Australia is the largest exporter of liquefied natural gas (LNG) and the second largest exporter of coal in the world. Despite its heavy reliance on fossil fuels, the country has made significant strides towards sustainability in recent years. This is especially evident in the practices adopted by major oil distributors operating in Australia.
Oil distributors play a crucial role in the energy supply chain. They purchase bulk petroleum products from refineries and store and transport them to retail gas stations across the country. With growing environmental awareness, oil companies are integrating sustainability into their core business strategy. From renewable energy investments to eco-friendly innovations, here are some of the key ways oil distributors in Australia are embracing green practices:
Investing in Renewable Energy
Transitioning to renewable energy is key for the oil and gas industry to reduce its carbon footprint. Major players like BP and Shell have invested heavily in wind, solar and biofuel projects in Australia.
For instance, Viva Energy has installed a 10,000-panel solar array on the roof of its Geelong refinery. The company estimates this will offset over 7,000 tonnes of carbon emissions annually. Similarly, Puma Energy has fitted its storage facilities with solar panels and replaced diesel-powered pumps with electric pumps to cut emissions.
Adopting Eco-Friendly Product Offerings
Refineries are optimizing operations to produce lower emission transport fuels. BP Australia's Kwinana Refinery was the first globally to introduce biofuels blending using Australian-grown mallee as a feedstock.
Many distributors now supply specialty 'green fuels' with bio-component additives that have less lifecycle emissions. Puma Energy's Evolution diesel contains up to 5% biodiesel sourced from renewable feedstocks. Meanwhile, Viva Energy produces high-octane E85 fuel using ethanol derived from waste sugars. Such offerings cater to the eco-conscious Australian motorist.
Implementing Carbon Offset Programs
Leading distributors have carbon offset programs to mitigate the impact of unavoidable emissions. For every litre sold, Caltex voluntarily offsets the estimated carbon footprint via verified carbon credits. The company has abated over 2.4 million tonnes of carbon since 2007. similarly, Puma Energy purchases credits from soil carbon methodology projects for their Bio offset program. Customers can opt-in for fuel purchases to be offset for a small fee that goes towards emissions reduction initiatives.
Upgrading to Energy Efficient Facilities
Sustainable optimization of storage depots and service stations is a priority. Viva Energy has retrofitted fuel pumps with LED lighting and introduced auto tank gauging to automatically monitor fuel levels and minimize evaporation losses. It has also installed solar power and energy storage at 90+ company-owned sites. Meanwhile, Puma Energy deploys bio-fuel generators to supplement grid electricity usage and has LEED Gold certified depots that use renewable energy and smart water management.
Phasing out Single-Use Plastics
Oil companies are eliminating unnecessary plastics and shifting towards recyclable or compostable packaging to lower waste. BP has eliminated plastic straws at its retail fuel stations and provides compostable food packaging. It aims to remove all single-use plastic items from stores by 2023. Similarly, Puma Energy has phased out plastic coffee cups and lids in favor of paper-based alternatives. Distributors are also providing recycling bins for motorists to dispose plastic bottles and cans.
Collaborating with Suppliers
Responsible and transparent sourcing is a growing focus. Companies are actively engaging with vendors to track supply chain emissions and promote environmental best practices. For instance, Viva Energy's new solar installations were supported by Canadian Solar, Trina Solar, and QCells. By partnering with eco-conscious suppliers, oil distributors can accelerate their sustainability goals.
Leveraging Data and Technology
Advancements in digital technology are enabling oil companies to closely monitor and optimize energy efficiency. Distributors are utilizing data analytics, IoT sensors and automation to minimize carbon footprint across the supply chain.
For example, Viva Energy has implemented a digital platform to aggregate real-time data on fuel inventories, infrastructure performance and delivery schedules. By analyzing trends, the company can spot inefficiencies and waste to be addressed. Automated tank level sensors also help optimize fuel orders and prevent overstocking that increases evaporative emissions.
Meanwhile, Puma Energy uses predictive maintenance software to continuously inspect equipment health and prevent methane leaks from pressurized systems. technicians receive mobile alerts for assets requiring proactive upkeep. Some service stations also have smart meters integrated with HVAC and lighting systems to monitor energy consumption and identify scope for savings.
In addition, companies are turning to technologies like blockchain to account for emissions at every process step and identify hotspots for improvement. Caltex sources BioLPG certified with emissions-tracking through blockchain, enabling transparent carbon reporting.
The use of drones, aerial imagery and spatial analytics helps map storage infrastructure spread across vast remote terrains in Australia and track changes over time. By merging sustainability with digital transformation, oil distributors can break down data silos and derive actionable insights to minimize operational emissions.
Educating Consumers on Sustainable Practices
In addition to internal initiatives, oil companies are raising awareness amongst consumers around small everyday changes that collectively make a difference. This drives engagement in green practices beyond the fuel pump.
For instance, BP Australia runs the ‘Recarbonise’ campaign offering simple carbon-reducing solutions for motorists such as proper tire pressure, removing roof racks when not in use and avoiding idling. Tip sheets available at fuel stations and social media engagement provide practical advice for greener driving habits.
Caltex encourages eco-conscious customers to use their loyalty app and carbon offset rewards points for every litre purchased towards forest conservation projects. The initiative has preserved over 5,000 acres of land.
Meanwhile, Puma Energy’s ‘Good Call’ podcast talks sustainability covering topics like biofuels, electric vehicles, and renewables. Raising public understanding of energy transition pathways makes consumers more receptive to new offerings.
Oil distributors also provide guidance on correct disposal of used automotive fluids and batteries to prevent contamination. Instore recycling programs further encourage public participation in circular practices.
By rallying motorists around shared environmental values, oil companies can build brand loyalty while promoting eco-friendly lifestyles. Even small recurring actions by individuals supported through sustained awareness campaigns can build towards a more sustainable future.
Final words
In summary, major oil distributors in Australia are demonstrating climate leadership by incorporating green features across their operations. From expanding renewable energy production to reducing consumption of fossil fuels, they are future-proofing their business. Proactive investments made today in eco-friendly infrastructure and carbon abatement will ensure the industry can thrive in a low-carbon economy. Their commitment provides hope for building a greener and more sustainable energy future for the country.
