Boeing to purchase 7.5M gal. of Neste SAF in 2024

Boeing has agreed to purchase 7.5 million gallons (more than 22,700 tons) of blended Neste MY Sustainable Aviation Fuel (SAF) in 2024 to support its U.S. Commercial Airplanes business operations in reducing its greenhouse gas (GHG) emissions. The volume of Neste’s SAF is part of Boeing’s total purchase of 9.4 million gallons of blended SAF, representing Boeing’s largest annual SAF purchase to date, 60% more than in 2023.

The fuel blend consisting of 30% SAF, made from renewable waste and residue raw materials such as used cooking oil, and 70% conventional jet fuel, will be supplied to Boeing by EPIC Fuels and Avfuel to support the Boeing ecoDemonstrator program and Boeing’s U.S. commercial operational flights through 2024.

“As our focus remains on safety and quality, sustainability continues to be a priority. Sustainable aviation fuel is essential to decarbonize aviation. About 20% of our fuel usage is a SAF blend, and we continue to increase our use of this fuel to encourage growth in the SAF industry. We are also working to make SAF more available and affordable to our commercial airline customers through collaboration, investment, research, and policy development,” said Ryan Faucett, vice president of Environmental Sustainability at Boeing.

“Sustainable aviation fuel is a key lever to reduce aviation emissions. Working together with aviation sector leaders like Boeing is crucial in accelerating SAF usage and production. We are proud to support their efforts working together with our partners EPIC Fuels and Avfuel,” said Carrie Song, senior vice president, Commercial, Renewable Products at Neste.

The total volume of blended SAF purchased will be supplied to Boeing’s commercial operations directly or through book-and-claim. Boeing will receive 4 million gallons (around 12,000 tons) of blended SAF produced by Neste into its fuel farms in the Pacific Northwest. EPIC Fuels, a Signature Aviation company, will supply 2.5 million gallons and Avfuel will provide 1.5 million gallons of blended SAF from Neste.

Boeing will also purchase SAF certificates corresponding to the emission reduction provided by using 3.5 million gallons of blended SAF produced by Neste through a book and claim system. Book and claim is an accounting process in which a company purchases SAF certificates to displace conventional jet fuel. Instead of putting the fuel into a Boeing fuel farm, distributors will deliver it to nearby airports for use by airlines and other carriers ensuring the corresponding SAF use and related GHG emission reductions. Based on Boeing’s book-and-claim purchases, EPIC Fuels will supply the 3.5 million gallons of blended SAF.

Neste’s SAF is made from sustainably sourced, 100% renewable waste and residue raw materials, such as used cooking oil and animal fat waste. SAF is blended with conventional jet fuel before use and works seamlessly with existing aircraft engines and fueling infrastructure.

The company’s ambition is to make the Porvoo oil refinery in Finland the most sustainable refinery in Europe by 2030. Neste is committed to reaching carbon-neutral production by 2035.

Days earlier, Neste Corp. reached an agreement to supply around 7,200 tons or 2.4 million gallons of unblended sustainable aviation fuel to Air New Zealand at Los Angeles International Airport. The neat SAF will be blended with conventional jet fuel to meet the required fuel specifications and supplied to Los Angeles International Airport between April and the end of November 2024. The agreement represents the largest purchase of sustainable aviation fuel (SAF) from Neste made by any airline outside North America and Europe for delivery before the end of 2024.

The agreement follows an earlier SAF delivery to Air New Zealand in 2022. The sustainable aviation fuel will be produced at Neste’s Singapore refinery, which expanded its SAF production capability last year and is currently ramping up SAF production.

Air New Zealand operates aircraft ranging from Boeing 777 and 787-9 Dreamliners, Airbus A320 jets, to ATRs and Q300s turboprops.

Air New Zealand’s Chair Dame Therese Walsh said, “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. While the SAF supply is small compared with the airline’s overall fuel use, it is nine times the size of Air New Zealand’s first shipment of SAF from Neste in 2022 and demonstrates growing cooperation between two like-minded organizations to advance the supply and use of SAF.”