Air New Zealand expects to use at least one million barrels of environmentally sustainable fuel annually by 2013, according to a statement released by the airline yesterday (5th June). The company explained that it was confident that commercial quantities of environmentally sustainable fuels that meet all its stringent criteria will become available over the next few years.

"Air New Zealand is absolutely committed to being at the forefront of testing environmentally sustainable fuels for use in aviation and we are confident that our hard work with partners like Boeing together with the efforts of many of our peers will see a step change sooner than many people realise," said Air New Zealand CEO Rob Fyfe.

"This fundamental shift in fuel options should be embraced by the industry and we aim to see at least ten percent of our total annual needs coming from environmentally sustainable fuels by 2013.  Studies have already shown that sustainable fuels can lead to a significant reduction in carbon emissions with a 40-to-50 percent lower carbon footprint on a life-cycle basis."

The company's next step will be the world's first flight test on a large passenger aircraft using fuel sourced from the plant jatropha. The test flight, on a Rolls Royce powered Boeing 747-400, is expected to take place in Auckland in the last quarter of this year subject to final regulatory approvals and fuel testing by the engine manufacturer.

Fyfe was adamant about the three criteria any environmentally sustainable fuel must meet for its test flight programme. These are social, technical and commercial. "Firstly, it must be environmentally sustainable and not compete with existing food stocks. Secondly, the fuel must be at least as good as the product we use today. Finally, it should be significantly cheaper than existing fuel supplies and be readily available", he said.

The jatropha oil Air New Zealand is sourcing for refining for its test flight comes from South Eastern Africa (Malawi, Mozambique and Tanzania) and India. It was sourced from seeds grown on environmentally sustainable plantations.

Air New Zealand's criteria for sourcing the jatropha oil was the land was neither forest land nor virgin grassland within the previous two decades. The quality of the soil and climate is such that the land is not suitable for the vast majority of food crops. Furthermore, the plantations are rain-fed and not mechanically irrigated.

"Jatropha satisfies all our criteria and furthermore it is likely to be available in the necessary commercial quantities to meet our needs within five years. We have already had offers from organisations in Asia and Africa willing to guarantee enough supply to meet our 2013 target," says Mr Fyfe.

"These present particularly exciting opportunities when placed against a backdrop of jet fuel prices that have recently been as high as US$174 a barrel and a cost for jatropha that is at least 20 to 30 percent cheaper."

"The challenge in the next phase is to develop a robust supply chain model and we are quite open to working with likeminded partners, including the New Zealand Government, on the development of refinery and delivery opportunities."

Jatropha is unlikely to be the only fuel that Air New Zealand is involved in testing, said Fyfe.

"Algae presents some extremely exciting possibilities for the aviation industry and around the world hundreds of scientists are working to crack the process of turning it into commercial quantities of jet fuel. Some of the best brains are here in New Zealand and we hope to be able to work with them and other supply partners as we strive to do our part to ensure that Air New Zealand and our nation make tangible steps toward improving our environment."