Air New Zealand to buy green fuel from Finland's Neste to meet net-zero targets

Air New Zealand Monday signed its largest deal for sustainable aviation fuel (SAF), with Finland-based petroleum refiner Neste in a bid to decarbonize and meet its net-zero carbon emission targets. The deal involves the purchase of 9m liters of the green fuel, which will be produced at Neste's Singapore refinery and supplied to Los Angeles International Airport between April 1 and Nov. 30, 2024, the airline said in a statement. The decision comes weeks after Air New Zealand sought out startups in the SAF sector to become its supply partner. "The SAF is expected to deliver a reduction of carbon emissions by up to 80% over the life cycle of the fuel compared to using fossil jet fuel, which includes its production as well as transport emissions," the airline said in a statement. The airline anticipates it would need SAF to make up around 20% of its total fuel uptake by 2030 as it aims to reduce carbon intensity by 28.9% by the end of the decade and achieve net-zero carbon emissions by 2050. "Sustainable aviation fuel is currently the only solution to significantly reduce emissions from long haul flight, but it currently makes up less than 1% of the global fuel supply," Air New Zealand Chair Dame Therese Walsh said.<br/>