Hawaiian and Alaska airlines, Par Hawaii and Pono Energy partner to advance the Hawai'i-based market, supply chain for sustainable aviation fuel production

Rhea-AI Summary

Hawaiian Airlines (HA) and Alaska Airlines partnered with Par Hawaii and Pono Energy to develop a Hawai'i-based sustainable aviation fuel (SAF) supply chain using locally grown camelina feedstock, with the airlines planned as Par Hawaii's launch SAF customers.

Key facts: Par Hawaii aims to deliver Hawai'i-made SAF in Q1 2026; Par Pacific invested $100 million to convert a refinery unit to process plant and waste oils; SAF can cut lifecycle carbon emissions by up to 80% versus conventional jet fuel.

Positive

• First deliveries of Hawaiʻi-made SAF expected in Q1 2026
• $100 million investment to convert refinery unit for renewable hydrotreater
• Up to 80% lifecycle emissions reduction vs conventional jet fuel
• Local feedstock (camelina) enables circular economy and animal feed from seedcake

Negative

• SAF is currently two to three times more expensive than regular jet fuel
• SAF supply is limited today, constraining near-term scale-up
• Growth requires policy, investor and industry support to be viable

Key Figures

SAF emissions reduction up to 80 percent Lifecycle carbon emissions vs conventional jet fuel

Crop maturity time eight to nine weeks Camelina sativa cover crop growth cycle

Camelina varieties 50 non-GMO varieties Cultivated to identify best suited to Hawaiʻi climate

Islands with crop trials four islands Camelina crop trials in partnership with local farms and dairy

Refinery investment $100 million Conversion and upgrade to renewable hydrotreater

First local SAF timing first quarter of 2026 Planned initial deliveries of Hawaiʻi-produced SAF

Destinations served more than 140 destinations Alaska and Hawaiian route network in Americas and Pacific

Partner destinations over 1,000 destinations Earn and redeem points with oneworld and partners

Market Reality Check

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Volume Volume 12,896,182 vs 20-day average 3,749,044 (relative volume 3.44x) indicates heavy trading interest. high

Technical Price $18 is at the 52-week high and trading above the 200-day MA of $13.8.

Peers on Argus

No peer stocks with notable momentum or same-day headlines were flagged, suggesting the move is more company-specific than sector-driven.

Market Pulse Summary

This announcement highlights Hawaiian’s role in a partnership to develop locally produced sustainable aviation fuel, targeting up to 80% lower lifecycle emissions and first deliveries in the first quarter of 2026. The news fits a longer-term decarbonization strategy rather than an immediate financial catalyst. Investors may focus on milestones such as SAF production start-up, scalability of camelina feedstock, policy support, and capital commitments like the $100 million refinery upgrade when assessing future impact.

Key Terms

sustainable aviation fuel technical

"to invest in pioneering the development of sustainable aviation fuel (SAF) in Hawaiʻi"

Sustainable aviation fuel is a low‑carbon replacement for conventional jet fuel made from renewable sources (like plant residues, waste oils, or captured carbon) but refined to meet the same safety and performance rules as regular jet fuel. Investors care because SAF can lower airlines’ carbon footprints and exposure to tightening regulations, create new supply and cost dynamics in the fuel market, and drive long‑term demand shifts — like using cleaner fuel in the same airplane.

camelina sativa medical

"to study Camelina sativa (camelina) as a multi-purpose crop that can be used as SAF feedstock"

A cold‑tolerant oilseed plant grown for its seeds, which are pressed into a light, nutrient‑rich oil and leftover meal used for animal feed. Think of it as a low‑maintenance crop that can serve as a specialty cooking oil, a source of omega‑3s, or a raw material for biofuels and industrial products. Investors watch it because changes in crop yields, processing capacity, or regulatory approval can affect supply, margins and the economics of companies that use or sell this feedstock.

circular-economy technical

"Camelina represents a rare opportunity for Hawai'i to build a true circular-economy model around renewable fuels"

A circular economy is an approach that keeps products, materials and components in use for as long as possible through reuse, repair, remanufacturing and recycling instead of discarding them. For investors it matters because companies that adopt these practices can lower input and waste costs, create new revenue streams from services and refurbished goods, and reduce regulatory, supply and reputational risks—think of it like a lending library or repair shop that stretches the life of every item.

non-GMO technical

"to begin cultivating 50 non-GMO camelina varieties in 2023"

Non-GMO means a product or ingredient was produced without genetic modification techniques — the plant or organism’s DNA has not been intentionally altered in a laboratory. Investors care because non-GMO labeling can affect consumer demand, price premiums, shelf access and supply-chain cost; think of it like an organic or “no added hormones” label that can open certain markets, change margins, and create reputational risk or advantage for companies.

renewable hydrotreater technical

"into a renewable hydrotreater capable of processing plant-based and waste oils"

A renewable hydrotreater is an industrial processing unit that uses hydrogen and heat to remove oxygen and other impurities from plant- or waste-based oils so they become drop-in renewable fuels like diesel or jet fuel. Think of it as a refinery’s kitchen appliance that transforms raw ingredients into a finished product that fits existing engines and pipelines. Investors watch these units because their cost, efficiency, and feedstock flexibility directly affect fuel output, profit margins, and the ability to meet clean‑fuel rules.

scope 3 emissions financial

"business partners seeking to offset their scope 3 emissions, and government"

Scope 3 emissions are greenhouse gases produced indirectly by a company’s value chain—everything from the materials it buys and the goods it ships to how customers use or dispose of its products. Think of it as the full “carbon footprint” beyond a company’s own operations; investors watch it because these hidden emissions can signal future regulatory costs, supply-chain risks, reputational exposure, and opportunities for efficiency that affect long‑term profitability.

AI-generated analysis. Not financial advice.

• The combined airlines will take the first deliveries of Hawaiʻi-made SAF in early 2026
  
  
• Investment enables SAF production for more sustainable future flying, diversifies Hawaii's fuels industry, strengthens energy independence, and supports agriculture

HONOLULU, Dec. 17, 2025 /PRNewswire/ -- Hawaiian Airlines and Alaska Airlines today announced it has joined Par Hawaii to invest in pioneering the development of sustainable aviation fuel (SAF) in Hawaiʻi using locally grown agriculture feedstock to reduce aviation carbon emissions.

This initiative will enable SAF production for more sustainable future flying and deliver economic benefits through the creation of a new energy sector and fuel supply chain in Hawai'i, while bringing new opportunities for local agriculture.

Hawaiian Airlines and Alaska Airlines, which together provide the most flights to, from and within Hawai'i, and Par Hawaii, the largest producer of energy products in the islands, are partnering with Pono Pacific, through its Pono Energy, Inc. subsidiary, to study Camelina sativa (camelina) as a multi-purpose crop that can be used as SAF feedstock and to support agriculture.

The combined airlines also will become Par Hawaii's launch SAF customer, with plans to take delivery of Hawaiʻi's first locally produced SAF in the first quarter of 2026.

SAF, a safe drop-in fuel made from sustainable feedstock such as plant-based oils or used cooking oil, can cut lifecycle carbon emissions by up to 80 percent compared to conventional jet fuel. Pono Pacific's crop trials drew the attention of Alaska Star Ventures, the venture capital arm of Alaska Air Group that invests in technologies to drive aviation efficiency, performance and innovation.

"As Hawaiʻi's airline, we have a responsibility to reduce our environmental impact while continuing to provide essential air service that connects our communities and strengthens our economy," said Alanna James, sustainability innovation director at Hawaiian Airlines and Alaska Airlines. "Our company has a long-term strategy to reach net zero carbon emissions, and sustainable aviation fuel is essential for us to get there. We are grateful to have partners like Par Hawaii and Pono Pacific who share our commitment to making our operations more sustainable while creating a new fuel industry and strengthening Hawaiʻi's energy independence."

"We value the efforts of our airline partners as we work together to find long-term solutions to reduce greenhouse gas emissions and increase our energy security, while meeting Hawai'i's transportation needs," said Ed Sniffen, director of the Hawai'i State Department of Transportation. "We applaud Hawaiian and Alaska airlines, Par Hawaii, and Pono Pacific for taking this important step to establish a locally based, lower-emissions supply chain for aviation fuel that supports our state's clean energy goals."

Pono Pacific, the state's largest private resource company, will launch Pono Energy, Inc. in early 2026 to accelerate its work on camelina, a high-yield, pest-resistant cover crop that can be grown in rotation with food crops, reaching maturity in just eight to nine weeks. Its oil seeds can be crushed to produce renewable fuels, including SAF, while the remaining seedcake can be turned into government-approved, nutrient-rich feed for cattle and chickens. This revenue-generating cover crop will deliver more economic opportunity for Hawai'i by creating jobs, supporting farmers and decreasing the aviation industry's carbon footprint.

"Camelina represents a rare opportunity for Hawai'i to build a true circular-economy model around renewable fuels," said Chris Bennett, Pono Pacific's vice president of sustainable energy solutions.

"By growing this crop locally, we strengthen our agricultural sector, keep more dollars circulating within the state, and reduce our dependence on imported fossil fuels. Camelina can be refined into sustainable aviation fuel while the remaining seedcake becomes a valuable, locally produced animal feed that supports Hawai'i's ranchers and livestock industry. We will explore food crops that can be grown alongside camelina to increase food security as well. It's a win for our economy, a win for local agriculture, and a win for the environment — an example of how Hawai'i can lead the way in innovative, homegrown climate solutions."

Alaska Star Ventures has made a new investment that builds on Par Hawaii's earlier support of Pono Pacific, which collaborated with the Hawaiʻi Agriculture Research Center to begin cultivating 50 non-GMO camelina varieties in 2023 to identify those best suited to Hawaiʻi's year-round temperate climate.

The initial investment allowed Pono Pacific to conduct crop trials on four islands, in partnership with Aloun Farms, Mahi Pono and Meadow Gold Dairy. Pono Pacific identified suitable agricultural lands across the state and engaged Hawai'i's cattle and livestock industry to explore the use of camelina seedcake as animal feed.

As Pono Pacific advances the agricultural foundation for camelina, Par Hawaii, the state largest fuels manufacturer, is preparing to deliver SAF in the first quarter of 2026. Earlier this year, Par Pacific, parent company of Par Hawaii, formed Hawai'i Renewables, and partnered with Alohi Renewable Energy, LLC, a joint venture between Mitsubishi Corporation and ENEOS Corporation, following a $100 million investment to convert and upgrade one of the refinery's processing units into a renewable hydrotreater capable of processing plant-based and waste oils.

"In 2022, when we formed an agreement with Hawaiian Airlines to jointly study the commercial viability of locally produced sustainable aviation fuels, we didn't think we would be able to progress so quickly," said Par Hawaii President Eric Wright. "With renewable fuel production coming online in early 2026, it's exciting to see the results of our team's hard work. These fuels will have up to 80 percent lower carbon emissions compared to conventional fuels. This would not have been possible without a shared vision for our islands and our great teamwork."

"We are thrilled to be the first customer to receive SAF from Par Hawaii next year," added James. "This is an important milestone for our company and Hawai'i, but there is still more work to do. While SAF is the best option to reduce aviation emissions, it is two to three times more expensive than regular jet fuel and supply is limited. We will need strong collaboration across airlines, fuel and feedstock producers, investors, including business partners seeking to offset their scope 3 emissions, and government, along with supportive policies, to grow the SAF industry and reach our decarbonization goals."

About Alaska Air Group
Alaska Airlines, Hawaiian Airlines and Horizon Air are subsidiaries of Alaska Air Group, and McGee Air Services is a subsidiary of Alaska Airlines. We are a global airline with hubs in Seattle, Honolulu, Portland, Anchorage, Los Angeles, San Diego and San Francisco. We deliver remarkable care as we fly our guests to more than 140 destinations throughout North America, Latin America, Asia and the Pacific. We'll serve Europe beginning in spring 2026. Guests can book travel at alaskaair.com and hawaiianairlines.com. Alaska is a member of the oneworld alliance, with Hawaiian scheduled to join oneworld in spring 2026. With oneworld and our additional global partners, guests can earn and redeem points for travel to over 1,000 worldwide destinations with Atmos Rewards. Learn more about what's happening at Alaska and Hawaiian at news.alaskaair.com. Alaska Air Group is traded on the New York Stock Exchange (NYSE) as "ALK."

About Par Hawaii
Par Hawaii is the state's leading provider of transportation fuels. It is headquartered in Honolulu and is a wholly-owned subsidiary of Houston, Texas-based Par Pacific Holdings, Inc. [NYSE: PARR]. Par Hawaii owns the state's only petroleum refinery in Kapolei, Oʻahu, and has invested $100 million to reconfigure one of the refinery's processing units to produce renewable fuels from plant-based and waste oils. Par Hawaii's statewide fuel distribution system includes pipelines on Oʻahu and storage facilities on all major neighbor islands. It markets gasoline, diesel, and biodiesel through its network of 76 and Hele retail stations throughout Hawaii, and operates the Hele convenience stores. Visit www.ParHawaii.com.

About Pono Pacific
Pono Pacific Land Management, LLC (Pono Pacific), is Hawai'i's largest private natural resource conservation company and works with state and federal agencies, nonprofit organizations, and education institutions to protect and restore sensitive ecosystems and indigenous species. Pono Pacific has supported the management of land and watersheds on O'ahu, Kaua'i, Moloka'i, Lāna'i and Maui, and has restored and managed a variety of ecosystems statewide. Pono has developed agricultural projects and supported energy feedstock projects throughout Hawai'i. The company's mission is rooted in the Hawaiian word "pono"—doing what is right and living with integrity. Its sister companies, Pono Island Capital and Poukihi, are the building blocks to sustain life and uplift Hawai'i's economy and community while restoring natural resources.

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SOURCE Hawaiian Airlines

FAQ

When will Hawaiian Airlines (HA) and Alaska Airlines receive Hawaiʻi-made SAF deliveries?

The combined airlines plan to take delivery of Hawaiʻi-made SAF in Q1 2026.

How much did Par Pacific invest to enable renewable fuel production in Hawaiʻi?

Par Pacific invested $100 million to convert a refinery processing unit into a renewable hydrotreater.

How much can SAF produced from camelina reduce aviation emissions for HA?

SAF from plant-based feedstock can cut lifecycle carbon emissions by up to 80% versus conventional jet fuel.

What feedstock will Pono Energy use for SAF production in Hawaiʻi?

Pono Energy is studying camelina sativa, a fast-maturing oilseed crop suitable for rotation with food crops.

What are the main near-term risks for the Hawaiʻi SAF project for HA shareholders?

Near-term risks include higher SAF cost (2–3x), limited supply, and need for supportive policies and investment to scale.

Will the SAF program create local economic benefits in Hawaiʻi?

The partners say the program aims to create a new fuels sector, support farmers, produce animal feed, and keep more energy dollars local.