Alaska Airlines, Par Hawaii, and Pono Energy announced a joint investment to build a sustainable aviation fuel (SAF) facility in Hawaiʻi, with Par Hawaii committing $90 million to retrofit part of its refinery and the overall project estimated at over $200 million. The partnership will use locally grown feedstocks such as camelina, leucaena, and other crops to produce SAF, with the first Hawaiʻi‑made fuel slated for delivery in the first quarter of 2026.
The initiative aligns with Alaska Airlines’ net‑zero carbon goal by 2040 and its broader sustainability roadmap that includes fleet renewal, operational efficiency, and carbon offsetting. By securing a domestic SAF supply, the airline aims to reduce exposure to volatile jet‑fuel prices and strengthen its Pacific‑region fuel resilience, potentially lowering long‑term operating costs.
Par Hawaii’s refinery conversion will create a dedicated renewable fuel production line, while Pono Energy will provide feedstock cultivation and supply chain expertise. The collaboration also supports Hawaiʻi’s clean‑energy targets of 100 % clean energy and net‑zero GHG emissions by 2045, creating jobs for local farmers and reinforcing the state’s energy independence.
Management emphasized the partnership’s strategic importance. Alaska Airlines sustainability director Alanna James said the project “moves Hawaiʻi toward cleaner operations and greater energy independence, while advancing the airline’s net‑zero trajectory.” Par Hawaii president Eric Wright noted that progress since the 2022 study with Hawaiian Airlines has exceeded expectations, with production expected online in early 2026.
The SAF project positions Alaska Airlines as a leader in environmental stewardship across the Pacific, meeting growing regulatory mandates and consumer demand for greener travel. The investment also provides a competitive edge by potentially reducing fuel cost volatility and aligning the carrier with global SAF market growth, which is projected to expand as regulatory frameworks tighten worldwide.
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