Aviation fuel from waste wood viable in Aotearoa, says Air New Zealand, Lanzajet

New Zealand Herald

Fuel from wood waste such as forestry slash could create an industry worth $430 million a year and power aircraft, trucks and other transport, research out today finds.

Air New Zealand and LanzaJet have announced the preliminary findings from a study into using woody waste residues and low-value wood products in New Zealand to make sustainable aviation fuel (Saf) by producing ethanol.

The feasibility study was funded by Air NZ and the New Zealand Government, and undertaken in partnership with Scion, Z Energy (Z), and WoodBeca.

But the supply would initially be limited.

LanzaJet, which traces its origins to New Zealand, is one of the world’s leading Saf technology providers and sustainable fuel producers. It has found that locally produced Saf could meet up to a quarter of the aviation fuel needed for domestic flights a year.

Domestic production could initially reach 102 million litres of unblended Saf and 11 million litres of renewable diesel each year.

Airlines are clamouring to get supplies of Saf, which now make up less than 1% of world jet fuel supply.

Air NZ burns around 1.3 billion litres of jet fuel a year, mostly on overseas flights.

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 a year and create hundreds of new jobs.

The study finds “significant investment” in infrastructure will be needed to achieve this and mandates requiring minimising use of it in planes would be critical to getting the industry off the ground.

Air NZ chief sustainability and corporate affairs officer Kiri Hannifin says the initial findings from the study are promising and come as more investment is flowing into making Saf around the world. There are about 30 major manufacturers of Saf globally.

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, Hannifin said.

“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% of its jet fuel.”

Alternative jet fuel such as Saf is currently the only real tool available to address carbon emissions from long-haul aviation. Other technology such as rechargeable battery planes are being developed for commercial use but will be used for short flights with low passenger loads.

Hannifin said Saf currently represents only a fraction of overall aviation fuel and comes at a high premium (up to five times the cost of traditional jet fuel) so anything that can be done to increase supply and to reduce that premium was 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,” said Hannifin.

Mandates on minimum Saf requirements were being introduced in other countries.

“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 life cycle of the fuel, from raw material production to combustion.

Air NZ’s June delivery of 500,000 litres of Saf into Wellington had an 89% life-cycle emissions saving versus the equivalent fossil jet fuel.

LanzaJet chief executive Jimmy Samartzis said 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.

Saf production 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 with 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,’' said Samartzis.

There would be analysis of other feedstocks, such as municipal household and commercial waste, that could be used to make domestic Saf production an even more attractive option in Aotearoa, he said.

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.

LanzaJet is a spin-off from LanzaTech, which was founded in New Zealand in 2005.

The Ministry of Business, Innovation and Employment, Air NZ, the Ministry for Primary Industries, the 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.

Last year, the airline announced it was spending more than $1.5m in addition to $765,000 from the Government on the study.