Shell responds to biodiesel demand

In what it says is a direct response to customer demand, Shell Australia has opened a new biodiesel facility at its Parramatta terminal in western Sydney.

Fuel for thought. NSW Minister for Energy & Resources Chris Hartcher (left) with Shell’s Andrew Smith at the opening of the new biodiesel facility in Shell’s western Sydney terminal.

According to a statement from Shell, the commissioning of the new facility is in response to ‘… customer demand to reduce diesel excise liabilities and reduce the environmental impacts of fossil fuel use.’

Shell says it is one of the world’s largest distributors of biodiesel and the new plant in Sydney will enable it to sell ‘Biodiesel 20’ (B20) into the NSW market, joining the Shell terminal in Melbourne as part of its ‘world first’ release of the product in Australia.

Senior Shell executive Andrew Smith said the launch of B20 was responding to business needs to reduce the environmental impact of transport fuels and potential liability under the Federal Government’s carbon pricing scheme.

He said that during a recent engagement with commercial customers more than 50 percent said they would consider using B20 in their fleets for either taxation or environmental reasons.

“When we asked them if they would consider using B20 if it was available, 28 percent said they would because of the tax benefit,” Andrew Smith said.

“Given the zero rating of biodisesel under the carbon pricing scheme, using a B20 fuel in their trucks can help affected customers significantly improve their bottom line.

“A further 36 percent of customers said they would consider B20 because of the positive environmental aspects of using the fuel.”

Mr Smith said with new products, education and partnership are keys to building customer acceptance.

“We were pleased when 55 percent of our customers who attended recent workshops held across the country said they would consider using a B20 blend in their operations,” he continued.

“That number grew to 69 percent after they attended a session with Shell technology experts, and engine specialists from major companies like Kenworth and Cummins.”

Shell Diesel Bio20 is made up of Shell diesel with a bio component produced from vegetable oils or animal fats that meet Shell’s global sustainability standards.

Shell says it plans to expand its B20 availability further as it continues to work with its customers to offer fuel and lubricant solutions that help them reduce their CO2 footprint.

‘Biofuels are a practical commercial solution to assist in reducing carbon emissions from the road transport sector over the next twenty years,’ Shell said in a recent statement.

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