In an Australian first, Ampol Limited has announced that it is piloting a carbon-neutral petrol and diesel option aimed at offsetting the greenhouse gas emissions caused by the production, distribution, and consumption of fuel.
Initially being piloted to Ampol’s business customers, a carbon-neutral option will be offered where emissions associated with Ampol’s fuel or diesel product will be offset through the purchase of a portfolio of carbon credits.
These credits will be generated through projects handpicked by Ampol, including nine Australian projects that are proven to deliver social and environmental benefits to regional farmers and local communities.
The carbon-neutral option has been certified by Climate Active, an Australian Government-backed program aimed at empowering climate action through product certification.
Brent Merrick, Executive General Manager, Commercial at Ampol, said that the introduction of the carbon-neutral fuel option is aimed at providing customers a transparent and flexible carbon-neutral offering that can help them achieve their decarbonisation goals.
“Carbon mitigation forms a key part of our Future Energy and Decarbonisation Strategy,” Mr Merrick said.
“While we continue our important work to explore new lower emissions transport solutions for our customers, our carbon-neutral fuel option provides an interim solution for customers who are looking to offset emissions from their consumption of fuel and help support important environment and community projects in Australia and overseas.”
“Importantly, Ampol has conducted a comprehensive due diligence process, with the support of GreenCollar, to invest in high-value environment and community projects that adhere to stringent standards of social and environmental performance, public transparency and legal accountability. Many of the projects are Australian based, including native forest protection projects near Cobar and Brewarrina, New South Wales, and customers will be provided optionality to choose from two project portfolios to match their sustainability objectives,” he shared.
“The launch of this pilot will enable us to test, learn and evaluate the offering before exploring a broader rollout to our customers. I look forward to incorporating the learnings from this pilot to expand our carbon mitigation initiatives, while continuing to progress investment in new fuel technologies to meet our customers’ needs well into the future.”
Customers that participate in the pilot program will be offered two carbon-neutral portfolios to choose from – one that features 100 per cent Australian projects, and the other featuring 30 per cent Australian projects. The program offers a flexible opt-in model, with customers being provided choices to apply portions of their volume to meet sustainability targets.
Ampol’s small transport fleet will be participating in program. McMillan Shakespeare Group, a leading provider of salary packaging, novated leasing and asset management services, and One Rail Australia, a leading Australian rail freight service provider, have also signed up to the program.
Adam Morrison, Group Executive – Asset Management at McMillan Shakespeare Group, said: “The McMillan Shakespeare Group is delighted to be able to partner with Australia’s leader in transport fuels, Ampol, on this important initiative.”
“Our Group is committed to assisting our customers in their journey to net-zero emissions. Importantly, Ampol’s carbon-neutral option will enable our customers to minimise their impact on the planet today whilst also maximising the benefits created through investment in local projects to Australian vegetation, wildlife and communities. Our Group already offsets 100 per cent of our Scope 1 & 2 emissions related to our car fleet and electricity, and this initiative will help offset the upstream carbon creation associated with the production and distribution of fuel for our customers looking to do more today.”
A wide range of Ampol’s business customers will be targeted for participation in the pilot program, including mining, road transport, rail, government and energy customers.
The carbon-neutral fuel pilot will run for roughly three months, with an evaluation process to be executed before exploring a roll out to Ampol’s broader customer base.
The projects forming part of Ampol’s carbon-neutral fuel option include:
- Kergunyah Native Forest Protection Project
- Glenogie Native Forest Protection Project
- Buckambool Human-Induced Regeneration Project
- Catchment Conservation Alliance, Southern Rivers Initiative Site 4
- Western Australian Rangelands Conservation Initiative
- Darling River Conservation Initiative Site #9
- Darling River Eco Corridor 4 & 25
- Paroo River Ecosystem Restoration Project
- Improved Kitchen Regimes Multi-Country PoA, Malawi
- The Guatemalan Conservation Coast, Guatemala
- Jilin LinJiang Afforestation Project, China
- Landfill Gas Extraction and Electricity Generation, Turkey