More than 120 heavy vehicles in south-west Victoria may soon be running on Liquefied Natural Gas (LNG) as part of a state-first $150 million project.
The proposal will bring together industrial gas company BOC, the South West Sustainability Partnership and regional transport companies to establish Victoria’s first micro LNG plant.
Up to six refuelling stations will be built across the region to establish a commercial pipeline-to-truck fuel supply for heavy vehicle transport.
The conversion of diesel-powered trucks to natural gas will cut their greenhouse gas emissions by 20-25 per cent, reduce maintenance costs and even make some reduction in engine noise.
It will also bring price stability and long-term economic benefits to transport owners.
South West Sustainability Partnership Executive Officer, Barrie Baker, and BOC General Manager LNG, Alex Dronoff, recently met industry leaders in Warrnambool to discuss the proposal, which has already attracted positive interest.
Mr Baker says the concept is a prime example of sustainability and is attracting positive and enthusiastic interest in the region.
"We have the gas here; the plant is the missing link," he says.
“We will be using our region’s ample natural product to supply our local industry. It would be environmentally sustainable and economically sustainable because of long-term protection from the fluctuating and rising fuel prices on the world market.” he says.
Mr Dronoff and Mr Baker say the project now relies on a commitment from transport companies in the region to investigate its economic feasibility.
“Once there is an ultimate commitment to use the product we could have the plant up and running within two years,” Mr Dronoff says.
A similar micro LNG plant — the first in Australia — is in the process of being developed in Tasmania. There are similar plants in USA and England where liquefied gas is made from recycled landfill gases.
The South West Sustainability Partnership initiated talks with BOC after learning of the Tasmanian project. A land parcel of about I40x110 metres, preferably near existing gas pipelines, would be required for the plant.
No specific sites have been identified at this stage.
However, the proposed six re-fuelling stations would be located throughout the region at easy-to-access sites. The plant would have the capacity to produce 50 tonnes of LNG a day, the equivalent of 70,000 litres of conventional diesel.
“If demand grew, and early indications are positive, there would be the capacity to develop another module to double the output of the plant,” Mr Dronoff says.
He adds that the proposal would provide a local solution to global problems.
“This alternative fuel is cleaner and local, which is a win for the environment and for potential customers.”
BOC has operated a LNG plant at Dandenong for 30 years but Mr Dronoff says the proposal for south-west Victoria will be a different style, scale and use totally new technology.
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