THE STATE government of Victoria says it will co-fund Viva Energy to do a feasibility study into expanding renewable diesel blend processing at the Geelong Refinery.
This follows the federal government this week announcing $10million for feasibility studies into new or expanded fuel refining capabilities, to be co‑funded with states and territories.
The Geelong study is to include co-processing diesel with Victorian inputs like canola oil.
In a statement, the government said improving processing was critical for securing supply in the face of growing global uncertainty.
“This will provide long term confidence in diesel supply which is critical for industry and manufacturing,” the statement read.
“This follows the announcement that Victoria has secured 10 million litres of diesel as a strategic fuel reserve for the agricultural sector.
“This will give farmers confidence that fuel will be available when they need it most and help them make confident planting and farm management decisions for the winter growing season.”
This work is expected to complement the Commonwealth government’s announcements after National Cabinet to raise the Minimum Stockholding Obligation for fuel companies.
The Victorian government says there is sufficient diesel for Victorians to meet their needs, with supplies arriving in Australia in the required quantities and frequency.
“We will continue working with the Commonwealth and industry to support reliable, affordable and secure fuel supplies for Victoria and Australia,” the government statement read.
Premier Jacinta Allan said they were preparing to build “a more reliable fuel supply for Victoria into the future”.
Energy minister Lily D’Ambrosio said this feasibility work would “lay the groundwork for future low‑carbon fuel production at the facility”.
Member for Lara Ella George said by “boosting diesel capacity locally, we’re supporting good local jobs today while building fuel independence for tomorrow”.