Victorians will soon have easier access to biodiesel, thanks to a $2 million Brumby Government grant for a new Melbourne-based blending and storage facility.
Regional and Rural Development Minister Jacinta Allan today announced the funding saying it would go towards the construction of the new $4.3 million Biodiesel Producers Limited (BPL) biodiesel facility in Melbourne.
Ms Allan said the facility would enable Victorians to access locally produced biodiesel from the major distribution channels and could be a large step forward in generating demand for this regionally produced product “This grant demonstrates the Brumby Government’s commitment to secure jobs in rural and regional Victoria and provides a boost for our economy.”
“This grant demonstrates the Brumby Government’s commitment to secure jobs in rural and regional Victoria and provides a boost for our economy,” Ms Allan said.
“We’ve committed $2 million towards this project that will significantly open up access to biodiesel – an alternative to petrol and diesel that can be produced from tallow, used cooking oil and oil seeds.
“The new facility will be based at a major fuel distribution terminal and will enable Victorians to easily access regionally-produced biodiesel, creating increased consumer demand and supporting jobs and investment in the growing biofuels industry in regional Victoria.
“The facility will be used to store and blend biodiesel produced from tallow – an abattoir waste product – at its plant in Barnawartha in north-east Victoria.
Energy and Resources Minister Peter Batchelor said BPL’s Barnawartha plant was capable of producing 60 million litres of biodiesel annually, directly supported 24 jobs and accounted for $45 million of expenditure in regional Victoria each year.
“The future of these regional jobs will be secured by BPL’s new storage and blending facility, which will enable the distribution of up to 50 million litres of biodiesel into state-wide retail distribution channels each year,” Mr Batchelor said.
“The Brumby Government is supporting the biofuels industry as it has the potential to provide significant economic benefits for regional Victoria.
The $2 million grant is being provided through the Regional Infrastructure Development Fund’s $5 million Biofuels Infrastructure Grant Program - which is a key element of the Government’s biofuels industry action plan.