Sustainable aviation fuel

Understanding SAF

The chemical and physical characteristics of SAF are almost identical to those of traditional jet fuel. That means it can be used in our current fleet without modification, and is proven and safe – since 2016, more than 370,000 flights around the world have flown using SAF.

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Why SAF is critical to decarbonise air travel

Our aspiration is that new, low-carbon technologies like electric, hybrid or hydrogen aircraft will dramatically reduce the emissions of shorter domestic and regional flights from 2030. However, for long haul travel, the key solution to significantly reducing emissions is SAF.

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The pathway to SAF

Currently, there is no SAF available in New Zealand. Due to the high initial cost of establishing supply and the ongoing cost of production, SAF commands a price premium compared to traditional jet fuel.

However, with the right policy and investment settings, SAF production could be made viable, and the commercial gap with fossil fuels can be narrowed. Analysis carried out by the SAF Consortium (Air New Zealand, Z Energy, Scion, LanzaTech and LanzaJet) shows there is a pathway to stand up a domestic SAF industry for New Zealand to meet 50 percent of New Zealand's aviation fuel demand by 2050, supported by a domestic feedstock (raw materials) supply chain. This could also be supplemented by SAF imported from offshore. Read more about the pathway to SAF supply in New Zealand.

To bring us one step closer to making SAF a reality in New Zealand, we have joined the Clean Skies for Tomorrow Coalition. Clean Skies is a global coalition of leaders who believe that together we can accelerate the supply and use of SAF technologies. Through this initiative, Air New Zealand has joined a global community, working together to advance the commercial scale of SAF production for broad adoption in the industry by 2030.

We have also signed the Clean Skies for Tomorrow 2030 Ambition Statement, pledging our support for SAF and a commitment to help accelerate the supply and use of SAF to reach 10% of global jet aviation fuel supply by 2030.

Our progress to date:

• Investment in Feasibility Study – In June 2023, following a detailed evaluation process, the airline in partnership with the New Zealand Government, announced it would proceed to the second phase of a detailed feasibility study considering the viability of domestically produced SAF. The second phase of the study will involve LanzaJet and Fulcrum BioEnergy considering the viability of SAF production in New Zealand using woody biomass and municipal solid waste as feedstocks respectively. Air New Zealand will commit research and development funding in excess of $1.5 million to the studies (with the funding being provided in the 2024 financial year).

• First SAF delivery - In 2022 Air New Zealand received its first import of SAF. The first SAF delivery into New Zealand fuel infrastructure for commercial flights by any airline. We purchased 1.2m litres of SAF, which if a plane was to operate 100% on SAF would be the equivalent of flying Auckland to Wellington 400 times.

• Memorandum of Understanding (MoU) with the Ministry of Business, Innovation and Employment (MBIE) - In 2021 Air New Zealand signed an MoU with MBIE to run a closed RFP process that invites leaders in innovation to demonstrate the feasibility of operating a SAF plant at a commercial scale in New Zealand. This process will bring us one step closer to making SAF a reality in New Zealand.

• SAF white paper - In 2021 Air New Zealand shared a SAF white paper with the New Zealand Government. The paper provides information on the vital and immediate policy steps needed to realise absolute emissions reductions from SAF in New Zealand, and outlines the broader co-benefits for our country.

• SAF Consortium – In 2020 Air New Zealand co-established a SAF Consortium which established that there is a pathway for standing up a SAF industry in New Zealand, and that it would have broad-reaching benefits.

• SAF test flight  -  Air New Zealand has been at the forefront of researching this technology. We flew a SAF test flight in 2008 in a Boeing 747 powered by a 50:50 blend of SAF and traditional jet fuel.

• Government engagement - View our submissions in response to Government consultations.

• SAF test flight  -  Air New Zealand has been at the forefront of researching this technology. We flew a SAF test flight in 2008 in a Boeing 747 powered by a 50:50 blend of SAF and traditional jet fuel.

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