Shell moves into biodiesel

Shell Australia has opened a new $5 million storage facility for its BioDisel20 or B20 product, a biofuel made from abattoir fats and cooking oils.
Shell is set to sell B20 to the Australian market in what is a world first for the company.
The oil giant has a contract to buy 40 million litres a year from Australian Renewable Fuels Barnawartha plant in north-eastern Victoria, purchased six months ago for around $25 million from Biodiesel Producers, now a ARF subsidiary.
The plant – which has cost an estimated $50 million to develop – has capacity to produce 60 million litres of fuel each year by converting tall and used cooking oil.
ARF hás similar, but smaller, plants in SA and WA, with a combined capacity of 150 million litres a year.
Shell vice-president of Downstream Australia Andrew Smith said the B20 launch represented on the largest projects the company had undertaken in Australian in 10 years.
“While there are many benefits to consumers from using biodiesel blends up to B20, we are especially pleased that it will support Victoria’s regional economy, notably the Barnawartha area,” Mr Smith said.