Arabic version: مصفاة ديزل متجدد في ناروجين تسعى إلى دعم حكومي

According to ABC News, Glas Energy is planning a $400 million commercial-scale renewable diesel refinery in Narrogin, 180 kilometres south-east of Perth. The proposal comes as global oil-price fluctuations linked to the US-Iran conflict leave Australia vulnerable to higher fuel costs, following the end of a four-month excise relief period.

The company plans to use straw and straw residuals as its main feedstock. Glas Energy’s Nathan Carbone said the project would turn roughly 70,000 tonnes of material into about 20 million litres of low-carbon liquid fuels. He said the product was a 100 per cent drop-in fuel that could be blended with existing diesel at any rate.

Developers are seeking state and federal government support to begin initial works. They have applied for the Clean Energy Future Fund, which Mr Carbone said could finance up to 50 per cent of the project, with the developer contributing the remaining half. The fuel is not yet ready for market.

Potential customers say price will be crucial. KTrans, a WA trucking company with 150 heavy-haulage trucks and estimated fuel use of up to 1 million litres a month, said its vehicles could switch without modifications. Executive general manager Daniel Burrows said renewable diesel would need to be commercially viable and comparable with conventional diesel prices.

Shire of Narrogin President Leigh Ballard said the proposal could support a circular economy by turning farm bioproducts into fuel and other farming products. Mr Carbone said the refinery needed to be near feedstock because the volume of material required was significantly greater than the volume of fuel produced. Glas Energy is also considering other locations across Western Australia, with Narrogin intended as the central refinery.