Notice Under Section 17A of the Fuel Quality Standards Act 2000 for Variation of the Fuel Quality Standards (Automotive Diesel) Determination 2019 - Mobil Oil Australia Pty Ltd (Expiry 31 December 2025)

Administered by Department of Climate Change, Energy, the Environment and Water

Legislation au C2024G00375 In force Gazette

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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 FOR VARIATION OF THE FUEL QUALITY STANDARDS (AUTOMOTIVE DIESEL) DETERMINATION 2019 - MOBIL OIL AUSTRALIA PTY LTD (EXPIRY 31 DECEMBER 2025)

 

I, Jennifer Anne, Branch Head, Liquid Fuels Branch, delegate of the Minister, 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

Mobil Oil Australia Pty Ltd (ABN 88 004 052 984)

Details of the approval

This approval varies the fuel standard for diesel set out in the Fuel Quality Standards (Automotive Diesel) Determination 2019 (Diesel Standard), so that fuels containing:

  • a minimum density value of 765 kg/m3 

is taken to comply with the relevant parameters specified in the Diesel Standard in respect of the supply of renewable diesel to customers under contract for off road applications and road transport operations. 

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 31 December 2025). 

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

 

Decreasing fuel density is not considered a parameter with direct environmental impacts. Therefore, renewable diesel does not warrant additional precautions to handling, storage or distribution aspects from traditional diesel practices, with respect to risks to the environment.

More broadly considering the combustion of the fuel, renewable diesel has several environmental benefits over mineral diesel owing to some of its properties. Given its highly paraffinic nature, there are little-to-no aromatics in the fuel, which translates to more complete combustion and lower particulate emissions. It is a low carbon-emitting alternative to mineral diesel and has the benefit of lower life-cycle greenhouse gas (GHG) emissions.

 

 

 

(b) The protection of occupational and public health and safety

 

The characteristics of renewable diesel are similar to those of mineral diesel. Therefore, there are no additional precautions required for its handling, storage, or distribution beyond those for mineral diesel. There are no additional hazards for human exposure (inhalation and ingestion remain key hazards as for mineral diesel), requirements for firefighting measures, or differences in material stability and reactivity. As such, existing protocols for the handling of fuel and management can be utilised.

 

Considering the comparable characteristics to existing mineral diesel, the department does not anticipate any increased occupational and public health and safety risks to arise from the use of these fuels.

 

(c) The interests of consumers

 

The desire for domestic industry and corporations to decarbonise has continued to gather momentum. Consumers using these fuels can reduce overall emissions and achieve their planned pathways to meet net zero GHG emission targets. The use of renewable diesel as a suitable replacement to traditional mineral diesel will assist in reaching the national commitment to reduce emissions by 43% below 2005 levels by 2030.

 

(d) The impact on economic and regional development

 

A section 13 approval will allow Mobil to supply renewable diesel at meaningful blend rates in the Australian market for users across the supply chain to develop the experience necessary to grow a 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. 

 

Establishing a demand of renewable diesel in Australia allows for the development and growth of a local supply chain, including the potential emergence of new suppliers and distribution networks.

Successful trials may also provide confidence for investment in local manufacture of renewable diesel fuel components. The fuel could provide opportunities for transition to cleaner energy, decarbonise and support liquid fuel security. Opportunities may develop for local production of hydrotreated vegetable oil (HVO) fuel components or HVO diesel fuels when market readiness and demand are demonstrated.

 

 

 

………………………………………………………………………….

 

Jennifer Anne

Branch Head, Liquid Fuels Branch 

    31  May 2024

Overview

The Fuel Quality Standards Act 2000, enacted by the Australian Parliament, was introduced to ensure that the quality of fuel supplied in Australia meets certain standards to protect the environment, public health, and safety. This Act provides the legal framework for setting fuel quality standards and for granting approvals that vary these standards under specific conditions. The Branch Head of the Liquid Fuels Branch, Department of Climate Change, Energy, the Environment and Water, has used the authority under this Act to grant an approval to Mobil Oil Australia Pty Ltd. This approval allows for the variation of the fuel standard for diesel, specifically permitting the supply of renewable diesel with a minimum density value of 765 kg/m3 for off-road applications and road transport operations, until 31 December 2025. The decision to grant this approval was made after considering the environmental benefits, occupational and public health and safety implications, consumer interests in decarbonising, and the potential for economic and regional development. The approval aligns with the policy objective of reducing greenhouse gas emissions and supporting the transition to cleaner energy sources.

Scope and Application

The notice issued under section 17A of the Fuel Quality Standards Act 2000 pertains to a variation in the fuel standard for automotive diesel, specifically allowing Mobil Oil Australia Pty Ltd to supply renewable diesel with a minimum density value of 765 kg/m3 for off-road applications and road transport operations. This approval is effective from the date of the notice and remains in force until 31 December 2025. The decision to grant this approval is based on several factors, including environmental protection, occupational and public health and safety, consumer interests, and economic and regional development. Renewable diesel is seen as a cleaner alternative to mineral diesel due to its lower particulate emissions and life-cycle greenhouse gas emissions, and its supply is considered beneficial for the nation's decarbonization efforts. Mobil Oil Australia Pty Ltd is allowed to supply this fuel under the conditions outlined in the approval, which aligns with the objectives of the Fuel Quality Standards Act 2000 and the broader national strategy for reducing emissions.

Key Provisions

The main operative sections of this legislation, under the Fuel Quality Standards Act 2000, involve the approval for Mobil Oil Australia Pty Ltd to vary the fuel standard for automotive diesel (sections 13, 13A, 15, and 24A). Section 13 allows for the granting of an approval to vary a fuel quality standard, while section 13A specifies the terms of the approval, including its duration until 31 December 2025. Section 15 outlines the process for granting such an approval, which includes consultation with the Fuel Standards Consultative Committee as mandated by section 24A. The approval allows for the supply of renewable diesel with a minimum density value of 765 kg/m3, which is considered to comply with the relevant parameters specified in the Fuel Quality Standards (Automotive Diesel) Determination 2019. The obligations imposed by this Act on Mobil Oil Australia Pty Ltd primarily involve adhering to the environmental, health and safety, and economic considerations outlined in the approval. Mobil must ensure that the supply of renewable diesel does not pose additional risks to the environment, occupational health, public health, and safety compared to traditional diesel. This includes maintaining existing protocols for handling, storage, and distribution of the fuel. Mobil must also ensure that the use of renewable diesel aligns with national decarbonization goals and supports the development of a sustainable local supply chain for renewable fuels. Any breaches of the provisions under this Act may result in various civil and criminal consequences. While specific offences and penalties are not detailed in the document, breaches of fuel quality standards or failure to comply with the terms of the approval could lead to enforcement actions by the relevant authorities. These actions may include fines, suspension of approval, or other regulatory measures intended to ensure compliance with environmental and safety standards. The maximum penalties for such breaches would depend on the specific nature of the breach and the applicable provisions of the Fuel Quality Standards Act 2000.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.