Australia’s trucking industry has welcomed new Federal Government consultations on fuel security and low-carbon liquid fuels, saying the proposals could strengthen diesel supply resilience while accelerating the use of renewable diesel.
The Government has released two consultation papers seeking industry feedback on establishing an Australian Fuel Security Reserve, increasing the Minimum Stockholding Obligation and developing a mechanism to stimulate demand for low-carbon liquid fuels.
The consultations were announced by Minister for Climate Change and Energy Chris Bowen, Minister for Infrastructure and Transport Catherine King and Minister for Agriculture Julie Collins.
Australian Trucking Association Chair Mark Parry said the proposals represented an important step towards improving Australia’s fuel security and creating the conditions needed for greater domestic production and use of renewable diesel.
“The ATA has long argued that Australia needs to meet its International Energy Agency obligation to hold a reserve of ninety days of net fuel imports,” Parry said.
“We are well short of that target, but the Government’s investment in fuel security and its plan to increase stockholding obligations are a welcome and important step in the right direction.”
For heavy vehicle operators, fuel security remains a significant operational issue given the road freight sector’s dependence on diesel and Australia’s reliance on imported liquid fuels.
Parry said ATA member associations and trucking companies were expected to participate in the consultation process, including discussions about where strategic fuel reserves should be located and how they should be stored.
The second consultation could also have significant implications for truck fleets as governments look for ways to reduce transport emissions without relying solely on electrification.
The ATA has previously proposed a low-carbon fuel standard based on the California Air Resources Board model.
Under the approach, fuel suppliers would be required to progressively reduce the lifecycle emissions intensity of the fuels they sell against declining benchmarks.
Suppliers could meet those obligations through a range of certified pathways, including renewable fuels, EV fast-charging infrastructure and green hydrogen refuelling facilities.
For trucking operators, renewable diesel is increasingly being viewed as a potential pathway to reducing emissions from existing diesel-powered fleets while zero-emission heavy vehicle technology and supporting infrastructure continue to develop.
“This approach would reduce Australia’s dependence on imported fuel and reduce our carbon emissions,” Parry said.
The ATA cited research suggesting that lifting renewable diesel to five per cent of Australia’s diesel supply could reduce cumulative Australian emissions by 6.9 million tonnes over 25 years.
The consultations provide the heavy vehicle sector with an opportunity to influence how future fuel security arrangements and low-carbon fuel policies are designed, including whether renewable diesel becomes a more widely available option for Australian truck fleets.
