Air New Zealand to fly on sustainable aviation fuel from next week

Wednesday, 14 September 2022

Air New Zealand will receive its first deliver of sustainable aviation fuel next week.

Air New Zealand plans to start flying its aircraft partly on sustainable aviation fuel made from recycled cooking oil and animal waste from next week.

Air New Zealand chief executive Greg Foran said the first 1.2 million litres of the jet fuel being imported was the equivalent of about 400 return flights between Auckland and Wellington.

It was manufactured by the world’s largest supplier of sustainable aviation fuel, Neste, and would be imported to Marsden Point by fuel company Z energy.

Foran said the shipment would help test and set up the supply chain for future deliveries.

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Sustainable aviation fuel (SAF) imports would account for about 1% of the total fuel purchased this year by Air New Zealand, he said.

“While we are starting out small, it will help us to test the supply chain and understand the true cost of importing SAF into New Zealand. Currently, SAF only makes up less than 1% of the global fuel supply, and is about three to five times as expensive as fossil jet fuel.”

But as supply improved over time the price was expected to come down, he said.

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“By 2030, we expect our fleet to be fueled by 10% SAF.”

Fares would not be increased to cover the extra cost during the trial, he said.

The sustainable fuel met the same specifications as standard aviation fuel, allowing it to be mixed with standard jet fuel at Marsden Point and piped to Auckland International Airport, where it would go in to the general pool for all airlines to use.

Foran said the shipment marked the beginning of “making regular imports a reality”.

“Air New Zealand is already one of the most fuel-efficient airlines in the world with our modern fleet, but the future of travel relies on low-carbon air transport,” he said.

“And it is important because there really isn’t another solution for long haul flying.”

The sustainable fuel would be mixed with standard fuel at a ratio of up to 38%. The maximum allowable mix was 50%, he said.

Sustainable fuels were already available at some foreign airports Air New Zealand flew to, and used on return flights.

There had been about 370,000 commercial flights around the world since 2016 using sustainable aviation fuel mixes. “So this is well tested, and completely safe” Foran said.

The airline has a goal of net-zero carbon emissions by 2050 and sees electric or hydrogen powered aircraft as a key pillar in its sustainability strategy.

Air New Zealand and the Ministry of Business, Innovation and Employment signed a memorandum of understanding in September last year to scope the feasibility of building a sustainable aviation fuel facility in New Zealand.

Commercially producing sustainable aviation fuel would help lower the country’s emissions, improve fuel security and energy independence, and create jobs and economic development in the regions, Foran said.

Sami Jauhiainen, Asia Pacific vice president of renewable aviation at Neste said with the expansion of the company’s Singapore refinery, and the ongoing modifications of its Rotterdam refinery in the Netherlands, would boost production up to 1.5 million tonnes of sustainable aviation fuel by the end of next year.