Study reveals potential benefits of local sustainable aviation fuel production in New Zealand

Policy

Richard Thomson Chief Financial Officer | Air New Zealand

By Sky Industry News

Oct 30, 2024

The feasibility study, funded by Air New Zealand and the New Zealand Government, was conducted in collaboration with Scion, Z Energy (Z), and WoodBeca. The study explores the potential of locally produced sustainable aviation fuel (SAF) in New Zealand.

LanzaJet, a leading provider of SAF technology and sustainable fuel production, has determined that SAF produced within New Zealand could supply up to 25% of the country's aviation fuel requirements. The research indicates that using domestically sourced woody waste for SAF could contribute significantly to the economy and create numerous regional jobs. However, substantial investment in infrastructure is necessary to realize this potential.

Air New Zealand's Chief Sustainability and Corporate Affairs Officer, Kiri Hannifin, highlighted the promising nature of the study's initial findings but emphasized the importance of establishing a new SAF market to ensure local resources like woody waste are utilized effectively. "These initial findings support that alternative jet fuel can be produced here in Aotearoa from our own locally-grown woody waste," said Ms. Hannifin.

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Ms. Hannifin further explained that "alternative jet fuel such as SAF is currently the only real tool available to address carbon emissions from long-haul aviation." She noted that while SAF is used globally by some airlines today, it remains a small portion of total aviation fuel due to its high cost. Increasing supply and reducing costs through proper regulatory frameworks will be crucial for attracting global investment into New Zealand's SAF industry.

SAF closely resembles fossil jet fuel chemically but offers lower emissions over its lifecycle—from raw material production to combustion—compared to traditional fossil fuels. For instance, Air New Zealand reported an 89% life-cycle emissions saving on a recent delivery of 500,000 liters of SAF compared to equivalent fossil fuels.

Jimmy Samartzis, CEO of LanzaJet, expressed satisfaction with the study's initial results and reaffirmed commitment to supporting development in the region. He stated that creating a new industry involves building a comprehensive ecosystem for SAF based on technology supported by policy and capital investment.

The CirculAirTM production method assessed combines technologies from LanzaTech and LanzaJet to convert waste carbon into SAF using proprietary processes. Mr. Samartzis mentioned that converting woody biomass into SAF is technically feasible in New Zealand with appropriate conditions.

A second phase of research focusing on municipal solid waste as a feedstock for LanzaTech’s carbon recycling process is anticipated soon.