BRANCH HEAD, LIQUID FUELS BRANCH
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 (AUTOMOTIVE DIESEL) DETERMINATION 2019 - MOBIL OIL AUSTRALIA PTY LTD (EXPIRY 31 DECEMBER 2025)
I, Jennifer Anne, Branch Head, Liquid Fuels Branch, 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
Mobil Oil Australia Pty Ltd (ABN 88 004 052 984)
Details of the approval
This approval varies the fuel standard for diesel set out in the Fuel Quality Standards (Automotive Diesel) Determination 2019 (Diesel Standard), so that fuels containing:
is taken to comply with the relevant parameters specified in the Diesel Standard in respect of the supply of renewable diesel to customers under contract for off road applications and road transport operations.
Pursuant to paragraphs 13A(1) and (2) of the Act, the listed approval comes into force on the date of approval and remains in force for the period specified in the approval (being 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. Therefore, renewable diesel 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 owing 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 (GHG) 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 GHG 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 approval will allow Mobil 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 of 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, decarbonise 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.
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Jennifer Anne
Branch Head, Liquid Fuels Branch
31 May 2024