Air New Zealand has signed for nine million litres of neat sustainable aviation fuel (SAF) from Neste, representing the producer’s largest order from an airline outside of Europe or North America.
The SAF will be produced in Neste’s Singapore facility and supplied to Los Angeles International airport between 1 April and 30 November this year, where it will be blended with conventional jet fuel.
The deal was signed in Singapore, on the sidelines of a state visit by New Zealand prime minister Christopher Luxon. Air New Zealand did not disclose the financial terms of the deal.
Air New Zealand chair Therese Walsh says: “Decarbonising Air New Zealand’s operations is essential for the airline’s 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.”
The Star Alliance carrier says the order is its largest yet, about nine times more SAF than its first shipment in 2022.
Still, the amount of SAF ordered makes up only a small fraction of its overall fuel consumption: Air New Zealand expects to use about 850 million litres of fuel between April and November this year.