Viva Energy and Origin Energy have signed a Memorandum of Understanding (MoU) to develop a proof of concept for the creation of bio-LPG production at Viva Energy’s Geelong refinery in Victoria.
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.
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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.
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.
Viva Energy chief strategy officer Lachlan Pfeiffer said, “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.
“It’s a tangible demonstration of our commitment to a sustainable energy future.”
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Origin Energy general manager LPG Amber Fennell said, “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.”
