Air NZ embracing biofuels 

Air New Zealand will become the first airline in the world to test second-generation biofuel when a jumbo jet takes to the sky this year powered by the oily nuts of the jatropha plant.
  
In another world first, the carrier also officially announced that it plans to switch at least 10% of its annual fuel needs to biofuel within five years - in a bid to become the world's most sustainable airline.

Air New Zealand used International Environment Day to announce the plans.
  
"Air New Zealand is absolutely committed to being at the forefront of testing environmentally sustainable fuels," chief executive Rob Fyfe said.
  
The carrier has been in talks with US manufacturer Boeing since last June, looking at second- and third-generation biofuels made from a variety of non-edible sources, such as jatropha and algae.
  
Jatropha , which is considered an invasive species in Australia, has been coined a "wonder plant" due to the high oil content of its seeds and can grow in wasteland with little need of water or fertiliser.
  
It is also 20 to 30% cheaper than a barrel of jet fuel - which has recently been as high as $US174 a barrel.
  
"Jatropha satisfies all our criteria," Fyfe said.
  
In August, Air New Zealand and Boeing will take a two-hour test flight from Auckland on a B747-400 with one of the plane's four Rolls Royce engines running on jatropha.
  
The biofuel for flight has been sourced from India and east Africa, and samples of the fuel have already been sent to Boeing and Rolls Royce for testing.
  
"We are very confident that the test flight will go well," Air New Zealand general manager airline operations David Morgan said.
  
Morgan said he did not anticipate any issues with the flight, adding that a 747 was able to fly on three engines.
  
Following the test flight, the biofuel will need to be certified by the aviation authorities and this could take up to three years.
  
"Once it is certified it can be used anywhere in the world," Air New Zealand manager group strategy Abhy Maharaj said.
  
Maharaj said the carrier, which was the 32nd smallest airline in the world, was "punching above its weight" and had a history of firsts in aviation.
  
The carrier has been working since 2004 to lower its fuel usage - but finding an alternative fuel is where the real prize is.
  
Air New Zealand uses around nine million barrels of oil a year, costing around $2 billion - not accounting for fuel hedging.
  
By using one million barrels annually of biofuel, which can be sourced from only 125,000 hectares of jatropha plantations, the airline can book significant savings and reduce its carbon emissions by 400,000 tonnes annually.
  
Air New Zealand's ultimate goal is to use 100 per cent biofuel.
  
"The goal for us in the long term is to achieve sustainable air travel to, from, and within New Zealand," Morgan said.
  
The jatropha-based fuel to be used in the test flight differs from the mix used by Virgin Atlantic, which undertook a 747 demonstration flight in February, with one engine fuelled by first-generation biofuel derived from coconut and palm oil.