Australian independent Carnarvon Energy is making significant progress at its planned Narrogin renewable diesel project in Western Australia, for which Technip Energies is performing front-end engineering and design work with final documentation expected later this year.

About 75% of the base feedstock required for the Narrogin project has now been secured for the targeted 10-year period and negotiations for the balance of the feedstock are also well advanced.

The “length and quantum of the contracts for the foundation feedstock enhances the bankability of the Narrogin project with potential lenders and investors”, Carnarvon noted.

FutureEnergy Australia — a joint venture between Carnarvon and Frontier Impact Group — and compatriot Horizon Power are teaming up to evaluate decarbonisation opportunities Down Under, with the focus on renewable diesel.

A memorandum of understanding signed last week establishes a clear path forward for the duo to explore opportunities to develop and produce renewable diesel in Western Australia.

FutureEnergy was formed to build and operate fuel biorefineries in the state.

Horizon chief financial officer Mike Houlahan said the arrangement with FutureEnergy provides the potential to accelerate decarbonisation of regional power generation through renewable diesel while also supporting regional economic growth and job creation.


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“We see renewable diesel as a future low-emission fuel that can be used within our energy systems as an alternative to fossil-fuel diesel or more expensive energy sources like batteries,” Houlahan said.

Carnarvon noted the strategic partnership with Horizon is intended to canvas a wide range of opportunities, including direct investment into renewable diesel projects, offtake, power purchase agreements and new site locations.

This will include exploring the potential for a renewable diesel plant in the Collie region, Western Australia governor Mark McGowan revealed.

Horizon’s service area includes 34 microgrids and connected systems in the Kimberley, Pilbara, Gascoyne/Mid-West and Esperance/Goldfields regions of Western Australia — areas near new potential renewable diesel project locations identified by FutureEnergy.

“Horizon Power has set objectives to decarbonise its power generation operations in remote regional communities by 2030. The lack of infrastructure in these regional communities means that substituting mineral diesel with renewable diesel is a critical decarbonisation enabler,” Houlahan added.

Clean Energy Future Fund

The McGowan government recently awarded FutureEnergy A$2 million (US$1.35 million), as part of the Clean Energy Future Fund, to support its Narrogin renewable diesel project, which will produce 18 million tonnes per annum.

State Energy Minister Bill Johnston said: “The McGowan government is committed to exploring opportunities to decarbonise regional energy systems to deliver better economic and carbon outcomes for WA.”

Carnarvon managing director Adrian Cook said that the support from Horizon is a recognition of the tangibility of the renewable fuels business and highlights the significant demand for domestically produced renewable diesel.

“We are excited to work with Horizon Power to progress a strategic renewable diesel partnership. Horizon Power and FutureEnergy Australia share many core values in delivering better economic and carbon outcomes for regional Western Australians,” Cook said.

Carnarvon itself aims to build a significant renewable fuels business in Western Australia, targeting the development of production capacity of at least 500 million litres per year by 2030.

“We see an opportunity to build a sustainable business, which drives both long-term shareholder value and exceptional ESG outcomes,” Cook said on Monday.

Progress: Carnarvon managing director Adrian Cook Photo: CARNARVON