Air New Zealand And Federal Government To Invest More Than $2 Million Into SAF Studies

Air New Zealand is prepared to make a cooperative investment with the New Zealand government in order to progress the development of sustainable aviation fuel (SAF). The next phase would involve assessing all of the options for manufacturing SAF in New Zealand. The airline and the government had previously urged inventors to generate green fuel in the nation.

$2 million in capital
The New Zealand Government and Air New Zealand have announced a $2 million plus investment in research looking at the potential for domestic production of sustainable aviation fuel.

The announcement was made at the draft Tourism Environment Action Plan launch, hosted by Air New Zealand and attended by Minister of Tourism, Hon Peeni Henare, on June 16th. Air New Zealand has committed more than $1.5 million for the research, and $765,000 will come from the government. Air New Zealand Chief Sustainability Officer Kiri Hannifin commented,

“Our climate is worsening at a rate far faster than predicted. We all need to take immediate and drastic action to protect what we love, including our land, and all that depends on her.

“So much of what we rely on in Aotearoa is based on our magnificent natural assets including tourism and food production. Air New Zealand has a significant role to play in transitioning our economy to a lower carbon future and flying with SAF is a key part of this transition.”

Hannifin noted that SAF is in very high demand but has limited supply. She added that commercially producing SAF in New Zealand would not only help lower the country’s emissions while creating jobs, regional economic development, and Māori and Iwi investment opportunities but also provide energy security and energy independence, which is something New Zealand doesn’t have.

The latest announcement comes after Air New Zealand and the Ministry of Business, Innovation, and Employment (MBIE) signed a Memorandum of Understanding in 2021 to run a closed RFP process, inviting leaders in innovation to demonstrate the feasibility of operating a SAF plant at a commercial scale in New Zealand.

The airline and Government officials together evaluated proposals from multiple international SAF producers to understand what technologies are available globally and how these could be transposed into the New Zealand context.

As part of phase two of the project, two proposals – one with LanzaJet and another with Fulcrum BioEnergy, both US-based – are being considered. The second stage of the SAF feasibility work will continue through to early 2024 and will further evaluate the technical, economic, supply chain, and environmental feasibility of establishing and operating a SAF production facility in New Zealand.

New Zealand is not alone in attempting to make a shift towards SAF development and usage. Globally, many countries and airlines are waking up to the reality of the aviation industry’s carbon footprint. And while SAF is nowhere close to being a mass commodity in terms of scale or price, gradual efforts are nudging it in that direction.

The Indian government is considering mandating 1% SAF blended fuel for airlines, and there are many companies working towards producing SAF in the country. Several US companies are also actively exploring various avenues of collaboration with Egypt in the realm of SAF production, to the point where many think that it could become the hub for green fuel production.