New Study Shows Local Production Of Sustainable Aviation Fuel Could Support Fuel Resilience And Security In Aotearoa NZ

Air New Zealand and LanzaJet have today announced the preliminary findings from a study into using woody waste residues and low-value wood products in New Zealand to produce sustainable aviation fuel - a form of alternative jet fuel commonly referred to as SAF. The feasibility study was funded by Air New Zealand and the New Zealand Government, and undertaken in partnership with Scion, Z Energy (Z), and WoodBeca. 

LanzaJet, one of the world’s leading SAF technology providers and sustainable fuel producers, has found that locally produced New Zealand SAF could meet up to a quarter of the aviation fuel needed for domestic flights each year, enhancing New Zealand’s local fuel security and resilience. 

The study found that using domestically grown woody waste for SAF has the potential to contribute hundreds of millions of dollars to New Zealand’s economy per year and create hundreds of new regional jobs. Significant investment in infrastructure will be needed to achieve this. 

Air New Zealand Chief Sustainability and Corporate Affairs Officer, Kiri Hannifin, says the initial findings from the study are promising, however establishing and stimulating a new SAF market will be critical to ensure New Zealand doesn’t miss out on securing homegrown raw materials like woody waste for its own use and benefit.  

“These initial findings support that alternative jet fuel can be produced here in Aotearoa from our own locally-grown woody waste, which is very positive for a country that is heavily reliant on long-haul aviation and trade and currently imports 100 percent of its jet fuel,” says Ms Hannifin.   

“Alternative jet fuel such as SAF is currently the only real tool available to address carbon emissions from long-haul aviation, so it’s crucial for connecting New Zealanders, tourists, and exporters with the rest of the world.” 

“SAF is already being used in small quantities by many airlines globally today, but it currently represents only a fraction of overall aviation fuel and comes at a high premium so anything that can be done to increase supply and to reduce that premium is vital. The right settings and regulatory environment will be important as New Zealand considers homegrown SAF because it’s the only way to secure the necessary global investment. There is already significant international momentum and in our view New Zealand shouldn’t get left too far behind or we risk seeing the flow of capital go elsewhere or our valuable raw materials being swooped up by other markets for their own SAF.” 

SAF is almost chemically identical to fossil jet fuel and has the same emissions when burnt in an aircraft, however it has significantly lower emissions than fossil jet fuel over the full lifecycle of the fuel, from raw material production to combustion. For example, Air New Zealand’s June delivery of 500,000 litres of SAF into Wellington had an 89 percent life-cycle emissions saving versus the equivalent fossil jet fuel. 

LanzaJet CEO, Jimmy Samartzis, says the company is pleased with the initial results from the feasibility study and reaffirms its commitment to the region.  

“Building a new industry requires developing a broad ecosystem for SAF in New Zealand, anchored in technology and supported by policy, capital, and demand to help attract funding and make it at a price airlines can afford. We are seeing many countries move quickly to put mechanisms in place to stimulate, produce and export their own SAF in the future, because aviation is critical to global economies, as it is here in New Zealand.  

“CirculAirTM, the SAF production approach assessed in the study combines the technologies of LanzaTech and LanzaJet to convert waste carbon into SAF. The process starts with LanzaTech's carbon recycling technology, which (in this case) converts gasified forestry residues into ethanol. LanzaJet then converts that into SAF using its proprietary and industry-leading alcohol-to-jet (ATJ) technology. 

“The good news is that turning woody biomass into SAF is technically possible in New Zealand, and with the right settings, is an industry that can get started fairly quickly. We look forward to completing additional analysis into what other feedstocks, such as municipal household and commercial waste, could be used to make domestic SAF production an even more attractive option in Aotearoa,” said Jimmy Samartzis, LanzaJet Chief Executive Officer.  

A second phase of the study, exploring the potential for municipal solid waste (household and commercial waste) as a feedstock for the LanzaTech carbon recycling process, is expected to be completed over the next few months. 

Notes: 

• Sustainable aviation fuel is a form of alternative jet fuel commonly referred to as SAF.  SAF is made from feedstocks other than fossil fuels, like forestry residues, municipal waste, or used cooking oils, and reduces the lifecycle carbon footprint of jet fuel.  It is certified and safe to use now. 
• SAF is most typically used by international airlines when mixed with jet fuel. ie it forms part of the fuel mix.  
• LanzaJet is a leading sustainable aviation fuel (SAF) technology provider and a sustainable fuel producer. LanzaJet makes safe sustainable fuels from waste and low-carbon sources a reality. Through the use of its patented LanzaJet Alcohol-to-Jet (AtJ) technology, it is able to create SAF and renewable diesel from waste-based and sustainable ethanol sources.  LanzaJet is a spin-off from LanzaTech (NASDAQ: LNZA), which was founded in New Zealand in 2005.  
• The preliminary findings from this feasibility study found that SAF production in New Zealand could provide several benefits to New Zealand, including:
• Domestic production of 102 million litres of unblended SAF each year. 
• Domestic production of 11 million litres of renewable diesel each year, strengthening diesel supply chain security and resilience (e.g. defence, emergency response and generators); 
• Reduced reliance on imported fuels, enhancing energy security and supply chain resilience; 
• Creation of skilled jobs in regional areas and the potential for an estimated $430 million increase to New Zealand’s annual GDP 
• The Ministry of Business, Innovation and Employment, Air New Zealand, the Ministry for Primary Industries, Ministry of Transport, New Zealand Trade and Enterprise, and the Ministry for the Environment have signed a Memorandum of Understanding to collaborate in delivery of the feasibility studies. 

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