Air New Zealand welcomes 1st shipment of sustainable aviation fuel from Neste

Air New Zealand has reached its next stop on its Flight NZ0 journey, the airline’s commitment to reaching net-zero carbon emissions by 2050.

Next week, Air New Zealand will welcome the first shipment of Neste MY Sustainable Aviation Fuel™ (SAF) into New Zealand ready to power the airline’s fleet. The shipment of SAF is imported into New Zealand in partnership with Z Energy. The 1.2 million liter (317,000 gallon) import of neat SAF is equivalent to fueling around 400 return flights between Auckland and Wellington. Neste MY Sustainable Aviation Fuel use in its neat form reduces greenhouse-gas emissions by up to 80 percent over the fuel’s life cycle compared to fossil jet-fuel use. The first shipment will be used to help test and set up the supply chain for importing SAF into New Zealand. As SAF is a drop-in fuel, it will be put into the fuel system at New Zealand’s Marsden Point harbor, where it will make its way down to Auckland Airport and will be delivered to Air New Zealand through the regular jet fuel supply chain. Air New Zealand CEO Greg Foran said the airline is incredibly committed to getting the Air New Zealand fleet up and running on SAF and this shipment of fuel from Neste marks the beginning of making regular imports a reality.

“This is a major milestone for us,” Foran said. “We made a commitment when we announced Flight NZ0 earlier this year to find a more sustainable way to connect with the world. 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. While we are starting out small, it will help us to understand how we can ensure the supply chain is robust enough to keep up with demand. Currently, SAF only makes up less than 1 percent of the global fuel supply and is around three to five times the cost of fossil jet fuel, so while sourcing it is a challenge, it’s one we are tackling head on. By 2030, we expect our fleet to be fueled by 10 percent SAF.” Sami Jauhiainen, an executive with Neste, said, “Neste is fully committed to supporting the decarbonization of aviation. We have been at the forefront of accelerating the production and use of SAF, and our Neste MY Sustainable Aviation Fuel is used across the globe by a growing number of airlines. I am excited that our SAF will now also be supplied to Air New Zealand in cooperation with Z Energy. We are proud to support Air New Zealand and the New Zealand government to reach their ambitious climate goals that show a great example for others to follow. With the expansion project at our Singapore refinery nearing completion, and the ongoing modification of our Rotterdam refinery to increase SAF production capabilities there, we will be able to produce up to 1.5 million tons of SAF by the end of 2023, ready to support aviation globally and in the Asia-Pacific region.”

Import partner Z Energy’s CEO Mike Bennetts said Z is already investing in low-carbon revenue streams that are better for both its customers and the planet.

“We support and recognize the need for SAF to become the norm in [New Zealand] and it is a key part of Z’s roadmap to support our customers on their journey to a low-carbon future,” Bennetts said. “We are pleased to work alongside Air NZ and Neste to bring this shipment of SAF into the country and recognize collaboration with others will be essential to help us decarbonize at the scale and pace needed to address climate change.” SAF delivers the performance of conventional jet fuel but with a significantly smaller carbon footprint on a lifecycle basis. Neste MY SAF is produced 100 percent from sustainably sourced, renewable waste and residue raw materials, such as used cooking oil and animal-fat waste. Once blended, SAF works seamlessly with existing fueling infrastructure and aircraft engines. Neste MY SAF is a today solution, commercially available and in use worldwide.