Australia splits on energy future: Renewables vs. new oil field rush
A search to boost fuel security has struck 'liquid gold' after a state government clashed with the commonwealth over a proposed new oil field.
The Queensland government announced it would pump $25million into the development of renewable diesel in partnership with Ampol's Port of Brisbane refinery ahead of a potentially awkward national cabinet meeting.
The project will deliver the country's first sustainable production of second generation low-carbon liquid fuels, with stage one set to pump out up to 20million litres of renewable diesel a year from 2028.
Up to 750million litres of diesel are expected to be produced by the early 2030s.
'Within a few short years, Queensland will be producing hundreds of millions of litres of liquid gold because the right investments were made and the right partnerships were forged,' Deputy Premier Jarrod Bleijie said on Wednesday.
The refinery's existing hydro-treating facility will be upgraded to process biogenic feedstocks such as tallow and canola alongside traditional diesel.
The investment was part of Queensland's fuel security plan which includes exploring Taroom Trough - touted as Australia's first significant new oil field in 50 years - triggering a war of words with the commonwealth.
Fuel security meant restoring Queensland's 'ability to drill, refine and store', Premier David Crisafulli said on Wednesday.
'This project means more fuel produced locally for Queenslanders,' Mr Crisafulli said.
'These projects are important to ensure we are never again left at the mercy of foreign nations, at the end of a global supply chain.'
The Queensland government will attend Thursday's national cabinet meeting to discuss fuel issues after butting heads with the commonwealth over fast tracking plans to explore Taroom Trough.
It has been calling for the federal government to grant an oil exploration exemption for the project but has been accused of being 'all talk and no action' by the environment minister.
Prime Minister Anthony Albanese will discuss fuel security measures at national cabinet on Thursday after extra diesel shipments were secured for Australia.
The supplies would give an extra buffer against volatility in the fuel market driven by the war in Iran and subsequent blockages of the Strait of Hormuz, Mr Albanese said.
'We will continue to use every measure at our disposal to make a difference,' the prime minister told reporters from Sydney's Port Botany on Wednesday.
No major changes to fuel security strategies are expected from national cabinet talks.
There are 61 fuel ships en route to Australia, with five to arrive in Sydney in coming days.
Meanwhile, farmers have been promised more fertiliser imports as part of a deal struck between the federal government and major companies.
