New biodiesel facility for Shell

Shell has commissioned a new biodiesel facility – using Australian biodiesel produced by Arfuels – at its Newport terminal in Victoria.

It’s claimed the new facility will produce enough B20 (20 percent blend) biodiesel to enable a substantial portion of Victoria’s diesel consumers to utilise biodiesel as part of their everyday fuel mix.

The opening came after four years of commitment and dedication from Shell, Arfuels and the Victorian government, including significant resources and an investment of over $5 million. The Victorian government’s ongoing support of biodiesel was a major driver of the project, along with its $2 million investment.

With a staff of 22, Arfuels’ manufacturing plant at Barnawartha in regional Victoria will benefit directly from the project. The plant produces biodiesel from domestic feedstocks, the majority of which are purchased in regional areas of Victoria. Generating a turnover in excess of $60 million, the Barnawartha plant is recognised as a key driver of the regional economies of Victoria and NSW, into which it injects in excess of $50 million through its operations.

In speaking at the official opening of the Shell facility, Arfuels managing director Andrew White stated:  “Biodiesel is an immediately available option for the reduction of carbon emissions in the transport, mining and manufacturing sectors. 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 (B20).”

Andrew Smith, Shell vice-president of downstream Australia noted: “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, the Victorian government and Arfuels.”

To date, Arfuels has produced over 124 million litres of biodiesel at its Barnawartha plant, with resultant B20 blends said to have fuelled over 1 billion kilometres of low carbon transportation.

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