BRANCH HEAD, LIQUID FUELS OPERATIONS AND ANALYSIS 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 – GREENTECH FUEL PTY LTD (EXPIRY 31 DECEMBER 2025)

 I, Cris Cano, Branch Head, Liquid Fuels Operations and Analysis 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 

GreenTECH Fuel Pty Ltd (ABN 11 617 655 633) 

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 fuel containing:  

• a minimum density value of 765 kg/m3   

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 with regard to matters specified under section 15 of the Act, in particular:   

(a) The protection of the environment 

Renewable diesel is not considered to have direct environmental impacts where it is being used with engines that can operate on lower-density diesel. Renewable diesel does not warrant additional precautions to handling, storage or distribution aspects from traditional diesel practices. 

More broadly, renewable diesel has several environmental benefits over mineral diesel owing to some of its properties. There is little-to-no aromatics or sulfur in the fuel, which translates to more complete combustion and lower particulate emissions. It provides an alternative to mineral diesel with 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, such as the flashpoint. 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 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 

GreenTECH is a Western Australian business. Approval of its application will provide access for WA-based business looking to trial renewable diesel use. Approval of GreenTECH’s application also increases competition in the renewable diesel supply market.  

GreenTECH’s customers are predominantly in sectors that are heavily reliant on diesel and are hard to decarbonise. Renewable diesel provides these customers with an accessible option to reduce lifecycle carbon emissions with relatively minimal upfront investment, as renewable diesel can be used by many engines without any modifications.  

Consumers using these fuels can reduce overall emissions and achieve their planned pathways to meet net zero greenhouse gas emissions targets. The use of renewable diesel can assist in reaching the Australian Government’s commitment to reduce emissions by 43% below 2005 levels by 2030.  

(d) The impact on economic and regional development 

A large proportion of GreenTECH’s customers are based in regional and remote areas. The initial supply will be for trial purposes with existing customers that have expressed interest in using renewable diesel.  

A section 13 approval will allow GreenTECH to supply renewable diesel for users across the supply chain to develop the experience necessary to grow a market for this fuel.   

Establishing 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.  

GreenTECH intends to supply mining, transport and industrial sites across WA. Approval of this application will allow further market development by providing more options for industry to lower GHG emissions through renewable diesel use.  

 …………………………………………………………………………. 

Cris Cano  

Branch Head 

Liquid Fuels Operations and Analysis Branch   

19 September 2024