Push to boost diesel supply at Geelong refinery

A push to shore up diesel supply has triggered plans to expand fuel processing at Geelong’s refinery, but any lift in output is still at least two years away.

Viva Energy is working with the Victorian government on a feasibility study into mixing renewable materials like canola oil into diesel.

The study, expected to take about a year and cost $8 million, will look at whether the refinery can mix traditional fuel with locally produced materials on a larger scale.

 

If it goes ahead, an initial phase could be up and running within two years, allowing Viva Energy to replace about 3 per cent of crude oil it processes with locally sourced alternatives. “This is work that’s been going on for some time, we’re now at a point where we can move forward,” Viva Energy chief executive Scott Wyatt said.

“We’re very conscious of the important role we can play in helping to support energy transition, to move towards renewables and particularly to help provide solutions to parts of industry where renewable energies are harder to come by.”

“Having lower carbon fuels will play a really important role in the transition to a 100 per cent renewable fuel system in the future.”

The proposal is backed by a new $10 million federal funding pool for refining studies, aimed at strengthening fuel supply and reducing reliance on imports.

Victorian premier Jacinta Allan said the project was an early step toward securing longer-term diesel supply, while energy and resources minister Lily D’Ambrosio said it would help build greater fuel independence.

 

The refinery is still recovering from a fire in April that caused damage to its alkylation unit, which is used in the production of high-octane gasoline.

Output remains affected as repairs continue, with work expected to take about six weeks.

In a statement last week, Viva Energy said diesel and jet fuel production was running at about 80 per cent of capacity, and petrol at around 60 per cent.

Production is expected to rise above 90 per cent in June once repairs are complete.

The company said it had sufficient stocks to maintain normal supply to customers.