A coalition of aviation, aerospace, and energy companies is pressing the Government for clear policy leadership on sustainable aviation fuel (SAF), warning that New Zealand risks falling behind regional developments led by Australia. The New Zealand SAF Industry Roundtable has formally presented five guiding principles to ministers, seeking a coordinated approach to boost local readiness and secure future fuel supplies.
Five Policy Principles Proposed for Sustainable Aviation Fuel
The newly unveiled industry framework outlines five core objectives designed to shape the Government’s approach to alternative aviation fuels. According to the New Zealand SAF Industry Roundtable, the strategy prioritizes the national interest, aligns with regional frameworks while addressing unique domestic fuel security needs, and establishes clear policy leadership.
The principles aim to foster conditions for necessary infrastructure investment and build operational readiness through a strong industry-government partnership spanning the entire value chain. The push follows substantial commitments across the Tasman, where Australia advanced renewable fuel initiatives backed by a A$1.1 billion funding package last year.
Balancing Domestic Production Versus Trans-Tasman Imports
Industry stakeholders hold contrasting views on where New Zealand should source its alternative fuel. Z Energy general manager of corporate affairs Haley Mortimer notes that SAF is unlikely to be produced economically at scale domestically. Consequently, Z sees strategic value in regional supply chains, pointing to a potential renewable fuels facility alongside Ampol’s Lytton Refinery in Brisbane—a joint assessment involving IFM Investors and GrainCorp that could eventually supply New Zealand.
Conversely, Boeing emphasizes the distinct advantages of local manufacturing. Dr Kimberly Camrass, who leads Boeing’s sustainability work across Asia-Pacific and India, argues that domestic production creates jobs, builds industrial capability, and grants the country greater control over its fuel supply. Both companies agree, however, that imports will inevitably play a role in meeting demand.
Did you know? In September 2022, Z Energy imported 1.2 million litres of SAF for Air New Zealand through Marsden Point and the supply chain to Auckland Airport, proving existing import infrastructure can successfully handle alternative fuel blends.
Economic Impacts and Cost Implications for Travelers
Economic modeling highlights both the potential gains and financial risks associated with transition timelines. A 2025 Cyan Ventures study supported by Boeing and Air New Zealand evaluated four pathways, estimating that a domestic SAF pathway meeting 30% of jet fuel needs by 2050 could generate $1.3 billion in gross value added and create 5,700 jobs. Researchers warned that delaying this modelled pathway by five years could strip roughly $1 billion from that economic benefit by mid-century.
The same study estimates that introducing a 5% SAF blend by 2030 would add between $0.60 and $2.30 to a one-way Auckland-Wellington fare, and $1 to $3 for an Auckland-Christchurch ticket, with long-haul routes seeing substantially higher cost increases. Mortimer cautions that any government-mandated use of SAF must be carefully matched with supply-boosting measures to prevent severe spikes in airfares and freight costs.
Frequently Asked Questions
What is sustainable aviation fuel (SAF)?
SAF is an alternative jet fuel manufactured from renewable or waste materials such as forestry residues, municipal waste, or used cooking oils. It serves as a direct drop-in replacement that can be blended with conventional jet fuel within approved safety limits for existing aircraft.
Why are industry leaders urging government action in New Zealand?
International markets show that alternative fuel deployment succeeds primarily where governments establish clear, predictable policy frameworks. With Australia committing significant capital to low-carbon fuels, New Zealand risks competing disadvantageously for investments and feedstocks without coordinated policy leadership.
Will using SAF increase the price of airline tickets?
Yes. Economic modeling indicates that lower-blend requirements will marginally increase domestic airfares—adding a few dollars to short-haul domestic flights—while long-haul routes will experience higher cost adjustments depending on policy design and supply availability.
What are your thoughts on New Zealand’s transition toward sustainable aviation fuel? Join the conversation below and share your perspective on how the country should balance domestic manufacturing with regional imports.
Worth a look