A/G 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 – VIVA ENERGY AUSTRALIA PTY LTD (EXPIRY 31 AUGUST 2025)
I, Cris Cano, A/g 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
Viva Energy Australia Pty Ltd (ABN 46 004 610 549)
Periods of operation
The approval comes into force on the date below and remains in force until 31 August 2025.
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 780 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 are comparable to existing diesel, and as such existing protocols for the handling of fuel and management of spills can be utilised. The fuels subject to this application will only be supplied for trial purposes to customers under contract.
As renewable diesel is expensive compared to mineral diesel, the cost of the product provides a strong disincentive for misuse, waste or spillage.
It is therefore not expected that permitting the supply of the fuels covered by this approval for trial purposes will have an adverse effect on the environment.
(b) The protection of occupational and public health and safety
The fuels are comparable to existing diesel fuels, and as such do not pose any additional threat to health and safety than existing fuels.
The fuel will be limited to commercial users under contract for trial purposes and no contact with the general public is expected.
Consequently, the Department does not anticipate any significant occupational and public health and safety risks to arise from the use of these fuels.
(c) The interests of consumers
The HVO fuel component is used more broadly internationally and has demonstrated lower greenhouse gas (GHG) emissions. The consumers using these fuels seek to reduce their overall emissions and use alternative renewable fuels to achieve this.
The trials may provide consumers with a better understanding of whether the fuels are suitable and whether they can be used in larger quantities, replacing regular diesel fuels, and contributing to lower emissions in the industrial and transport sectors. Successful trials may also provide confidence for investment in local manufacturing of HVO based fuel components for diesel and sustainable aviation fuel.
(d) The impact on economic and regional development
The fuel could provide opportunities for transition to cleaner energy, decarbonise and support liquid fuel security. Opportunities may develop for local production of HVO fuel components or HVO diesel fuels when market readiness and demand are demonstrated.
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Cris Cano
A/g Branch Head, Liquid Fuels Branch
11 August 2023