Hawaiian Airlines is committed to achieving net zero greenhouse gas emissions by 2050. One way we'll get there is to work with suppliers like Par Hawaii (ABOVE) to increase the availability and use of sustainable aviation fuel.
Our aircraft often approach Honolulu by descending over Oahu's southwestern coast, giving guests spectacular views of the turquoise surf and the towering Waianae mountain range. Looking out the window, they may also see Par Hawaii, the largest supplier of energy products in the state. The 130-acre refinery in Kapolei shares more than just our flight path—it also shares our vision and commitment to build a more sustainable future for air transportation to, from and among our Islands.
What does that vision look like? For us, as Hawaii's largest and only major airline, it is to bring our greenhouse gas emissions to net zero by 2050. Although commercial aviation is an energy-intensive sector, airlines account for just about 2 percent of global greenhouse gas emissions, thanks to our industry's investments in fleet and engine modernization along with operational efficiencies. Driven by the urgency of climate change, we are constantly looking to reduce our environmental impact, and sustainable aviation fuel, or SAF, is the most promising opportunity to help us achieve our goals.
Made from more sustainable feed-stock (think plant-based and waste oils, or even municipal waste) SAF can have a life-cycle carbon intensity that is 50 to 80 percent below traditional petroleum jet fuel, making it the best available technology to lower our emissions. SAF is also a "drop-in fuel," meaning it can be safely used with existing infrastructure, like storage tanks, and in our aircraft and engines when blended up to 50 percent with conventional jet fuel.
However, as a nascent industry, SAF can be three to five times more expensive than conventional fuel, and it is so far unavailable in Hawaii. We are working with Par Hawaii to change that. Together, we are studying the commercial viability of developing SAF in our home state. Par is investing $90 million to convert a diesel-producing unit into one that would instead make some 60 million gallons of renewable fuels as early as next year.
In parallel, Par Hawaii is also collaborating with Pono Pacific, Hawaii's largest private natural resource conservation company, to identify and develop local sources of plant-based oil for renewable diesel and SAF. Pono Pacific is conducting crop trials of potential biofuel feedstocks across the Islands, including one involving the camelina plant on Oahu's North Shore. Developing an economical oil crop in Hawaii will provide a quality local biofuel supply and usable by-products, such as animal feed, that support Hawaii's sustainability goals as well as its agricultural, ranching and dairy sectors. This will also advance our state's energy security and independence.
As these studies progress, we are not sitting idle on our net-zero emissions journey: We have committed to sourcing SAF for 10 percent of our fuel needs by 2030. To get us started, we agreed to purchase 50 million gallons of SAF from biofuel company Gevo, Inc., with deliveries beginning in 2029.
Our decarbonization path is as challenging as it is exciting, with innovation, partnerships and new discoveries constantly re-energizing our work and giving us more confidence that we can succeed. We look forward to continuing to collaborate with fuel producers, states and the federal government to accelerate SAF production and availability so that we can become an even more sustainable company for our guests, employees and communities.
From our ohana to yours,
Peter Ingram, Chief Executive Officer, Hawaiian Airlines
