Sustainable Aviation
Hawaiian and Alaska Airlines Partner for Hawaii SAF Production by 2026
Hawaiian and Alaska Airlines join Par Hawaii and Pono Energy to produce Sustainable Aviation Fuel locally with a $90M refinery upgrade, targeting 2026 deliveries.
This article is based on an official press release from Alaska Airlines and Hawaiian Airlines.
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.
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.
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
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. 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
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.
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.
When will the new SAF be available? What is SAF? Will this project affect local food supply? Who is funding the refinery upgrade?
Hawaii Aviation Leaders Unite for Local SAF Production
Investment and Infrastructure Upgrades
The Role of Pono Energy and Camelina Sativa
Sustainable Agriculture
Economic Impact
AirPro News Analysis
Frequently Asked Questions
The partners expect the first deliveries of locally produced SAF to begin in early 2026.
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.
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.
Par Hawaii is leading the capital investment, estimated at $90 million, to upgrade the Kapolei refinery.
Sources
Photo Credit: Alaska Airlines