Z Energy is partnering with Finnish refiner Neste to bring drop-in biofuels to the New Zealand market.
The renewable fuels are high-quality and unlike conventional biofuels they are considered “drop-in” fuels as they are suitable to be used in existing diesel vehicle or aircraft fleet, the company says.
They are distributed with existing infrastructures due to their molecular similarity to conventional fossil fuels.
The partnership aims to bring the supply of Neste-produced renewable diesel to the New Zealand market over the next few months.
Z transition general manager Julian Hughes says the company 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,” Hughes says.
Renewable fuels differ from conventional biofuels in that they have the same chemical composition as their fossil counterparts.
This enables higher blends of renewable content compared 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, he says.
Peter Zonneveld, sales vice president of Neste’s renewable road transport business unit, says the company has been looking for partners in New Zealand following the Government’s increasing support for biofuels through the Low Emissions Transport Fund.
“Z Energy’s expertise and reach in New Zealand as well as their commitment to decarbonising transport made them the right fit. Together, we will support New Zealand in its emission reduction targets,” Zonneveld sales.
Z says the proposed biofuels mandate should further increase customer appetite for lower-carbon fuels and it already has a number of New Zealand companies lining up for the product.
“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,” Hughes says.