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Sustainable Aviation Fuel

Neste to supply SAF to Air New Zealand at LAX

Neste to supply SAF to Air New Zealand at LAX
Air New Zealand signs new sustainable aviation fuel (SAF) supply deal with Neste (photo courtesy Air New Zealand).

Neste and Air New Zealand have signed an agreement for the supply of nine million liters (around 7,200 tonnes or 2.4 million US gallons) of neat "Neste MY Sustainable Aviation Fuel". The agreement represents the largest purchase of SAF from Neste made by any airline outside North America and Europe for delivery before the end of 2024.

The agreement follows an earlier SAF delivery to Air New Zealand in 2022. The SAF will be produced at Neste’s Singapore refinery, which expanded its SAF production capability last year and is currently ramping up SAF production.

Decarbonizing 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 flights, 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 Air New Zealand’s Chair Dame Therese Walsh.

The neat SAF will be blended with conventional jet fuel to meet the required fuel specifications and supplied to Los Angeles International Airport (LAX) in  California, United States between April 1 and November 30, 2024.

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, VP of Renewable Aviation at Neste.

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