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 (DIESEL) DETERMINATION 2019
- VIVA ENERGY AUSTRALIA PTY LTD (EXPIRY 31 AUGUST 2025)
I, Paula Svarcas, Head of Division, Gas and Liquid Fuels Division, delegate of the Minister, provide the following information concerning my decision to vary an approval under section 13 of the Fuel Quality Standards Act 2000 (the Act).
Name of approval holder
Viva Energy Australia Pty Ltd (46 004 610 549)
Details of the existing approval
The existing approval to Viva Energy Australia Pty Ltd was granted to vary the fuel standard set out in the Fuel Quality Standards (Automotive diesel) Determination 2019 (the Diesel Determination), permitting the supply of renewable diesel containing a minimum density value of 780 kg/m3.
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 until 31 August 2025.
Details of the variation
Pursuant to paragraph 17D(1) of the Act, the minimum density parameter under the Diesel Determination has been varied to 765 kg/m³ in respect of the supply of renewable diesel. The expiry date of the variation remains unchanged, being until 31 August 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
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
Hydrated vegetable oil (HVO) 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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Paula Svarcas
Head of Division, Gas and Liquid Fuels Division
31 October 2023