Air New Zealand says the Saf industry is different from when test flights were done 14 years ago. Photo / Getty
Air New Zealand says the Saf industry is different from when test flights were done 14 years ago. Photo / Getty
Air New Zealand is about to use sustainable aviation fuel in some of its planes.
In a major milestone, the airline will next week get the first of what it says will be many shipments of Sustainable Aviation Fuel (Saf) into Aotearoa ready to power the airline's fleet.
The 1.2million litre import, while a tiny fraction of annual fuel use, is equivalent to fueling around 400 return flights between Auckland and Wellington. It will be mixed to a 38 per cent blend with traditional jet fuel.
In its neat form Saf will reduce life cycle carbon emissions by up to 80 per cent compared to fossil jet fuel.
Produced by the world's largest Saf supplier, Finland's Neste, and imported in partnership with Z Energy, this first shipment will be used to help test and set up the supply chain for importing Saf. It is from sustainably sourced, renewable waste and residue raw materials including used cooking oil and animal fats.
As Saf is a drop-in fuel it will be put into the fuel system at Marsden Point upon arrival, where it will then be pumped to Auckland airport and will be delivered to Air New Zealand through the regular jet fuel supply chain.
Air NZ chief executive Greg Foran said the fuel at Auckland airport could be uplifted by other airlines for the days it is in the system at the airport, as happened overseas.
The airline hopes to run 10 per cent of its fleet on Saf by 2030. In 2008 the airline ran a successful trial of blended jatropha nut oil in a Boeing 747, and then made a commitment to run the airline on about 10 per cent renewable fuel within five years.
Foran says it is different this time. The Saf industry had matured, there was increased scale and renewed global commitment to cut emissions from aviation.
Foran said sustainability was the airline's number one priority.
"The airline is incredibly committed to getting the Air New Zealand fleet up and running on Saf and this shipment marks the beginning of making regular imports a reality."
It aims to have Saf make up 1 per cent of its fuel use this year. The shipment next week from Belgium via Malaysia would be about a tenth of that 1 per cent.
"While we are starting out small, it will help us to test the supply chain and understand the true cost of importing Saf into New Zealand," said Foran.
A Neste Sustainable Aviation Fuel tanker refueling an aircraft. Photo / Supplied
"This is a major milestone for us. We made a commitment when we announced Flight NZ0 earlier this year to find a more sustainable way to connect with the world."
Currently, Saf only makes up less than 1 per cent of the global fuel supply and is around three to five times the cost of fossil jet fuel, so while sourcing it is a challenge, Air NZ is tackling it head-on.
The airline has spent "millions" of dollars in the lead up to the trial but Foran said it was the right thing to do.
"I don't spend a lot of time worrying about the cost because I think that this is very early and there will be a lot of water to pass under the bridge."
Air NZ and the Ministry of Business, Innovation and Employment are investigating the feasibility of a local Saf facility in New Zealand.
They say commercially producing Saf in New Zealand would not only help lower the country's emissions and provide enhanced fuel security and energy independence, it would also create jobs and economic development in the regions.
Establishing production of a sustainable aviation fuel in New Zealand, or even securing reliable imported supply, requires extensive infrastructure investment at an average cost of about $1 billion, a Cabinet paper last year said.
The airline said it continues to actively engage with the New Zealand Government to advocate for the policy and regulatory settings required to establish a Saf market and address the price premium Saf commands.
Research, Science and Innovation Minister Ayesha Verrall said the Government was working with the aviation sector to explore ways of reducing carbon emissions and the shipment was encouraging.
"This complements our other work as the Government is currently investigating the feasibility of Saf production in New Zealand. Air New Zealand's work on Saf will also support the Government's Aerospace Strategy."
Sami Jauhiainen, vice-president Apac, renewable aviation at Neste, said with the expansion of its Singapore refinery nearing completion, and the ongoing modification of its Rotterdam refinery, it would be able to produce up to 1.5 million tonnes of Saf by the end of 2023, ready to support aviation globally and in the Asia-Pacific region.
Neste says more than 370,000 commercial flights have used Saf since 2016; more than 40 airlines and 13 major airports already use and supply it.
