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 CONCERNING AN APPROVAL TO VARY THE FUEL QUALITY STANDARDS (AUTOMOTIVE DIESEL) DETERMINATION 2019 GRANTED UNDER SECTION 13 OF THAT ACT – AMPOL AUSTRALIA PETROLEUM PTY LTD (EXPIRY 31 DECEMBER 2023)
I, Miranda Lello, Branch Head, Liquid Fuels 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
Ampol Australia Petroleum Pty Ltd (ABN 17 000 032 128)
Periods of operation
The approval comes into force on the date below and remains in force until 31 December 2023.
Details of the approval
This approval varies the fuel standard for diesel set out in the Fuel Quality Standards (Automotive diesel) Determination 2019 (the Diesel Determination), so that fuels containing:
- a minimum density value of 765 kg/m3
is taken to comply with the relevant parameters specified in the Diesel Determination in respect of the supply of renewable diesel for commercial customers under contract.
The approval is granted subject to the conditions specified in section 17 of the Act and the conditions specified in Annexure 1 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, and after considering the criteria in section 15 of the Act, I grant the approval for the following reasons:
(a) The protection of the environment
The fuels subject to this application will be supplied only to B2B customers under contract.
The fuels are comparable to existing diesel, and as such existing protocols for the handling of fuel and management can be utilised. Decreasing fuel density is not considered a parameter with direct environmental impacts. It is noted that studies on fossil diesel show a relationship between increasing fuel density and increasing particulate matter.
It is therefore not expected that permitting supply of fuels covered by this approval will have an adverse effect on the environment.
(b) The protection of occupational and public health and safety
The bulk characteristics of renewable diesel are similar to those of mineral diesel, to the extent that there are no additional precautions required for its handling, storage or distribution beyond those for mineral diesel.
The Department understands it is not Ampol’s intention to market renewable diesel to other wholesalers or the retail market until such time as there is sufficient experience in targeted end-use applications.
(c) The interests of consumers
Interest in alternative, low-carbon fuels has been gathering pace as an immediate option for decarbonisation. The growing production, investment, experience and use of renewable diesel in other jurisdictions such as the EU and the US allows for fuel users in Australia to access the product relatively easily and with some confidence in its performance and sustainability credentials.
(d) The impact on economic and regional development
Granting this section 13 approval will enable the use of renewable diesel at meaningful blend rates in the Australian market. In particular, it will provide users across the supply chain to develop the experience necessary to grow a potential 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.
Perhaps most significantly, the potential for widespread use of renewable diesel in the medium to long term will help underpin a new domestic manufacturing industry for the product, and its ‘sister’ product Sustainable Aviation Fuel (SAF), given Australia’s significant biomass resources.
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Miranda Lello
Branch Head, Liquid Fuels Branch
6 December 2022