Viva Energy and Origin Energy have announced the signing of a Memorandum of Understanding (MoU) to develop a proof of concept for the creation of bio-LPG production at Viva Energy’s Geelong refinery, marking another step forward in Australia’s transition towards a cleaner energy future.
This collaboration, if successful, could see Viva Energy manufacture bio-LPG using domestically sourced used cooking oil (UCO) and other feedstocks, with Origin Energy looking to on-sell the gas to its customers.
The agreement 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 scope includes exploring market development, establishing transparent pricing models, and joint advocacy for the carbon accounting frameworks needed to support the commercialisation of bio-LPG.
This initiative reflects the efforts of both companies to deliver innovative, lower-carbon energy solutions and support Australia’s attempts to reduce emissions.
Viva Energy has a long history of supplying LPG manufactured at its Geelong refinery to Origin Energy, which is then sold to a wide range of customers around the country. Origin Energy is keen to offer bio-LPG as a lower carbon option to existing LPG customers exploring opportunities to reduce their emissions.
Lachlan Pfeiffer, Chief Strategy Officer at Viva Energy, said the MoU represents another milestone in Viva Energy’s journey to offer cleaner energy products and support 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 production of bio-LPG from locally sourced renewable feedstocks,” he said. “It’s a tangible demonstration of our commitment to a sustainable energy future.”
Amber Fennell, General Manager, LPG at Origin Energy commented: “Origin is excited to collaborate with Viva Energy on this 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. We look forward to working with Viva Energy in an effort to bring this new product offering to market.”
Jordan McCollum, CEO of Gas Energy Australia, added: “This project is a significant step for the Australian LPG industry. 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 the parties’ existing LPG supply agreement and utilising government advocacy to align carbon accounting frameworks for bio-LPG. Together, Viva Energy and Origin Energy are poised to progress an initiative aimed at supporting Australia’s cleaner energy ambitions.
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About Viva Energy
Viva Energy (ASX: VEA) is a leading convenience retailer, commercial services and energy infrastructure business, with a history spanning more than 120 years in Australia. The Group operates a convenience and fuel network of about 900 stores across Australia and supplies fuels and lubricants to a total network of nearly 1,500 service stations.
Viva Energy owns and operates the strategically located Geelong Refinery in Victoria, and operates bulk fuels, aviation, bitumen, marine, chemicals, polymers and lubricants businesses supported by more than 20 terminals and about 80 airports and airfields across the country. www.vivaenergy.com.au