Grants Offered to Shore Up Diesel Storage in Australia

Grants Offered to Shore Up Diesel Storage in Australia
Australia's Energy Minister Angus Taylor speaks during question time in the House of Representatives at Parliament House in Canberra, Australia. on July 4, 2019. (Tracey Nearmy/Getty Images)

The Morrison government says a plan to boost onshore diesel storage will create about 1000 jobs and provide greater fuel security.

Energy Minister Angus Taylor on January 8 announced the opening of applications for a program offering up to $200 million in competitive grants over three years to support the construction of 780 megalitres of diesel storage.

The broader plan also includes a production payment for the local refining sector and a minimum stockholding obligation for key transport fuels.

"Fuel, and diesel in particular, is the lifeblood of so many sectors in our economy, including our farmers, truckies and tradies," Taylor said.

"It is essential that we get the right balance and location of our onshore stockholdings."

Successful projects will receive grants of up to $33.3 million, with the government covering up to 50 percent of total eligible project spending.

Projects are expected to begin construction from mid-2021 and be completed within three years.

The program will also assist industry in meeting the new minimum stockholding obligation by 2024.

The obligation will require industry to hold about 40 percent more diesel than current levels.

Applications open on January 11 and will close on February 22.

Paul Osborne in Canberra