Air New Zealand has announced their largest purchase of sustainable aviation fuel to date, having secured over 30 million litres from Neste, which will be uplifted in San Francisco and Los Angeles through February 2026.
On Wednesday (December 18, 2024), Air New Zealand announced that they have secured over 30 million litres of SAF from Neste, their largest sustainable aviation fuel purchase to date. The SAF will be uplifted in San Francisco (SFO) and Los Angeles (LAX) through February 2026. On a lifecycle basis, biofuel can deliver up to an 80 percent reduction in carbon emissions compared to jet fuel produced from traditional fossil fuels. This SAF is made by Neste in Singapore from 100 percent renewable waste and residue materials like animal fat waste and used cooking oil. Although the milestone purchase represents only 1.6 percent of the carrier’s total FY25 fuel supply, it is four times more SAF than Air New Zealand used in FY24.
In Wednesday’s announcement, Air New Zealand’s Chief Sustainability and Corporate Affairs Officer, Kiri Hannifin, said,
“1.6% is still a very small proportion of our total fuel use, but it's four times more than we carried last year, so I am thrilled with the trajectory. Like all airlines, we urgently need to move away from our high reliance on fossil fuels as quickly as we can. Securing year-on-year higher volumes of SAF is critical.
“Momentum around SAF policy and production continues globally, with airlines, governments, airports, and fuel companies moving towards alternative fuels at an increasing pace, particularly in the Asia-Pacific region, which is incredibly gratifying for a South Pacific airline like us.
“While we are doing what we can at a global and industry level, we also need supporting SAF policy in New Zealand which may also pave the way for domestic production. We are seeing more and more governments overseas moving to enact low-carbon aviation policies to support their economies, so we'd love to see similar support here to ensure New Zealand isn’t left behind in the move to lower emissions fuels.
“As an airline, we are targeting using 10% SAF by 2030. We’ve invested in two feasibility studies to understand if New Zealand production from feedstocks like woody biomass could become a reality and we are delighted that it can be. We’re pulling every lever available to us because sitting on our hands is not an option. The climate crisis is worsening, and we are responsible for changing the course of action to protect our natural environment for future generations.”
Also commenting on Air New Zealand’s milestone SAF purchase, Neste’s VP – Renewable Aviation Business, Alexander Kueper, added,
“We are proud to support Air New Zealand’s efforts to increase their usage of SAF as a key lever to reduce aviation emissions. This supply of our Neste MY Sustainable Aviation Fuel at Los Angeles and San Francisco airports is another great step in our cooperation and we are looking forward to continuing working together with Air New Zealand to reach their climate goals.”
IATA recently announced that SAF production volumes reached 1.3 billion litres in 2024, more than double the 600 million litres produced in 2023. This is lower than previous estimates that projected SAF production at 1.9 billion litres, largely attributable to the fact that key U.S. SAF production facilities have pushed their production ramp-up to the first half of 2025.
Established in 1940, Air New Zealand first took to the skies between Auckland and Sydney with a Short S30 flying boat. Known for their warm Kiwi hospitality, the carrier currently operates a fleet ranging from Boeing 787-9 Dreamliners and Airbus A320 Family jets to ATR and Q300 turboprop aircraft. The carrier’s modern and fuel-efficient fleet has an average age of 8.7 years. In 2023, Air New Zealand caried more than 16 million passengers across 20 different regions around New Zealand. Internationally, the airline offers direct service to major cities across Australia, Asia, the Pacific Islands and the U.S., and through strong relationships with alliance partners, offers hundreds more destinations.
Source: Air New Zealand