Virgin Australia and Air New Zealand Announce Biofuel Boost

Jon Capistrano
Jon Capistrano
July 21, 2016

BioFuel Association reported that Air New Zealand and Virgin Australia’s announcement that they are looking in the market for local jet biofuel suppliers is a big boost for the renewable biogas industry.

While the market is still in its infancy in Australia, in the international scene, it has already taken big steps in providing clean fuel to a number of transportation scenes in different countries.

Now, what was required was an airline that is willing to announce an invitation to the biofuel market that has enough scale to attract investors. In this case, two airlines are putting out the invitation -Virgin and Air New Zealand. Robert Wood, Virgin head of sustainability, is hoping that the joint project will deliver enough fuel supply if ever the producers will be able to manufacture and sell biofuel at competitive prices.

Aviation biofuel requires a different manufacturing process to any existing biofuels and ethanol also known as E10 which is extensively available in Queensland and New South Wales; and biodiesel which is also mixed with diesel. Mr Wood also stated that they are seeing the development of aviation biofuel industry step up internationally but it not the yet the case for the country, but Virgin and New Zealand have shown the way with their huge announcement.

It also follows the new international aviation rules that mandate a 10% quota of alternative fuel use by next year or 2017. There is already a big interest from the market following the airlines’ announcements of the Request for Information.

Click here to read full story on Bio Fuel Association

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