Airlines, Par Hawaii, Pono Energy partner to advance local SAF supply chain

Photo: Hawaiian Airlines

Hawaiian Airlines announced Dec. 17 that it and Alaska Airlines have joined Par Hawaii to invest in pioneering the development of sustainable aviation fuel (SAF) in Hawaii using locally grown agriculture feedstock to reduce aviation-carbon emissions.

This initiative will enable SAF production for more sustainable future flying and deliver economic benefits through the creation of a new energy sector and fuel supply chain in Hawaii, while bringing new opportunities for local agriculture.

Hawaiian Airlines and Alaska Airlines, which together provide the most flights to, from and within Hawaii, and Par Hawaii, the largest producer of energy products in the islands, are partnering with Pono Pacific through its Pono Energy subsidiary, to study camelina as a multipurpose crop that can be used as SAF feedstock and to support agriculture.

The combined airlines also will become Par Hawaii’s launch SAF customer, with plans to take delivery of Hawaii’s first locally produced SAF in the first quarter of 2026. 

SAF, a safe drop-in fuel made from sustainable feedstock such as plant-based oils or used cooking oil, can cut lifecycle-carbon emissions by up to 80 percent compared to conventional jet fuel. 

Pono Pacific’s crop trials drew the attention of Alaska Star Ventures, the venture capital arm of Alaska Air Group that invests in technologies to drive aviation efficiency, performance and innovation. 

“As Hawaii’s airline, we have a responsibility to reduce our environmental impact while continuing to provide essential air service that connects our communities and strengthens our economy,” said Alanna James, the sustainability innovation director for Hawaiian Airlines and Alaska Airlines. “Our company has a long-term strategy to reach net-zero carbon emissions, and sustainable aviation fuel is essential for us to get there. We are grateful to have partners like Par Hawaii and Pono Pacific who share our commitment to making our operations more sustainable while creating a new fuel industry and strengthening Hawaii’s energy independence.”

Ed Sniffen, the director of Hawaii’s state department of transportation, said, “We value the efforts of our airline partners as we work together to find long-term solutions to reduce greenhouse-gas emissions and increase our energy security, while meeting Hawaii’s transportation needs. We applaud Hawaiian and Alaska airlines, Par Hawaii and Pono Pacific for taking this important step to establish a locally based, lower-emissions supply chain for aviation fuel that supports our state’s clean-energy goals.”

Pono Pacific, the state’s largest private-resource company, will launch Pono Energy Inc. in early 2026 to accelerate its work on camelina, a high-yield, pest-resistant cover crop that can be grown in rotation with food crops, reaching maturity in just eight to nine weeks.

Its oilseeds can be crushed to produce renewable fuels, including SAF, while the remaining seedcake can be turned into government-approved, nutrient-rich feed for cattle and chickens. 

This revenue-generating cover crop will deliver more economic opportunity for Hawaii by creating jobs, supporting farmers and decreasing the aviation industry’s carbon footprint. 

“Camelina represents a rare opportunity for Hawaii to build a true circular-economy model around renewable fuels,” said Chris Bennett, the vice president of sustainable energy solutions for Pono Pacific Land Management LLC. “By growing this crop locally, we strengthen our agricultural sector, keep more dollars circulating within the state and reduce our dependence on imported fossil fuels. Camelina can be refined into sustainable aviation fuel while the remaining seedcake becomes a valuable, locally produced animal feed that supports Hawaii’s ranchers and livestock industry. We will explore food crops that can be grown alongside camelina to increase food security as well. It’s a win for our economy, a win for local agriculture and a win for the environment—an example of how Hawaii can lead the way in innovative, homegrown climate solutions.”  

Alaska Star Ventures has made a new investment that builds on Par Hawaii’s earlier support of Pono Pacific, which collaborated with the Hawaii Agriculture Research Center to begin cultivating 50 non-GMO camelina varieties in 2023 to identify those best suited to Hawaii’s year-round temperate climate.  

The initial investment allowed Pono Pacific to conduct crop trials on four islands, in partnership with Aloun Farms, Mahi Pono and Meadow Gold Dairy. 

Pono Pacific identified suitable agricultural lands across the state and engaged Hawaii’s cattle and livestock industry to explore the use of camelina seedcake as animal feed.   

As Pono Pacific advances the agricultural foundation for camelina, Par Hawaii, the state’s largest fuels manufacturer, is preparing to deliver SAF in the first quarter of 2026.

Earlier this year, Par Pacific, the parent company of Par Hawaii, formed Hawaii Renewables and partnered with Alohi Renewable Energy LLC, a joint venture between Mitsubishi and Eneos, following a $100 million investment to convert and upgrade one of the refinery’s processing units into a renewable hydrotreater capable of processing plant-based and waste oils.  

“In 2022, when we formed an agreement with Hawaiian Airlines to jointly study the commercial viability of locally produced sustainable aviation fuels, we didn’t think we would be able to progress so quickly,” said Eric Wright, the president of Par Hawaii. “With renewable fuel production coming online in early 2026, it’s exciting to see the results of our team’s hard work. These fuels will have up to 80 percent lower carbon emissions compared to conventional fuels. This would not have been possible without a shared vision for our islands and our great teamwork.”

James added, “We are thrilled to be the first customer to receive SAF from Par Hawaii next year. This is an important milestone for our company and Hawaii, but there is still more work to do. While SAF is the best option to reduce aviation emissions, it is two to three times more expensive than regular jet fuel and supply is limited. We will need strong collaboration across airlines, fuel and feedstock producers, investors, including business partners seeking to offset their scope 3 emissions, and government, along with supportive policies, to grow the SAF industry and reach our decarbonization goals.”