Local proof of concept for lower-carbon bio-LPG

Viva Energy and Origin Energy have signed a Memorandum of Understanding (MoU) to explore producing bio-Liquefied Petroleum Gas (bio-LPG) at Viva’s Geelong refinery.

The agreement sets out a proof-of-concept project that will assess whether bio-LPG can be commercially manufactured using domestically sourced used cooking oil and other renewable or low-carbon feedstocks.

If successful, Viva would produce the fuel at Geelong, while Origin would look to supply it to customers as a lower-carbon alternative to conventional LPG.

The collaboration is designed to test not only the technical feasibility of production, but also the commercial foundations needed to support a new bio-LPG market in Australia.

This includes developing a viable business case for a broader supply chain, exploring market demand, establishing transparent pricing models and jointly advocating for carbon accounting frameworks that would enable bio-LPG to be recognised and commercialised.

Viva Energy chief strategy officer Lachlan Pfeiffer said the MoU was “a tangible demonstration of our commitment to a sustainable energy future”.

“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,” Mr Pfeiffer added.

Viva and Origin have a long-standing relationship, with LPG produced at the Geelong refinery supplied to Origin and sold to customers nationwide.

Origin has indicated that it sees bio-LPG as a way to help existing LPG users reduce emissions without needing to change appliances or infrastructure.

Origin Energy general manager for LPG Amber Fennell  described 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.”

The MoU also outlines how the two companies will leverage their existing LPG supply arrangements and engage with the government to help align policy and carbon accounting settings for bio-LPG.

These frameworks are seen as critical to enabling investment and long-term supply agreements if the proof of concept is successful.

“This project is a significant step for the Australian LPG industry,” said Gas Energy Australia chief executive Jordan McCollum.

“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.”