Search to shore up fuel security strikes ‘liquid gold’
A search to improve fuel security has struck “liquid gold” after a state government clashed with the state over a proposed new oil field.
The Queensland government has announced it will pour $25 million into developing renewable diesel in partnership with Ampol’s Port of Brisbane refinery, ahead of a potentially awkward national cabinet meeting.
The project will deliver the country’s first sustainable second-generation low-carbon liquid fuel production, with phase one pumping up to 20 million liters of renewable diesel per year from 2028.
Up to 750 million liters of diesel are expected to be produced by the early 2030s.
“In a few short years Queensland will be producing hundreds of millions of liters of liquid gold because the right investments have been made and the right partnerships have been formed,” Deputy Prime Minister Jarrod Bleijie said on Wednesday.
The refinery’s existing hydrotreating plant will be upgraded to process biogenic feedstocks such as tallow and canola, as well as conventional diesel.
The investment was part of Queensland’s fuel security plan, which also includes the discovery of the Taroom Trough, touted as Australia’s first significant new oil field in 50 years, and has triggered a war of words with the state.
Fuel security means restoring Queensland’s “ability to drill, refine and store”, Premier David Crisafulli said on Wednesday.
“This project means more fuel produced locally for Queenslanders,” Mr Crisafulli said.
“These projects are important to ensure we are never again left at the mercy of foreign nations at the end of the global supply chain.”
The Queensland government will attend a national cabinet meeting on Thursday to discuss fuel issues after falling out with the states over fast-track plans to explore the Taroom Trough.
The federal government was called on to grant an oil exploration exemption for the project but was accused of being “all talk and no action” by the environment minister.
Murray Watt said the state government had called for the project to be expedited through a mechanism not found in federal environmental laws and accused it of not making a formal request about the drilling prospects.
Prime Minister Anthony Albanese will discuss fuel safety measures in national cabinet on Thursday after extra diesel was shipped to Australia.
An additional 200 million liters of diesel will arrive in Australia as part of four cargoes from South Korea, Malaysia and Brunei.
Two of the cargoes were purchased by BP and the other two by Viva Energy using new taxpayer-backed insurance powers; Shipments are expected to arrive in Australia in late May or early June.
Australia uses almost 94 million liters of diesel a day, according to the NRMA.
Mr Albanese said the supply would provide an extra buffer against fluctuations in the fuel market caused by the war in Iran and the subsequent blockage of the Strait of Hormuz.
“We will continue to use every measure at our disposal to make a difference,” the Prime Minister told reporters from Sydney’s Port Botany on Wednesday.
No major changes in fuel security strategies are expected in national cabinet discussions.
There are 61 fuel ships bound for Australia, five of which will arrive in Sydney in the coming days.
Meanwhile, farmers have been promised more fertilizer imports as part of a deal between the federal government and big companies.
The agreement with chemical suppliers CSBP and Incitec Pivot includes insuring their purchases to reduce the financial risk of fertilizer imports.
The deal was struck using the government’s strategic reserve powers, designed to bolster supplies of crude oil, fuel and fertilizer, all of which are affected by the closure of the strait.
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