HEAD OF DIVISION, GAS AND LIQUID FUELS DIVISION

DEPARTMENT OF CLIMATE CHANGE, ENERGY, THE ENVIRONMENT AND WATER

NOTICE UNDER SECTION 17A OF THE FUEL QUALITY STANDARDS ACT 2000 FOR VARIATION OF THE FUEL QUALITY STANDARDS (DIESEL) DETERMINATION 2019
- AMPOL AUSTRALIA PETROLEUM PTY LTD (EXPIRY 31 DECEMBER 2025)

I, Paula Svarcas, Head of Division, Gas and Liquid Fuels Division, delegate of the Minister, provide the following information concerning my decision to grant an approval under section 13 of the Fuel Quality Standards Act 2000 (the Act).  

Name of approval holder

Ampol Australia Petroleum Pty Ltd (ABN 17 000 032 128)

Details of the existing approval

The existing approval to Ampol Australia Petroleum Pty Ltd was granted to vary the fuel standard set out in the Fuel Quality Standards (Automotive Diesel) Determination 2019 (the Diesel Determination), permitting the supply of renewable diesel containing a minimum density value of 765 kg/m³.

Pursuant to paragraphs 13A(1) and (2) of the Act, the listed approval came into force on 6 December 2022, and remains in force for the period specified in the approval being until 31 December 2023.  

Details of the variation

Pursuant to paragraph 17D(1) of the Act, the period of effect of the listed approval has been varied in respect of the supply of renewable diesel until 31 December 2025. The approval comes into force at the immediate conclusion of the previously granted approval, being from 31 December 2023 until 31 December 2025.

Summary of reasons for the approval

Having consulted with the Fuel Standards Consultative Committee as required by section 24A of the Act, I grant the approval as provided for in section 15 of the Act for the following reasons:

a)            The protection of the environment

Decreasing fuel density is not considered a parameter with direct environmental impacts but is a consideration for engine performance. Renewable diesel therefore does not warrant additional precautions to handling, storage or distribution aspects from traditional diesel practices, with respect to risks to the environment.

More broadly considering the combustion of the fuel, renewable diesel has several environmental benefits over mineral diesel due to some of its properties. Given its highly paraffinic nature, there are little to no aromatics in the fuel, which translates to more complete combustion and lower particulate emissions. It is a low carbon-emitting alternative to mineral diesel and has the benefit of lower life cycle greenhouse gas emissions.

b)            The protection of occupational and public health and safety

The characteristics of renewable diesel are similar to those of mineral diesel. Therefore, there are no additional precautions required for its handling, storage, or distribution beyond those for mineral diesel. There are no additional hazards for human exposure (inhalation and ingestion remain key hazards as for mineral diesel), requirements for firefighting measures, or differences in material stability and reactivity. As such, existing protocols for the handling of fuel and management can be utilised.

Considering the comparable characteristics to existing mineral diesel, the department does not anticipate any increased occupational and public health and safety risks to arise from the use of these fuels.

c)            The interests of consumers

The desire for domestic industry and corporations to decarbonise has continued to gather momentum. Consumers using these fuels can reduce overall emissions and achieve their planned pathways to meet net zero greenhouse gas emission targets. The use of renewable diesel as a suitable replacement to traditional mineral diesel will assist in reaching the national commitment to reduce emissions by 43% below 2005 levels by 2030. 

d)         The impact on economic and regional development

A section 13 extension will allow Ampol to continue to supply renewable diesel at meaningful blend rates in the Australian market for users across the supply chain to develop the experience necessary to grow a market for this fuel. This is important because renewable diesel is likely to be an essential tool for decarbonising the Australian economy in the next decade. 

Establishing a demand for renewable diesel in Australia allows for the development and growth of a local supply chain, including the potential emergence of new suppliers and distribution networks.

Successful trials may also provide confidence for investment in local manufacture of renewable diesel fuel components. The fuel could provide opportunities for transition to cleaner energy, decarbonisation, and support liquid fuel security. Opportunities may develop for local production of hydrotreated vegetable oil (HVO) fuel components or HVO diesel fuels when market readiness and demand are demonstrated.

………………………………………………………………………….

Paula Svarcas

Head of Division, Gas and Liquid Fuels Division 

18 December 2023