Air New Zealand Makes Big Move for Eco-Friendly Jet Fuel

Tuesday, April 16, 2024

Air New Zealand‘s latest agreement with Neste marks the largest acquisition of sustainable aviation fuel (SAF) from the company by an airline beyond North America and Europe. This purchase, scheduled for delivery before the conclusion of 2024, encompasses nine million liters of SAF produced at Neste’s Singapore refinery. Notably, this refinery expanded its SAF production capabilities the previous year.

The acquired SAF will undergo blending with traditional jet fuel to meet specified standards, with the final product set to be supplied to Los Angeles International Airport between April 1 and November 30, 2024. This SAF is projected to achieve an impressive up to 80% reduction in carbon emissions throughout its life cycle compared to fossil jet fuel, encompassing production and transport emissions.

During this period, Air New Zealand’s Chair, Dame Therese Walsh, is in Singapore as part of a business delegation to South East Asia, accompanying New Zealand Prime Minister Christopher Luxon.

“Decarbonising Air New Zealand’s operations is essential for the airline’s long-term ability to connect New Zealanders to the world, as well as support the country’s trade and tourism sectors, and SAF is a key enabler of this”, says Walsh.

“Sustainable aviation fuel is currently the only solution to significantly reduce emissions from long haul flight, but it currently makes up less than 1% of the global fuel supply. For aviation to reach its net zero carbon emissions goals by 2050, the SAF industry will need to scale significantly.”

“While the SAF supply is small compared with the airline’s overall fuel use, it is nine times the size of Air New Zealand’s first shipment of SAF from Neste in 2022 and demonstrates growing cooperation between two like-minded organisations to advance the supply and use of SAF. 

Alexander Kueper, Vice President Renewable Aviation at Neste says Neste is fully committed to supporting the decarbonisation of aviation and is working closely together with partners like Air New Zealand to accelerate SAF usage.

“We are proud to support Air New Zealand’s decarbonisation focus and are looking forward to continuing working together with Air New Zealand and the New Zealand Government to reach their climate goals.”

Prime Minister Christopher Luxon says Air New Zealand is continuing to lead the way in sustainable aviation fuel alternatives.

“It is a pleasure to be with the company as they reach another milestone.

“This collaboration is world-leading and I congratulate Dame Therese and Air New Zealand for their commitment to sustainable aviation,” says Mr Luxon.

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