Neste will supply nine million liters of SAF known as Neste MY Sustainable Aviation Fuel to Air New Zealand marking the largest purchase of SAF from Neste by any airline outside North America and Europe to be delivered before the end of 2024.
Neste, a global leader in renewable fuels, and Air New Zealand have recently inked a significant deal for the supply of nine million liters of sustainable aviation fuel (SAF) known as Neste MY Sustainable Aviation Fuel. This agreement marks the largest purchase of SAF from Neste by any airline outside North America and Europe. The SAF will be delivered before the end of 2024 and is set to play a vital role in decarbonizing Air New Zealand’s operations.
This partnership builds upon an earlier SAF delivery to Air New Zealand in 2022. The SAF will be produced at Neste’s Singapore refinery, which has expanded its SAF production capabilities recently and is ramping up production. The neat SAF will be blended with conventional jet fuel and supplied to Los Angeles International Airport between 1 April and 30 November 2024.
“Decarbonising Air New Zealand’s operations is essential for its long-term ability to connect New Zealanders to the world, as well as support the country’s trade and tourism sectors, and SAF is a key enabler of this. Sustainable aviation fuel is currently the only solution to significantly reduce emissions from long haul flight, but it currently makes up less than 1% of the global fuel supply. For aviation to reach its net zero carbon emissions goals by 2050, the SAF industry will need to scale significantly. While the SAF supply is small compared with the airline’s overall fuel use, it is nine times the size of Air New Zealand’s first shipment of SAF from Neste in 2022 and demonstrates growing cooperation between two like-minded organizations to advance the supply and use of SAF,” said Dame Therese Walsh, Chair, Air New Zealand.
Sustainable aviation fuel is crucial in significantly reducing emissions from long-haul flights, playing a pivotal role in the aviation industry’s ambition to achieve net-zero carbon emissions by 2050. While SAF currently makes up less than 1% of the global fuel supply, partnerships like this one with Neste highlight a growing commitment to advancing sustainable aviation practices.
“Neste is fully committed to supporting the decarbonization of aviation and is working closely together with partners like Air New Zealand to accelerate SAF usage. We are proud to support Air New Zealand’s decarbonization focus and are looking forward to continuing working together with Air New Zealand and the New Zealand Government to reach their climate goals,” said Alexander Kueper, Vice President Renewable Aviation, Neste.
Neste MY Sustainable Aviation Fuel is a renewable alternative to conventional fossil-based jet fuel, offering up to 80% reduction in greenhouse gas emissions over its life cycle. It is made from 100% renewable waste and residue raw materials like used cooking oil and animal fat waste, contributing to a circular economy.
Neste is a pioneer in creating solutions to combat climate change by refining waste and innovative raw materials into renewable fuels and sustainable feedstock. The company aims to reduce greenhouse gas emissions by at least 20 million tons annually by 2030.
Air New Zealand, with a history dating back to 1940, has evolved into a modern, fuel-efficient fleet operating Boeing 787-9 Dreamliners, Airbus A320s, ATRs, and Bombardier Q300s. With an average fleet age of 8.7 years, the airline continues to prioritize sustainability while providing customers with comfort and efficiency in its aircraft.
In 2023, Air New Zealand flew more than 16 million passengers, showcasing its commitment to serving both domestic and international travelers. This new agreement with Neste underscores the airline’s dedication to embracing sustainable practices and reducing its environmental footprint.
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The collaboration between Air New Zealand and Neste represents a significant step forward in the aviation industry’s transition towards cleaner and more sustainable operations. As SAF usage continues to grow, partnerships like this will play a crucial role in achieving a greener future for aviation.
