Z Energy supports delay in biofuels policy
New Zealand has decided to delay the implementation of the Sustainable Biofuels Obligation by 12 months due to the cost of living.
Z Energy support to New Zealand’s decision to delay the implementation of the Sustainable Biofuels Obligation by 12 months as the cost of living continues to concern the country. With fuel volumes down from 2019, this delay will allow for a more in-depth look into sustainable fuels that best meet New Zealand’s needs, according to fuel retailer.
“We support Government policy that sets a clear agenda for us and the wider industry on what we need to achieve and how to get there. Z is committed to a low carbon future and sees biofuels playing a valuable role in the transition, along with electrons and hydrogen, as the country looks to meet its future carbon emission reduction targets. This is a difficult journey and technology such as electrification continues to move more rapidly than predicted – presenting alternative fuel solutions that may be more cost effective or efficient to biofuels in some use cases, such as the light-vehicle fleet,” says Mike Bennetts, Z’s Chief Executive.
Z recently made the decision to close its own biofuels manufacturing plant, Te Kora Hou, after the economics of producing a locally made biofuel rapidly deteriorated. The cost of domestically producing biofuels was no longer economically sustainable for the company.
“We believe the role of biofuels will be to support decarbonisation of our heavy-fleet vehicles and the aviation sector. Our recent shipment of Sustainable Aviation Fuel (SAF) delivered to Air New Zealand is an example of how we are testing the New Zealand supply chain in order to scale up in the future,” said Bennetts.
New Zealand’s Government also confirmed it would introduce minimum onshore fuel stockholding levels for the industry.
