Development in Narrogin’s proposed renewable diesel facility after Carnarvon Energy, Horizon Power strike deal

The Australian-first commercial-scale renewable diesel facility planned for Narrogin has moved a step closer to reality after Carnarvon Energy struck a preliminary agreement with WA’s regional power provider Horizon Energy. The partnership between Future Energy Australia — half owned by Carnarvon — and Horizon will explore renewable diesel projects, offtake and power purchase agreements in a bid to accelerate the decarbonisation of regional power generation. Future Energy Australia is eyeing a 65ha site 4km south of Narrogin at the intersection of Wanerie Road and Great Southern Highway for a refinery that would convert biomass into commercial volumes of renewable biodiesel using a high-temperature pyrolysis process. The biomass — such as agricultural waste, unused mallee plantations, construction waste and fire-affected wood — would be sustainably sourced from within 150km of the facility. About 75 per cent of the base feedstock required for the Narrogin biofuel facility has been secured for the next 10 years, according to Future Energy Australia. The renewable diesel could be used to replace conventional diesel without requiring modification to diesel engines and has a lower emissions profile. The proposed refinery, which received a $2 million grant from the State Government’s Clean Energy Future Fund in April, would be the first commercial-scale renewable diesel production facility in Australia and have a capacity to produce 18 million litres of biodiesel a year. The facility would also produce by-products from the biorefining process such as biochar and wood vinegar which could be used for soil health improvement. The proposed venture would create an estimated 120 direct and indirect full-time jobs, according to the Shire of Narrogin. The draft agreement between Carnarvon and Horizon complements other refineries across regional WA. Carnarvon managing director Adrian Cook, who is also the chairman of Future Energy Australia, said the company aimed to have annual production of at least 500 million litres of renewable diesel by 2030 across their maiden Narrogin facility and other projects. “Support from Horizon Power is a recognition of the tangibility of the renewable fuels business and highlights the significant demand for domestically produced renewable diesel,” he said. Horizon Power’s chief financial officer Mike Houlahan said the arrangement provided the potential to accelerate decarbonisation of regional power generation through renewable diesel while also supporting regional economic growth and job creation. “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 battery energy storage systems,” he said. “Developing a local supply of zero emission renewable diesel has the potential to help reduce carbon emissions across a number of industries.”