Air New Zealand and Neste have entered into an agreement for the purchase of nine million litres of neat Neste MY Sustainable Aviation Fuel. This deal marks the largest acquisition of sustainable aviation fuel (SAF) from Neste by any airline outside North America and Europe and is scheduled for delivery before the end of 2024.
The SAF, produced at Neste’s Singapore refinery, which expanded its SAF production capability last year, will be blended with conventional jet fuel to meet required specifications and supplied to Los Angeles International Airport between 1 April and 30 November 2024.
It is anticipated that this SAF will contribute to reducing carbon emissions by up to 80% over the life cycle of the fuel compared to using fossil jet fuel, taking into account production and transport emissions.
Air New Zealand’s Chair, Dame Therese Walsh, is currently in Singapore as part of a business delegation to South East Asia led by New Zealand Prime Minister Christopher Luxon.
“Decarbonising Air New Zealand’s operations is crucial for the airline’s long-term ability to connect New Zealanders to the world, support the country’s trade and tourism sectors, and SAF is integral to achieving this,” says Walsh.
“Sustainable aviation fuel is currently the only viable solution to significantly reduce emissions from long-haul flights, but it currently represents less than 1% of the global fuel supply. To achieve aviation’s net zero carbon emissions goals by 2050, the SAF industry must scale up significantly.”
“While the SAF supply remains small relative to the airline’s overall fuel consumption, it is nine times larger than Air New Zealand’s initial shipment of SAF from Neste in 2022, highlighting the growing collaboration between two aligned organizations committed to advancing the supply and use of SAF.
Alexander Kueper, Vice President Renewable Aviation at Neste, emphasizes that Neste is fully dedicated to supporting aviation decarbonization and is actively collaborating with partners like Air New Zealand to accelerate SAF adoption.
“We are pleased to support Air New Zealand’s efforts toward decarbonization and look forward to continuing our collaboration with Air New Zealand and the New Zealand Government to achieve their climate objectives.”
Prime Minister Christopher Luxon applauds Air New Zealand for leading the way in sustainable aviation fuel alternatives.
“It is a pleasure to witness the company achieving yet another milestone.
“This partnership sets a global benchmark, and I commend Dame Therese and Air New Zealand for their commitment to sustainable aviation,” Luxon concludes.
