United Petroleum tried to stop Viva Energy from building a $43 million hydrogen refuelling station due to concerns about losing market share, according to court documents.
The proposed hydrogen station, located at 90 Refinery Rd, is approximately 1km away from an existing United Petroleum service station.
Sunnyvale Pty Ltd and Anor, both part of the United Petroleum group, attempted to prevent Viva from overturning restrictive covenants that prohibited construction on a portion of Refinery Rd land.
Documents from the Supreme Court reveal that Viva filed an application to modify or remove four restrictive covenants affecting a section of land known as 90 Refinery Road, Corio, Victoria.
These covenants allowed only the construction of a house, school, church, or hall on the site, prohibiting other types of buildings. Viva sought the modification to build a fast-charging, public hydrogen station on the land.
The United Petroleum companies opposed the application, leading to a trial before Justice Patricia Matthews.
Economic expert Dr Luke Wainscoat, representing Sunnyvale Pty Ltd and Anor, testified that the United Petroleum Corio service station would experience a decline in its market share and face “increased competition” if Viva was permitted to build its hydrogen centre on the land.
Dr Wainscoat also stated that Viva’s proposed service station development would reduce future cash flows for the United Petroleum tenant, impacting their willingness to pay the maximum rent.
A property valuer, also working on behalf of the United Petroleum companies, claimed that the land’s market value could decrease by up to $2.2 million if Viva established a service station offering hydrogen, diesel, and electric vehicle charging in close proximity.
Viva’s lawyers argued that their main objective was to develop a vehicle refuelling facility that utilized alternative fuels.
In her ruling, Justice Matthews described the case as “unusual.” She acknowledged that the covenants were initially put in place to preserve and protect a residential area, despite the fact that the area was not residential.
Justice Matthews ultimately lifted the covenants, allowing Viva to proceed with construction on the site.
A spokesperson for Viva Energy expressed satisfaction with the court’s decision and reiterated their commitment to establishing a new energies service station in Geelong, featuring hydrogen refuelling and EV charging, in order to contribute to emissions reduction in the heavy vehicle sector.
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