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Saunders awarded $42 million contract on bp biofuels hub at Kwinana

Manufacturing News

Saunders International has announced it has won a $42 million engineering, procurement and construction (EPC) contract with bp on tank refurbishment and modification services.

According to a statement by the engineering and construction company to the ASX on Monday, the contract is part of bp’s Kwinana Renewable Fuels project, and has a scope involving 25 tanks being repurposed for feedstock or biofuels storage.

Saunders said it expects to begin work next month.

Mark Benson, Saunders’ CEO, said, “This win is particularly pleasing as it’s the first of its kind globally for bp and a first for Australia. 

“We’re excited to help bp repurpose the former Kwinana oil refinery so it’s future ready.”

Kwinana is one of five biorefinery projects bp has planned globally, and the company plans to reutilise some infrastructure at its Kwinana oil refinery site to produce lower-carbon fuel products for aviation and heavy industry. It is subject to regulatory and State government approvals.

Bp has announced ambitions to be producing 50,000 barrels per day of sustainable aviation fuel (SAF) and HVO (Hydrotreated Vegetable Oil, AKA as renewable diesel) per day by 2030. 

It aims to be making SAF and biodiesel from bio feedstocks at Kwinana by 2026.

Picture: credit bp

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