Shell opens biodiesel facility in Parramatta

Shell Australia has opened a new biodiesel facility at its Parramatta Terminal in western Sydney. The new facility will enable Shell to sell Biodiesel 20 (B20) into the New South Wales market, as part of its ‘world first’ release of the product in Australia.

Shell vice-president downstream, 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. “Shell is committed to understanding customer needs, and when we asked them if they would consider using B20 if it was available 28 per cent they said they would because of the tax benefit,” he said.

According to Smith, during a recent engagement with commercial customers more than 50 per cent said they would consider using B20 in their fleets for either taxation or environmental reasons. “Given the zero rating of biodiesel under the carbon pricing scheme, using a B20 fuel in their trucks can help affected customers significantly improve their bottom line,” he added. “A further 36 per cent said they would consider B20 because of the positive environmental aspects of using the fuel.”

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. The company plans to expand its B20 availability further as it continues to work with its customers to offer fuels and lubricants solutions that help them reduce their CO2 footprint.

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