BRANCH HEAD, LIQUID FUELS OPERATIONS AND ANALYSIS 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 – BP AUSTRALIA PTY LTD (EXPIRY 31 DECEMBER 2025)
I, Cris Cano, Branch Head, Liquid Fuels Operations and Analysis 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
BP Australia Pty Ltd (ABN 53 004 085 616)
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 fuel containing:
is taken to comply with the relevant parameters specified in the Diesel Standard in respect of the supply of 20% and up to 50% renewable diesel-diesel 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 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 with regard to matters specified under section 15 of the Act, in particular:
(a) The protection of the environment
There are no environmental concerns associated with the supply of renewable diesel blends from BP that are additional to that of mineral diesel. Renewable diesel is a type of paraffinic diesel that is produced exclusively from renewable sources.
Renewable diesel has several environmental benefits over mineral diesel. There is little-to-no aromatics or sulfur in the fuel, which translates to more complete combustion and lower particulate emissions. It provides an alternative to mineral diesel with the benefit of lower life-cycle greenhouse gas (GHG) emissions.
(b) The protection of occupational and public health and safety
The department does not expect any increased occupational and public health and safety risks to arise from the use of these fuels. Renewable diesel blends have comparable characteristics to existing mineral diesel.
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.
(c) The interests of consumers
BP’s customers are in sectors that are heavily reliant on diesel and hard to decarbonise. Renewable diesel blends provide these customers with an accessible option to reduce lifecycle carbon emissions with relatively minimal upfront investment, as renewable diesel blends up to 50% can be used by many engines without any modifications.
Consumers using these fuels can reduce emissions. Supply of renewable diesel can assist BP’s customers to achieve any planned pathways to meet GHG emissions targets. An increase in available supply options for renewable diesel is better for consumers as it increases competition in the market.
(d) The impact on economic and regional development
Supporting demand and supply 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.
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Cris Cano
Branch Head
Liquid Fuels Operations and Analysis Branch
20 December 2024