Air New Zealand inks its largest deal for sustainable aviation fuel

Air New Zealand and Neste have signed an agreement for nine million litres of neat Neste MY Sustainable Aviation Fuel. The deal represents the largest purchase of sustainable aviation fuel (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 nine million litres of SAF will be blended with conventional jet fuel to meet the required specifications and supplied to Los Angeles International Airport between 1 April and 30 November 2024.

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

Air New Zealand’s Chair Dame Therese Walsh is in Singapore on a business delegation to South East Asia led by New Zealand Prime Minister Christopher Luxon.

“Decarbonising 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”, says Walsh.

“Sustainable aviation fuel is currently the only solution to significantly reduce emissions from long haul flight, but it currently makes up less than 1% 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 organisations to advance the supply and use of SAF.

Alexander Kueper, Vice President Renewable Aviation at Neste says Neste is fully committed to supporting the decarbonisation 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 decarbonisation focus and are looking forward to continuing working together with Air New Zealand and the New Zealand Government to reach their climate goals.”

Prime Minister Christopher Luxon says Air New Zealand is continuing to lead the way in sustainable aviation fuel alternatives.

“It is a pleasure to be with the company as they reach another milestone.

“This collaboration is world-leading and I congratulate Dame Therese and Air New Zealand for their commitment to sustainable aviation,” says  Luxon.