Air New Zealand chief sustainability and corporate affairs officer Kiri Hannifin. Photo: RNZ / Nate McKinnon
- Air NZ and LanzaJet study looked at turning forestry waste into sustainable aviation fuel
- It found local SAF manufacturing was possible, pumping $430m into the economy
- They say significant investment is needed, and the government could help incentivise investors
Turning locally grown forestry waste into sustainable aviation fuel has the potential to contribute hundreds of millions of dollars a year to the country's economy, new research says.
The study by Air New Zealand and US company LanzaJet looked at using woody waste residues and low-value wood products to produce sustainable aviation fuel, also known as SAF.
SAF is an alternative jet fuel that can work in existing aircraft engines, greatly reducing carbon emissions.
The study found that a local SAF manufacturing process using woody waste was possible, while contributing around $430 million a year in economic benefits and creating hundreds of new regional jobs in the central North Island.
However, it said "significant investment" would be needed.
Air New Zealand chief sustainability and corporate affairs officer Kiri Hannifin said the findings were "promising".
"These initial findings support that alternative jet fuel can be produced here in Aotearoa from our own locally-grown woody waste, which is very positive for a country that is heavily reliant on long-haul aviation and trade and currently imports 100 percent of its jet fuel," Hannifin said.
Global supply of SAF has not kept up with demand from airlines, with the International Air Transport Association estimating SAF to account for 0.53 percent of aviation's fuel need.
"Alternative jet fuel such as SAF is currently the only real tool available to address carbon emissions from long-haul aviation, so it's crucial for connecting New Zealanders, tourists, and exporters with the rest of the world," Hannifin said.
Air New Zealand believed government support would be needed to support SAF manufacturing and supply in New Zealand.
Hannifin said one of the key ways for the government to support SAF manufacturing would be to mandate fuel companies to provide SAF to airlines.
"We've seen that happen now in just about every jurisdiction we fly to," she said.
Incentives were another way for the government to potentially provide support.
"I know that the suppliers or the manufacturers would work with the government to work out what would be best for the government, for New Zealanders, for the investors and the suppliers," Hannifin said.
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