Air New Zealand inks its largest deal for sustainable aviation fuel

Photo: AIr New Zealand

Air New Zealand announced April 15 that it has signed an agreement with Neste for 9 million liters (2.38 million gallons) of neat Neste MY Sustainable Aviation Fuel™.

The deal, according to Air New Zealand, represents the largest purchase of SAF from Neste by any airline outside North America and Europe for delivery before the end of 2024.

Produced at Neste’s Singapore refinery, which expanded its SAF production capability last year, the 9 million liters of SAF will be blended with conventional jet fuel to meet the required specifications and supplied to Los Angeles International Airport between April 1 and Nov. 30 of this year.

The SAF is expected to deliver a reduction of carbon emissions by up to 80 percent over the lifecycle of the fuel compared to using fossil jet fuel, which includes its production as well as transport emissions.

“Decarbonizing 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,” said Dame Therese Walsh, Air New Zealand’s chair who is in Singapore on a business delegation to Southeast Asia led by Christopher Luxon, New Zealand’s prime minister. “Sustainable aviation fuel is currently the only solution to significantly reduce emissions from long-haul flight, but it currently makes up less than 1 percent 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 organizations to advance the supply and use of SAF.”

Alexander Kueper, Neste’s vice president of renewable aviation, said Neste is fully committed to supporting the decarbonization 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 decarbonization focus and are looking forward to continuing working together with Air New Zealand and the New Zealand government to reach their climate goals,” Kueper said.

Luxon added that Air New Zealand is continuing to lead the way in SAF alternatives.

“It is a pleasure to be with the company as they reach another milestone,” Luxon said. “This collaboration is world leading and I congratulate Dame Therese and Air New Zealand for their commitment to sustainable aviation.”