After renovating its oil refinery near Peth, Australia, British oil and gas corporation BP plans to start producing renewable fuels including sustainable aviation fuel (SAF). By 2025, the business plans to begin SAF production there.
According to Lucy Nation, vice president of low-carbon solutions at BP Asia Pacific, the company intends to begin SAF production at its Kwinana plant in Western Australia on July 14, 2022.
Although BP withheld information on the quantities it intends to produce, Nation stated that it would depend on demand. Nation added that the renovated facility would be able to alternate between producing biodiesel and sustainable aviation fuel on a daily basis.
“At Kwinana, we’re fortunate in that we can reuse part of the processing machinery, the utilities, and we have tanks that are ready to use. […] That allows us to move more quickly and use a little less capital. However, it is a highly costly investment”
In contrast to the European Union, which recently announced its intention to require suppliers to blend a minimum of 2% of SAF into their jet fuel starting in 2025, Australia’s government has not yet mandated any processes related to SAF. BP is not the only company to recognise the need for more green fuel development in Australia.
Australia’s national airline Qantas and European aircraft manufacturer Airbus announced their joint investment of about $200 million in June 2022 to hasten the growth of SAF production in the nation.
The collaboration agreement was made for a five-year term with the potential for an extension. It is anticipated that the investment will assist Qantas and Airbus in launching a local biofuels business in Australia and attract additional investment from other parties.
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