Viva Energy and Cleanaway: NGERs reform recognises co‑processed low‑carbon fuels

Key highlights
  • Australian Government reformed the National Greenhouse and Energy Reporting scheme to recognise low carbon liquid fuels made via co‑processing at local refineries, including renewable diesel, LPG and kerosene.
  • Customers may report certified renewable content in eligible co‑processed fuels as zero Scope 1 CO2 under NGERs while the fossil portion retains its fossil emission factor.
  • ISCC PLUS certificates can be used for two years to track biogenic content while the Government develops a Guarantee of Origin framework for these fuels.
  • Viva Energy will source used cooking oil from Cleanaway to co‑process renewable fuels at its Geelong refinery and expects the reform to increase customer demand and support commercial production.

What the reform does

The Australian Government amended the National Greenhouse and Energy Reporting scheme to recognise low carbon liquid fuels produced via co‑processing at domestic refineries. Under the change, certified renewable content in eligible co‑processed diesel, LPG and kerosene can be reported as having zero Scope 1 CO2 emissions in NGERs, while the fossil portion continues to attract the applicable fossil emission factor.

Transitional tracking

The reform allows ISCC PLUS certificates issued by International Sustainability and Carbon Certification to be used for the next two years to track biogenic content through the supply chain, while the Government develops a Guarantee of Origin framework for these fuels.

Industry response and immediate actions

Viva Energy said the change creates a regulatory pathway to recognise emissions benefits of co‑processed fuels and supports investment in refinery and feedstock supply chains. Viva is progressing plans to produce co‑processed diesel at its Geelong Refinery using eligible waste‑derived and renewable feedstocks, and has commenced sourcing used cooking oil from Cleanaway for processing.

Practical implications

Co‑processed renewable diesel and LPG produced in existing refinery assets are positioned to help decarbonise hard‑to‑abate sectors such as heavy vehicle transport and high‑temperature industrial applications like kiln firing. Cleanaway said the reform helps close the domestic circularity loop by keeping collected feedstocks in Australia for local processing and fuel production. Viva Energy and Cleanaway will continue working with government, customers and partners to develop the domestic low carbon liquid fuels market.

Source: Viva Energy