Dec. 30 (Bloomberg) -- Air New Zealand Ltd., the nation’s biggest airline, said a test flight in one of the company’s Boeing Co. 747-400 jetliners proved the commercial viability of jatropha oil as an alternative fuel.

The trial, a joint program with the aircraft maker, Rolls Royce Group Plc and Honeywell International Inc.’s UOP LLC unit, tested a 50-50 blend of jatropha oil and conventional jet fuel in one of the aircraft’s four engines. Just under two hours of flight tests were conducted over the Hauraki Gulf.

Airlines worldwide are investigating alternative fuels to cut costs after kerosene-based jet fuel rose to records and as governments worldwide seek to reduce emissions blamed for contributing to global warming.

The fuel performed well “through both the fuel system and engine,” Air New Zealand Chief Pilot David Morgan said in an e- mailed statement. “To complete our testing program, our engineers will over the next few days be thoroughly assessing the engine and fuel systems looking for any changes as a result of the use of biofuel.”

Today’s test was technically more demanding and used improved refining technology since Virgin Atlantic Airways Ltd. conducted the first biofuel test in February, Billy Glover, Boeing Commercial’s environmental strategy manager, told journalists in Auckland before the flight. The feedstock was also more likely to be commercially viable, he said.

Source Plant

The jatropha plant grows in arid regions; each seed produces as much as 40 percent of its weight in inedible oil. Today’s flight carried 6.4 tons of the blended fuel, with the jatropha sourced from Malawi, Mozambique and Tanzania, the airline said.

The Virgin test used a 20 percent biofuel blend made from babassu nuts and coconut oil. Continental Airways Inc. will trial a jatropha-algae blend next month; Japan Airlines Corp. will use a fuel based on the camelina oilseed also in January.

The industry will have tested four fuels in all major aircraft engine-types within a year once those trials are completed, Boeing’s Glover said.

Auckland-based Air New Zealand plans to meet at least 10 percent of its annual fuel need with crop-based alternatives by 2013.

To contact the reporter on this story: Gavin Evans in Wellington at gavinevans@bloomberg.net.

Last Updated: December 29, 2008 21:39 EST