❓ A parliamentary question regarding Verve Energy's potential use of biodiesel, including current fuel usage, encouragement of biodiesel alternatives, and the impact on the local biodiesel industry. The Minister confirms trials are underway but subsidies are not.
AnsweredQoN 445Legislative Assembly
QuestionView source ↗
VERVE ENERGY - BIODIESEL FUEL
Before asking my question, I highlight my disappointment with the B+ that was scored by the young tyro from Merredin. We believe that he deserves a much higher score than that. Given that there is strong private sector interest in establishing commercial-scale biodiesel production facilities in Western Australia using local crops such as canola, and given that Verve Energy, formerly Western Power, is one of the state’s largest users of imported fuel oil, or distillate-diesel, I ask - (1) Can the minister please provide the following information - (a) the quantity and value of fuel oil-distillate currently stockpiled by Verve Energy; (b) the quantity and value of distillate consumed in the production of electricity for the south west interconnected system network and other state-controlled electricity networks in WA in 2005-06; and (c) the estimated quantity and value of distillate likely to be used by Verve in 2006-07? (2) Has the minister encouraged Verve and other potential energy suppliers in WA to look to biodiesel as an alternative to imported fuel oil; and, if not, why not? (3) Does he concede that market access to the state-controlled power generators would have the effect of underpinning a local biodiesel industry? (4) Is he prepared to ask Verve Energy to trial the use of local biodiesel? Mr F.M. LOGAN
Before asking my question, I highlight my disappointment with the B+ that was scored by the young tyro from Merredin. We believe that he deserves a much higher score than that. Given that there is strong private sector interest in establishing commercial-scale biodiesel production facilities in Western Australia using local crops such as canola, and given that Verve Energy, formerly Western Power, is one of the state’s largest users of imported fuel oil, or distillate-diesel, I ask - (1) Can the minister please provide the following information - (a) the quantity and value of fuel oil-distillate currently stockpiled by Verve Energy; (b) the quantity and value of distillate consumed in the production of electricity for the south west interconnected system network and other state-controlled electricity networks in WA in 2005-06; and (c) the estimated quantity and value of distillate likely to be used by Verve in 2006-07? (2) Has the minister encouraged Verve and other potential energy suppliers in WA to look to biodiesel as an alternative to imported fuel oil; and, if not, why not? (3) Does he concede that market access to the state-controlled power generators would have the effect of underpinning a local biodiesel industry? (4) Is he prepared to ask Verve Energy to trial the use of local biodiesel? Mr F.M. LOGAN
AnswerView source ↗
I thank the member for some notice of the question. I point out to the member for Stirling that that will be the last time I sit down and have a little chat with him about biodiesel and Verve Energy, because the next thing I know I am asked a question on it! Nevertheless, I will give him an answer! (1) (a) Verve Energy’s oil inventory varies according to the likely requirements of meeting its security of supply obligations. At present, there is approximately 30 kilotons of distillate and light low sulfur fuel oil in stock. The value cannot be released because it is commercially sensitive information. (b) The quantity of liquids consumed in Verve Energy’s plant in 2005-06 will be about 60 kilotons. Again, the value cannot be released because it is commercially sensitive information, and other generators on the SWIS may well use diesel fuel. Outside the Swis, Horizon Power used 40.4 million litres at a cost of $44.3 million, because it effectively has a monopoly to supply energy. (c) The quantities of liquids to be consumed in 2006-07 will vary, depending on the availability of gas. At this stage, it is anticipated that approximately 40 kilotons could be consumed in Verve Energy’s plant. The quantity consumed is expected to decline following the commissioning of additional gas pipeline capacity - that is, stage 4 of the Dampier to Bunbury to Perth pipeline - towards the end of this year. Again, the value cannot be released because it is commercially sensitive information. (2) The member knows the answer to this part of the question because I told him earlier today. Yes, we have encouraged Verve Energy and other potential energy suppliers to look at biodiesel. However, obviously it will be at a commercially appropriate rate. (3) Yes, market access to state-controlled power generators would help, but it is not appropriate to grow an industry such as the biodiesel industry by putting up the fuel costs for Verve. (4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
Given that there is strong private sector interest in establishing commercial-scale biodiesel production facilities in Western Australia using local crops such as canola, and given that Verve Energy, formerly Western Power, is one of the state’s largest users of imported fuel oil, or distillate-diesel, I ask - (1) Can the minister please provide the following information - (a) the quantity and value of fuel oil-distillate currently stockpiled by Verve Energy; (b) the quantity and value of distillate consumed in the production of electricity for the south west interconnected system network and other state-controlled electricity networks in WA in 2005-06; and (c) the estimated quantity and value of distillate likely to be used by Verve in 2006-07? (2) Has the minister encouraged Verve and other potential energy suppliers in WA to look to biodiesel as an alternative to imported fuel oil; and, if not, why not? (3) Does he concede that market access to the state-controlled power generators would have the effect of underpinning a local biodiesel industry? (4) Is he prepared to ask Verve Energy to trial the use of local biodiesel? Mr F.M. LOGAN replied: I thank the member for some notice of the question. I point out to the member for Stirling that that will be the last time I sit down and have a little chat with him about biodiesel and Verve Energy, because the next thing I know I am asked a question on it! Nevertheless, I will give him an answer! (1) (a) Verve Energy’s oil inventory varies according to the likely requirements of meeting its security of supply obligations. At present, there is approximately 30 kilotons of distillate and light low sulfur fuel oil in stock. The value cannot be released because it is commercially sensitive information. (b) The quantity of liquids consumed in Verve Energy’s plant in 2005-06 will be about 60 kilotons. Again, the value cannot be released because it is commercially sensitive information, and other generators on the SWIS may well use diesel fuel. Outside the Swis, Horizon Power used 40.4 million litres at a cost of $44.3 million, because it effectively has a monopoly to supply energy. (c) The quantities of liquids to be consumed in 2006-07 will vary, depending on the availability of gas. At this stage, it is anticipated that approximately 40 kilotons could be consumed in Verve Energy’s plant. The quantity consumed is expected to decline following the commissioning of additional gas pipeline capacity - that is, stage 4 of the Dampier to Bunbury to Perth pipeline - towards the end of this year. Again, the value cannot be released because it is commercially sensitive information. (2) The member knows the answer to this part of the question because I told him earlier today. Yes, we have encouraged Verve Energy and other potential energy suppliers to look at biodiesel. However, obviously it will be at a commercially appropriate rate. (3) Yes, market access to state-controlled power generators would help, but it is not appropriate to grow an industry such as the biodiesel industry by putting up the fuel costs for Verve. (4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
(1) Can the minister please provide the following information - (a) the quantity and value of fuel oil-distillate currently stockpiled by Verve Energy; (b) the quantity and value of distillate consumed in the production of electricity for the south west interconnected system network and other state-controlled electricity networks in WA in 2005-06; and (c) the estimated quantity and value of distillate likely to be used by Verve in 2006-07? (2) Has the minister encouraged Verve and other potential energy suppliers in WA to look to biodiesel as an alternative to imported fuel oil; and, if not, why not? (3) Does he concede that market access to the state-controlled power generators would have the effect of underpinning a local biodiesel industry? (4) Is he prepared to ask Verve Energy to trial the use of local biodiesel? Mr F.M. LOGAN replied: I thank the member for some notice of the question. I point out to the member for Stirling that that will be the last time I sit down and have a little chat with him about biodiesel and Verve Energy, because the next thing I know I am asked a question on it! Nevertheless, I will give him an answer! (1) (a) Verve Energy’s oil inventory varies according to the likely requirements of meeting its security of supply obligations. At present, there is approximately 30 kilotons of distillate and light low sulfur fuel oil in stock. The value cannot be released because it is commercially sensitive information. (b) The quantity of liquids consumed in Verve Energy’s plant in 2005-06 will be about 60 kilotons. Again, the value cannot be released because it is commercially sensitive information, and other generators on the SWIS may well use diesel fuel. Outside the Swis, Horizon Power used 40.4 million litres at a cost of $44.3 million, because it effectively has a monopoly to supply energy. (c) The quantities of liquids to be consumed in 2006-07 will vary, depending on the availability of gas. At this stage, it is anticipated that approximately 40 kilotons could be consumed in Verve Energy’s plant. The quantity consumed is expected to decline following the commissioning of additional gas pipeline capacity - that is, stage 4 of the Dampier to Bunbury to Perth pipeline - towards the end of this year. Again, the value cannot be released because it is commercially sensitive information. (2) The member knows the answer to this part of the question because I told him earlier today. Yes, we have encouraged Verve Energy and other potential energy suppliers to look at biodiesel. However, obviously it will be at a commercially appropriate rate. (3) Yes, market access to state-controlled power generators would help, but it is not appropriate to grow an industry such as the biodiesel industry by putting up the fuel costs for Verve. (4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
(b) the quantity and value of distillate consumed in the production of electricity for the south west interconnected system network and other state-controlled electricity networks in WA in 2005-06; and (c) the estimated quantity and value of distillate likely to be used by Verve in 2006-07?
(c) the estimated quantity and value of distillate likely to be used by Verve in 2006-07?
(3) Does he concede that market access to the state-controlled power generators would have the effect of underpinning a local biodiesel industry? (4) Is he prepared to ask Verve Energy to trial the use of local biodiesel? Mr F.M. LOGAN replied: I thank the member for some notice of the question. I point out to the member for Stirling that that will be the last time I sit down and have a little chat with him about biodiesel and Verve Energy, because the next thing I know I am asked a question on it! Nevertheless, I will give him an answer! (1) (a) Verve Energy’s oil inventory varies according to the likely requirements of meeting its security of supply obligations. At present, there is approximately 30 kilotons of distillate and light low sulfur fuel oil in stock. The value cannot be released because it is commercially sensitive information. (b) The quantity of liquids consumed in Verve Energy’s plant in 2005-06 will be about 60 kilotons. Again, the value cannot be released because it is commercially sensitive information, and other generators on the SWIS may well use diesel fuel. Outside the Swis, Horizon Power used 40.4 million litres at a cost of $44.3 million, because it effectively has a monopoly to supply energy. (c) The quantities of liquids to be consumed in 2006-07 will vary, depending on the availability of gas. At this stage, it is anticipated that approximately 40 kilotons could be consumed in Verve Energy’s plant. The quantity consumed is expected to decline following the commissioning of additional gas pipeline capacity - that is, stage 4 of the Dampier to Bunbury to Perth pipeline - towards the end of this year. Again, the value cannot be released because it is commercially sensitive information. (2) The member knows the answer to this part of the question because I told him earlier today. Yes, we have encouraged Verve Energy and other potential energy suppliers to look at biodiesel. However, obviously it will be at a commercially appropriate rate. (3) Yes, market access to state-controlled power generators would help, but it is not appropriate to grow an industry such as the biodiesel industry by putting up the fuel costs for Verve. (4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
(4) Is he prepared to ask Verve Energy to trial the use of local biodiesel? Mr F.M. LOGAN replied: I thank the member for some notice of the question. I point out to the member for Stirling that that will be the last time I sit down and have a little chat with him about biodiesel and Verve Energy, because the next thing I know I am asked a question on it! Nevertheless, I will give him an answer! (1) (a) Verve Energy’s oil inventory varies according to the likely requirements of meeting its security of supply obligations. At present, there is approximately 30 kilotons of distillate and light low sulfur fuel oil in stock. The value cannot be released because it is commercially sensitive information. (b) The quantity of liquids consumed in Verve Energy’s plant in 2005-06 will be about 60 kilotons. Again, the value cannot be released because it is commercially sensitive information, and other generators on the SWIS may well use diesel fuel. Outside the Swis, Horizon Power used 40.4 million litres at a cost of $44.3 million, because it effectively has a monopoly to supply energy. (c) The quantities of liquids to be consumed in 2006-07 will vary, depending on the availability of gas. At this stage, it is anticipated that approximately 40 kilotons could be consumed in Verve Energy’s plant. The quantity consumed is expected to decline following the commissioning of additional gas pipeline capacity - that is, stage 4 of the Dampier to Bunbury to Perth pipeline - towards the end of this year. Again, the value cannot be released because it is commercially sensitive information. (2) The member knows the answer to this part of the question because I told him earlier today. Yes, we have encouraged Verve Energy and other potential energy suppliers to look at biodiesel. However, obviously it will be at a commercially appropriate rate. (3) Yes, market access to state-controlled power generators would help, but it is not appropriate to grow an industry such as the biodiesel industry by putting up the fuel costs for Verve. (4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
Mr F.M. LOGAN replied: I thank the member for some notice of the question. I point out to the member for Stirling that that will be the last time I sit down and have a little chat with him about biodiesel and Verve Energy, because the next thing I know I am asked a question on it! Nevertheless, I will give him an answer! (1) (a) Verve Energy’s oil inventory varies according to the likely requirements of meeting its security of supply obligations. At present, there is approximately 30 kilotons of distillate and light low sulfur fuel oil in stock. The value cannot be released because it is commercially sensitive information. (b) The quantity of liquids consumed in Verve Energy’s plant in 2005-06 will be about 60 kilotons. Again, the value cannot be released because it is commercially sensitive information, and other generators on the SWIS may well use diesel fuel. Outside the Swis, Horizon Power used 40.4 million litres at a cost of $44.3 million, because it effectively has a monopoly to supply energy. (c) The quantities of liquids to be consumed in 2006-07 will vary, depending on the availability of gas. At this stage, it is anticipated that approximately 40 kilotons could be consumed in Verve Energy’s plant. The quantity consumed is expected to decline following the commissioning of additional gas pipeline capacity - that is, stage 4 of the Dampier to Bunbury to Perth pipeline - towards the end of this year. Again, the value cannot be released because it is commercially sensitive information. (2) The member knows the answer to this part of the question because I told him earlier today. Yes, we have encouraged Verve Energy and other potential energy suppliers to look at biodiesel. However, obviously it will be at a commercially appropriate rate. (3) Yes, market access to state-controlled power generators would help, but it is not appropriate to grow an industry such as the biodiesel industry by putting up the fuel costs for Verve. (4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
I thank the member for some notice of the question. I point out to the member for Stirling that that will be the last time I sit down and have a little chat with him about biodiesel and Verve Energy, because the next thing I know I am asked a question on it! Nevertheless, I will give him an answer! (1) (a) Verve Energy’s oil inventory varies according to the likely requirements of meeting its security of supply obligations. At present, there is approximately 30 kilotons of distillate and light low sulfur fuel oil in stock. The value cannot be released because it is commercially sensitive information. (b) The quantity of liquids consumed in Verve Energy’s plant in 2005-06 will be about 60 kilotons. Again, the value cannot be released because it is commercially sensitive information, and other generators on the SWIS may well use diesel fuel. Outside the Swis, Horizon Power used 40.4 million litres at a cost of $44.3 million, because it effectively has a monopoly to supply energy. (c) The quantities of liquids to be consumed in 2006-07 will vary, depending on the availability of gas. At this stage, it is anticipated that approximately 40 kilotons could be consumed in Verve Energy’s plant. The quantity consumed is expected to decline following the commissioning of additional gas pipeline capacity - that is, stage 4 of the Dampier to Bunbury to Perth pipeline - towards the end of this year. Again, the value cannot be released because it is commercially sensitive information. (2) The member knows the answer to this part of the question because I told him earlier today. Yes, we have encouraged Verve Energy and other potential energy suppliers to look at biodiesel. However, obviously it will be at a commercially appropriate rate. (3) Yes, market access to state-controlled power generators would help, but it is not appropriate to grow an industry such as the biodiesel industry by putting up the fuel costs for Verve. (4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
(1) (a) Verve Energy’s oil inventory varies according to the likely requirements of meeting its security of supply obligations. At present, there is approximately 30 kilotons of distillate and light low sulfur fuel oil in stock. The value cannot be released because it is commercially sensitive information. (b) The quantity of liquids consumed in Verve Energy’s plant in 2005-06 will be about 60 kilotons. Again, the value cannot be released because it is commercially sensitive information, and other generators on the SWIS may well use diesel fuel. Outside the Swis, Horizon Power used 40.4 million litres at a cost of $44.3 million, because it effectively has a monopoly to supply energy. (c) The quantities of liquids to be consumed in 2006-07 will vary, depending on the availability of gas. At this stage, it is anticipated that approximately 40 kilotons could be consumed in Verve Energy’s plant. The quantity consumed is expected to decline following the commissioning of additional gas pipeline capacity - that is, stage 4 of the Dampier to Bunbury to Perth pipeline - towards the end of this year. Again, the value cannot be released because it is commercially sensitive information. (2) The member knows the answer to this part of the question because I told him earlier today. Yes, we have encouraged Verve Energy and other potential energy suppliers to look at biodiesel. However, obviously it will be at a commercially appropriate rate. (3) Yes, market access to state-controlled power generators would help, but it is not appropriate to grow an industry such as the biodiesel industry by putting up the fuel costs for Verve. (4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
(c) The quantities of liquids to be consumed in 2006-07 will vary, depending on the availability of gas. At this stage, it is anticipated that approximately 40 kilotons could be consumed in Verve Energy’s plant. The quantity consumed is expected to decline following the commissioning of additional gas pipeline capacity - that is, stage 4 of the Dampier to Bunbury to Perth pipeline - towards the end of this year. Again, the value cannot be released because it is commercially sensitive information.
(3) Yes, market access to state-controlled power generators would help, but it is not appropriate to grow an industry such as the biodiesel industry by putting up the fuel costs for Verve. (4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
(4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
Given that there is strong private sector interest in establishing commercial-scale biodiesel production facilities in Western Australia using local crops such as canola, and given that Verve Energy, formerly Western Power, is one of the state’s largest users of imported fuel oil, or distillate-diesel, I ask - (1) Can the minister please provide the following information - (a) the quantity and value of fuel oil-distillate currently stockpiled by Verve Energy; (b) the quantity and value of distillate consumed in the production of electricity for the south west interconnected system network and other state-controlled electricity networks in WA in 2005-06; and (c) the estimated quantity and value of distillate likely to be used by Verve in 2006-07? (2) Has the minister encouraged Verve and other potential energy suppliers in WA to look to biodiesel as an alternative to imported fuel oil; and, if not, why not? (3) Does he concede that market access to the state-controlled power generators would have the effect of underpinning a local biodiesel industry? (4) Is he prepared to ask Verve Energy to trial the use of local biodiesel? Mr F.M. LOGAN replied: I thank the member for some notice of the question. I point out to the member for Stirling that that will be the last time I sit down and have a little chat with him about biodiesel and Verve Energy, because the next thing I know I am asked a question on it! Nevertheless, I will give him an answer! (1) (a) Verve Energy’s oil inventory varies according to the likely requirements of meeting its security of supply obligations. At present, there is approximately 30 kilotons of distillate and light low sulfur fuel oil in stock. The value cannot be released because it is commercially sensitive information. (b) The quantity of liquids consumed in Verve Energy’s plant in 2005-06 will be about 60 kilotons. Again, the value cannot be released because it is commercially sensitive information, and other generators on the SWIS may well use diesel fuel. Outside the Swis, Horizon Power used 40.4 million litres at a cost of $44.3 million, because it effectively has a monopoly to supply energy. (c) The quantities of liquids to be consumed in 2006-07 will vary, depending on the availability of gas. At this stage, it is anticipated that approximately 40 kilotons could be consumed in Verve Energy’s plant. The quantity consumed is expected to decline following the commissioning of additional gas pipeline capacity - that is, stage 4 of the Dampier to Bunbury to Perth pipeline - towards the end of this year. Again, the value cannot be released because it is commercially sensitive information. (2) The member knows the answer to this part of the question because I told him earlier today. Yes, we have encouraged Verve Energy and other potential energy suppliers to look at biodiesel. However, obviously it will be at a commercially appropriate rate. (3) Yes, market access to state-controlled power generators would help, but it is not appropriate to grow an industry such as the biodiesel industry by putting up the fuel costs for Verve. (4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
(1) Can the minister please provide the following information - (a) the quantity and value of fuel oil-distillate currently stockpiled by Verve Energy; (b) the quantity and value of distillate consumed in the production of electricity for the south west interconnected system network and other state-controlled electricity networks in WA in 2005-06; and (c) the estimated quantity and value of distillate likely to be used by Verve in 2006-07? (2) Has the minister encouraged Verve and other potential energy suppliers in WA to look to biodiesel as an alternative to imported fuel oil; and, if not, why not? (3) Does he concede that market access to the state-controlled power generators would have the effect of underpinning a local biodiesel industry? (4) Is he prepared to ask Verve Energy to trial the use of local biodiesel? Mr F.M. LOGAN replied: I thank the member for some notice of the question. I point out to the member for Stirling that that will be the last time I sit down and have a little chat with him about biodiesel and Verve Energy, because the next thing I know I am asked a question on it! Nevertheless, I will give him an answer! (1) (a) Verve Energy’s oil inventory varies according to the likely requirements of meeting its security of supply obligations. At present, there is approximately 30 kilotons of distillate and light low sulfur fuel oil in stock. The value cannot be released because it is commercially sensitive information. (b) The quantity of liquids consumed in Verve Energy’s plant in 2005-06 will be about 60 kilotons. Again, the value cannot be released because it is commercially sensitive information, and other generators on the SWIS may well use diesel fuel. Outside the Swis, Horizon Power used 40.4 million litres at a cost of $44.3 million, because it effectively has a monopoly to supply energy. (c) The quantities of liquids to be consumed in 2006-07 will vary, depending on the availability of gas. At this stage, it is anticipated that approximately 40 kilotons could be consumed in Verve Energy’s plant. The quantity consumed is expected to decline following the commissioning of additional gas pipeline capacity - that is, stage 4 of the Dampier to Bunbury to Perth pipeline - towards the end of this year. Again, the value cannot be released because it is commercially sensitive information. (2) The member knows the answer to this part of the question because I told him earlier today. Yes, we have encouraged Verve Energy and other potential energy suppliers to look at biodiesel. However, obviously it will be at a commercially appropriate rate. (3) Yes, market access to state-controlled power generators would help, but it is not appropriate to grow an industry such as the biodiesel industry by putting up the fuel costs for Verve. (4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
(b) the quantity and value of distillate consumed in the production of electricity for the south west interconnected system network and other state-controlled electricity networks in WA in 2005-06; and (c) the estimated quantity and value of distillate likely to be used by Verve in 2006-07?
(c) the estimated quantity and value of distillate likely to be used by Verve in 2006-07?
(3) Does he concede that market access to the state-controlled power generators would have the effect of underpinning a local biodiesel industry? (4) Is he prepared to ask Verve Energy to trial the use of local biodiesel? Mr F.M. LOGAN replied: I thank the member for some notice of the question. I point out to the member for Stirling that that will be the last time I sit down and have a little chat with him about biodiesel and Verve Energy, because the next thing I know I am asked a question on it! Nevertheless, I will give him an answer! (1) (a) Verve Energy’s oil inventory varies according to the likely requirements of meeting its security of supply obligations. At present, there is approximately 30 kilotons of distillate and light low sulfur fuel oil in stock. The value cannot be released because it is commercially sensitive information. (b) The quantity of liquids consumed in Verve Energy’s plant in 2005-06 will be about 60 kilotons. Again, the value cannot be released because it is commercially sensitive information, and other generators on the SWIS may well use diesel fuel. Outside the Swis, Horizon Power used 40.4 million litres at a cost of $44.3 million, because it effectively has a monopoly to supply energy. (c) The quantities of liquids to be consumed in 2006-07 will vary, depending on the availability of gas. At this stage, it is anticipated that approximately 40 kilotons could be consumed in Verve Energy’s plant. The quantity consumed is expected to decline following the commissioning of additional gas pipeline capacity - that is, stage 4 of the Dampier to Bunbury to Perth pipeline - towards the end of this year. Again, the value cannot be released because it is commercially sensitive information. (2) The member knows the answer to this part of the question because I told him earlier today. Yes, we have encouraged Verve Energy and other potential energy suppliers to look at biodiesel. However, obviously it will be at a commercially appropriate rate. (3) Yes, market access to state-controlled power generators would help, but it is not appropriate to grow an industry such as the biodiesel industry by putting up the fuel costs for Verve. (4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
(4) Is he prepared to ask Verve Energy to trial the use of local biodiesel? Mr F.M. LOGAN replied: I thank the member for some notice of the question. I point out to the member for Stirling that that will be the last time I sit down and have a little chat with him about biodiesel and Verve Energy, because the next thing I know I am asked a question on it! Nevertheless, I will give him an answer! (1) (a) Verve Energy’s oil inventory varies according to the likely requirements of meeting its security of supply obligations. At present, there is approximately 30 kilotons of distillate and light low sulfur fuel oil in stock. The value cannot be released because it is commercially sensitive information. (b) The quantity of liquids consumed in Verve Energy’s plant in 2005-06 will be about 60 kilotons. Again, the value cannot be released because it is commercially sensitive information, and other generators on the SWIS may well use diesel fuel. Outside the Swis, Horizon Power used 40.4 million litres at a cost of $44.3 million, because it effectively has a monopoly to supply energy. (c) The quantities of liquids to be consumed in 2006-07 will vary, depending on the availability of gas. At this stage, it is anticipated that approximately 40 kilotons could be consumed in Verve Energy’s plant. The quantity consumed is expected to decline following the commissioning of additional gas pipeline capacity - that is, stage 4 of the Dampier to Bunbury to Perth pipeline - towards the end of this year. Again, the value cannot be released because it is commercially sensitive information. (2) The member knows the answer to this part of the question because I told him earlier today. Yes, we have encouraged Verve Energy and other potential energy suppliers to look at biodiesel. However, obviously it will be at a commercially appropriate rate. (3) Yes, market access to state-controlled power generators would help, but it is not appropriate to grow an industry such as the biodiesel industry by putting up the fuel costs for Verve. (4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
Mr F.M. LOGAN replied: I thank the member for some notice of the question. I point out to the member for Stirling that that will be the last time I sit down and have a little chat with him about biodiesel and Verve Energy, because the next thing I know I am asked a question on it! Nevertheless, I will give him an answer! (1) (a) Verve Energy’s oil inventory varies according to the likely requirements of meeting its security of supply obligations. At present, there is approximately 30 kilotons of distillate and light low sulfur fuel oil in stock. The value cannot be released because it is commercially sensitive information. (b) The quantity of liquids consumed in Verve Energy’s plant in 2005-06 will be about 60 kilotons. Again, the value cannot be released because it is commercially sensitive information, and other generators on the SWIS may well use diesel fuel. Outside the Swis, Horizon Power used 40.4 million litres at a cost of $44.3 million, because it effectively has a monopoly to supply energy. (c) The quantities of liquids to be consumed in 2006-07 will vary, depending on the availability of gas. At this stage, it is anticipated that approximately 40 kilotons could be consumed in Verve Energy’s plant. The quantity consumed is expected to decline following the commissioning of additional gas pipeline capacity - that is, stage 4 of the Dampier to Bunbury to Perth pipeline - towards the end of this year. Again, the value cannot be released because it is commercially sensitive information. (2) The member knows the answer to this part of the question because I told him earlier today. Yes, we have encouraged Verve Energy and other potential energy suppliers to look at biodiesel. However, obviously it will be at a commercially appropriate rate. (3) Yes, market access to state-controlled power generators would help, but it is not appropriate to grow an industry such as the biodiesel industry by putting up the fuel costs for Verve. (4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
I thank the member for some notice of the question. I point out to the member for Stirling that that will be the last time I sit down and have a little chat with him about biodiesel and Verve Energy, because the next thing I know I am asked a question on it! Nevertheless, I will give him an answer! (1) (a) Verve Energy’s oil inventory varies according to the likely requirements of meeting its security of supply obligations. At present, there is approximately 30 kilotons of distillate and light low sulfur fuel oil in stock. The value cannot be released because it is commercially sensitive information. (b) The quantity of liquids consumed in Verve Energy’s plant in 2005-06 will be about 60 kilotons. Again, the value cannot be released because it is commercially sensitive information, and other generators on the SWIS may well use diesel fuel. Outside the Swis, Horizon Power used 40.4 million litres at a cost of $44.3 million, because it effectively has a monopoly to supply energy. (c) The quantities of liquids to be consumed in 2006-07 will vary, depending on the availability of gas. At this stage, it is anticipated that approximately 40 kilotons could be consumed in Verve Energy’s plant. The quantity consumed is expected to decline following the commissioning of additional gas pipeline capacity - that is, stage 4 of the Dampier to Bunbury to Perth pipeline - towards the end of this year. Again, the value cannot be released because it is commercially sensitive information. (2) The member knows the answer to this part of the question because I told him earlier today. Yes, we have encouraged Verve Energy and other potential energy suppliers to look at biodiesel. However, obviously it will be at a commercially appropriate rate. (3) Yes, market access to state-controlled power generators would help, but it is not appropriate to grow an industry such as the biodiesel industry by putting up the fuel costs for Verve. (4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
(1) (a) Verve Energy’s oil inventory varies according to the likely requirements of meeting its security of supply obligations. At present, there is approximately 30 kilotons of distillate and light low sulfur fuel oil in stock. The value cannot be released because it is commercially sensitive information. (b) The quantity of liquids consumed in Verve Energy’s plant in 2005-06 will be about 60 kilotons. Again, the value cannot be released because it is commercially sensitive information, and other generators on the SWIS may well use diesel fuel. Outside the Swis, Horizon Power used 40.4 million litres at a cost of $44.3 million, because it effectively has a monopoly to supply energy. (c) The quantities of liquids to be consumed in 2006-07 will vary, depending on the availability of gas. At this stage, it is anticipated that approximately 40 kilotons could be consumed in Verve Energy’s plant. The quantity consumed is expected to decline following the commissioning of additional gas pipeline capacity - that is, stage 4 of the Dampier to Bunbury to Perth pipeline - towards the end of this year. Again, the value cannot be released because it is commercially sensitive information. (2) The member knows the answer to this part of the question because I told him earlier today. Yes, we have encouraged Verve Energy and other potential energy suppliers to look at biodiesel. However, obviously it will be at a commercially appropriate rate. (3) Yes, market access to state-controlled power generators would help, but it is not appropriate to grow an industry such as the biodiesel industry by putting up the fuel costs for Verve. (4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
(c) The quantities of liquids to be consumed in 2006-07 will vary, depending on the availability of gas. At this stage, it is anticipated that approximately 40 kilotons could be consumed in Verve Energy’s plant. The quantity consumed is expected to decline following the commissioning of additional gas pipeline capacity - that is, stage 4 of the Dampier to Bunbury to Perth pipeline - towards the end of this year. Again, the value cannot be released because it is commercially sensitive information.
(3) Yes, market access to state-controlled power generators would help, but it is not appropriate to grow an industry such as the biodiesel industry by putting up the fuel costs for Verve. (4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
(4) Verve is already trialling the use of biodiesel. With the quantities that I have just mentioned, it would help, but it certainly would not underpin the whole industry. One or two companies might benefit from it. I do not believe that jacking up and subsidising the price of fuel to Verve Energy, which is what would happen, is the right way to help the industry. However, as the member knows, I am encouraging Verve to use biodiesel as an alternative.
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