The Victorian state government has agreed to co-fund Viva Energy to explore expanded refining capabilities at its Geelong Refinery.
The move comes as the federal government announced AU$10 million for feasibility studies into fuel refining, which will be co-funded by states and territories.
The state government confirmed it will partner with Viva Energy to undertake a feasibility study to expand renewable diesel blend processing at the Geelong facility.
The study will specifically look at co-processing diesel using Victorian-grown inputs, such as canola oil.
By integrating local agricultural products into the fuel supply chain, the government aims to reduce reliance on international imports and shield the state from growing global market volatility.
“We’re building a more reliable fuel supply for Victoria into the future,” Premier Jacinta Allan said.
The announcement follows the announcement that Victoria has secured 10 million litres of diesel as a strategic fuel reserve for the state’s agricultural sector. This reserve is designed to provide farmers with the certainty required for critical planting and management decisions during the winter growing season.
Minister for Energy and Resources Lily D’Ambrosio said: “Backing this feasibility work will lay the groundwork for future low-carbon fuel production at the facility.”
For the Geelong region, the project represents a vote of confidence in local industry. Member for Lara, Ella George, and Member for Geelong, Christine Couzens, both welcomed the news, highlighting that boosting local capacity would secure high-skilled manufacturing jobs while ensuring “fuel independence for tomorrow.”
While the government maintains that current diesel supplies remain sufficient to meet Victorian needs, these reforms, including increased minimum stockholding obligations for fuel companies, aim to provide a permanent buffer against future energy shocks.