Photo: Air New Zealand/Instagram
Sustainable Aviation Fuel (SAF) is unanimously considered the fastest, most efficient way to reduce aviation-related emissions while old fleets continue to operate. Still, the absence of large-scale productivity makes it a scarce resource, which is why every small step in the right direction makes a huge difference.
Air New Zealand announced a strategic deal with Neste, the world's largest SAF producer, marking a milestone for each company. For the airline, this is its largest SAF purchase so far; for the producer, this is the largest order coming from an operator outside of the US and Europe, with a delivery scheduled for later this year.
The airline first acquired SAF from Neste in 2022, and this time it wanted to secure nine times more fuel than two years ago. Even though it's a much larger quantity, nine million liters still feels like a drop in the ocean (between April and November, when the Neste SAF will be delivered, Air New Zealand estimates an overall fuel uptake of 850 million liters across its network).
These are small but strategically important steps. Other major airliners (including United) are also gradually increasing the amount of SAF they use for regular flights. This alternative fuel still needs to be blended with conventional jet fuel for commercial use to meet the current standards. The industry's goal is to reach a point where unblended SAF can be safely used to replace conventional diesel and where large-scale availability makes it affordable for more operators and extensive use.
For now, this recent purchase marks an important moment in the region's aviation industry. More and more countries are also working on setting up domestic SAF industries to support the transition toward green flights.
Right now, operators like Air New Zealand still need to rely on external suppliers. The nine million liters that will be delivered to Los Angeles International Airport are coming from Singapore. This is where Neste set up its latest refinery.
The Finland-based SAF producer made a strategic move when it expanded its Singapore refinery last year. It increased its production capacity and became a SAF hub for the entire Asia-Pacific region. With refineries on three continents, Neste aims to produce more than 2 million tons of SAF per year by early 2026, making it the world's biggest SAF producer.
In unblended form, this green jet fuel is able to reduce carbon emissions by 80% across the entire lifecycle.
In addition to the use of sustainable fuel, Air New Zealand has also introduced the pioneering Mission Next Gen Aircraft program as a way to cut carbon emissions. The airline's old Q300 turboprops will be gradually replaced with new-generation, zero-emission aircraft, starting with the electric Alia by Beta Technologies.
The airline first acquired SAF from Neste in 2022, and this time it wanted to secure nine times more fuel than two years ago. Even though it's a much larger quantity, nine million liters still feels like a drop in the ocean (between April and November, when the Neste SAF will be delivered, Air New Zealand estimates an overall fuel uptake of 850 million liters across its network).
These are small but strategically important steps. Other major airliners (including United) are also gradually increasing the amount of SAF they use for regular flights. This alternative fuel still needs to be blended with conventional jet fuel for commercial use to meet the current standards. The industry's goal is to reach a point where unblended SAF can be safely used to replace conventional diesel and where large-scale availability makes it affordable for more operators and extensive use.
For now, this recent purchase marks an important moment in the region's aviation industry. More and more countries are also working on setting up domestic SAF industries to support the transition toward green flights.
Right now, operators like Air New Zealand still need to rely on external suppliers. The nine million liters that will be delivered to Los Angeles International Airport are coming from Singapore. This is where Neste set up its latest refinery.
The Finland-based SAF producer made a strategic move when it expanded its Singapore refinery last year. It increased its production capacity and became a SAF hub for the entire Asia-Pacific region. With refineries on three continents, Neste aims to produce more than 2 million tons of SAF per year by early 2026, making it the world's biggest SAF producer.
In unblended form, this green jet fuel is able to reduce carbon emissions by 80% across the entire lifecycle.
In addition to the use of sustainable fuel, Air New Zealand has also introduced the pioneering Mission Next Gen Aircraft program as a way to cut carbon emissions. The airline's old Q300 turboprops will be gradually replaced with new-generation, zero-emission aircraft, starting with the electric Alia by Beta Technologies.
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