LNG lifeline for trucks $150m bid to tackle fuel woe

Hobart Mercury
Wednesday 3/9/2008 Page: 16

TRUCKING operators in northern Tasmania are set to invest $150 million in a liquid natural gas plant to cut reliance on diesel and reduce greenhouse gases. It would be the first commercial pipeline-to-truck supply in Australia. LNG Refuellers chairman Ken Padgett said six stations would be established around Tasmania to refuel 120 trucks. "The plentiful supply of natural gas helps maintain a stable price making it an ideal fuel for heavy transport." Mr Padgett said.

He said LNG trucks released about 25 per cent less greenhouse gas compared to diesel powered trucks, as well as less particulate. In partnership with industrial gas company BOC. A micro-LNG plant is expected to be established at Westbuy, west of Launceston. "The LNG plant will have the capacity to produce 50 tonnes of LNG a day - the equivalent of 70,000 litres of diesel," BOC general manager Alex Dronoff said. "The natural gas is cooled to minus 165 degrees Celsius and it then becomes liquefied and stored and distributed." Mr Dronoff said Tasmania would have a world-leading industry when it switched to LNG.

Mr Padgett said the rise in fuel prices had prompted the consortium, whose members are mainly forestry-based, to consider alternatives. The operation would not rely on approval of the pulp mill. "We hope to be operational by the end of 2009 - initially the fuel will be taken up by group members but by 2010 we will see if there is significant take-up by other industry participants," he said. Mr Padgett said conversion of trucks to LNG would be expensive but the numbers would add up in the end.

We anticipate in terms of fuel cost there will be some significant savings but the major benefit will be the stabilisation of fuel cost so we get off the rollercoaster that is crippling the transport industry around Australia," he said. An advantage of LNG was that the trucks were quieter. He said the savings might be passed on to consumers when trucks f min other industries switched to LNG. The Economic Development Department and a $5.05 million grant via the Tasmanian Community Forest Agreement Industry Development Program aided the project.