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 – MOBIL OIL AUSTRALIA PTY LTD (EXPIRY 31 DECEMBER 2026)

 I, Paula Svarcas, Head of Division, Gas and Liquid Fuels Division, delegate of the Minister for Climate Change and Energy, provide the following information concerning my decision under section 17D of the Fuel Quality Standards Act 2000 (the Act) to vary an existing approval made under section 13 of the Act.

Name of approval holder 

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

Details of the approval 

The existing approval to Mobil Oil Australia Pty Ltd was granted to vary the Fuel Quality Standards (Automotive Diesel) Determination 2019 (Diesel Standard) to permit the supply of 5.1% to 20% biodiesel and diesel blends (B20).

This approval extends the variation to the Diesel Standard so that fuel containing:  

• a maximum biodiesel content of up to 20%
• a maximum density value of 860 kg/m3  
• a minimum derived cetane number of 46 

is taken to comply with the relevant parameters specified in the Diesel Standard in respect of the supply of B20 biodiesel blends.   

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 2026).  

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 with regard to matters specified under section 15 of the Act, in particular:   

(a) The protection of the environment 

Overall, the B20 blends supplied will have life-cycle greenhouse gas emissions reductions from replacing mineral diesel with biodiesel, and negligible impacts on the environment.

Tailpipe emissions from diesel-biodiesel blend use, compared to mineral diesel, will have both positive and negative impacts on air quality as the level of biodiesel in the blend increases. In general, emissions of oxides of nitrogen increase, but particulate matter, hydrocarbons and carbon monoxide emissions all decrease. 

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

Diesel with up to 20% biodiesel has been shown to be similar to mineral diesel. Its impact on occupational health and safety should be no greater than diesel already supplied to the market. 

(c) The interests of consumers 

The supply of B20 supports the interest of commercial consumers by providing an additional low carbon fuel option for commercial use. Diesel-biodiesel blends are a cheaper alternative to renewable diesel for companies looking to take initial steps to reduce greenhouse gas emissions from fuel use. 

As required under the original conditions of approval, the diesel-biodiesel blends may only be supplied under contract to commercial users and not at forecourts. Fuel dispensers must also be clearly labelled to advise consumers that the diesel contains biodiesel to address any potential warranty issues. 

(d) The impact on economic and regional development 

As the level of biodiesel has been capped at 5% in the Diesel Standard, industry cannot lawfully supply blends containing greater than 5% biodiesel. Granting the variation enables blends of biodiesel from 5.1% to 20% to be supplied, which can support the growth and sustainability of the biodiesel industry and reduce barriers to biofuel use.

 …………………………………………………………………………. 

Paula Svarcas 

Head of Division

Gas and Liquid Fuels    

10 December 2024