Neste signs SAF supply deal with Air New Zealand

Finnish refiner and renewable fuels producer Neste Oyj (HEL:NESTE) has signed a deal to supply 9 million liters (2.4 million gallons) of sustainable aviation fuel (SAF) to Air New Zealand at Los Angeles International Airport, the companies said today.

The neat Neste MY Sustainable Aviation Fuel will be produced at Neste’s Singapore refinery and blended with conventional jet fuel to answer the required fuel specifications. It will be supplied to Los Angeles International Airport between April 1 and November 30. According to the announcement, the contract is the largest purchase of SAF from Neste made by any airline outside North America and Europe for delivery before the end of 2024. Neste’s Singapore refinery expanded its SAF capacity last year and is currently ramping up production.

The agreement follows a previous SAF delivery to Air New Zealand in 2022.

“Decarbonising 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,” said Air New Zealand’s chair Therese Walsh, who is in Singapore on a business delegation to South East Asia led by New Zealand Prime Minister Christopher Luxon.

“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. For aviation to reach its net zero carbon emissions goals by 2050, the SAF industry will need to scale significantly,” Walsh added.

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