Green fuel for a low carbon economy
We want to help change how we source and produce fuel for aircraft and vehicles in Australia and beyond.
Renewable Diesel vs Petroleum Diesel and Biodiesel
In comparison, conventional fossil fuels are made from crude oil. To make fossil-based fuels such as diesel, crude oil is removed from the ground, transported to a refinery, and purified.
Biodiesel is a renewable fuel made from vegetable oils and/or animal fats. Although it combusts in an engine in a similar way to fossil diesel, Biodiesel is not chemically identical to conventional diesel. When used undiluted it can damage some engine components and fuel distribution networks, and so almost always needs to be blended with conventional diesel at a 5% to 20% blend ratio.
Renewable diesel is made from renewable resources such as natural fats, vegetable oils, and greases. Although the feedstock used to produce renewable diesel is sustainable organic material, the final product is chemically identical to conventional diesel and is therefore completely compatible with existing fuel infrastructure and can be used as a 100% drop in replacement fuel.
Sustainable Aviation Fuel
Commercial Aircraft cannot switch to alternative energy sources (like hydrogen or electricity) and remain reliant on liquid fuels. SAF is a renewable low carbon fuel that is blended with fossil jet fuel, requiring no special infrastructure or equipment changes.
Aviation currently accounts for 3% of global carbon emissions, predicted to grow substantially by 2050. The International Civil Aviation Organisation (ICAO) is committed to carbon neutral growth and reducing carbon emissions to 50% below 2005 levels by 2050. ICAO have created a framework for carbon reduction from the sector called the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). SAF is a CORSIA Eligible Fuel (CEF). There are currently 107 countries participating in the CORSIA, starting 1 January 2022, with flights between these “country pairs” covered.
Since the first commercial flight in 2011, more than 150,000 flights have been powered by SAF already.
Renewable Diesel Demand
USA west coast is a primary target market for Oceania Biofuels, thanks to various state carbon reduction mandates. California’s LCFS is the most well-known of these initiatives. By 2021, renewable diesel accounted for 23% of the Californian diesel pool, nearly half of which is imported. Other US states are creating similar mechanisms, and Canada has also commenced its own Clean Fuel Standard carbon reduction mandate in 2022.
In the USA, in addition to the LCFS marketplace, Oceania renewable diesel will qualify for the California’s LCFS, the US$1 per gallon Blenders Tax Credit (BTC) and the US RINs (Renewable Identification Numbers) under the Federal Renewable Fuel Standard, RFS2.
Europe is another target market. The EU has created the Renewable Energy Directive, RED2. RED2 mandates the usage of renewable fuels within the EU. Member states are obliged to reduce greenhouse gas emissions by replacing fossil fuels with renewable equivalents. In the transportation sector – the target market of Oceania Biofuels – that mandate means by 2030 renewable fuels must make up at least 14% of all liquid fuels. The recently proposed “Fit for 55” legislation goes even further, requiring 55% reduction in GHG by 2030, generating further demand for Oceania’s renewable fuels.