New Zealand industry supports rapid action following Australia’s $1.1b Sustainable Aviation Fuel investment

New Zealand’s aviation, energy, and infrastructure sectors have welcomed the Australian Government’s A$1.1 billion package for low-carbon fuels, including Sustainable Aviation Fuel (SAF)*, calling it a major step forward for the region and urging swift action to ensure New Zealand keeps pace.

Australia’s ‘Cleaner Fuels Program’ will mobilise private investment and significantly expand SAF production, securing future fuel supply chains. A domestic SAF industry in Australia is projected to be worth A$36 billion.

A cross-industry group has been established in New Zealand to support government agencies on SAF policy. Operating as the SAF Industry Roundtable, the group has recommended that New Zealand move quickly to evaluate Australia’s SAF policy settings as they emerge and consider how they can be mirrored or adapted to New Zealand’s needs.

Dr Kimberly Camrass, Head of Asia Pacific Sustainability and Partnerships at Boeing, says: “New Zealand’s thriving tourism and trade sectors, which rely heavily on air connectivity, will increasingly benefit from access to SAF as other countries accelerate decarbonizing which becomes a business and passenger expectation.”

Chief Representative for New Zealand and Australia for Airbus, Stephen Forshaw, says: “Australia’s decision provides a real opportunity for New Zealand to complement its initiative. There’s a window that opens with Australia’s action, where the potential to work together will maximise the opportunity to improve fuel security and a build economic development for New Zealand, and potentially, the wider Pacific community.”

Z Energy Chief Executive Lindis Jones says: “Australia’s leadership sends a clear signal to global investors that our region is serious about building a competitive, low-carbon fuel industry.”

CEO of LanzaJet Jimmy Samartzis says: “as a SAF producer and technology company supporting projects in both Australia and New Zealand, LanzaJet is thrilled to see the Australian Government’s investment in the future of low-carbon fuels and we hope that momentum will build into New Zealand.”

SAF is produced from renewable sources – such as agricultural and forestry waste, animal fats, vegetable oils and municipal solid waste – and significantly reduces carbon emissions over the fuel’s life cycle.

New Zealand currently imports all of its jet fuel. A study by Cyan Ventures in July, supported by Boeing, found that domestic production of SAF in New Zealand could generate NZD 1.3 billion in Gross Value Added (GVA) and create 5,700 jobs.

“We’re very pleased to see the New Zealand Aviation Action Plan, released this week, commits to regional collaboration on SAF uptake and supply,” says NZ Airports Chief Executive Billie Moore.

“Australia’s announcement raises the stakes, and our industry group will now work with government agencies to propose specific policy and regulatory actions to position New Zealand to support and build on Australia’s ambitions.”

ENDS

Contact: Billie Moore, 021 529 597

Notes for Editors

The New Zealand SAF industry roundtable includes: Airbus, Air New Zealand, Auckland International Airport, Board of Airline Representatives of New Zealand, Boeing, BP, Channel Infrastructure, Christchurch International Airport, Fortescue, LanzaJet, LanzaTech, NZ Airports, Queenstown International Airport, Scion, Transpower, Wellington International Airport and Z Energy.

Australian Government media release

*Low-carbon or renewable fuels is an industry term used to describe fuels manufactured from non-petroleum bases using renewable feedstocks like canola and waste products such as tallow and used cooking oil. They have the potential to reduce fuel lifecycle emissions compared to traditional hydrocarbon-based fuels.