Canberra has announced the names of winners of a swathe of grants, totalling $260 million, to boost fuel security by increasing Australia’s diesel stockholdings by about 40%.
Under the “Boosting Australia’s Diesel Storage Programme” a series of competitive grants between $6 million to just over $33 million will be provided to 2023-24 for programmes that would complete by 30 June 2024. The grants will cover up to half of total eligible project expenditure.
The main aim of the programme is to provide matched funding to industry to support construction that will result in an estimated 780 mega-litres of additional diesel storage being kept onshore. The winning projects will also deliver 202 mega-litres of additional petrol and jet fuel storage that will be funded by the private sector.
The grant programme will help industry in meeting a new minimum stockholding obligation that will require industry to hold petrol, jet fuel, and diesel stocks at or above pre-COVID levels from mid-2022. From mid-2024, the stockholding obligation will require importers to hold a 40% increase in diesel stocks.
The grant winners are:
- Stolthaven Australia (126 ML, Newcastle NSW);
- Coogee Chemicals (100 ML, Kwinana WA);
- Park (30 ML, Port Kembla NSW);
- Park (30 ML, Newcastle NSW)
- Viva Energy Refining (90 ML, Geelong VIC);
- Terminals (80 ML, Outer Harbor, Adelaide SA);
- Qube Holdings (110 ML, Lumsden Point, Port Hedland WA);
- Qube Holdings (73 ML, Port Kembla NSW)
- Airport Development Group (80 ML, Darwin NT); and
- Ampol Limited (60 ML, Newport VIC).
Minister for Energy and Emissions Reduction Angus Taylor commented: “Diesel is vital to Australia’s energy security as it keeps our economy running. It underpins our critical infrastructure, trucking sector and key industries, such as mining and agriculture.
“Through these grants, along with our support to keep Australia’s refineries operating until at least mid-2027, the Government is making sure Australian families and industry can access the fuel they need, when they need it. Many of these projects are located in strategic regional locations, which will help minimise shortages of diesel during peak usage periods and drive over $636 million of public and private sector investment into these areas.”