In a bold stride toward a sustainable future, Air New Zealand has announced its largest-ever procurement of Sustainable Aviation Fuel (SAF), securing over 30 million litres to be delivered through February 2026. This milestone purchase underscores the airline’s unwavering commitment to reducing its carbon footprint and transforming the aviation industry to greener skies.
Produced by Neste in Singapore, the SAF is derived from 100% renewable waste and residue raw materials such as animal fat waste and used cooking oil. This innovative solution achieves an impressive 80% reduction in lifecycle carbon emissions compared to conventional fossil fuels, paving the way for a cleaner, more sustainable aviation sector.
Accelerating Sustainability Goals
Kiri Hannifin, Air New Zealand’s Chief Sustainability and Corporate Affairs Officer, highlighted the transformative nature of this initiative. “This purchase ensures that 1.6% of our total fuel supply for FY25 will be SAF, reaching our target for the year and representing more than four times the SAF volume used in FY24,” said Hannifin.
While acknowledging that 1.6% is a small fraction of the airline’s overall fuel use, Hannifin stressed the importance of scaling up. “We urgently need to transition away from fossil fuels, and securing consistent increases in SAF volumes year-on-year is critical for achieving our sustainability trajectory,” she added.
The airline aims to achieve 10% SAF usage by 2030, with plans to explore domestic SAF production from feedstocks like woody biomass. Early feasibility studies show promising results, reinforcing Air New Zealand’s leadership in fostering a low-carbon aviation industry.
Collaboration for a Greener Industry
Momentum for SAF adoption is growing worldwide, with stakeholders across governments, airports, airlines, and fuel producers uniting to advance production and accessibility. Alexander Kueper, Neste’s Vice President of Renewable Aviation Business, commended Air New Zealand’s efforts. “We are proud to support Air New Zealand in increasing their SAF usage as a key lever for reducing aviation emissions. This partnership exemplifies our shared vision for a sustainable future,” said Kueper.
Air New Zealand’s procurement of SAF aligns with broader global trends in low-carbon aviation. As more governments enact policies to support sustainable fuels, New Zealand risks falling behind without similar initiatives to bolster domestic SAF production and adoption.
Industry Insights: SAF Adoption on the Rise
The International Air Transport Association (IATA) reports significant growth in global SAF production, with volumes doubling to 1.3 billion litres in 2024 compared to the previous year. However, SAF still accounts for just 0.3% of global jet fuel production, highlighting the urgent need for continued investment and innovation.
Despite challenges like delayed ramp-ups at key production facilities, the aviation industry remains optimistic. Air New Zealand’s record SAF purchase signals confidence in sustainable aviation’s potential to transform the sector.
Leading by Example
“The climate crisis demands immediate action, and as an airline, we have a responsibility to lead,” Hannifin emphasized. “This purchase is a critical step forward, but it’s just the beginning. We’re committed to pulling every lever available to reduce emissions and protect the environment for future generations.”
Air New Zealand’s forward-thinking approach cements its role as a sustainability leader in the Asia-Pacific region. By prioritizing innovation and collaboration, the airline sets a compelling example for others to follow in building a cleaner, greener aviation industry.
Written by: Soo James