High quality drop-in biofuels one step closer

Sustainability October 19, 2021

Kiwi energy company, Z Energy, and the world’s leading producer of renewable diesel and sustainable aviation fuel (SAF), Neste, have today announced they will collaborate to bring low-carbon fuels to the New Zealand market.

Renewable fuels are high-quality biofuels. Unlike conventional biofuels, they are considered “drop-in” fuels as they are suitable to be used as such in the existing vehicle or aircraft fleet and distributed via the already available distribution infrastructures thanks to their molecular similarity to conventional fossil fuels. This means that existing diesel vehicles and aircraft can simply fill up with renewable fuels as direct substitutes for fossil-based diesel or aviation fuel.

Neste and Z aim to accelerate a low-carbon future, and to be leaders in providing customers with high-quality, low-carbon transport fuel options. Z and Neste recognise the opportunity to work together in this endeavour in New Zealand, given complementary skills in different parts of the supply chain. The Z and Neste partnership aims to bring the supply of Neste-produced renewable diesel to the New Zealand market over the next few months.

Z’s General Manager Transition, Julian Hughes, says that Z is committed to bringing low-carbon solutions to its customers.

“Z has been an early mover and early investor in biofuels because we recognised it as the simplest way to help our customers lower their emissions without having to replace their fleets.

“This is why we invested in a local biodiesel production plant, and despite a pause in local production, continue to supply biodiesel to our most committed commercial customers.

“Renewable fuels differ from conventional biofuels in that they have the same chemical composition as their fossil counterparts. This enables us to offer higher blends of renewable content in fuels than we could with conventional biofuels, resulting in up to 90%* emissions reduction potential for land transport fuels, and up to 80% emissions reduction potential for aviation fuels” said Julian.

“Following the New Zealand Government’s announcement of increasing support for biofuels through the Low Emissions Transport Fund, Neste has been looking for capable partners in New Zealand to help market our products and solutions and distribute our fuels. Z Energy’s expertise and reach in New Zealand as well as their commitment to decarbonising transport made them the right fit,” said Peter Zonneveld, Vice President, Sales, Neste Renewable Road Transport business unit. “Together, we will support New Zealand in its emission reduction targets”.

A few forward-thinking New Zealand companies are already lining up to use Neste’s renewable fuels. Z believes the sustainable biofuels mandate proposed by the New Zealand government will further increase customer appetite for lower-carbon fuels.

“Z supports the Government’s decision to introduce a biofuels mandate because this will support a market for lower carbon fuels.

“We expect to see more interest from large businesses seeking to reduce their carbon footprint even before a mandate comes into force in 2023.

“If you’re a commercial business serious about your sustainability targets and want to know how renewable diesel or sustainable aviation fuel can dramatically reduce your transport emissions, then please get in touch,” said Julian.

* (The method used to calculate life cycle emissions and emission reduction complies with the EU Renewable Energy Directive (2009/28/EC)