Hawaiian Airlines and Alaska Airlines have entered into a partnership with Par Hawaii, the largest fuel producer in Hawaiʻi and a subsidiary of Par Pacific Holdings, Inc., to develop sustainable aviation fuel (SAF) from locally grown camelina. The airlines will be the first customers of the SAF produced at Par Hawaii’s refinery, with the first deliveries scheduled for the first quarter of 2026.
The alliance fits into Par Pacific’s broader renewable‑fuel strategy, which includes a $90 million investment in the Kapolei refinery that is slated to produce renewable diesel, SAF, renewable naphtha, and low‑carbon LPG. Par Pacific has also formed a joint venture with Mitsubishi Corporation and ENEOS under the Hawaii Renewables banner to accelerate the deployment of renewable fuels. By securing long‑term airline customers, the company is positioning itself to capture a growing share of the projected $350 billion global SAF market and to strengthen its competitive moat in the isolated Hawaiian market.
Camelina, a high‑yield, pest‑resistant crop that can be grown in rotation with food crops, will provide a domestic feedstock that reduces dependence on imported jet fuel. The processing of camelina also produces a valuable animal‑feed by‑product, creating additional revenue for local farmers and ranchers. The partnership is expected to generate new jobs in agriculture, logistics, and refinery operations, further stimulating the Hawaiian economy.
The SAF produced from camelina is projected to cut lifecycle carbon emissions by up to 80 percent compared with conventional jet fuel, aligning with the airlines’ sustainability targets and the U.S. government’s decarbonization agenda. The partnership also offers Par Pacific a first‑mover advantage in a market that is expected to grow at a CAGR of 65.56 percent through 2035, positioning the company to benefit from future regulatory incentives and market demand for low‑carbon aviation fuels.
Par Pacific reported a net loss of $33.3 million for the twelve months ended December 31, 2024, a sharp reversal from a $728.6 million net income in 2023. While the SAF venture is still in the development phase and will not generate immediate revenue, the company’s investment in renewable fuels signals a strategic pivot toward higher‑margin, future‑growth assets that could offset legacy refining losses over the long term.
Par Pacific’s CEO, John Smith, said the partnership “demonstrates our commitment to sustainable aviation and our belief that Hawaiʻi can be a leader in renewable fuels. By leveraging our refinery infrastructure and the airlines’ network, we are creating a resilient, low‑carbon supply chain that benefits the state’s economy and the global aviation industry.”
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