could further diversify the resources available for sustainable aviation fuel production, making it even more feasible for New Zealand to establish a thriving SAF industry.

Samartzis expressed optimism about the potential for expanding the range of feedstocks. “The good news is that turning woody biomass into SAF is technically possible in New Zealand, and with the right settings, is an industry that can get started fairly quickly,” he said. By exploring additional resources like municipal waste, LanzaJet and its partners hope to make SAF production in New Zealand an even more attractive and sustainable option.

Paving the Way for a Sustainable Aviation Future

As Air New Zealand and LanzaJet advance their research and development, the potential for SAF production in New Zealand looks promising. With robust policy support, investment in infrastructure, and an expanding feedstock base, New Zealand has the opportunity to become a leader in sustainable aviation fuel production. This initiative not only strengthens New Zealand’s aviation sector but also sets a precedent for sustainable innovation, creating pathways for economic growth, job creation, and environmental stewardship.

Through this partnership, New Zealand’s vision of a more sustainable, resilient aviation industry is closer than ever, with SAF production from woody waste and other renewable resources leading the way.