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Administered by: Environment and Energy
Published Date 02 Jan 2018

 

A/G ASSISTANT SECRETARY, ENERGY SECURITY BRANCH

DEPARTMENT OF THE ENVIRONMENT AND ENERGY

NOTICE UNDER SECTION 17A OF THE FUEL QUALITY STANDARDS ACT 2000 CONCERNING AN APPROVAL TO VARY THE FUEL STANDARD (AUTOMOTIVE DIESEL) DETERMINATION 2001 GRANTED UNDER SECTION 13 OF THAT ACT

 

I, James Hetherington, A/g Assistant Secretary, Energy Security Branch, delegate of the Minister for the Environment and Energy, provide the following information concerning my decision to grant an approval under section 13 of the Fuel Quality Standards Act 2000.

Name of approval holder

IOR Energy Pty Ltd

Period of operation

The approval comes into force on 1 January 2018 and remains in force until 31 December 2019.  

Details of the approval

The approval varies the fuel standard for diesel set out in the Fuel Standard (Automotive Diesel) Determination 2001 (the Diesel Determination) so that:

·         Automotive diesel containing a minimum density of 800 kg/m3 and maximum sulfur content of 50 mg/kg will be taken to comply with the relevant parameters specified in the Diesel Determination in respect of the supply of automotive diesel under contract to commercial road users until 31 December 2019.

The approval applies to automotive diesel supplied by the approval holder and the regulated persons specified in Annexure 1 of the approval.

The approval is granted subject to the conditions specified in section 17 of the Act and the conditions specified in Annexure 2 of the approval.

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

The fuel appears to be of a high environmental quality with low aromatics, high cetane and low particulates in emissions. Aside from its sulfur content, it seems to be a relatively clean fuel that would contribute to reducing some toxic emissions and the protection of the environment.

The regional production and distribution of the fuel reduces the whole-of-life footprint in comparison to transporting the locally sourced crude oil to the coast for processing and then transporting it back for use.

b)      The protection of occupational and public health and safety

High levels of sulfur in diesel increase emissions of particulates into the atmosphere. A number of studies have indicated that diesel particles are mutagenic and carriers of compounds which are suspected of contributing to the rise in cancer cases in city areas with a large proportion of diesel fuelled vehicles. Furthermore, in June 2012, the International Agency for Cancer Research classified Diesel Particulate Matter as a known human carcinogen (Group 1).

As the proposed coverage area for the supply of the fuel is restricted to 300 km from the Eromanga Refinery or from the outlet at Innamincka, South Australia, it is not expected that there will be any adverse impacts on occupational and public health and safety from the approval.

c)        The interests of consumers

The introduction of a 10 mg/kg sulfur limit for automotive diesel in January 2009 enabled introduction of ADR80/03 (Euro 5) emission standards for heavy vehicles. The use of diesel containing greater than 10 mg/kg sulfur in vehicles certified to ADR80/03 may affect vehicle warranties and is not recommended. To mitigate impacts on consumers, conditions include limiting sale of the product to contracted commercial purchasers and providing consumer information.

d)      The impact on economic and regional development

IOR provides employment opportunities for the local community in regional areas of Queensland, Northern Territory, South Australia and New South Wales. The Eromanga refinery currently directly creates employment for between 68 to 75 people.

Commercial industries also benefiting from IOR include long haul freight operators, local shire councils, regional mining and pastoral companies, and downstream solvent manufacturers.

 

 

James Hetherington

A/g Assistant Secretary, Energy Security Branch

8 December 2017