Z Energy and Neste collaborate on low-carbon fuels
New Zealand’s Z Energy, and the world’s leading producer of renewable diesel and sustainable aviation fuel (SAF), Finland’s Neste, announced their collaboration 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 existing vehicle or aircraft fleet and distributed via existing distribution infrastructure due 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 fuel or aviation fuel.
Neste and Z Energy aim to accelerate a low-carbon future, and to be leaders in providing customers with high-quality, low-carbon transport fuel options. Z Energy 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 Energy and Neste partnership aims to bring the supply of Neste’s renewable diesel to the New Zealand market over the next few months.
Committed to bring low-carbon solutions to its customers
Z Energy’s General Manager Transition, Julian Hughes, says that the company is committed to bringing low-carbon solutions to its customers. Z Energy is being acquired by Australia’s Ampol.
“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.
“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”.
Z Energy 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,” says Hughes.