HEAD OF DIVISION, GAS AND LIQUID FUELS DIVISION
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 – IOR ENERGY PTY LTD (EXPIRY 31 DECEMBER 2025)
I, Michelle Croker, Head of Division, Gas and Liquid Fuels Division, delegate of the Minister for Climate Change and Energy, provide the following information concerning my decision to vary an existing approval under section 13 of the Fuel Quality Standards Act 2000 (the Act).
Name of approval holder
IOR Energy Pty Ltd (ABN 60 010 504 444)
Details of the approval
The existing approval to IOR Energy Pty Ltd was granted to vary the Fuel Quality Standards (Automotive Diesel) Determination 2019 (the Diesel Determination) to permit the supply of diesel specified in the original grant of approval.
Pursuant to paragraphs 13A(1) and (2) of the Act, the listed approval came into force on the date specified in the approval, and remains in force for the period specified in the approval (being until 31 December 2022).
Details of the variation
Pursuant to paragraph 17D(1) of the Act, the period of effect of the listed approval has been varied in respect of the supply of diesel until 31 December 2025. The approval comes into force at the immediate conclusion of the previously granted approval, being from 1 January 2023 until 31 Dec 2025.
The conditions of the approval have also been updated.
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
Overall, Eromanga diesel has benign emission characteristics compared to other diesel fuels. IOR’s independent emission testing programme shows that the emissions were much lower than comparable commercial diesel fuel used for underground mine use.
In addition, the use of Eromanga Underground Mining Fuel is geographically limited to underground mining applications in New South Wales and Queensland. Emissions in underground mines are closely regulated by state governments and mining operators. Under these circumstances, it is unlikely that there will be any significant impact on the environment from the use of this fuel.
As outlined in IOR’s previous section 13 variations, aside from its sulfur content, the Commercial Road Customer Fuel is a relatively clean fuel that would contribute to reducing some toxic emissions and the protection of the environment.
b) The protection of occupational and public health and safety
Monitoring of emissions in underground mines is undertaken to ensure the health of all workers in confined mine environments is protected. Equipment and vehicles using Eromanga Underground Mining Fuel in underground mining applications must meet state emission standards.
In general, 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 Commercial Road Customer Fuel is restricted to 300 km from the Eromanga Refinery or from the outlet at Innamincka, South Australia, any adverse impacts on occupational and public health and safety arising from the approval would be limited.
c) The interests of consumers
It is in the interests of consumers to have a choice of products available for use. Eromanga Underground Mining Fuel provides an alternative to fuels supplied by other companies and is preferred by mine operators for its low emissions.
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 any impacts on the interests of consumers, the sale of the Eromanga Underground Mining Fuel and the Commercial Road Customer Fuel is limited to contracted commercial users only. Labelling requirements are also specified in the conditions of approval.
d) The impact on economic and regional development
IOR’s refineries and plants provide employment opportunities for the local community in regional areas of Queensland, Northern Territory, South Australia and New South Wales. Commercial industries also benefiting from IOR include cattle transporters, long haul freight operators, local shire councils, regional mining and pastoral companies.
The refinery, directly and indirectly, supports approximately 75 full-time jobs, and is the only local fuel supply in several remote towns and projects in the surrounding region.
Decommissioning of the refinery would mean alternative fuel supplies would need to be sourced from terminals on the coast (over 1,000km away) and would have significant adverse impacts on the local region.
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Michelle Croker
Head of Division, Gas and Liquid Fuels Division
14 December 2022