Ampol’s CEO, Matt Halliday, recognises the economic challenges associated with the transition to electric vehicles (EVs) and believes that miners will need alternative solutions to power their large trucks. While Ampol is committed to sustainability and aims to achieve net zero carbon emissions within 20 years, it is also adopting a practical approach.
To meet its sustainability goals, Ampol is focusing on several initiatives. It is establishing a significant EV charging network across Australia, one of the largest in the country, to support its own emissions targets. Additionally, Ampol is exploring the use of hydrogen for heavy transport. However, one of the company’s key short-term strategies involves manufacturing biofuels that utilize organic feedstock, such as oilseed, sugar cane waste, and animal waste, instead of crude oil.
Ampol’s strategy acknowledges the assumption that liquid fuel will continue to play a role in industrial engines for the foreseeable future, especially as it supplies fuel to major mining companies. In collaboration with Japanese oil refining company ENEOS, Ampol is refining large quantities of green aviation and diesel fuels, utilizing its Lytton plant in Brisbane. These fuels will cater to Ampol’s mining customers, and ENEOS is considering exporting them to Japan. The Queensland government has also contributed to this venture to help lower production costs during the initial phase.
While the mining industry has been discussing the electrification of its heavy-duty trucks and specialized machinery, Halliday believes the transition will take longer than anticipated. Replacing mining fleets will be a time-consuming process, especially with every major miner placing orders for new trucks. While some companies, like Fortescue and Rio Tinto, have ambitious plans for electrification, the technology for EV batteries in heavy trucks and trains is still in the early stages. Charging these large batteries, which can weigh tons, takes considerable time, and regenerative charging is still being tested. In a fast-paced mining environment, where haul trucks need to operate efficiently, including driverless trucks relying on advanced robotics, the current limitations of EVs pose challenges.
Considering the race towards achieving net zero emissions by 2030, miners risk facing higher costs if they solely focus on electrification. Halliday suggests that biodiesel can help miners meet their emission goals at a significantly lower cost while allowing them to utilize their existing fleets. This approach also allows for a gradual transition to electric trucks on mining sites.
Halliday still believes in the eventual revolution of EVs or hydrogen-powered trucks, but he acknowledges that the economics of these technologies continue to pose challenges. He believes that major industry players are becoming more realistic about the complexities and risks involved, leading to a longer timeline for adoption and a greater focus on transitional solutions.
Biofuels, depending on the feedstock used, can reduce greenhouse gas emissions by up to 80% compared to conventional diesel. In the aviation industry, where alternative fuel options are limited, sustainable fuels are considered the most viable choice at present. Second-generation biofuels, which use waste products as feedstock, offer a more sustainable alternative to relying on agricultural crops.
The risk for miners lies in replacing their entire mechanical support supply chain when they already have existing fuel infrastructure in place. Halliday aims to transition Ampol’s business gradually from traditional fuels to electric power, supporting customers through the transportation shift.
To facilitate this transition, Ampol is implementing a nationwide EV charging network, with plans for over 300 sites across Australia. The company is set to launch its flagship fast charging site in Pheasants Nest, located on the Hume Highway near Sydney, and is also pursuing the installation of destination chargers in shopping centers, workplaces, and residential areas.
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