Australian refiner Ampol eyes hydrogen, Tesla tie-up for net zero by 2040

London, (Quantum Commodity Intelligence) - Australia's biggest fuel suppler Ampol will spend A$100 million ($78 million) over the next five years to decarbonise and help meet its goal to be carbon neutral on scope 1 and 2 emissions by 2040.

The refiner, which received a government bail-out earlier this week in excess of $800 million, said it would work with Tesla to install charging facilities at some of its stations, tie up with Fusion Green Fuel to trial a green hydrogen plant at its Brisbane refinery and invest in solar power.

Production of green hydrogen will reach just 1.5 mt a year from the demonstration plant, far less than the 30 mt a year the company produces from naphtha at its Lytton refinery, according to Reuters.

Formerly known as Caltex Australia, the company received a bail out to keep its Lytton refinery operational for at least the next six years after a collapse in fuel demand put the company – which owns one of the country's two refiners – in financial distress.

The $100 million investment represents less than 10% of the company's total investment plan, according to reports, and will help it meet its goal to use 40% of renewable energy by 2025 and 50% by 2030.

The goal to become carbon neutral by 2040 does not include scope 3 emissions – which is emissions of greenhouse gases by use of its goods and services, although it is questionable whether Ampol's Lytton refinery will be operational by then.

Australia, owing to its mining and LNG industry, is one of the world's biggest emitters per capita, putting the government under pressure to show how it is reducing its overall carbon footprint ahead of climate talks later this year in Glasgow, UK.

Last month, Glencore tied up with Chinese research and technology providers to roll out carbon capture and technology at a coal-fired power station in a bid to reduce emissions.