Australia’s state of Queensland will pour A$25 million in biodiesel production project in a bid to reduce its reliance on imported fuel amid a severe supply crunch resulting from the war in the Middle East.
The investment, equal to some $18 million, would aim to produce 20 million litres of biodiesel annually at a local refinery, with production expected to begin in 2028, Reuters reported. The amount would be equal to 2,000 tons.
“These projects are important to ensure we are never again left at the mercy of foreign nations at the end of a global supply chain,” Queensland Premier David Crisafulli said. However, the capacity of the biodiesel project, also equal to about 125,000 barrels of crude, represents just a tenth of the country’s daily oil consumption.
Earlier this month, Queensland also urged Australia’s federal government to fast-track the approval of the Taroom Trough project that would see the first new oil development project in the country in 50 years.
The Queensland state government threw its support behind the Taroom Trough project for oil extraction at a site west of Brisbane and calls on the federal government to assess the development plan under the National Interest Fast-Track Assessment Pathway, removing delays in bringing mass oil production to market.
The first barrels of oil from the Taroom Trough are now making their way into the domestic fuel supply with Shell producing 200 barrels of crude oil a day, which is being refined at iOR’s Eromanga refinery, and produced into diesel.
Diesel is critical for the Australian economy because of the country’s large farming industry that relies on the fuel. The Queensland government’s latest moves to secure fuel supply over the longer term indicate it has decided to adopt an all-of-the-above approach, boosting both hydrocarbon production and alternatives such as biodiesel.
By Irina Slav for Oilprice.com
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