This article is based on an official press release from Alaska Airlines and Hawaiian Airlines.

Hawaii Aviation Leaders Unite for Local SAF Production

In a significant move toward energy independence and decarbonization, Hawaiian Airlines and Alaska Airlines have announced a strategic partnership with Par Hawaii and Pono Energy to establish the first local supply chain for Sustainable Aviation Fuel (SAF) in Hawaii. According to the joint announcement, the consortium aims to begin deliveries of locally produced SAF by early 2026.

The collaboration brings together the state’s largest energy provider, its primary air carriers, and local agricultural innovators. The project centers on upgrading Par Hawaii’s Kapolei refinery to process renewable feedstocks, specifically Camelina sativa, a cover crop that will be grown on fallow agricultural land across the islands. This “farm-to-flight” ecosystem is designed to reduce the aviation industry’s carbon footprint while diversifying Hawaii’s economy.

The airlines have committed to purchasing the SAF produced, providing the guaranteed demand necessary to make the project commercially viable. This agreement aligns with both carriers’ long-term goals of achieving net-zero carbon emissions by 2040.

Investment and Infrastructure Upgrades

Par Hawaii is spearheading the infrastructure development required to make local SAF a reality. According to project details summarized in the announcement and related reports, the company is investing approximately $90 million to upgrade its Kapolei refinery. This facility, the only refinery in the state, will convert a distillate hydrotreater to produce renewable fuels.

The upgraded unit will utilize HEFA (Hydroprocessed Esters and Fatty Acids) technology, a mature method for producing bio-jet fuel. Once operational, the facility is expected to have a significant output capacity.

• Total Renewable Capacity: Approximately 61 million gallons per year of total renewable fuels, including renewable diesel and naphtha.
• SAF Specifics: Estimates suggest a maximum SAF production capacity of roughly 2,400 barrels per day, though initial yields will depend on feedstock availability.

In a joint statement, the partners emphasized the dual benefits of the initiative:

“This initiative will enable SAF production for more sustainable future flying and deliver economic benefits through the creation of a new energy sector and fuel supply chain in Hawai‘i.”

, Joint Press Statement, Alaska Airlines & Hawaiian Airlines

The Role of Pono Energy and Camelina Sativa

A critical component of this partnership is the sourcing of sustainable feedstock. Pono Energy, a subsidiary of Pono Pacific, will lead the agricultural operations. The project relies on Camelina sativa, a fast-growing, drought-tolerant oilseed crop that matures in 60 to 75 days.

Sustainable Agriculture

According to Pono Pacific, Camelina is ideal for Hawaii because it can be grown as a cover crop between other food crop rotations. This ensures that fuel production does not displace local food production. The crop helps prevent soil erosion, requires minimal water, and produces a high-protein “seedcake” byproduct that can be used as FDA-approved animal feed for local ranchers.

Chris Bennett, VP of Sustainable Energy Solutions at Pono Pacific, highlighted the circular nature of the project:

“Camelina represents a rare opportunity for Hawai‘i to build a true circular-economy model around renewable fuels.”

, Chris Bennett, Pono Pacific

Economic Impact

The project is projected to support approximately 300 high-value manufacturing jobs at the refinery, in addition to creating new agricultural jobs for farming and harvesting. By producing fuel locally, the partnership aims to reduce Hawaii’s extreme dependence on imported fossil fuels, enhancing the state’s energy security.

AirPro News Analysis

The Cost and Scale Challenge

While this partnership marks a pivotal step for Hawaii, significant hurdles remain regarding cost and scale. SAF is currently estimated to be two to three times more expensive than conventional jet fuel. Without substantial subsidies or “green premiums” paid by corporate customers or passengers, this price differential poses a challenge for airlines operating in a price-sensitive leisure market like Hawaii.

Furthermore, while the projected 61 million gallons of renewable fuel is a substantial figure, it represents only a fraction of the total jet fuel consumed by commercial aviation in Hawaii. To run the refinery at full capacity, the facility will likely need to supplement local Camelina oil with imported waste oils, such as used cooking oil, until local agricultural production scales up. The success of this initiative will likely depend on the continued support of federal incentives, such as the Inflation Reduction Act, and state-level renewable fuel tax credits.

Frequently Asked Questions

When will the new SAF be available?
The partners expect the first deliveries of locally produced SAF to begin in early 2026.

What is SAF?
Sustainable Aviation Fuel (SAF) is a liquid fuel currently used in commercial aviation which reduces CO2 emissions by up to 80%. It is produced from renewable feedstocks rather than crude oil.

Will this project affect local food supply?
No. The feedstock, Camelina sativa, is grown as a cover crop on fallow land or between food crop rotations, meaning it does not compete with food production.

Who is funding the refinery upgrade?
Par Hawaii is leading the capital investment, estimated at $90 million, to upgrade the Kapolei refinery.

Sources

• Alaska Airlines Newsroom
• Par Pacific

KLM Backs Wennink Report, Calls for National SAF Fund to Secure Dutch Economic Future

On December 12, 2025, KLM Royal Dutch Airlines officially endorsed the findings of the newly released advisory report, “The Route to Future Prosperity” (De weg naar toekomstige welvaart). Authored by former ASML CEO Peter Wennink, the report outlines a strategic roadmap for the Dutch economy, emphasizing the need for significant investment to maintain national competitiveness.

Central to KLM’s endorsement is the report’s recommendation for the Dutch government to establish a national SAF fund. The airline argues that such a financial mechanism is critical to bridging the price gap between fossil kerosene and renewable alternatives, thereby accelerating the aviation sector’s transition to Sustainability without compromising the Netherlands’ economic standing.

The Wennink Report: A Call for Investment

Commissioned to analyze the Dutch Investments climate, the Wennink report warns that the Netherlands risks economic stagnation if it does not increase its annual growth rate to between 1.5% and 2%. According to the findings, maintaining current social standards, including healthcare, defense, and the energy transition, requires a massive capital injection.

The report estimates that an additional €151 billion to €187 billion in investment is needed by 2035 to modernize the economy. It identifies specific high-productivity sectors as essential pillars for future prosperity, including Artificial Intelligence, biotechnology, and aviation.

KLM has aligned itself with these findings, noting that a thriving business climate relies heavily on international connectivity. In its statement, the airline emphasized that the connectivity provided by Schiphol Airport is vital for Dutch trade and for attracting international headquarters to the region.

The Proposal for a National SAF Fund

A key pillar of the aviation Strategy proposed in the report is the creation of a government-backed fund dedicated to Sustainable Aviation Fuel. Currently, SAF is significantly more expensive than traditional fossil kerosene, often three to four times the price, and suffers from limited supply availability.

KLM posits that a national fund would act as a catalyst to solve these market inefficiencies. By subsidizing the cost difference, the fund would make SAF more affordable for Airlines, ensuring they remain competitive against non-EU carriers that may not face similar sustainability mandates. Furthermore, the fund is intended to de-risk long-term investments for energy companies, encouraging the construction of domestic refineries, such as the facilities planned in Delfzijl.

“Such a fund would enable the Netherlands to accelerate the production of alternative aviation fuels and make them more affordable, thereby accelerating the sector’s sustainability.”

— KLM Royal Dutch Airlines

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Strategic Competitiveness vs. Taxation

KLM used the release of the Wennink report to argue against unilateral national taxes or flight restrictions, which have been subjects of recent political debate in the Netherlands. The airline warns that such measures could harm the Dutch economy by reducing connectivity and driving business elsewhere.

Instead, KLM advocates for incentivizing sustainability. The airline suggests that the government must take a more active role in the energy transition rather than relying solely on industry mandates. According to the press release, “Real progress can only be achieved if government and industry work together and if the government takes a more active role.”

AirPro News Analysis

The endorsement of the Wennink report represents a strategic pivot for KLM, moving the conversation from “flight shaming” to economic necessity. By aligning its sustainability goals with the broader “Draghi-style” warnings about European competitiveness, KLM is positioning aviation not just as a transport sector, but as a geopolitical asset essential for the Netherlands’ survival as a trading nation.

However, this call for government funding comes amidst a complex backdrop. In 2024, KLM faced legal scrutiny regarding “greenwashing” allegations, with courts ruling that some “Fly Responsibly” advertisements painted an overly optimistic picture of SAF’s immediate impact. The push for a national fund can be interpreted as a tacit admission that the industry cannot achieve its 2030 and 2050 climate targets through market forces alone; without state intervention to lower the cost of SAF, the “green” transition remains economically unfeasible for legacy carriers.

Frequently Asked Questions

What is the Wennink Report?

Titled “The Route to Future Prosperity,” it is an advisory report authored by Peter Wennink (former CEO of ASML) that analyzes the Dutch investment climate and proposes strategies to boost economic growth and productivity.

Why does KLM want a national SAF fund?

Sustainable Aviation Fuel is currently much more expensive than fossil kerosene. A national fund would help bridge this price gap, making it affordable for airlines to use more renewable fuel while encouraging energy companies to build production facilities in the Netherlands.

How much investment does the report say is needed?

The report estimates that the Netherlands needs an additional €151 billion to €187 billion in investment by 2035 to modernize its economy and maintain social standards.

Sources

• KLM Royal Dutch Airlines

New “Book and Claim” Model Brings Sustainable Fuel to Remote Air Ambulances

On December 10, 2025, Airbus Helicopters and the French operator SAF Hélicoptères announced a strategic partnership designed to decarbonize emergency medical services (HEMS) in Catalonia, Spain. The initiative utilizes a “Book and Claim” mechanism to supply Sustainable Aviation Fuel (SAF) credits to operations that physically cannot access the fuel, marking a significant shift in how remote aviation sectors approach environmental compliance.

The project focuses on two Airbus H145 helicopters operated by SAF Hélicoptères for the Catalan Department of Health’s Emergency Medical Services. According to the announcement, this arrangement allows the operator to reduce its carbon footprint despite the logistical impossibility of delivering physical biofuels to small, decentralized hospital helipads.

Overcoming the “Last Mile” Logistics Challenge

Emergency medical missions present a unique challenge for decarbonization. Unlike commercial airlines that refuel at major hubs with established infrastructure, HEMS helicopters often operate from remote bases or hospital rooftops. Transporting small quantities of SAF to these scattered locations by truck would be inefficient and could generate more carbon emissions than the biofuel saves.

To solve this, Airbus and SAF Hélicoptères have adopted the “Book and Claim” model. Under this system, the operator purchases SAF “certificates” representing the environmental benefits of the fuel. The physical fuel is then pumped into the aviation system at a central location, such as a major airport, where it is consumed by other aircraft. SAF Hélicoptères then claims the carbon reduction for its specific HEMS missions in Catalonia.

Jean-Louis Camus, Co-director of SAF Hélicoptères, explained the contractual necessity of this arrangement in the company’s statement:

“In my contract, I state that I will pay the equivalent of a portion of my helicopters’ fuel usage in exchange for a certificate.”

The Role of Airbus and Certification

Airbus Helicopters is acting as the market facilitator in this pilot program. According to the release, the manufacturer purchases SAF certificates in bulk from producers and resells them to smaller operators. This approach is intended to “de-risk” the process for customers who may lack the purchasing power to negotiate large fuel contracts independently.

Julien Manhes, Head of Sustainable Aviation Fuel at Airbus, highlighted the company’s objective to democratize access to green fuels:

“For a lot of smaller operators, getting access to SAF can be challenging… Airbus can simplify and derisk the process.”

To ensure transparency and prevent “double counting”, where two different parties might claim the same environmental benefit, the initiative utilizes a registry managed by the Roundtable on Sustainable Biomaterials (RSB). This certification ensures that once the carbon reduction is claimed by the HEMS operator, it cannot be claimed by the entity physically burning the fuel at the central hub.

AirPro News Analysis: The Regulatory Gap

While the “Book and Claim” model solves the immediate logistical hurdles for HEMS operators, it faces a complex regulatory landscape. As of late 2025, major frameworks like the EU Renewable Energy Directive (RED) and the ReFuelEU initiative prioritize the physical supply of fuel at mandated airports. Consequently, “Book and Claim” systems are not yet fully recognized for meeting all national compliance targets, creating a temporary regulatory gap.

Furthermore, while this system reduces Scope 3 emissions for clients like the Catalan Department of Health, the cost of SAF remains significantly higher, often 2 to 8 times that of conventional jet fuel. The willingness of public health administrations to absorb these costs signals a shift in public tenders, where environmental compliance is becoming a non-negotiable requirement for government contracts.

A Model for Future Operations

The deployment in Catalonia serves as a proof-of-concept for the wider industry. Juan Carlos Gomez Herrera, representing the Catalan Administration, noted that the initiative aligns with their broader public health mandate, viewing environmental responsibility as an extension of immediate medical care.

By decoupling the physical fuel from its environmental attributes, Airbus and SAF Hélicoptères are demonstrating a viable pathway for decarbonizing decentralized aviation sectors that have previously been left behind by airport-centric green policies.

Sources: Airbus