A recent study conducted by Air New Zealand and LanzaJet has highlighted the potential for a local sustainable aviation fuel (SAF) industry in New Zealand, driven by forestry waste. The findings suggest that utilizing woody waste and low-value wood products to produce SAF could bring about substantial economic and environmental benefits, pumping an estimated NZ$430 million annually into the economy and creating new jobs in New Zealand’s regions.
The Promise of Locally Produced SAF
Sustainable aviation fuel, or SAF, is a renewable jet fuel that can be seamlessly integrated into existing aircraft engines, allowing airlines to significantly reduce carbon emissions without requiring new engine technology. The recent study by Air New Zealand and LanzaJet demonstrated that New Zealand’s local forestry waste could be transformed into SAF, marking an exciting step toward self-sufficiency in aviation fuel and lowering dependence on fossil fuel imports.
With long-haul aviation a critical component of New Zealand’s connectivity to the world, SAF represents one of the most effective tools for curbing emissions in the industry. Internationally, SAF has been gaining momentum, with airlines seeking alternative fuels to align with stringent climate goals. However, global SAF production still meets only a fraction of aviation’s fuel needs—estimated at 0.53% by the International Air Transport Association.
Economic and Environmental Impact
By utilizing forestry waste, New Zealand has the opportunity to establish a resilient SAF supply chain with substantial economic benefits. The study found that local SAF production could generate NZ$430 million each year and create hundreds of regional jobs, particularly in the North Island’s forestry-rich areas. In addition to boosting the economy, locally produced SAF would position New Zealand as a leader in sustainable fuel innovation, adding economic and environmental value by reducing waste and supporting green technology.
Kiri Hannifin, Air New Zealand’s Chief Sustainability and Corporate Affairs Officer, emphasized the importance of local SAF production for a country dependent on long-haul flights. “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,” Hannifin noted. “Alternative jet fuel such as SAF is currently the only real tool available to address carbon emissions from long-haul aviation.”
The Need for Investment and Government Support
Realizing New Zealand’s SAF potential will require “significant investment,” as the production process demands advanced technology and infrastructure. Air New Zealand believes that government support will be instrumental, with a focus on incentivizing investors and mandating fuel companies to provide SAF. A mandate would align New Zealand with international practices, as many jurisdictions now require a certain percentage of SAF in aviation fuel blends.
Incentives for SAF manufacturers could also play a key role in accelerating investment. Hannifin explained that collaboration between the government, investors, and suppliers would be essential to create a mutually beneficial support structure that benefits New Zealanders, while making SAF production commercially viable.
VURDHAAN’s Commitment to Sustainable Aviation
VURDHAAN actively supports the aviation sector’s transition to SAF and other sustainable practices, helping airlines achieve compliance and navigate complex sustainability regulations. With expertise in Sustainable Aviation Fuel, CORSIA, and Emission Trading Schemes, VURDHAAN guides aviation clients through every stage of SAF integration—from regulatory support to implementing effective SAF blending strategies.
Our holistic approach at VURDHAAN—focused on support, education, and implementation—ensures that aviation stakeholders can confidently adopt SAF, enhancing sustainability and contributing positively to their environmental targets. By supporting SAF advancements, VURDHAAN contributes to the global mission of reducing aviation’s carbon footprint, fostering a greener future for the industry.
A Greener Future for New Zealand’s Aviation
The potential for turning forestry waste into SAF in New Zealand presents a remarkable opportunity for sustainable growth. Local SAF production could lead to reduced emissions, energy self-sufficiency, and economic development, all while addressing aviation’s significant environmental challenges. With the right government support and industry collaboration, New Zealand is well-positioned to become a leader in SAF innovation, setting a model for sustainable aviation that other nations could follow.
VURDHAAN stands ready to assist stakeholders in the aviation industry to turn these ambitions into reality, helping shape a cleaner, greener future for aviation both in New Zealand and globally.