Viva Energy has demonstrated the critical role it can play in low-carbon fuel production.
This week, Geelong Refinery successfully processed 10 tonnes of tyre pyrolysis oil alongside crude oil to produce a full range of fuels and products.
This follows the refinery processing a similar quantity of pyrolysis oil derived from waste plastic in May, demonstrating its capability to process at scale oils made from waste and the critical role the facility will play in Australia’s sustainable future.
The development is a significant step in plans to establish tyre-recycling in Melbourne.
For this demonstration, the tyre pyrolysis oil was imported from Poland with appropriate approvals from the Australian Government — it is currently not available domestically.
Earlier this year, Viva Energy signed a memorandum of understanding with Klean Industries, a Canadian resource recovery and advanced recycling provider, to study the potential to create a tyre-recycling facility in Melbourne capable of processing up to 80,000 tonnes of used tyres per year.
The recycling facility proposed by Klean would extract three products from tyres: recovered carbon black (rCB), steel, and biogenic pyrolysis oil.
Under the agreement, Viva Energy would take the biogenic pyrolysis oil for processing at Geelong Refinery, allowing it to create lower-carbon intensity fuels.
Viva Energy’s successful processing of tyre pyrolysis oil not only signals progress for Australia’s own sustainable fuel industry, but also brings the country in line with global efforts to advance circular economies.
Tyre pyrolysis oil is already recognised in the EU as a low-carbon alternative to traditional fuels and feedstocks.
Australia currently does not recognise lower-carbon fuels made via co-processing, meaning
the associated carbon reduction benefits cannot be claimed by Viva Energy’s customers.
That is something that could change with the right policy settings, according to Viva Energy Chief
Strategy Officer Lachlan Pfeiffer.
“The refinery’s ability to process pyrolysis oil from both tyres and waste plastic demonstrates the
versatility of our facility and our commitment to supporting a lower-carbon future,” Pfeiffer said.
“Viva Energy is proud to play a role in the production of lower-carbon fuels and products and reduce the number of tyres that go into landfill. The project can only proceed if the regulatory landscape encourages businesses to progress these important initiatives.”
It is a sentiment supported by Lina Goodman, CEO of Tyre Stewardship Australia, who said the
processing of tyre pyrolysis oil at Geelong Refinery is a significant step forward in demonstrating the potential of end-of-life tyres as a valuable resource.
“Tyre pyrolysis oil is increasingly recognised internationally, particularly in the EU, as a low-carbon
alternative,” she said.
“We welcome initiatives that showcase the viability of these solutions at scale that extract value from end-of-life tyres and support the transition to a more sustainable, low-emissions future for Australia.”
Viva Energy’s successful refinement of tyre pyrolysis oil, produced using Klean Industries’ advanced thermal conversion technology, marks a significant milestone for the circular economy in Australia, according to Jesse Klinkhamer, Klean Industries Inc.
“This achievement not only confirms the quality and compatibility of our recovered oils with existing refining infrastructure but also demonstrates the commercial viability of converting end-of-life tyres into high-value, low-carbon fuels and chemicals.
“It’s a crucial step forward in fulfilling Klean Industries’ vision of establishing a fully integrated resource recovery and low-carbon fuel production facility in Melbourne, Australia,” he said.
