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Aviation Sustainability and the Environment, CAPA 23-Sep-2022

Analysis

This regular CAPA report provides a summary of recent aviation sustainability and environment news. This latest issue features:

Air Canada to acquire 30 ES-30 electric aircraft

Virgin Australia Group CEO: 'foundational investments' needed for SAF journey to commence

Fiji requires aviation industry to collaborate on sustainability: Fiji Airways executive manager

Air New Zealand to receive first shipment of SAF into New Zealand

Rockton confirms LoI for up to 40 Heart Aerospace ES-30 aircraft

This CAPA report features a summary of recent aviation sustainability and environment news, selected from the 300+ news alerts published daily by CAPA. For more information, please contact us.

Air Canada to acquire 30 ES-30 electric aircraft

Air Canada announced (15-Sep-2022) a purchase agreement for 30 ES-30 electric aircraft from Heart Aerospace, expected to enter service in 2028.

Air Canada also acquired a USD5 million equity stake in Heart Aerospace.

The ES-30 will allow Air Canada to serve regional and commuter routes more sustainably, providing low emission connectivity to local communities over the medium to long term.

It will be capable of carrying 30 passengers.

Air Canada president Michael Rousseau said: " The introduction into our fleet of the ES-30 electric regional aircraft from Heart Aerospace will be a step forward to our goal of net zero emissions by 2050". [more - original PR]

Original report: Air Canada to Acquire 30 ES-30 Electric Regional Aircraft from Heart Aerospace

Air Canada to Acquire 30 ES-30 Electric Regional Aircraft from Heart Aerospace

Electric-hybrid aircraft advances carrier's 2050 net-zero emission goal

  • Battery powered aircraft will have capacity for up to 30 passengers
  • Electric 200 km range extends to 400 km with reserve hybrid architecture
  • Agreement includes equity investment by Air Canada in Heart Aerospace

Air Canada today announced a purchase agreement for 30 ES-30 electric-hybrid aircraft under development by Heart Aerospace of Sweden. The revolutionary regional aircraft, expected to enter service in 2028, will generate zero emissions flying on battery power and yield significant operational savings and benefits. Under the agreement, Air Canada has also acquired a US$5 million equity stake in Heart Aerospace.

"Air Canada has taken a leadership position in the industry to address climate change. The introduction into our fleet of the ES-30 electric regional aircraft from Heart Aerospace will be a step forward to our goal of net zero emissions by 2050," said Michael Rousseau, President and Chief Executive Officer of Air Canada. "Already, Air Canada is supporting the development of new technologies, such as sustainable aviation fuels and carbon capture, to address climate change. We are now reinforcing our commitment by investing in revolutionary electric aircraft technology, both as a customer for the ES-30 and as an equity partner in Heart Aerospace."

The ES-30 will allow Air Canada to serve regional and commuter routes more sustainably, providing low-emission connectivity to local communities over the medium-to-long term. It will be capable of carrying 30 passengers seated three across (in a 2X1 configuration), with a galley and lavatory. Air Canada has placed a purchase order for 30 ES-30.

"Air Canada is a strategically important partner for Heart Aerospace. The company has one of the world's largest networks operated by regional turboprops, and it is also a progressive, future leaning company especially in the green transmission," said Anders Forslund, founder and CEO of Heart Aerospace. "With the ES-30 we can start cutting emissions from air travel well before the end of this decade."

The aircraft will be powered by lithium-ion batteries, and will be quieter, have better operational parameters, be more reliable, and have a smaller environmental footprint than conventional turbo-prop aircraft. It will also be equipped with reserve-hybrid generators that can use sustainable aviation fuel. Fully loaded, the ES-30 is projected to have an all-electric, zero-emission range of 200 km. This can be extended to 400 km with power supplemented by the generators, and up to 800 km if the load is restricted to 25 passengers. Charging time for the aircraft is expected to be 30-to-50 minutes.

Air Canada Cautionary Statement Regarding Forward-Looking Statements
Air Canada's public communications may include forward-looking statements within the meaning of applicable securities laws. These statements may involve, but are not limited to, comments relating to guidance, strategies, expectations, planned operations or future actions. Forward-looking statements, by their nature, are based on assumptions, are subject to important risks and uncertainties and cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including the factors identified in this news release and in Air Canada's public disclosure file available at www.sedar.com. The forward-looking statements contained in this news release represent Air Canada's expectations as of the date of this news release and are subject to change after such date. However, Air Canada disclaims any intention or obligation to update or revise any forward-looking statements whether because of new information, future events or otherwise, except as required under applicable securities regulations.

Virgin Australia Group CEO: 'foundational investments' needed for SAF journey to commence

Virgin Australia Group CEO Jayne Hrdlicka, speaking at the CAPA Australia Pacific Aviation Summit, stated (13-Sep-2022) the cost of the sustainable aviation fuel (SAF) journey is "very high", adding "no one organisation can handle it on their own".
 
Ms Hrdlicka said "foundational investments" need to be made for the journey to start, noting collaboration with government is needed.

Fiji requires aviation industry to collaborate on sustainability: Fiji Airways executive manager

Fiji Airways executive manager - strategy, networks and alliances John Checkett, speaking at the CAPA Australia Pacific Aviation Summit, stated (13-Sep-2022) Fiji requires the aviation industry to work together to address sustainability.

Mr Checketts noted Fiji as a country "doesn't have the ability to drive a whole lot of change", however impacts of climate inaction will affect Fiji more than most countries in the long term.

Air New Zealand to receive first shipment of SAF into New Zealand

Air New Zealand announced (15-Sep-2022) it will receive its first shipment of sustainable aviation fuel (SAF) into New Zealand from the week commencing 19-Sep-2022.

The 1.2 million litre import is equivalent to fuelling around 400 return flights between Auckland and Wellington and in its neat form will reduce lifecycle carbon emissions by up to 80% compared to fossil jet fuel.

Produced by Neste and imported in partnership with Z Energy, the shipment will be used to help test and set up the supply chain for importing SAF into New Zealand.

It will be put into the fuel system at Marsden Point upon arrival, and will make its way to Auckland International Airport and will be delivered to Air New Zealand through the regular jet fuel supply chain.

Air New Zealand Chief Executive Officer Greg Foran stated: "This is a major milestone for us. We made a commitment when we announced Flight NZ0 earlier this year to find a more sustainable way to connect with the world...While we are starting out small, it will help us to test the supply chain and understand the true cost of importing SAF into New Zealand". [more - original PR]

Original report: Air New Zealand To Welcome First Shipment Of Sustainable Aviation Fuel Into Aotearoa

Air New Zealand will reach its next stop on its Flight NZ0 journey and will next week welcome the first of many shipments of Sustainable Aviation Fuel (SAF) into Aotearoa ready to power the airline's fleet.

The 1.2 million litre import is equivalent to fueling around 400 return flights between Auckland and Wellington and in its neat form will reduce lifecycle carbon emissions by up to 80%* compared to fossil jet fuel.

Produced by the world’s largest SAF supplier, Neste, and imported in partnership with Z Energy, this first shipment will be used to help test and set up the supply chain for importing SAF into New Zealand. The SAF is made from sustainably sourced, renewable waste and residue raw materials.

As SAF is a drop in fuel it will be put into the fuel system at Marsden Point upon arrival, where it will make its way down to Auckland airport and will be delivered to Air New Zealand through the regular jet fuel supply chain.

Air New Zealand Chief Executive Officer Greg Foran says the airline is incredibly committed to getting the Air New Zealand fleet up and running on SAF and this shipment marks the beginning of making regular imports a reality.

“This is a major milestone for us. We made a commitment when we announced Flight NZ0 earlier this year to find a more sustainable way to connect with the world. Air New Zealand is already one of the most fuel-efficient airlines in the world with our modern fleet, but the future of travel relies on low-carbon air transport.

“While we are starting out small, it will help us to test the supply chain and understand the true cost of importing SAF into New Zealand. Currently, SAF only makes up less than 1 percent of the global fuel supply and is around three to five times the cost of fossil jet fuel, so while sourcing it is a challenge, it’s one we are tackling head on. By 2030, we expect our fleet to be fueled by 10 percent SAF.”

Air New Zealand and the Ministry of Business, Innovation and Employment signed an MoU in September last year to scope the feasibility of a local SAF facility in New Zealand. Commercially producing SAF in New Zealand would not only help lower the country’s emissions and provide enhanced fuel security and energy independence, it would also create jobs and economic development in the regions.

The airline continues to actively engage with the New Zealand Government to advocate for the policy and regulatory settings required to establish a SAF market and address the price premium SAF commands.

Research, Science and Innovation Minister Dr Ayesha Verrall says the Government is working with the aviation sector to explore ways of reducing carbon emissions.

Air New Zealand has constantly led the way by embracing innovation, we need new solutions as we transition to a low-emissions economy. This is why it’s encouraging to see the import of SAF. This complements our other work as the Government is currently investigating the feasibility of SAF production in New Zealand. Air New Zealand’s work on SAF will also support the Government’s Aerospace Strategy, recently released for consultation”.

Sami Jauhiainen, Vice President APAC, Renewable Aviation at Neste says Neste is fully committed to supporting the decarbonization of aviation.

Neste has been at the forefront of accelerating the production and use of SAF. Our Neste MY Sustainable Aviation Fuel is used across the globe by a growing number of airlines, and I am excited that our SAF will now also be supplied to Air New Zealand in cooperation with Z Energy.

“We are proud to support Air New Zealand and the New Zealand Government with the ambitious climate goals that show a great example for others to follow. With the expansion of our Singapore refinery nearing completion, and the ongoing modification of our Rotterdam refinery, we will be able to produce up to 1.5 million tons of SAF by the end of 2023, ready to support aviation globally and in the Asia-Pacific region.”

Import partner Z Energy’s Chief Executive Officer Mike Bennetts says Z is already investing in low-carbon revenue streams that are better for both their customers and the planet.

“We support and recognise the need for SAF to become the norm in Aotearoa and it is a key part of Z’s roadmap to support our customers on their journey to a low-carbon future. We are pleased to work alongside Air New Zealand and Neste to bring this shipment of SAF into the country and recognise collaboration with others will be essential to help us decarbonise at the scale and pace needed to address climate change.”

* Calculated with established life cycle assessment (LCA) methodologies, such as CORSIA methodology.

Rockton confirms LoI for up to 40 Heart Aerospace ES-30 aircraft

Rockton, via its official LinkedIn account, confirmed (15-Sep-2022) it signed a LoI with Heart Aerospace to acquire up to 40 new ES-30 electric aircraft.

Rockton CEO Niklas Lund stated the company expects the ES-30 "will be in great demand among regional airlines that seek a path to meaningful emission reductions with competitive operating costs".

The aircraft is expected to enter service in 2028.

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