Air New Zealand's new sustainable aviation fuel delivery is equivalent to 165 flights on an A320 aircraft from Auckland to Wellington. Photo / Mark Mitchell.
Air New Zealand's new sustainable aviation fuel delivery is equivalent to 165 flights on an A320 aircraft from Auckland to Wellington. Photo / Mark Mitchell.
Air New Zealand has this week received a shipment of Sustainable Aviation Fuel (Saf) into Wellington, its first delivery to the city.
Made by EcoCeres in China from 100% used cooking oil and supplied and blended by Exxon Mobil, the 500,000-litre delivery is equivalent to 165 flights on an A320 aircraft between Auckland and Wellington.
This Saf shipment will be used on Air New Zealand’s ATR aircraft.
Overnight German airline Lufthansa announced it would charge up to $125 more a ticket to help pay for its Saf commitments. The fuel is up to three times as expensive as traditional jet fuel.
The airline says the Saf delivered to Wellington represents life-cycle carbon emissions savings of at least 80% compared with fossil jet fuel.
Kiri Hannifin, Air New Zealand chief sustainability and corporate affairs officer.
Air New Zealand’s chief sustainability and corporate affairs officer, Kiri Hannifin says moving away from purely using fossil fuels for Air New Zealand’s operations is critical.
“As the main driver of climate change, the global economy, including New Zealand, must rapidly transition away from our high reliance on fossil fuels. For a small island nation in the South Pacific, alternatives are even more important because we are heavily reliant on flying to connect with each other in our own country, as well as when we travel abroad..’'
Saf was the key way for aviation to move to a low-carbon future.
“Airlines are signing supply arrangements for Saf 10 years into the future and beyond, so we need to be part of the picture from the start otherwise New Zealand may fall behind.”
Hannifin said while the volumes of SAF the airline was buying were very small compared to the amount of fossil jet fuel it used, they gave an important signal to alternative fuel producers that it was ‘‘open for business.”
There was increased international momentum around Saf in the past few months among airlines, governments, airports, and fuel companies. It was a key area of discussion at the International Air Transport Association (IATA) meeting in Dubai earlier this month where airline chiefs said they would use more Saf if it was available and they urged fuel refiners to step up production.
Overseas there are mandates being put on airlines to use Saf.
Hannifin said that in 2026 Air New Zealand aircraft will be required to uplift Saf when they fly home from Singapore and Vancouver.
Japan will introduce the same requirement from 2030, and other countries are also making signals that SAF will be mandated for all airlines for outbound flights including in Australia, Indonesia, Hong Kong and China.
“These moves across different jurisdictions are being put in place to stimulate and fast track the production of alternate fuels and encourage oil and gas companies to speed up their transition away from fossil fuels.”
Climate Change Minister Simon Watts said transport energy accounts for 18% of New Zealand’s total emissions, “so it is encouraging to see the industry take steps towards sustainable practices as New Zealand transitions to a low emissions future.”
IATA forecasts Saf production is projected to triple in 2024 but will still only be able to supply 0.53% of total aviation fuel needs.
Air New Zealand is currently involved in two feasibility studies that look at opportunities for local production of alternative jet fuels.
Saf is derived from renewable sources such as plant oils, waste oils, agricultural residues and municipal solid waste. It also comes from woody biomass, which New Zealand has large supplies of.
Saf is designed to be a direct replacement for traditional fossil-based jet fuel, and once blended it can be used in existing aircraft and infrastructure without requiring significant modifications.
EcoCeres is based in Hong Kong and has a manufacturing plant in Jiangsu, China which can produce 220,000 metric tons per year (tpy) and is aiming to start up a larger Malaysia-based biofuels production unit in the second half of 2025.
Last year Bain Capital took a substantial stake in the company.
Grant Bradley has been working at the Herald since 1993. He is the Business Herald’s deputy editor and covers aviation and tourism.
