For Hungarian low-cost carrier Wizz, investing in the latest technology aircraft may be the backbone of its sustainability strategy. However, that does not mean the airline is not also utilizing other pathways to lower CO2 emissions on its path toward net-zero. On Wednesday, Wizz and leading sustainable aviation fuel producer Neste announced the two had signed a new agreement for 36,000 tons of SAF to be delivered over the course of three years.

Last year, Wizz achieved its lowest CO2 per-passenger-kilometer ever, with 55.2 grams, down 15.4% compared to the year before. According to the airline's sustainability strategy, it aims to lower carbon intensity by 25% by 2030, compared to 2019 levels. European low-cost competitors easyJet and Ryanair clocked in at 70.4 grams and 67.1 for 2022, respectively (both significantly lower than the year before).

Ian Malin, Executive Vice President and Group Chief Financial Officer at Wizz Air, commented on the new SAF uptake deal,

"At Wizz Air, we continue to invest in innovative technology and believe that SAF is a key part of the solution for decarbonizing the aviation industry. The partnership with Neste, the world's leading producer of SAF, reaffirms our progress in reducing our carbon emissions intensity, which is already one of the lowest in the world. Working together with Neste, we will drive the adoption of SAF throughout our network, paving the way to a more sustainable future for aviation."

Scaling production by the end of the year

SAF is considered, at least by the industry, to be the most promising interim path to lower aviation emissions. While other producers are waiting on the starting lines with large-scale facilities currently under construction on the back of airline uptake agreements and other investments, Neste still reigns supreme when it comes to offering fuel produced from non-fossil-based sources. The company is planning to scale production globally to 1.5 million tons by the end of 2023.

Jonathan Wood, Vice President Europe, Renewable Aviation at Neste, added his remarks on the new purchase from Wizz,

"Neste is committed to helping the aviation industry move towards a more sustainable future. This agreement with Wizz Air, one of the industry's sustainability leaders, shows how we are enabling airlines to use SAF across their route networks."

Neste says that its "Neste MY Sustainable Aviation Fuel," produced from renewable waste and residue raw materials, like used cooking oil and animal "waste" fats, offers emission reductions by up to 80% over the lifecycle compared to conventional jet fuel.

The "over the lifecycle" part is crucial to understand as the fuel still emits CO2 when burned. The idea is that the growth of the biomass it is derived from binds about the same amount of carbon from the atmosphere. The remaining percentages are generated from the production, transportation and refinement of the fuel.

Devil is in the details

Of course, a promise of 80% emission reduction is an attractive option for airlines when it comes to carbon reporting and that still mirage-like target of net-zero by mid-century. However, critics are voicing concerns about the industry's apparent reliance on the scaling of SAF to hit sustainability targets, especially as the types of feedstock used will expand to meet the growing demand. As Matteo Mirolo, aviation policy officer at interest group Transport & Environment, told CNBC last year,

“The main thing to bear in mind that is not all SAF are created equal, and their sustainability fully depends on the sustainably of the feedstock that they are made from. With SAF, the devil is really in the details."

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Sources: easyJet, Ryanair, CNBC

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  Wizz Air

  IATA/ICAO Code:

  W6/WZZ

  Airline Type:

  Ultra-Low-Cost Carrier

  Year Founded:

  2003

  CEO:

  József Váradi

  Country:

  Hungary