NZ Aviation Companies Push for Sustainable Fuel Plan Amid Global Pressure
A group of major aviation and aerospace companies has called on the New Zealand government to take action on sustainable aviation fuel (SAF). The New Zealand SAF Industry Roundtable, which includes airlines, airports, aircraft manufacturers, fuel suppliers, and infrastructure companies, has presented five principles to guide the government's approach. These principles prioritize putting New Zealand's national interest first, aligning with regional developments while considering local market needs, providing clear policy leadership, creating conditions for investment and infrastructure development, and building SAF readiness through industry-government partnership.
The push for a sustainable aviation fuel plan comes as Australia progresses its own initiatives, including consultation on demand-side measures and work to strengthen certification and emissions accounting systems. The Roundtable wants the government to provide clarity on how SAF is treated under the Emissions Trading Scheme, clearer certification rules, and an assessment of New Zealand's production potential and infrastructure.
A 2025 study by Cyan Ventures estimated that domestic SAF could meet 30% of New Zealand's jet fuel needs by 2050, generating $1.3 billion in gross value added and creating 5700 jobs. Delaying this pathway by five years could reduce the economic benefit by about $1 billion.
The study also suggested that SAF could safeguard $4.1 billion in tourism revenue by 2050, assuming 1% of tourism activity might otherwise be lost due to concerns about aviation emissions. However, Z Energy general manager Haley Mortimer noted that any requirement for SAF use would need to be matched by measures to increase supply, as airfares and freight costs could rise without sufficient production.
While Boeing sees value in domestic production, creating jobs and developing industrial capability, Z Energy views imports as a more likely option, with the potential for Australia to supply New Zealand. The company is working on a renewable fuels facility alongside its Lytton Refinery in Brisbane, which could produce up to 750 million litres of SAF annually.