Air New Zealand and the Ministry of Tourism have announced a more than $2 million investment into the next phase of studies to examine the feasibility of producing sustainable aviation fuel (SAF) in Aotearoa New Zealand.

The announcement came today at the launch of the draft Tourism Environment Action Plan, which was hosted by Air NZ at their central Auckland offices and saw attendance from the Minister of Tourism, Hon Peeni Henare.

It includes a commitment of $1.5 million from Air NZ and $765,000 from the government, which will fund an evaluation of the feasibility of establishing and operating a SAF production facility in New Zealand. The evaluation will look to consider technical, economic, supply chain and environmental aspects.

The investment comes after a year-long request for proposal (RFP) process, which invited respondents to demonstrate the viability of operating a SAF plant at a commercial scale in New Zealand. The airline worked with the government to consider the proposals, submitted by multiple international producers, in the first phase of the SAF consideration process.

In the second phase, as announced today, Air NZ will move forward with two proposals: one with LanzaJet, a Chicago-based startup, which received a US$50 million grant from the Bill Gates-led Breakthrough Energy, and one with Fulcrum BioEnergy, which is also US-based and working to develop technology to turn landfill waste into jet fuel.

Air New Zealand Chief Sustainability Officer Kiri Hannifin, says “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.

 “Globally, SAF is in very high demand but limited supply. 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.”

Air New Zealand is committed to meeting net zero carbon emissions by 2050, and announced plans to work towards trialling zero-emissions aircraft late last year.