Media release – Scott Morrison, Prime Minister, Member for Cook & Angus Taylor, Minister for Industry, Energy and Emissions Reduction, Member for Hume, 13 April 2022
Supporting domestic refiners to supply better quality fuel
Australia’s local refineries will receive support from the Morrison Government for major infrastructure upgrades to strengthen local production and supply better-quality fuels.
Through the Refinery Upgrades Program, the Morrison Government is providing $250 million to Australia’s domestic refiners, the Ampol refinery in Lytton, Brisbane and the Viva Energy refinery in Geelong, Victoria.
These two $125 million grants will be matched by both refineries and will allow them to begin major construction works to upgrade their facilities. This will bring more than $500 million of public and private sector investment into these local communities.
Prime Minister Scott Morrison said the Government’s investments would secure fuel production and supply for Australia in the face of global uncertainty.
“COVID-19, the Russian war in Ukraine and trade restrictions have disrupted global supply chains and Australia is not immune,” the Prime Minister said.
“Oil refineries literally fuel a stronger economy and these investments will help keep our truckies, miners, defence force and farmers moving across Australia.
“Our plan for a stronger future locks in Australia’s refining capabilities and will ensure upgrades are made to improve the quality of our fuel.
“These investments also protect the 1,250 existing refinery jobs and support the creation of around 500 more construction jobs across Lytton in Brisbane and Geelong.
“Cutting the fuel tax and this fuel security package put Australian motorists and businesses first. Our support for local refineries ensures we have the local capabilities to produce fuel even in the most challenging of times to keep our economy running.”
This funding is part of the Government’s comprehensive fuel security package announced in the 2021-22 Budget, which has locked in both the refineries operations into the future.
Strong supply chains underpin Australia’s economic security and Australia’s living standards.
The Government is focused on securing essential supply chains with our $2.5 billion Modern Manufacturing Initiative, including key investments through our Supply Chain Resilience Initiative.
Last year we secured production of Adblue at Gibson Island in Brisbane – an essential input to keep trucking fleets operating. This followed China’s sudden decision to suspend urea exports, from which we make AdBlue.
The grants will enable the local production of ultra-low sulfur petrol products in Australia and allow the Government to bring forward the introduction of a new standard from 2027 to 2024.
Minister for Industry, Energy and Emissions Reduction Angus Taylor said the grants would not only support our local refining capability and safeguard fuel security, but also provide health benefits for Australians.
“Bringing forward the roll-out of ultra-low sulfur fuel from 2027 to 2024 will deliver significant health benefits for Australians through improved air quality. This is estimated to result in $1.02 billion in avoided health costs,” Minister Taylor said.
“These grants are the next step in the Morrison Government delivering on our commitment to support Australian domestic refiners to keep producing local fuel for Australian motorists.
“As well as enabling the production of better quality fuels, our landmark refinery production payments continue to provide taxpayers with lower than budgeted payments, with both refineries not needing any support in the second quarter.
“We will continue to ensure Australian families and local industry can access the quality fuel they need, when they need it through our fuel security package.”
The Department of Industry, Science, Energy and Resources has further confirmed that Ampol and Viva Energy will not need to receive any payment for the second period of the Fuel Security Services Payment because the refineries were doing well. This follows on from quarter one, where only Viva Energy received payment, totalling $12.45 million.
The Refinery Upgrade Program is a key part of the Government’s comprehensive fuel security package, announced in the 2020-21 Budget, to secure Australia’s long-term fuel supply by ensuring our sovereign refining capability meets our needs during an emergency and into the future.
These grants will cover up to 50 per cent of total eligible project expenditure up to the maximum grant of $125 million. Projects are expected to be completed before the end of 2024.
This is in addition to the Morrison Government’s action to halve the fuel excise for six months to ease pressures at the petrol pump and cost of living concerns for Australian motorists.
Media release – Smart Energy Council, 13 Aprill 2022
Industry body slams fuel security announcement as a “drop in the refinery”
The Smart Energy Council has slammed the Morrison Government’s announcement of $250 million to oil refineries as a “drop in the refinery in response to a fuel security crisis”.
“Providing $250 million to address a fuel security crisis is like putting $1 in the tank when you’re running out of petrol,” said John Grimes, Chief Executive of the Smart Energy Council.
“After nine years of inaction from the Federal Government, Australia is facing a genuine fuel security crisis. If Australia’s supply routes are blocked, we have at most 3 weeks of supply before we run out of petrol and diesel.”
“Australia’s fuel security is an absolute disgrace. We desperately need a national fuel security policy and a national energy policy.”
“Scott Morrison’s gift to the oil companies and a short term drop in fuel excise is no substitute for a comprehensive plan.”
“Australia needs to be investing in electric vehicles and zero emissions transport, renewable energy and renewable hydrogen, creating the jobs and industries of the future.”
“We cannot dither any longer. We need national leadership on this critical issue.”
Emergency Fuel Security Summit, Sydney, 21 April
The Smart Energy Council will be hosting an emergency Fuel Security Summit at the Hilton Hotel, Sydney, to call for a national fuel security strategy. Keynote speakers include:
- Admiral Chris Barrie AC, Chief of Australian Defence Force 1998-2002;
- Professor Ross Garnaut AC, Chairman Sunshot Zero Carbon Futures and Director ZEN Energy;
- Zali Steggall MP, Member for Warringah;
- Cheryl Durrant, Executive Member, Australian Security Leader's Climate Group;
- Councillor, the Climate Council;
- Behyad Jafari, CEO Electric Vehicle Council;
- Richie Merzian, Director Climate and Energy Program, The Australia Institute; and
- Allegra Spender, Independent candidate for Wentworth.
The Smart Energy Council is an independent peak body for the solar, energy storage and renewable energy industry.
Media release – Electric Vehicle Council, 13 April 2022
$6bn for oil subsidies, $0 for EV subsidies: Morrison’s priorities speak volumes
The Australian electric vehicle sector is dismayed by Scott Morrison’s announcement of yet another taxpayer subsidy for oil, while the EV industry remains ignored.
The Prime Minster today announced two federal government grants of $125 million will go to Australia’s two oil refineries. The announcement comes off the back a $2.4bn oil refinery package in May 2021, and a fuel excise cut of around $3bn.
Meanwhile the federal government has announced no competent plan or strategy for the electric vehicle sector.
“Australia is capable of producing abundant clean electricity and that electricity could be powering our trucks and cars. But we have a Prime Minister who’s more interested in subsiding foreign oil and that’s tragic,” said Electric Vehicle Council chief executive Behyad Jafari.
“It’s incredible that an Australian Government in 2022 could be spending six billion dollars propping up oil, while not even bothering to construct a competent plan for the electrification of Australia’s fleet.
“Everyone now knows that the future of Australian transport is electric. We should be doing everything possible to rapidly electrify not just consumer vehicles, but trucks and commercial fleets.
“But instead of moving us toward the future, the Morrison Government is choosing to spend six billion dollars in taxpayer money on propping up the failing oil industry. It’s frankly dismaying for everyone who understands where the world is headed.
“If the EV industry was allocated even a fraction of the money spent on oil subsidies we could be cleaning our city air, lowering our carbon emissions, and breaking our dependence on foreign oil.”
Media release – Rewiring Australia, 14 April 2022
Electrification the best and fastest way to prevent global warming catastrophe
The scientific journal Nature has produced the first study to rigorously quantify the climate impact of emissions reduction pledges made before and during the global COP26 conference in November. It finds there is a 50 per cent chance of keeping warming below 1.9 or 2 degrees by the end of the century.
Research released last year by Rewiring Australia chief scientist, Dr Saul Griffith, demonstrated that rapid price reductions in already available technologies enables rapid decarbonisation of the domestic economy and that this would be more cost effective than other forms of carbon reduction, in fact financially positive for consumers over this decade.
Dr Griffith said no nation was better placed than Australia lead the way, through decarbonising the domestic economy by replacing fossil fuel powered cars, heating and stove tops with renewable powered, electric versions.
“Australia can lead the world in harnessing the power of the sun to run our homes and cars, smashing carbon emissions and obliterating energy bills at the same time,” Dr Griffith said.
“The national pledges made by Australia, America and other countries fail to factor in how the declining costs of EVs, solar, batteries and efficient household appliances can combined as a package that zeros energy emissions for households.
“Electrifying our homes and vehicles is the fastest and cheapest path to decarbonising our domestic economy. By 2030 it will save close to $5,000 per year per household on their energy bill and reduce domestic emissions by 40 per cent.
“This election is the perfect opportunity for a party or candidate to commit to electrification. The first step is to pilot the electrification of an entire suburb or street, where we replace all gas appliances and combustion engine vehicles with renewable powered electric versions.
An analysis released by the Australia Institute found that for the 2020-2021 financial year, different levels of Government provided more than $11.6 billion in fossil fuel subsidies.
“This is entirely counter-productive,” Dr Griffith said. “We are doling out subsidies to energy sources that are choking the planet while we leave proven technologies sitting on the bench. Subsidising fossil fuels also makes the world more unstable and dangerous, strengthening the hand of petro-states and oligarchs.
“Redirecting just a fraction of fossil fuel subsidies to households would allow them to rewire their homes and adopt the latest zero-emission technology while saving thousands every year on their energy bills.
“This should be a no-brainer.
