ATSE/Fortescue report looks at weaning heavy industry off diesel fuels

A new report released by the Australian Academy of Technological Sciences and Engineering (ATSE) in partnership with resources company Fortescue, recommends changes to policy and tax to help reduce diesel fuel use in the mining, road freight, agriculture, fisheries and forestry industries.

According to a statement from scientific and technical body ATSE on Wednesday, there is an “urgent need” to reduce diesel use, and measures including “an independent review to reform financial incentives” are needed.

CEO Dr Kylie Walker said that heavy industry needed to be fuelled differently if Australia is to meet decarbonisation targets.

“By encouraging the application of mature clean fuel technologies, investing in fast-tracking clean tech in development, reducing the cost of green alternatives and increasing the cost of diesel in a targeted and balanced way, Australia can achieve its industrial decarbonisation,” said Walker.

“Early stage research and development initiatives are also crucial in supporting the transition away from diesel.”

Dr Larry Marshall, a former CSIRO CEO and a current ATSE Fellow and Fortescue Board Member, added that emerging clean tech needed a system that rewards “smarter, cleaner choices” and that the federal government needed to change settings and incentives.

“Heavy Industry wants to transition to cleaner fuels, but the current policy settings make it harder than it should be,” Marshall said.  

“Right now, the Fuel Tax Credit scheme effectively subsidises burning diesel, while companies that invest in clean alternatives face higher costs especially in this transition period. That imbalance holds back innovation and locks in emissions,

The report can be accessed here. Its five key recommendations are reproduced below. 

• Conduct a national technical and economic assessment of decarbonisation pathways and evaluate how prepared key sub-sectors are for the transition
• Review the financial incentives supporting diesel use
• Develop a coordinated future diesel strategy that includes a quantitative assessment of demand and supply across alternative energy scenarios.
• Invest in comprehensive infrastructure to support the clean energy transition
• Provide targeted support across the technology maturity spectrum

Picture: credit John (CC BY-SA 2.5)

Further reading

ATSE urges net zero target to be brought forward 15 years

ATSE calls for swift action on energy transition

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