OIL giant BP has approved a further big-ticket upgrade of its Kwinana oil refinery aimed at producing cleaner fuel for WA motorists as part of a major three-year investment program at the site.
The $65 million G10 diesel capability upgrade will ensure that the sulphur content of all diesel fuel produced at the Kwinana refinery does not exceed 10 parts per million (ppm).
The upgrade reflects federal regulations, which came into force in January last year, and which have progressively cut the allowable sulphur content of diesel from 5,000ppm in 2000.
Though the upgrade will actually increase sulphur dioxide emissions by 6.4 per cent due at the plant due to increased throughput, the Environmental Protection Authority declined to assess the proposal, which it said could be managed under standard works approvals for the plant.
A BP spokesman told WA Business News that, despite the increase in sulphur dioxide emissions, total plant emissions would remain within the plant’s licence limits.
The upgrade would also cut downstream sulphur dioxide emissions from diesel vehicles by around 100 tonnes a year compared to existing levels.
“Cleaner diesel reduces tailpipe emissions and enables newer, more efficient engine technologies,” the spokesman said.
The upgrade also reflected the importance of the Kwinana refinery to BP’s activities in Australia and broader WA industry, he said.
Opened in 1955, the refinery is Australia’s biggest, producing 138,000 barrels of fuel a day.
The three-year enhancement program included the installation of a naphtha splitter and upgrade of the residue-cracking unit in 2008, a tie in to the Kwinana Water Reclamation Plant and an upgrade of onsite buildings last year.
“By the end of 2010, BP will have invested around $270 million over three years in upgrades, new equipment and environmental improvements,” BP’s spokesman said.
BP intends to commence the G10 upgrade in the December quarter, and begin commissioning in second quarter of next year.
