Shell Australia launches new biodiesel facility in Australia

Shell Australia, a part of the Shell energy and petrochemicals group, has launched a new biodiesel facility at its Parramatta Terminal located in western Sydney.

With the launch Shell Australia seeks to reduce diesel excise liabilities and reduce the environmental impacts of fossil fuel use.

Shell Diesel B20, sold at Shell’s terminal in Melbourne, comprises Shell diesel along with a bio component manufactured from vegetable oils or animal fats.

As the first launch of the product in Australia, the new facility will offer Biodiesel 20 (B20) to customers in New South Wales.

Shell downstream VP Andrew Smith said that 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.

"Shell is committed to understanding customer needs, and when we asked them if they would consider using B20 if it was available 28% they said they would because of the tax benefit," Smith added.

The company plans to further expand the product’s availability in the country.

"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.

"We were pleased when 55% or our customers who attended recent workshops held across the country said they would consider using a B20 blend in their operations.

"That number grew to 69% after they attended a session with Shell technology experts, and engine specialists from major companies like Kenworth and Cummins," Smith revealed.