Airlines plan for takeoff of trans-Tasman biofuel industry

Airlines in New Zealand and Australia on Monday launched bid to start a regional market in aviation biofuel.

Air New Zealand and Virgin Australia have formed a partnership that issued a request for information (RFI) to the market to explore options for locally-produced aviation biofuel.

Air New Zealand recognized the impact aviation has on the environment and the RFI was a key initiative under its carbon management program, chief flight operations and safety officer Captain David Morgan said in a statement.

"By working in partnership with our alliance partner Virgin Australia we hope we can stimulate the local market, drive innovation and investment and potentially uncover a sustainable biofuel supply suitable for our respective operations," said Morgan.

Virgin Australia head of sustainability Robert Wood said aviation biofuel offered a significant opportunity for the aviation industry to reduce emissions while also building long-term fuel security for the sector.

"We are seeing the development of the aviation biofuel industry accelerate internationally but that is not yet the case for our region," Wood said in the statement.

"We are confident that our collaboration with Air New Zealand to procure a large volume of aviation biofuel will de-risk investment in the sector, creating high-tech, high-skilled jobs in the region."

Both airlines were committed to ensuring aviation biofuel delivered environmental, social and economic benefits, and respondents to the RFI were encouraged to address those principles.

Expressions of interest would be accepted until the end of May. Endit