Air New Zealand and Government scope feasibility of making sustainable aviation fuel in New Zealand

Friday, 16 June 2023

The carbon emissions from long-haul flying are a threat to the sustainability of New Zealand international tourism.

Air New Zealand and the Government are to invest more than $2 million in two studies to consider the feasibility of producing sustainable aviation fuel in Aotearoa New Zealand.

The airline will contribute around $1.5m in the project, while the taxpayer will chip in $765,000.

The deal was announced on Friday at Air NZ’s Auckland head office at the launch of the draft Tourism Environment Action Plan, attended by Tourism Minister Peeni Henare.

Sustainable aviation fuel (SAF) is made from waste like forestry slash, municipal waste, or used cooking oils, but while there is high demand globally, there is limited supply.

Burning SAF produces significantly lower lifecycle greenhouse gas emissions than fossil jet fuel, Air New Zealand says.

The $2m-plus investment follows an earlier year-long process that invited innovators to demonstrate the viability of operating a SAF plant at a commercial scale in New Zealand.

The national carrier wants its first zero-emission flight to take off in 2026. Video first published in December 2022.

The airline, along with government officials, evaluated proposals from multiple international SAF producers, to understand what technologies are available globally, and whether they could be brought to New Zealand.

Proposals from two United States-based companies will be examined in the next phase of the project: one with LanzaJet and another with Fulcrum BioEnergy.

Air NZ said the next phase would evaluate the technical, economic, supply chain, and environmental feasibility of establishing and operating a SAF production facility in New Zealand.

Kiri Hannifin, Air NZ’s chief sustainability officer said: “Our climate is worsening at a rate far faster than predicted. We all need to take immediate and drastic action to protect what we love, including our land, and all that depends on her.

Forestry slash might be better used to create biofuel.

“So much of what we rely on in Aotearoa is based on our magnificent natural assets including tourism and food production. Air NZ has a significant role to play in transitioning our economy to a lower carbon future and flying with SAF is a key part of this transition,” she said.

“Globally, SAF is in very high demand but limited supply. Commercially producing SAF in New Zealand would not only help lower the country’s emissions while creating jobs, regional economic development, and Māori and iwi investment opportunities, but also provide energy security and energy independence which is something New Zealand doesn’t have.”

The high carbon cost of tourists flying to New Zealand has raised concerns about the sustainability of the tourism industry unless it finds ways to significantly cut emissions.

The future of short-haul domestic flights could be electric.

Henare said local production of sustainable aviation fuel would be “game-changing”.

“Aviation contributes up to 60% of tourism’s total emissions. Sustainable aviation fuel currently represents the most viable option for reducing carbon emissions from aviation. Investment in low-carbon technologies is a key action under the draft action plan and these studies could get us one step closer to a net-zero carbon tourism sector,” Henare said.

“A domestic sustainable aviation fuel industry would build tourism and aviation sector resilience and also bring flow-on economic benefits like job creation.”

He said the studies would create the opportunity to trial new technologies that had a broader impact on the economy.

Air NZ has set a 2050 target for it to be a zero-emission airline.

Its 2021 Sustainability Report put a particular focus on “making sustainable aviation fuel a reality in New Zealand, and hastening the arrival of zero emissions aircraft”.

Last year, Air New Zealand revealed what the future of flying could look like around the regions, unveiling four different zero-emissions aircraft it is looking to buy.

The national carrier wants its first zero-emission flight to take off in 2026.