Bio blended brew

Shell announces an increase in bio-blended diesel at its Victorian mineral diesel refinery

By Gary Worrall | June 1, 2012

Shell Company of Australia is the first commercial refinery to increase levels of bio-diesel in mineral diesel, with the launch of a B20 diesel blend in Victoria.

The new fuel, branded Shell BioDiesel B20, is manufacture at the company’s Newport, Victoria, refinery, with Australian Renewable Fuels (AR Fuels) supplying the biofuel that forms 20 percent of the finished product.

Shell Vice-President of Downstream Australia, Mr Andrew Smith, says the new program is one of the largest at the Newport terminal in 10 years, and is a world-first for Shell.

"This investment of almost $5 million included $2 million from the Victorian Government in the development of the new tank and blending facility," Smith says.

"While there are many benefits to customers from using biodiesel blends up to B20, we are especially pleased that it will support Victoria’s regional economy, notably the Barnawartha area."

AR Fuels managing director Andrew White says the Newport facility is a ‘major step’ forward in promoting biodiesel in Australia, and also helps boost economic development in regional Victoria, where much of the base material is sourced from local farmers.

"Biodiesel is an immediately available option for the reduction of carbon emissions in the transport, mining and manufacturing sectors," White says.

"It requires no engine modifications and with the opening of this facility, it is now available to all diesel consumers in Victoria, at blends of up to 20 percent."

Smith says the new blend gives operators ‘additional choice’ when purchasing diesel.

"After a lengthy and robust quality assurance process we are confident of supplying a B20 product of consistently high quality to the Victorian market. This has been a collaborative effort between Shell, Victorian Government and ARF in Barnawartha.

The Barnawartha plant employs 22 staff, with an annual turnover of $60 million, is the third biofuel plant owned by AR Fuels, after it acquired Biodiesel Producers Ltd in 2011.

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