Viva Energy and Origin Energy have announced the signing of a Memorandum of Understanding (MoU) to develop a proof of concept for bio-Liquefied Petroleum Gas (LPG) production.
Taking place at Viva Energy’s Geelong refinery, this collaboration could see Viva manufacture bio-LPG using domestically sourced used cooking oil and other feedstocks if successful, with Origin looking to on-sell the gas to its customers.
The collaboration also aims to establish a viable business case for a bio-LPG supply chain, which could set the stage for a long-term supply arrangement.
The project’s scope includes exploring market development, creating transparent pricing models, and joint advocacy for the carbon accounting frameworks needed to support the commercialisation of bio-LPG.
The initiative reflects the efforts of both Viva and Origin to deliver innovative lower-carbon energy solutions and support Australia’s attempts to reduce emissions.
Viva has a long history of supplying LPG manufactured at its Geelong refinery to Origin, which is then sold to a wide range of customers around the country.
Viva Chief Strategy Officer, Lachlan Pfeiffer, said the MoU represents another milestone in Viva Energy’s sustainability efforts and support of the circular economy.
“By leveraging our Geelong refinery’s capabilities and collaborating with industry leaders like Origin Energy, we are proud to be exploring opportunities to pioneer the product of bio-LPG from locally sourced renewable feedstocks,” he said.
“It’s a tangible demonstration of our commitment to a sustainable energy future.”
Origin is excited to offer bio-LPG as a lower carbon option to existing LPG customers exploring opportunities to reduce their emissions.
Origin LPG General Manager, Amber Fennell, called it a landmark initiative.
“We see the development of bio-LPG as a real opportunity to support our ambition to lead the energy transition through cleaner energy and customer solutions,” she said.
“We look forward to working with Viva Energy in an effort to bring this new product offering to market.”
Gas Energy Australia CEO, Jordan McCollum emphasised the crucial nature of the partnership.
“This project is a significant step for the Australian LPG industry,” he said.
“The collaboration between Viva Energy and Origin Energy to support the development of bio-LPG exemplifies how industry partnerships can drive innovation and support Australia’s energy transition. We commend both companies for their leadership and vision.”
The MoU sets out the principles for ongoing collaboration, including leveraging both companies’ existing LPG supply agreement and utilising government advocacy to align carbon account frameworks for bio-LPG.
In other news Origin recently partnered with Toll Group on a new battery electric truck.
Extracted in full from: https://primemovermag.com.au/viva-energy-partners-with-origin-on-bio-lpg-proof-of-concept/
