The Queensland government has given $25 million to Ampol so it can produce renewable diesel in a bid to boost domestic fuel supplies.
The first stage of the project will be ready by 2028 and deliver up to 20 million litres of diesel every year at the Lytton oil refinery on Brisbane’s bayside.
But the government said production could reach 750 million litres per year by the early 2030s under stage two of the development.
What is renewable diesel?
Renewable diesel is made using renewable feedstocks including animal fats (tallow) and canola oil.
Adjunct Professor Richard Brown from the Queensland University of Technology noted there was no strict definition for renewable diesel.
“I think given that we are in Queensland we have waste cooking oil,” he said.
“We have quite a big agricultural industry here where there is a potential to get other waste material to make a type of biocrude.”
Deputy Premier Jarrod Bleijie described renewable diesel as “chemically exactly the same” as regular diesel.
“When the animal fats, tallow and so forth, go through and mix with diesel you produce more litres at the end of the process,” he said.
Renewable diesel can be put in tractors, utes and diesel vehicles. (ABC News: Peter Garnish)
Can I use renewable diesel in my car?
Mr Bleijie said renewable diesel produced at the Lytton refinery could be used in “conventional” diesel cars and trucks.
“This is not like an ethanol 10 per cent where you go to a bowser and you know which is the ethanol,” he said.
“This chemical compound of renewable diesel is exactly the same chemical compound of normal diesel.”
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Professor Brown also suggested renewable diesel could be used in diesel-powered cars and vehicles.
“You can put it in the tractor on the farm, you can put it in the ute, you can put it in your diesel vehicle, and no-one will know the difference,” he said.Can Australia grow its own jet fuel?
“The chemical makeup of the renewable diesel that is talked about in that announcement is pretty much identical to the chemical makeup of many of the components in petrol, diesel, and aviation fuel,” he said.
“The ratios of the chemicals may be a little bit different, but it’s completely compatible with diesel.
“You could use 100 per cent of the renewable diesel, or you could dilute it with 10 per cent, 20 per cent, 50 per cent — whatever you wanted to do with actual diesel.”
How much renewable diesel will be produced at Lytton?
Stage one of the project at the Ampol refinery would deliver up to 20 million litres of renewable diesel every year.
The government has suggested this would pave the way for stage two of the project, which would generate up to 750 million litres of renewable diesel and aviation fuel per annum.
Stage one is expected to be up and running by 2028, while stage two is scheduled to be operational by the early 2030s, according to the government.
David Crisafulli announced the $25 million investment at Ampol’s Lytton refinery on Wednesday morning. (AAP: Darren England)
Premier David Crisafulli acknowledged the initial 20 million litres of diesel was not a substantial amount of fuel.
“There’s no silver bullet, but we’ve got to pull every lever we can,” he said.
“If us investing in this can ensure a trickle becomes a flood in the years to come, that’s the long-term vision that people need.”What will the $25 million go towards?
The government is giving Ampol $25 million under its Sovereign Industry Development Fund to get the project off the ground.
It has also declared the initiative a “prescribed project” which ensures it is subject to a streamlined approval process with the coordinator-general.
Construction is expected to create 46 jobs.
A secondary tank containment system and a system upgrade to process feedstock will be delivered as part of the project.
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