Hawaiian Airlines and Alaska Airlines announced they will begin operating some flights using locally produced sustainable aviation fuel (SAF) in Hawaii starting in early 2026. Both airlines, owned by Alaska Air Group, will be the first customers for locally manufactured SAF in the state.

The SAF will be supplied by Par Hawaii, operator of the Kapolei Refinery, which is converting part of its facility to produce renewable fuels. The project has an estimated production capacity of approximately 61 million gallons per year, with up to 60% destined for SAF, although in the initial phase most of the production will be renewable diesel.

Par Hawaii has invested $90 million in the project’s development and sold a 36.5% stake for $100 million to a joint venture between Mitsubishi Corporation and ENEOS Corporation. The facility is scheduled to begin operations between January and March 2026.

During the initial phase, SAF will be produced from canola oil, used cooking oil, and imported animal fats. Simultaneously, Pono Pacific is leading agricultural development efforts to establish camelina (Camelina sativa) as a long-term local feedstock, with trials being conducted on four islands in collaboration with agricultural and livestock producers.

Airlines collectively consume more than 200 million gallons of jet fuel annually in Hawaii. The exact volume of SAF initially committed has not been disclosed, but it has been described as limited, given that SAF costs an estimated two to three times more than conventional fuel.

The Hawaii Department of Transportation has set a goal of achieving 50% sustainable aviation fuel (SAF) usage by 2035, 75% by 2040, and 100% by 2045, with plans to implement state tax credits to support SAF production, import, and use.

Source and Credits to Par Hawaii

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