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Renewable diesel key to decarbonising construction equipment – ACA

Crane trucks in the construction of a bridge

The Australian Government has been called on to develop a renewable diesel roadmap to help Australian organisations decarbonise their construction equipment.

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Published in a report examining the role of the construction industry in Australia’s Net Zero ambitions, the Australian Constructors Association (ACA) has called for the Federal Government to lead the development of a low carbon liquid fuel policy to help construction equipment decarbonise, highlighting the lengthy wait companies could face before entire electrification becomes possible. Additionally, the report cited the large investments companies make in diesel fuelled ICEs, saying it was not feasible for companies to discard their assets before they reached the end of their life for hydrogen and electrical alternatives.

The ACA highlighted the need for a transition fuel while construction equipment waits for the necessary electrical infrastructure and hydrogen ICEs. Citing electrification as the preferred method of decarbonisation, ACA CEO, Jon Davies, said renewable diesel needed policy support from the Government to expand its reach and capacity across Australia.

“We need to rapidly adopt low carbon liquid fuels to bridge the gap until electric options mature and the best transition fuel for the construction industry is renewable diesel,” he said. “ACA is calling for direct government policy intervention to rapidly accelerate both the supply and demand for renewable diesel in Australia.”

According to the report, the adoption of low-carbon technologies and fuels is being hampered by a lack of incentives for companies to decarbonise, citing the competitive disadvantage companies faced due to higher costs and lack of availability. With the correct policies in place, the report says the key outcome should be for the Government to prescribe a holistic regulatory framework that builds investment confidence and empowers organisations to rapidly adopt renewable diesel.

“The problem is, there is currently no domestic renewable diesel production in Australia – this reflects a policy vacuum that lags other countries significantly,” said Davies. “Importing renewable diesel is cost prohibitive relative to mineral diesel, making adoption a competitive disadvantage.”

The ACA’s ‘Renewable Diesel’ report can be read in full here.


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