New Zealand / Business

Air NZ purchases more than 30 million litres of sustainable fuel

10:14 am on 18 December 2024

Photo: RNZ / Nate McKinnon

Air New Zealand has announced it will purchase more than 30 million litres of sustainable aviation fuel.

The airline says it is the largest purchase of SAF to date and will represent 1.6 percent of its total fuel supply for the 2025 financial year.

SAF is produced in Singapore by Neste and is made from 100 percent renewable waste such as animal fat and used cooking oil.

Chief sustainability and corporate affairs officer Kiri Hannifin said its more than four times the volume of SAF the airline used in the last financial year.

"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."

Photo: RNZ / Nate McKinnon

Air New Zealand said the SAF will deliver up to 80 percent reduction in emissions during its lifecycle compared with jet fuels.

Hannifin said the country needs SAF policy now.

"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."

The SAF purchase will come from Neste's supply at Los Angeles and San Francisco airports.

Earlier this year, Air New Zealand pulled the plug on its climate targets saying new aircraft and alternative fuels are hard to get and expensive.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.