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 (CONVENTIONAL DIESEL) DETERMINATION 2025
– SMRM HOLDINGS PTY LTD (EXPIRY 30 JUNE 2027)
I, Cris Cano, Branch Head, Liquid Fuels Operations and Analysis Branch, delegate of the Minister for Climate Change and Energy, 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
SMRM Holdings Pty Ltd (ABN 85 168 760 861)
Details of the approval
This approval varies the fuel standard for conventional diesel set out in the Fuel Quality Standards (Conventional Diesel) Determination 2025 (Conventional Diesel Standard), so that fuel containing:
is taken to comply with the relevant parameters specified in the Conventional Diesel Standard in respect of the supply of blended diesel‑biodiesel fuel (B20).
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 30 June 2027).
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
Overall, the B20 fuel supplied will reduce life cycle greenhouse gas emissions by replacing conventional diesel with biodiesel and generally have a beneficial effect on engine emissions.
B20 provides a viable carbon abatement opportunity for older engines which may not be compatible with 100% biodiesel nor with paraffinic diesel (renewable diesel). The B20 supplied through this approval provides a lower-carbon fuel option for commercial use. As Australia’s biodiesel is produced domestically from waste products, its use delivers environmental benefits through avoided emissions associated with fuel imports.
Tailpipe emissions from B20 use, compared to conventional diesel, will generally have positive impacts on air quality as the level of biodiesel in the blend increases. Biodiesel has virtually no aromatics or sulfur, thereby reducing particulate matter, unburnt hydrocarbons, carbon monoxide and ozone formation. Emissions of oxides of nitrogen compared to conventional diesel will slightly increase by 1–10%.
(b) The protection of occupational and public health and safety
The department does not anticipate any increased occupational and public health and safety risks to arise from the use of B20.
The characteristics of B20 are similar to those of conventional diesel. As such, existing protocols for the handling and storage of conventional diesel can be utilised for B20 with no additional precautions required. There are no additional hazards for human exposure (inhalation and ingestion remain key hazards as for conventional diesel), requirements for firefighting measures, or differences in material stability and reactivity.
(c) The interests of consumers
B20 provides commercial consumers with an accessible option to reduce lifecycle carbon emissions with relatively minimal upfront investment, as B20 can be used by some commercial diesel engines without any modifications.
Supply of B20 can assist commercial consumers to achieve any planned pathways to meet greenhouse gas emissions targets, particularly where electrification is not yet possible or viable. An increase in available supply options for B20 is good for consumers as it increases competition in the market.
(d) The impact on economic and regional development
Supporting demand and supply of B20 in Australia allows for the development and growth of a local supply chain, including the potential emergence of new suppliers and distribution networks. This approval will support regional businesses looking to transition to renewable fuels.
………………………………………………………………………….
Cris Cano
Branch Head
Liquid Fuels Operations and Analysis Branch
10 June 2025