The Storage of Ethanol Fuel. The Pros and Cons.

high performance fuel - Ethanol fuel

FIRST NSW and Queensland, then the nation – after a rocky start, ethanol fuels are back in the headlines and in the fuel pumps with more legislative support than ever across Australia.

high performance fuel - Ethanol fuel

Both Queensland and NSW made announcements around the issue in December, and in February North Queensland MP Bob Katter brought the issue to Federal Parliament with his Renewable Fuel Bill 2016, which proposes that all petrol sold nationwide should contain a minimum 5 per cent ethanol from 2019.

In Queensland, a 3 per cent ethanol mandate will take effect in January 2017, increasing to 4 per cent in July 2018, and in NSW the government has announced reforms to increase compliance with its 6 per cent mandate, introduced in 2007.

The changes mean Australia is following in the footsteps of much of the developed world – so what are the lessons we can learn from international experience? What will the growth in biofuel mean for business, and what’s the best way to prepare?

Ethanol in petrol – it’s not new
The first surprise is that ethanol-blended fuel is not new.

It’s as old as the automobile, with the original Model T Ford designed to run on either ethanol or gasoline.

In fact, Henry Ford believed biofuels would eventually become America’s primary fuel source, and as early as 1925 he was paving the way.

His dream was put on hold with the economic crisis affecting farming, followed by the Great Depression, and later models lost the ethanol capacity.

However blends continued to be used at various times and in the USA the biofuel came to the fore again when leaded petrol was phased out in the 1970s, and the search was on for an oxygenate to replace the octane lost in the process.

Initially methyl t-butyl ether (MTBE) was a popular additive, until serious groundwater contamination issues led to the search for a new and easily produced alternative, and ethanol fit all the criteria.

Easily made from corn and other plants it has a high octane content and is easy to transport safely.

In the United States, virtually all on-road petrol now contains ethanol in concentrations from 10-85 per cent.

In Australia, the transition from leaded petrol happened in the early 2000s, and with the introduction of the National Standards for Fuel Quality in 2002 the shift towards a cleaner burning fuel began.

So far uptake has been patchy – Shell withdrew E10 from sale at 63 service stations in Victoria in 2011 because of poor demand- but the recent flurry of activity suggests Australia has well and truly entered a new era when it comes to biofuels on our roads.

Caltex introduced an E85 blend as part of an agreement with Commodore, but Holden later dropped the renewable fuel compatibility and production was scaled back due to poor demand.

THE GOOD

  • There’s plenty for motorists to like about E10 fuel.
  • It’s cheaper at the pump, and as an oxygenate it reduces emissions from petrol, so it’s good for our air quality.
  • It’s popular with politicians on an environmental basis because it reduces oil consumption, while others have argued it will provide a new key market and better prices for grain and sugar growers and boost our fuel security with a new, locally made fuel alternative.

THE BAD

On the downside, there are a few key issues that could mean extra costs for business if they’re not addressed early.

  • Poorer fuel economy:

Ethanol has about 30 per cent less energy than petrol, which means less miles to the tank.

For the average consumer this means they’ll need to fill up more frequently, because they’ll get 3-4 per cent less mileage – probably costing a couple of hundred dollars a year extra, which is hopefully partly offset by the fuel’s lower retail price.

However for business, particularly fleet operators, the extra costs can be significant.

Fortunately one mitigating factor here is the better fuel efficiency of modern vehicles, many of which are designed to operate with fuel blends.

  • Material damage:

When ethanol comes into contact with seals, rubber lines, plastic and polymer it dissolves them.

This is a particular concern for small engines, and companies that use fuel for small equipment like mowers, trimmers and edgers.

For two-stroke engines that need lubrication, the extra water content in ethanol blends (because ethanol absorbs water) can cause catastrophic engine damage.

In the United States the implementation of the ethanol mandate and the widespread use of blends with a higher percentage of ethanol, like E15, coincided with a sharp uptake in demand for small engine repairers.

Small engine manufacturers are now warning people not to use blends higher than E10 in small engines, and the issue has become such a concern that it’s a major aspect of the congressional debate over whether to legislate for a higher percentage of ethanol in all fuel.

  • Water issues and phase separation

The extra water absorption capacity of ethanol and ethanol blends is a serious concern for businesses worried about the five or six figure capital cost of fuel storage systems.

Storing ethanol correctly means making adjustments – as a rule, ethanol blends have a storage life of as little as 28 days compared with as long as two years for regular petrol.

A major issue is phase separation, which is the separation of the water-alcohol layer from the fuel.

Petroleum can absorb a limited amount of water.

Ethanol can absorb more.If the petrol’s absorption limit is exceeded, the alcohol will drop out of the fuel, leaving a layer of ethanol-rich water beneath the petrol.

The process causes major problems because it strips the petrol of its octane value, meaning it may not burn properly – a serious problem for mission critical operations.

There’s also the risk that if the engine burns through the fuel layer and draws from the ethanol and water mix, serious valve and engine damage can occur.

THE UGLY

Corrosion….

For business, though, the primary concern in the switch to ethanol is correct storage.

Because ethanol attracts water, tanks become corroded through exposure to water and the usual rusting processes.

However a second problem occurs because ethanol provides an excellent food for microbes, and when they consume the fuel they produce acetic acid that vaporises and corrodes parts both above and below the fuel line.

Experience shows that if there’s corrosion above the fuel line in tanks storing ethanol blends, there’s likely to be even worse damage below, potentially posing serious environmental and safety risks as well as a threat to the bottom line through fuel loss.

It’s these issues that have caused concern among small service station operators worried about the need to upgrade infrastructure and possibly replace tanks to deal with the new mandates.

The Solutions – Survive and Thrive

  • Protecting Engines

If your business is a major user of small engines or petrol-powered equipment, you can avoid the corrosion of rubber parts and engine exposed to high ethanol blends by draining fuel tanks before storing your tools, to minimise exposure.If you’re using ethanol blends in small engines you can also treat the fuel with a multi-function protectant which creates a boundary layer between the fuel and the engine parts.

  • Maintaining Fuel Integrity

Anyone storing significant amounts of biofuel will be affected by phase separation. Again, as well as ensuring your tank and fittings are appropriate for keeping your fuel fresh and avoiding reactions, a fuel treatment is a good option.Look for one that provides detergency and improves the fuel’s ability to absorb water (delaying separation).

  • Watching for Water Damage

Flowing on from that, check tanks regularly for water (at least once a month). A good water finding paste makes this easy, and any water can be drained from the bottom of the tank, prolonging fuel life and avoiding spoiling and potentially serious fuel failures.

  • Protecting your Storage Tanks

It’s essential to check your fuel storage tanks regularly for the tell-tale signs of corrosion resulting either from high water content or the presence of microbes producing acid vapours.

Check above and below the fuel line.

Applying a biocide to control microbial growth is an important preventative measure – remember, you’ll need to reapply every time you refill the tank.

You can also treat your tank with an anti-corrosion treatment for boundary protection. Try to avoid using the same tanks for different types of fuel, as this increases the chances for cross-contamination from different microbe varieties.

Australia’s Fuel Supply Security

australias fuel supply security cartoon

Australia’s fuel supply security. All is not what it seems.

TENSIONS in the South China Sea over recent weeks have again thrown the spotlight on Australia’s fuel supply security.

australias fuel supply security cartoon
Artwork: Sarah Boese

Retired Air Vice Marshall John Blackburn, who has produced major reports on the issue for the NRMA, went so far as to say Australia’s entire food, medicine and water distribution was hanging on a “just in time” approach to transport fuel supply.

What he means is that with Australia’s strategic fuel stockpiles as low as 34 days and more than 85 per cent of refined fuel imported, predominantly from Asia, any major disruption would be bleak.

Australia has closed four refineries since 2003 and the trend to importing from Asia, where huge facilities are far more cost-efficient, is unlikely to stop.

Engineers Australia told a Senate inquiry in 2015 that the country’s total stockholding of oil and liquid fuel amounted to two weeks of supply at sea, 5-12 days’ supply at refineries, 10 days of refined stock at terminals and three days at service stations.

The Australian Government has agreed in principle to produce a plan to add 40 days of fuel reserves, due for release later this year.

For farmers, this will need to address concerns including the location of the stockpiles – if storage increases but there’s still a reliance on road transport to get the supply to regional areas, what are the implications?

Mr Blackburn told the ABC getting fuel stocks to where they’re needed is key – and it’s a process heavily reliant on fuel supply.

“What’s important is what type of fuel you’ve got and where, because we can’t move fuel around Australia readily,” he said.

“We can’t move by rail anymore because we don’t have the rolling stock, we don’t own ships anymore and the trucks that move fuel are designed for ‘just in time’ commercial deliveries.”

Fuel shortages, we’ve been here before.

Recent history shows it doesn’t take much to cause regional fuel shortages and a major headache for farmers.

An aerial shot of Tullamarine. (Melbourne Airport)

  • In the same year industrial action caused disruptions in Queensland in May, when the Maritime Union of Australia briefly blocked entrance to the Caltex refinery at Lytton in a rally after tanker ship job cuts.

What are the risks?

WHEN grain grower Corey Blacksell worries about fuel supply, it’s industrial action that is one of his biggest fears.

“I do see fuel security as a big risk,” he says.

“The more imminent issues are industrial issues – it wouldn’t take many boatloads of fuel to be delayed to cause major disruption.

“The risk is we’re importing our fuel – there’s not a lot of stuff sitting at Port Adelaide at any one time.”

Regional conflict – not necessarily involving Australia- is also a concern, with major shipping routes travelling through the increasingly tense South China Sea region.

The United States and China are locked in a struggle over navigational freedom, with Malaysia, Brunei, Taiwan, Vietnam and the Philippines weighing in.

A conflict could interrupt supply through blockades on the lanes, but also by forcing Asian countries to reduce their exports to bolster their own emergency fuel holdings and feed increased defence force needs.

There’s also the potential that because Australia doesn’t have its own flagships, threats to foreign crews could lead them to abandon risky routes.

The NRMA says even a 20-40 per cent cut in the fuel supply would lead to a situation where communities would quickly start running out of basics like food and medicine and the transport-reliant economy would start to shut down.

What happens in a fuel emergency?

Suppliers say it’s still very unlikely Australia would need to enter a state of liquid fuel emergency.

However if a national supply emergency was declared, essential users including Ambulance services, corrective services, fire and rescue crews, police and public transport services would have priority access to fuel.

Rationing would apply to all other users.

Caltex refinery at Lytton

What can businesses do?

The Australian Institute of Petroleum puts the onus back on industry to take precautions.

For business owners, this means considering options like increasing on-site fuel storage.

“Many large fuel users only hold limited stocks on the expectation that stocks will be held by fuel suppliers, or indeed governments will intervene to protect their interests if supplies are limited,” they say.

“This expectation creates a vulnerability in the transport fuel supply chain.”

“Fuel suppliers do not hold buffer stocks to guarantee the ongoing normal business operation of all major fuel users and distributors during a major supply disruption.”

The institute recommends making a careful analysis of fuel usage to inform a plan of what to do if supply is disrupted.

“Actions should also be taken by major fuel users to address any unacceptable business risk arising from a fuel supply shortage, including investing in their own extra stockholdings and storage capacity, improving fuel supply management and changing business priorities to avoid or minimise the impact of business fuel supply disruption.”

A fuel management and refuelling system and can help inform this type of strategy by providing up to date data on your business fuel use including detailed figures on consumption, seasonal variations and where the most fuel is being used.

Improving storage capacity by going with higher capacity tanks, or buying relocatable tanks that can be filled and placed in key work areas in times where disruption is a risk, are other options worth considering.

For help with creating a strategy, ask the expert engineers and technicians at F.E.S. TANKS for a free consultation.

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A Bulk Fuel Buying Guide for Farmers – Save Money Guaranteed

fuel tanker truck in the countryside

A Best Practice Guide to Purchasing Fuel for Farmers

The purchasing process is central to efficient use of diesel and other liquid fuels.

Factors influencing liquid-fuel-purchasing decisions include storage life, potential fuel losses, and the legislative and financial implications of large-scale on-site storage. Fresh fuel is more energy-efficient than aged fuel, and planning the delivery of fuel around peak demand is key to effective fuel management. There are a number of buying strategies that can help you to negotiate the best price, avoid wastage and maximise return on fuel investment.

fuel tanker truck in the countryside

Introduction

Diesel and other liquid fuels account for up to 90 per cent of energy use in the NSW cropping and extensive livestock sectors (Energetics, 2013).

While farmers typically use large qualities of fuel – six-figure annual fuel bills are common – there are limits on their ability to purchase in bulk and gain the fuel price discounts achievable in other sectors of Australian industry.

This paper considers the key drivers of liquid fuel prices, considerations for storing purchased fuel to avoid losses and reduce cost, and the potential impacts of old or out-of-season fuel on engine efficiency.

Price fluctuations and their drivers

The price of petroleum products in Australia is affected principally by the following factors

  • the crude oil spot market(s) and supply and demand factors such as world GDP growth projections and geopolitical supply factors
  • the strength or weakness of the Australian dollar, particularly in comparison to the US dollar (as oil is bought and sold in US dollars), and
  • federal government excise and taxes including the results of the parity pricing system. Farmers receive a 38.143 cent fuel tax credit. From 1 July 2012, credit was reduced with an amount equal to the prevailing price on carbon (Australian Taxation Office, 2013).

Australia’s regional market for petroleum products is the AsiaPacific market. The diesel price in our regional market is driven by supply and demand, not production costs. Australian demand growth for diesel has been strong, particularly as a result of the mining and commodity boom of recent years. This has contributed to the increase in the regional (Asia-Pacific) demand for diesel and as a result, diesel prices have risen in the region, including Australia.

Australian wholesale prices for petrol and diesel (including spot Terminal Gate Prices) are closely linked to the Singapore prices of petrol and diesel – not to crude oil prices. Australian fuel wholesalers use a pricing methodology known as import parity pricing which is based on what it would cost to import fuel into Australia.

The Australian Institute of Petroleum (AIP) publishes weekly reports on wholesale and retail pump prices for diesel and other fuels.

Around 25 percent of the diesel used in Australia is sold through retail outlets, with the other 75 percent sold in bulk to commercial/industrial customers, such as mining and transport companies, on long-term contract. Therefore, retail diesel prices are not subject to aggressive discounting between fuel retailers, as petrol more commonly is. In more remote and regional areas of Australia, diesel retail prices are set primarily by independent owner/operators. Higher prices reflect lower fuel volumes and sales along with increased freight and distribution costs. Limits to on-farm fuel storage Safety and compliance Economically, the cost of purchasing a compliant fuel storage tank plus required bunding and safety controls could be prohibitive in making large-scale fuel storage a viable, cost effective option.

Quick Tips

 

  • Don’t try to ‘pick the market’. 

Buying ‘cheap’ is generally a risky strategy.

  • ‘Fresh’ fuel is more energy-efficient.

Limit the amount of fuel you purchase to no more than a month of the supply required to support operations.

  • Keep good fuel records.

Can help for planning purchases well ahead of time.

  • Synchronise your purchasing cycle

Plan ahead for expected winter/summer fuel changes (for instance, re-stock in May for your winter fuel requirements).

  • Use a supplier that guarantees fuel quality

Use a supplier that provides detailed delivery data in a format that facilitates your own record keeping and fuel management system.

  • Maintain infrastructure.

Ensure that tanks are well sealed to keep out dust and water, and install filtration devices.

Limits to on-farm fuel storage

​Safety and compliance

Economically, the cost of purchasing a compliant fuel storage tank plus required bunding and safety controls could be prohibitive in making large-scale fuel storage a viable, cost-effective option.

What is a Bund?

“A bund is a structure designed to prevent inundation and breaches.”

Round self-bunded fuel tank with crash-protective posts

Externally self-bunded fuel tank with crash-protective posts

Square self-bunded fuel tank with crash-protective posts

Internal ISO containerised self-bunded fuel tank with crash-protective posts

Each state in Australia has legislation in the form of Acts and Regulations for Workplace Health & Safety (WH&S) and for protection of the environment. Owners of above-ground tanks and fuel suppliers have obligations under their respective state legislations, breaches of which may carry heavy penalties.

Smaller bunded tank options also exist and are adaptable to on-site requirements. Environmental regulations vary dependent on local authorities but we would recommend tanks over 4000 litres need to be protected by some form of bunding in case of leakage or rupture.

4,500litre fuel storage tank

4,500 litre internally bunded fuel storage tank.

Storage life of fuel

Fuels deteriorate and are formulated to suit specific seasonal conditions. Using old or out-of-season fuel will reduce engine efficiency and increase services costs. A sensible limit on the size of a single bulk delivery is therefore the quantity of the fuel that a farm can use while that fuel remains fresh.

Under normal storage conditions, diesel fuel can be expected to stay in a useable condition for 12 months or longer at an ambient temperature of 20 °C; six to 12 months at an ambient temperature higher than 30 °C (British Petroleum, 2005).

As diesel gets older, fine sediment and gum forms in the fuel, brought about by the reaction of diesel components with oxygen from the air. The fine sediment and gum will block fuel filters, leading to fuel starvation and to the engine stopping.

Frequent filter changes are then required to keep the engine going. The gums and sediments do not burn in engines very well and can lead to carbon and soot deposits on injectors and other combustion surfaces, and to a corresponding decrease in combustion efficiency.

Other costs to consider are the maintenance cost of tanks, and the capital tied up in the inventory of fuel being stored.

Fuel quality issues

Cleanliness of diesel is very important and can reduce engine efficiency and engine life significantly. These problems compound if large-scale storage is considered. Dust and water are the main offenders in fuel cleanliness, but there is a range of technology available for continuous tank filtration, filtration at delivery point and on-vehicle filtration. Some experiential data has shown improvements in fuel economy by up to four percent, subject to initial fuel contamination (LSM Technologies, 2013) (Parsons Australia, 2012).

The difference between summer and winter diesel is the ‘Cloud Point’ property. All diesel fuels contain wax, which is usually a liquid solution in the fuel. At low temperatures, the wax begins to solidify and crystals form in the diesel. As the temperature drops, these crystals grow and can block filters, starving engines of fuel. The Cloud Point is the temperature at which the wax crystals first appear. At this stage they are too small to block diesel engine filters.

Generally, summer and winter additives won’t have a large impact on engine efficiency. The specification for diesel varies by month so that the fuel available is appropriate for the expected seasonal weather. There is a two-month lead time on the distribution of the fuel, so that any diesel purchased in May will be winter grade, suitable for the cold period from the start of May until the end of July. To avoid winter waxing problems, plan to change over all your diesel fuel by May at the latest. It is important that you don’t keep summer fuel for winter use. Suppliers such as BP provide information on how to identify and rectify this problem(British Petroleum, 2005).

Buying strategies

The price of diesel fluctuates due to an array of factors, as discussed. However, buying diesel in bulk (greater than one or two months’ supply, for example, in large-volume users) is rarely a viable strategy for farmers due to the storage life of diesel, the cost of storage and the stringent regulatory requirements for storing flammable and combustible fuels on farms. Security of supply will also be a concern for larger operations as the diesel supply chain is structured for supply at regular intervals. Such a strategy could result in a shortfall in farm fuel supply at a critical time.

Individual farms are unlikely to consume sufficient quantities of fuel to attract significant bulk fuel discounts. In pursuit of logistical savings, distributors may in future change patterns of delivery to small consumers. Establishing or becoming part of buyer groups or cooperatives may be an alternative if this offers sufficient volume to be attractive to suppliers.

A feasibility study (Co-operative Development Services, ltd., 2001) into rural fuel cooperatives in Victoria has found that the most efficient and least risky option for supply and delivery of fuel to primary producers and other bulk fuel users is for a cooperative to act as a fuel broker. This study suggested that the risks in price volatility must be transferred by cooperatives to the supplier.

Extracted from the NSW Farmers Association ‘Farm Energy Innovation Program’. [click here]

Conclusion

You more than anyone will know your buying patterns in relation to the daily operations of the farm. What is less known is the external forces that dictate the reliability of your supply chain.

Always maintain frequent communications with suppliers so as to understand the market place and to be ahead of any potential supply and pricing issues.

Australian Fuel Storage Regulations

Australian Fuel Storage Regulations

Australian Fuel Storage Regulations. A Statewide Directory

Updated 16 May, 2024

When you’re making decisions about your fuel storage, knowing the fuel storage regulations that apply in your state should be an important part of your decision.

In Australia, regulations can surround everything from how and where you install your storage system to how regularly you maintain it, how you prevent leaks and how you handle safety around your storage site.

The regulatory environment is changing. To help you navigate the current situation, we’ve put together a guide to some of the most useful sites for regulatory information in each state.

Underground Fuel Storage

Underground Petroleum Storage Systems (UPSS) have the potential to leak, leading to expensive clean-up bills and damage to the environment.

UPSS Regulations require owners and operators to regularly check for leaks in the fuel tanks and pipes used to store and handle petroleum products. They also need to meet minimum standards in their day-to-day environmental management of these storage systems.

While environmental regulations apply in each Australian state, each has slightly different requirements for the storage and maintenance of underground petroleum tanks. For example: storage regulations for mining businesses in Queensland might be different to those located in South Australia.

With that in mind, you will find all the essential information for your state in the links below:

QUEENSLAND

The Queensland Government’s business and industry portal’s information on standards, codes of practice and guidelines as outlined in the Petroleum and Gas (Production and Safety) Act 2004 and the Petroleum and Gas (Safety) Regulation 2018.

NEW SOUTH WALES

The rules for UPSS systems in New South Wales changed significantly in September 2019. Most UPSS sites are now monitored and regulated by local councils. A council directory for the state can be found here to help you find the bylaws outlined by your local directorate.

However, the NSW EPA are still responsible for managing some sites in the state if they are:

  • run by public authorities
  • based in an unincorporated area
  • subject to an environmental protection licence.

In these instances, these storage laws have to conform to the Protection of Environmental Operations (Underground Petroleum Storage Systems) Regulation 2019 and are monitored by the agency directly.

Alongside this, the NSW’s EPA site provides all the essential information on the updated regulation on the management and operation of underground petroleum storage systems (UPSS).

VICTORIA

The Victorian EPA published updated guidelines for the design, installation and management of underground fuel storage systems in 2015. You can find the guidelines here.

TASMANIA

If you’re operating in Tasmania, you’ll need to comply with the Environmental Management and Pollution Control (Underground Petroleum Storage Systems) Regulation 2020.

The links to the legislation can be found on the Tasmanian Government website here.

AUSTRALIAN CAPITAL TERRITORY

Check the Environmental Guidelines for Petroleum Storage in the ACT (June 2019) for all the information on UPSS and above-ground fuel storage requirements.

WESTERN AUSTRALIA

Information about legislation administered by the Department of Environmental Regulation, including legislation around petroleum and contaminated sites, can be found here. For information on dangerous goods codes of practice, go to this site.

Information on when a licence is required for the storage of dangerous goods can be found here.

SOUTH AUSTRALIA

The South Australian EPA are the regulating body for UPSS regulations within South Australia. As of January 2020, all petrol stations are required to have a licence for storing petroleum. These must conform with both the Environment Protection Act 1993 and the Environment Protect (Water Quality) Policy 2015. All the information  about UPSS rules in South Australia can be found here. The EPA also provides guidelines about UPSS assessments here with all the latest guidelines updated to current regulations.

Information about when you need a SA fuel storage licence and how to apply is available at via Safework SA here.

NORTHERN TERRITORY

Any UPSS platforms used within the Northern Territory are monitored and managed by the EPA NT and are covered by the Petroleum (Environment) Regulations 2016. For more information on these laws, visit the NT Government page here.

Above ground fuel storage tanks – bunding and safety

If you’re installing fuel storage above ground, particular environmental safety and workplace safety regulations could apply. See the links below for information relevant to your state.

Safe Work Australia – The National Code of Practice for the Storage and Handling of Workplace Dangerous Goods can be found here.

QUEENSLAND

Worksafe Queensland: Service Station Safety Guidelines
Brisbane City Council: Guidelines for Storage and Dispensing of Petroleum Products

NEW SOUTH WALES

EPA NSW – Bunding and spills management information 

VICTORIA

Worksafe Victoria: Handling and Storage Dangerous Goods Code of Practice

SOUTH AUSTRALIA

SA Government: New Dangerous Substances (General) Regulations 2017

SafeWork SA: Dangerous Goods Storage Licence

EPA SA: Bunding & Spill Management Guide 

TASMANIA

WorkSafe Tasmania: Hazardous Chemical Service Station Operators Guide

WESTERN AUSTRALIA

Department of Mines, Industry Regulation & Safety: Dangerous Good Safety Information Sheet

NORTHERN TERRITORY

Worksafe NT: Dangerous Goods storage information. https://worksafe.nt.gov.au/licensing-and-registration/dangerous-goods

F.E.S. TANKS – Industry Advice

If you’re confused around what regulations apply in your area, we are here to help.

We have the knowledge you need to choose the right system and ensure it is installed and maintained in full compliance with all relevant legislation. Our range of self-bunded tanks also minimises the risk of leaks and does away with the need for expensive and complicated bunding work.

Fuel Storage Regulations and Compliance

F.E.S. fuel storage tanks are built to exceed Australian and international safety standards to ensure the highest levels of safety and environmental protection while giving you optimum flexibility and storage capacity. You can find out more about our certifications and warranties here – https://www.festanks.com.au/fuel-storage-compliance/

Should you want to buy or hire a fuel storage tank please don’t hesitate to get in touch.

Farming Fuel Issues: An Expert Roundup from the Front Line

Corey Blacksell

Farming and fuel, what are the issues?

WHETHER you’re growing grain in South Australia, raising cattle in Queensland or nurturing organic vegetables in Gippsland, your operation will be using fuel.

It’s essential to power harvesters and generators, keep the fleets moving, transport you around the property and get your product to market.

When we asked industry leaders from diverse backgrounds what were their biggest farm fuel issues, concerns around cost and supply were at the top for farmers and rural communities.

Some had experienced fuel shortages first hand in their district – not what you want at harvest time!
Others were concerned about the ongoing uncertainty over rebates.

Here’s what they had to say.

Corey Blacksell | Blacksell Farms (SA)

Agriculture Sector: Cereals and Grains

Personal Profile: Corey Blacksell

Business: Blacksell Farms

Corey Blacksell
Image credit: Alistair Lawson, Agcommunicators

Corey farms nearly 5000 hectares of mostly cereals at Pinnaroo, in the South Australian Mallee district. He owns Blacksell Farms and is principal of Blacksell Agribusiness Solutions.

The biggest risk we face is not being able to get fuel at the peak times when we need it – I see fuel security as a big risk.

The risk is because we import our fuel, there’s not a lot of stuff sitting at port in Adelaide at any one time.

I aim to have 30,000-40,000 litres sitting on the farm as we start the harvest. Security on the farm is also getting to be a big issue – I have a box of security cameras ready to go up to tackle that one.

Alastair Rayner (NSW)Alastair-Rayner

Agriculture Sector: Beef and Cattle Livestock

Personal Profile: Alistair Rayner

Business: Rayner Ag

Alastair Rayner is a cattle man at heart and is the principal of RaynerAg. He has been committed to the beef industry for 20 years, including 17 years as a Livestock Officer (Beef Products) with NSW DPI.

Alastair is well known for his passion and enthusiasm in working with producers to increase their skills, knowledge and profits.

The two big things I hear about are cost and being able to access fuel.

Farm theft is one of the big things that is impacting a lot of people, and with on-farm storage it’s often very difficult for people to see if they’ve been victims of fuel theft.

A few months ago there was a big incident where people broke into a place at Moree and poured about $10,000 of diesel down the drain.

The big cropping operations that are doing a lot of work and need to have a lot of fuel on hand are pretty exposed.

The cost of bringing fuel on to farms and the cost of purchase adds up too – it’s one of the biggest variables in farming operations. Fuel rebates are really important to keep costs down.

Tanya Cameron (NSW)

Agriculture Sector: Beef and Cattle Farmer

Personal Profile: Tanya Cameron

Business: Country Womens Association (President of the CWA of NSW)

tanya cameron
Image Credit: Nick Moir

Tanya is President of the Country Women’s Association of NSW, which supports and advocates for people on the land and has about 10,000 members in NSW and the ACT.

She lives at Rowena in the state’s north-west (population about 20) where she and her husband run 200-300 head of cattle, and as well as lobbying on rural issues writes a regular blog about her experiences.

For us it mostly comes down to price. Any increase in the cost of inputs has a huge impact on our bottom line.

The rumours about removing the rebate on fuel were extremely concerning and just add more uncertainty to our lives – the removal of the rebate of 38 or 39 cents in the dollar, when you are talking tens of thousands of litres per load, will create a significant deficit in any farm budget, and there are usually more than just one or two loads per year.

These price concerns do not only apply to farmers either. Rural communities in general struggle with higher prices, generally on lower incomes, due to the added transport costs of road freight, and often there is no point in ‘shopping around’.

The price on the sign of the one and only servo in town is not going to change in the time it takes to drive around the block!

Grain Growers (National Organisation)

Agriculture Sector: Grain

Business Profile: Grain Growers

grain growers organisation

Grain Growers has 17,500 members and is an independent grain producer organisation. Its national policy group is made up of 15 growers from three major grain growing regions in Australia – Queensland and Northern NSW, Southern NSW and Victoria and South Australia and Western Australia.

GrainGrowers believe the biggest issue around the use of fuel/diesel on farms is the cost. Fuel, despite the fuel excise rebate, is one of the largest cost inputs into farming.
The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) conduct surveys into the economic performances of Australian farms, which includes information on farm receipts, costs and financial performance (including details on fuel costs). The surveys can be found here.

Another concern for grain farmers is fuel security. In December 2012 large areas of regional Victoria ran out of diesel fuel after a problem at the Shell refinery in Geelong.
With the closing of several fuel refineries across Australia in the last few years Australia is almost completely reliant on refined fuel from Singapore and other locations. NRMA commissioned a detailed report into Australia’s fuel security in 2013 which outlines this issue in more detail.

The on-farm storage and workplace health and safety requirements of fuel is an ongoing issue for farmers but not as crucial as the cost.

It’s in the farmers best interests to ensure that not only is their fuel stored safely but effectively as well.

Problems with storage (fuel evaporation, water contamination, leaking tanks and using old fuel) can add dramatically to the cost of farm operations.

Margareta Osborn (Victoria)Margareta Osborn

Agriculture Sector: Beef and Livestock

Personal Profile: Margareta Osborn

Business: Author, farmer, wife & mother

Margareta Osborn is a fifth-generation farmer, wife, mother and lover of all things country. She is a writer of best-selling rural romance novels. She holds a Diploma of Conservation and Land Management specialising in community facilitation. Home is a beef property overlooking a beautiful lake in the Gippsland high country.

Cost is a very big issue. As we are only small we are not eligible for any assistance (rebates), and if anything happens to go wrong with supply to our local roadhouse, it causes insurrection.

Matthew Arkinstall (Qld)Matthew Arkinstall

Agriculture Sector: Beef and Livestock

Personal Profile: Matthew Arkinstall

Business: Rathdowney

Matthew and his family farm a couple of hundred Blonde D’Aquitaine beef cattle on about 400 acres at Rathdowney, in Queensland’s Scenic Rim region.

Cost and risk of theft are the main issues. We went from on-farm bowser to jerry can for a few years. 

A Farmers Guide to Farm Security Cameras

farm security cameras collage

Farm Security Camera Systems – Things to consider

When it comes to farm security, the stakes are high.

Farm crime – particularly theft of stock, fuel and machinery – is increasing in Australia, and more than three quarters of farmers report having been victims over the past 10 years. Rural police say one of the most effective solutions is farm surveillance using security cameras, which have produced images vital to successful prosecutions over recent years.

Deciding to install a security cameras on your farm is a no-brainer if you’ve been a victim of theft – but which camera should you buy and what are the essential considerations within a rural setting? Read on…..

farm security cameras collage

How do they work?

Remote outdoor security cameras consist of a camera and motion sensor in a weatherproof case.

Modern security cameras are small and are perfect for the farming and agriculture industry. They come in a variety of sizes, but as an average are around 10cm x 15cm x 5cm – and run on AA batteries or can be connected to a small solar panel.

They don’t require any wiring and can be mounted anywhere (although it’s advisable not to mount them where there’ll be too much movement, for example on branches that will wave in the wind).

When the camera senses movement (humans, vehicles or animals) it takes a photo or video. Images can be taken even in total darkness using infra-red LEDs.

Images are either stored on an SD card for download when you visit the site, or in areas with 3G coverage can be beamed instantly to your phone.

Choosing the best farm security camera for your purpose

The best starting point is clearly defining your purpose – what problem are you hoping to address by installing your farm security camera?

This will inform decisions about position, camera size and whether you’re looking for higher resolution images or a faster reaction time.

You’ll also need to consider where you’ll be mounting your cameras – do you want them visible as a deterrent, or hidden to secretly monitor activity?

Farm security hot spots – it’s all about location, location, location

Farm security cameras can serve a variety of purposes, from monitoring for intruders to protecting fuel storage and water supplies to monitoring employees and even livestock movements.

Commonly, farmers might install cameras near gates to monitor people entering and exiting the property, and around equipment and fuel storage areas.

If you’re concerned about trespassers or vandals damaging fences and allowing stock to escape, consider monitoring the points in your fence line where you’re most vulnerable.

Trigger time – is your camera a sharp shooter?

If you need the camera to capture moving vehicles, it’s worth paying attention to the trigger time, or how long it takes to snap an image or footage.

vechicle caught on farm security camera

If you’re interested in capturing people and slow moving or parked vehicles, a 1-2 second start-up like the popular ScoutGuard SG55OV8-HD (about 1.3 seconds trigger time) will meet your needs for around $300.

A bonus of this model is its small size – about 13 x 8 x 5cm, and ultra-low power consumption, so a set of AA batteries should last more than 80 days or about 5000 images. The camera will take up to three shots per trigger, or a programmed amount of video (1-60 seconds).

If you need a faster trigger time, for example to capture moving vehicles, a model like the Reconyx HyperFire might be an option, with it’s super-fast 1/5 of a second trigger speed.

The Reconyx, which starts at $680, incorporates rapid-fire technology that can capture up to two frames per second and has a battery life of up to 40,000 images.

Working on the night moves – low profile cameras for night footage

If things that go bump in the night are your biggest concern, the Uway VH200HD is specifically designed as a black flash camera, so there’ll be no red glow to alert people their image is being taken.

For this reason, the Uway is a popular option for security use in and around sheds, in fuel storage areas and on machinery.

fuel theft caught on farm security camera

With a 1 second trigger speed it’s quick off the mark and produces high quality 8MP photos.

This model can take more than 10,000 images on 12 AA lithium batteries and can also record sound in video mode, with night footage clear to 10m and beyond.

Keeping your finger on the pulse – using cameras for remote farm surveillance

Using cameras to remotely monitor distant locations makes sense on large properties.

The video below was taken on a property in the top end where the camera was set-up near a watering hole to monitor the native animal activity. Great action and activity that was captured with the moment sensors of the camera.

For the record, the owner is pretty sure the crocodile got his lunch as on the left hand side of the screen is just more water.

If you’re considering using a camera for remote farm surveillance in a location where you don’t have regular access to check and change batteries, a solar panel is a good option.

A panel about the size of an iPhone costs around $70 and will keep your camera powered year-round without the need to install or change batteries.

The panels incorporate a built-in battery to ensure they can continue to capture images even after many days of darkness.

Systems that allow you to see footage without visiting the camera site are also becoming increasingly popular, both for use at remote sites (provided there is phone coverage) and for ensuring you know what’s happening in real time.

Cameras like the UwayMB500 can transmit images instantly to your phone by MMS when they detect movement, meaning you become aware of any potential problems sooner.
Providing both the camera and your phone have mobile detection the image will be transmitted in less than one minute, and because they use the mobile network and run on AA batteries they continue to operate even if power and telecommunications cables are cut, providing an effective back-up to other security systems.

TOP TIP: Because these cameras can be set to send an image at a particular time each day, they’re also a great option for monitoring gauges and remote equipment like pumps, meaning you can save big on travelling time.

Weighing the cost

The losses incurred by farm theft, fuel theft and vandalism can be significant – recent single thefts have caused financial losses in the tens of thousands.
With the cost of farm security cameras now as low as $300 per unit, they’re not only recommended by police as an important security tool – they’re an increasingly integral part of responsible farm management.

Join in the conversation – Any thoughts, comments or additional tips and tricks for farm security cameras leave them in the comments below.

Farm Fuel Tanks. What are the options?

Need to upgrade your farm fuel tanks?

Farm fuel tanks are crucial for a successful harvest. Their functionality gives farmers the ease to operate all year round. .

That means the type of tank you choose ultimately depends on several factors including how much fuel you use, the geographic location of your farm, transport – how expensive it is, how regularly tankers deliver to your area, the size of your property and more.

horse drawn hay maker

We want to give you some insight into the different fuel tanks within the farming and agricultural sectors and how they suit different business needs. So what are the different types of farm fuel tanks available?

Above-ground tanks on a tripod stand

These are best suited to farms with lower fuel usage with an average capacity of 1250 litres to 2000 litres.

collage of above ground tanks for farming

Advantages:

In the past, many of these tanks were supplied by the oil companies so there was virtually no installation cost. This meant that farmers already had a storage solution in place for their fuel.  Alongside that, no electric pumps are needed because a gravity feed can dispense fuel making access incredibly easy. Bunding also isn’t required because smaller-sized tanks fall below environmental legislation for fuel containment.

Disadvantages:

Traditionally, tripod tanks were accessed from the top which made safety when refilling an issue. As a driver must have three points of contact when refilling a tank, standing on a ladder while holding a nozzle was no longer an option when workplace health and safety regulations were tightened.

To solve this problem, many farmers had their tanks converted to bottom loading. At the same time, farmers installed gauges in the form of a piece of clear tubing running down the side of the tank making it easy to check fuel levels.

On top of that, tripod stability can also be an issue.  Above-ground tanks are not ideal in areas prone to severe weather events like cyclones. This is because they could topple the tank or cause erosion leading to structural instability. Therefore, tripod stands must to be tied down securely in areas prone to high winds.

On-Ground tanks

On-ground tanks aren’t limited by a support structure so space and fuel use are the major limitations on their ultimate size. Environmental regulations say tanks over 4000 litres need to be protected by some form of bunding in case of leakage or rupture. This means on-ground tanks can be single-wall or self-bunded. They generally take a cylindrical, rectangular or square form.

collage of on ground farm fuel tanks

 

Advantages:

  • There’s no need to bother with tank stands. Having a larger capacity also means reduced transport costs.
  • With self-bunded tanks, there’s no need to spend time and money building a bunding structure. Typically, buying a self-bunded tank works out at about half the cost of using a single-wall tank and building a bund. Fully portable self-bunded tanks are also available in sizes up to 18,000 litres and can be easily carried to different locations on large properties with the product in them.
  • These tanks also offer a higher level of built-in security. Because they require a pump to dispense the fuel, power to the pump can be switched off when the tank is not in use to stop potential thieves. Tanks can also have a lockable hatch across all access points that can be secured with a heavy padlock when the tank is not in use.

Disadvantages:

Single-wall on-ground tanks need to be located within a concrete bund that will contain fuel spills. This means extra work and reduces the portability of the tank. The bund also needs to be maintained and drained after rain to ensure it is capable of carrying the tank’s full capacity in case of a spill.

Underground tanks

These are an economical option for farms that need an on-site storage capacity of 10,000 litres or more.

underground tank collage

 

Advantages:

  • For farms that are storing petroleum, underground tanks can save them losses in product and sales. This is because they reduce the loss of fuel through evaporation – a significant problem when storing petrol above ground.
  •  The size of underground tanks also means farms can reduce transport costs as they hold much higher levels of fuel.

Disadvantages:

  • When storing diesel, condensation tends to be a bigger issue in underground tanks. To minimise this problem, it’s advisable to run the tanks at a minimum of 70-80% of capacity to minimise the air space above the fuel level.
  • It’s particularly important when storing fuel underground to use a water-finding paste once a week so that water collecting below the fuel can be pumped out.
  • Long-term storage of diesel fuel can lead to contamination by fungal microbes. Fuel treatments such as diesel biocides also help prolong the fuel’s shelf life.

Finding the right farm fuel tank

Finding the right farm fuel tank can have a huge impact on how your business runs throughout the year. Not only does it improve the efficiency of your business but finding the right tank also improves how well the fuel is used, preserved and kept safe all year round. That’s why finding the right farm fuel tank is a must for anyone involved in the modern farming industry today.

Fuel Theft on Farms. How to Boost your Farm Security

Fuel theft on farms – Stealing from the hand that feeds us

ASK an Australian farmer their biggest fuel-related issue and it will always be the price of fuel. Dig a little deeper and it won’t be too long before fuel theft comes up in conversation. Farmers accept wholesale fuel prices are beyond their control. Bring up the matter of fuel theft and you start to understand that this is far more personal.

burgular stealing fuel from farm

Cases of theft within the farming and agriculture sector continues to make the news, and research released by the University of New England this year shows more than one in five farmers have first-hand experience of the problem.

rates of reported crime on australian farms statistics 2014

Rural police say crop farms are a particularly attractive target for fuel thieves at harvest and seeding times.

The thefts can not only cost thousands, but mean losing valuable time if the problem is discovered too late.

Machinery like harvesters parked in remote locations is particularly at risk, with thieves draining tanks and costing farmers thousands.

Farm fuel theft – A nationwide problem

It’s an issue that affects rural residents across state and industry boundaries.

At Buloke in north-west Victoria, thieves stole $2000 of fuel from council machinery in the 12 months to May this year while crews were working in remote locations across the 8000 square kilometre shire.

In June police in Dalby, Queensland urged property owners to consider tightening security with measures including cameras after a prime mover, the attached 25,000-litre tank and $4000 of fuel were stolen from a property while the owners weren’t home.

In October, South Australian Police reported an increase in farm fuel theft and urged farm owners to lock or secure tanks and equipment and check fuel levels regularly.

For many rural landholders, much of the problem stems from the sheer area involved – it’s hard to stop unlawful entry on large properties.

Add to that social change, with more absentee farmers and a more transient population in rural areas meaning communities are less connected, and the UNE’s Dr Elaine Barclay says many just give up on finding a solution.

“Fuel theft is a huge problem since the price of fuel went up,” she says.

“Some farmers won’t stock fuel on their farms any more, which is frustrating.”

Dr Barclay says her most recent survey of 3160 farmers in NSW and Queensland shows fuel theft tends to happen at times like harvesting or seeding, when larger on-farm fuel stores are needed – and when thefts can cost the most in lost time and productivity.

“How do you lock up a farm?

“A lot of the time they don’t think it’s serious enough to report to police, they don’t want to bother police or they don’t have enough evidence to prove a crime has taken place.”

Dr Barclay’s research shows about 74 per cent of farmers had experienced some type of rural crime over the past 12 years, with only about half of those crimes being reported. She says rural watch programs, bringing communities together to fight crime, are less effective as communities fragment.

“There’s been massive social change – you have more hobby farmers moving in, particularly in places like Armidale, where I’m based.

“Where you have smaller, tighter, longstanding communities, that is the best form of crime prevention.”

Farmers have also fought fuel theft by filling storage tanks with water to catch out unwitting thieves, and by being vigilant about measures like returning machinery to the main sheds at night – often a major logistical problem in itself for larger properties.

The full report on Crime on Farms 2001-2014 can be downloaded here

Farm security innovations – preventing fuel theft

Fortunately, Australians are an innovative lot, and farmers have worked to tackle the problem with everything from home engineered locking systems to state-of-the-art fuel monitoring technology.

Fuel Cap Locks

In Buloke, a local engineering firm came up with fuel cap locks for council equipment that are also showing promise as a potential solution for local farmers.

fuel cap locks for buloke council

 

Not Australian, but still an innovative product in relation to trying to prevent fuel theft with a simply fuel cap. The Tanklock anti-theft fuel locking device is perfect for tractors, harvesting equipment, excavators, backhoes and other heavy machinery that may be left overnight on isolated sites.

The Tanklock defies convention because the cap itself has the ability to free-spin when locked. The free-spinning motion of the cap effectively offers no resistance points and thus no torque points for which to apply spanners, crow bars, jemmy bars or grips.

Farm Gate Security Sensor 

Victorian company It’s Secure offers a shaft alarm with GPS which is ideal for mounting on remote gates and fences where machinery and fuel are being stored, providing there is 3G or 4G coverage.

shaft alarm

The alarms are mounted using magnetic clips that can be easily moved each day, and are powered by a lithium battery which can last up to three years.

They’re armed by text message and controlled remotely.

Farm Security Cameras

Cameras are also increasingly popular.

Entrepreneur Damien Byrne owns Outdoor Cameras Australia and hears stories of theft due to farm security failures every day.

“Most of it is fuel and machinery, and when it happens it is very costly,” he says.

“Even the fuel thefts aren’t just small amounts, they’re usually thousands of dollars’ worth.

“I think $5000 would be a good average amount that people lose, but a lot of it would not get reported, so it has been difficult to estimate.”

fuel theft still image at night

Damien says cameras have been proven to make a difference, and police agree.

Queensland police continue to urge farmers storing fuel to not only keep a close watch on levels but to install cameras to monitor and help prosecute thieves.

They cite a successful prosecution in August this year after a 25-year-old man was caught on camera stealing more than 1000 litres of diesel from a farm near Toowoomba.

Damien says the example is one of many, with diesel fuel and machinery theft among major reasons given by rural clients for their camera purchase.

The equipment is portable, weatherproof and simple to set up and attach to an existing structure, and can run on batteries for months at a time or even miniature solar panels in more remote areas where changing batteries could be an issue.

“Our units are small and very easy to handle and there’s no wiring required and no poles need to be erected,” he says.

“They operate on a motion sensor and they also have blackflash so intruders won’t be aware their photographs are being taken or their actions recorded from up to 10m away.”

Popular models include the UWay, which can take high quality 5MP images and high definition video and can carry a maximum 32GB of storage.

The camera can take about 5000 images on one SD card and operate continuously with a solar panel attachment. Prices start at around $500. Well worth the price as this would easily offset the loss in value of most thefts on a farm. Not only that, but think of that fist pump moment when your camera catches the intruders red handed.

uway-vh200hd security camera, black and camouflaged

Refer to our Beginners Guide to Farm Security Cameras here

Start protecting your equipment and property day and night

Outdoor Security Cameras

Set and forget.

Get back to doing the work you need to do rather than looking over your shoulder

Underground Tanks

The type of fuel storage tank on your farm will very much determine what level of security you should expect. The variety of farm storage tanks apart from shapes and sizes, extend to above-ground tanks, on-ground tanks and underground tanks. Craig Cygler, from Nqpetro, says using underground tanks for storage vastly improved security for farms that store large amounts of fuel.

He says modern storage tank designs are also making theft harder with features like lockable hatches that prevented access to the valves. Refer to this extensive guide on farm fuel tanks to understand the pros and cons of each type.

He also recommended anti-theft cap locks (as mentioned above) for farm equipment, particularly where it will be parked in remote locations.

Where to put your farm fuel tanks?

Police recommend a number of simple measures to prevent theft. The first is taking simple precautions when deciding the location of tanks.

The most secure location for a tank is underground, however this might not be practical for many properties.

When positioning above-ground tanks convenience is important, but not if it makes it too easy for thieves. Tanks should be located away from main roads and where possible where they can be seen from the house. Keep the area around the tanks clear of equipment and other obstructions to ensure clear visibility and minimise hiding places.

On large properties, where tanks are needed to service isolated areas, it’s important to locate them out of sight of a public road and keep them locked. Consider only filling remote tanks when they are in regular use, such as at sowing or harvest time.

Mobile tanks should also be locked and stored out of sight when not in use.

It’s a good idea to fence the area around fuel tanks. One recommendation is to locate them near machinery storage sheds and fencing the entire area with good quality lockable security fencing.

Other fuel security measures

The WA Police recommend other key measures including:

  • Lock your fuel tank cut-off valve rather than the nozzle and hose. If there is an electric pump on the tank locate the switch in a locked building and turn the power off when the tank is not in use.Close and lock all valve on all on-ground and overhead tanks when not in use.
  • Dip tanks regularly and monitor fuel usage so you know quickly if there is an unexplained loss. Install a flow meter to supervise fuel use.
  • Keep a book at the tank for each user to record fuel usage, or investigate an automated fuel management system.
  • Lock gates that aren’t being used. Research suggests more than 90 per cent of farm gates are unlocked or unlockable, offering an invitation to opportunistic thieves.
  • Talk to your neighbours. Let them know if you plan to be away for a while, and tell the local police so they can also keep an eye on your property.

If you experience a theft

If the problem persists despite your best efforts to boost security, Police are urging communities to work together with them to take action. New England region Local Area Commander Fred Trench says reporting the crime helps everyone.

“Farmers need to report crimes or theft so we can look at how we can better address these problems from a local perspective,” he said.

“Given that these crimes may pose a threat to the personal safety of farmers and their families, not to mention high cost to local economies, it is essential to continue to raise awareness about rural crime and look at allocating the necessary resources to combat it.”

You should also tell your fuel agent and make sure you have accurate information about when and where your farm fuel tanks are refilled.

If you have been personally affected by theft on a farm, please let us know in the comments box below as it would be good to understand your thoughts.

If you should have any concerns or questions on how to boost your fuel security around the farm, get in touch. We will make a difference.

Biofuel Industry in Australia

Biofuels, a fuel of the future

ANOTHER Australian state has leapt on the biofuels train, with the Queensland government this month introducing legislation to set mandatory targets from July 2016.

biodiesel storage and refuelling

The new laws, which follow NSW legislation enacted in 2007, mean that from January 1 next year retailers will have to report on how much biofuel they have sold as a percentage of total sales.

From July 1 they will need to meet mandatory targets of a minimum 2 per cent for ethanol-petrol blends and 0.5 per cent for biodiesel.

“This will support the development of a sustainable biofuels industry that can help Queensland transition to a clean energy economy, contribute to regional growth and job creation and promote the development of an advanced bio-manufacturing industry,” Energy and Water Supply Minister Mark Bailey told parliament.

The Department of Energy and Water Services says about 345 Queensland petrol stations already sell ethanol blends, while the use of diesel statewide is growing by 9.3 per cent per year.

 

There’s not yet any measure of biodiesel usage. Up to 5 per cent biodiesel can be blended with regular diesel and this B5 blend is already sold by several major fuel chains and does not need to be labelled, as all diesel sold must meet the national Diesel Fuel Standard.

Industry response

High profile businessmen like Virgin boss Sir Richard Branson have supported the move to biofuels and continue to urge further investment in the industry – and in Branson’s case, put their money where their mouth is – but for retailers and suppliers reporting costs and storage issues are among their concerns.

Australasian Convenience and Petroleum Marketers Association chief executive Mark Mckenzie said a major concern was that any retailers who sell upwards of one million litres of petrol products each year will be liable, meaning smaller businesses will bear the costs of changing storage and dispensing infrastructure.

“While economic benefits would potentially be realised by some agricultural businesses, these would be more than offset by the fact that regional communities will likely be required to pay higher prices for fuel as regional fuel businesses seek to recover the cost of increased investment in fuel storage and dispensing infrastructure,” he said.

Biodiesel fuel – benefits and drawbacks

Canola field

Biodiesel can be made from a variety of stocks including vegetable oils like soy and canola, tropical seeds and animal fats.

It is made by separating the glycerine molecule from the oil or fat through a process called transesterification.

biofuel creation process chart

One benefit for storage is that Biodiesel has a higher flashpoint than petroleum diesel, with a flashpoint of around 150 C or higher compared to 52 C for petroleum diesel.

This stability makes it particularly attractive for sectors like the underground mining industry, where the implications for workplace safety are hard to ignore.

International research also shows plenty of positives as far as public health and emissions reduction. Diesel emissions are a growing concern and with diesel use in Australia on the rise, governments in every state are keen to increase the biodiesel component to reduce toxic air pollutants.

On the flipside, the different molecular structure of biodiesel fuel can make it more susceptible to a range of quality issues.

The good news is that proper storage and treatment from the start can make all the difference.

Storage problems

Good quality biodiesel can degrade quickly without proper care during transport and distribution, meaning a failure of storage systems can have significant implications for retailers, distributors and the end buyer.

On the upside, the ability to degrade quickly means the environmental threat is lower in case of spills, and clean-up is easier.
The downside is that issues like storage temperature and exposure to light are important. Biodiesel can gel and become sluggish at higher temperatures than petrodiesel, with some varieties more affected than others.

In general, pure biodiesel made from vegetable oil can safely be stored at 7-10 C. In cold climates, underground tanks can help insulate and prevent gelling.
Above-ground tanks may need to be heated or insulated in particularly harsh environments.

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Store biodiesel away from air and light

One of the major influences on biodiesel storage life is exposure to oxygen and light. While these issues are minimal for diesel blends that remain mostly petroleum-based, it’s worth being aware of them if you plan to use purer blends.

Because it’s made from vegetable or animal fat, biodiesel in its purer forms is much more susceptible to breakdown and degradation due to oxygen exposure. Fuels made from vegetable oils tend to oxidise and degrade more quickly than those made from animal fats.

This leads to acids forming, thickening of the fuel, sedimentation and the potential corrosion of storage tanks and parts. Any process that removes the natural oxidants from the oil – including bleaching, deodorising and distilling – will speed up this oxidation process.

Tanks designed to store and transport petro-diesel can usually store biodiesel with no problem, providing they have been fully cleaned.

Biodiesel will break down any sediment remaining in the tank, creating sludge in the fuel.

Tanks made from or held together with copper, brass, lead, tin or zinc will react with biofuel to speed up the oxidation process, so it’s best to avoid these materials.

Recommended storage tanks to extend fuel life include those made from aluminium, steel, polyethylene, Teflon and most fibreglass.

Adding a stability agent is also recommended in climates like Australia’s if the fuel is to be stored for longer than a few months.

B100 (100 per cent biodiesel) can also degrade some hoses, gaskets and seals, glues and plastics. Hoses should be made from Teflon or nylon to avoid potential issues. It’s a good idea to ask your supplier if the equipment is suitable for pure biodiesel or high biodiesel blends.

Blends of 20 per cent or less are far less likely to have an effect, but regular monitoring of hoses and gaskets is recommended in line with industry best practice.

Microbial contamination and water

All diesel can be affected by microbial contamination, and biofuel is a favourite food of micro-organisms.

Microbes usually need water and nitrogen to flourish.

Biodiesel can absorb large amounts of water – up to 1500 parts per million- and after that limit the excess remains as free water which causes rust and allows microbes free rein.

Water contamination in tanks can reduce the fuel’s usable storage life dramatically, and while a biocide might kill the microbes it could be too late to save the fuel. The dissolved water can also cause problems over time and lead to acids forming in the fuel, which can corrode tanks – an avoidable cost with the right tanks and proper care.

To minimise water issues storage tanks should be cleaned and dried before they are used for biodiesel.

Experts like the University of Idaho’s Jon van Gerpen recommend keeping the smallest possible air space above the fuel. About 2 per cent is recommended to allow for thermal expansion.
Draining free water from the tanks regularly is recommended. It’s worth considering this when looking for tanks, and choosing one with easy access for testing, refilling and maintenance.

Too much space can allow the biodiesel to accumulate more water from the air. Wherever possible, the fuel should be stored in full tanks with an airtight seal.

Using a biocide and a stability agent can also provide a second line of defence against contamination and block the chain reactions that cause degradation. The best option, though, is to use fuel quickly – within a few months.

Weighing it up

All in all, the expert consensus is that while storing and transporting biodiesel might mean some checks and changes, there are also long-term advantages across industries and markets.

If you need to store fuel for long periods a bio blend may not be your best option, but with states around Australia increasingly seeking to implement mandatory targets, and major oil companies taking on the challenge, it’s worth asking your supplier and planning now to ensure the smoothest possible transition when the time comes.

Top 5 Advantages of Fuel Tank Hire & Leasing

Why You Should Consider Fuel Tank Hire & Leasing

In any expanding project or times of business growth, outlay and capital can be two major hurdles that often need to be overcome while meeting increased demands and need for infrastructure.

fuel storage tanks - hire or buy

Whether its covering the cost of implementing these systems or buying new equipment, investment is often required. Hiring and leasing can provide a great alternative to traditional purchasing that allows you to adjust to these changes in demand while minimizing purchasing and maintenance costs.

Why hire fuel storage?

Hiring and leasing is a flexible option for fuel storage that allows you to reduce your outlay to a monthly payment. In fact the cost of the fuel tank hire can be factored into your ongoing fuel purchases so it can be indexed to a fixed price per litre.

Whether it’s a short-term solution to cover some immediate fuel storage demand, such as a tank failure, or a long-term way of supplementing existing infrastructure to handle issues like seasonal variance and peak-demand.

Hiring and leasing fuel storage is a way of ramping up your fuel supply when its necessary and adding additional equipment as needed.

You can always purchase when you have a clearer picture of your needs. We run through our top 5 benefits of hiring below.

Minimal Initial Outlay

Hire and lease agreements are a great way of providing the means to cover immediate demand needs without a high amount of initial investment or cash-flow. Also, our fuel management and storage systems can be upgraded and the size of your leased equipment changed as your business does.

This flexibility can be very useful for businesses that want to test the waters before making a purchasing decision as it allows you to test or trial a system, and see how it performs on-site.

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Easy Set-Up & Maintenance

Providing all the benefits of a self-bunded system, that is a tank within a tank, these systems have a minimal on-site footprint and require no major external construction for safety compliance. You can read about the benefits of self-bunded tank design here.

All tanks come with a certified maintenance document to ensure fully operational for immediate use on site.

Our tanks also provide many features for easy maintenance, such as dual-manways for inspection and cleaning, a protective anti-corrosion coating and are fully certified for compliance with all Australian safety standards and regulations.

Relocatable & Convenient

Set up of our self-bunded tanks is as easy as dropping them on-site.

Whether the project is accessed by land, sea or air – hire tanks can be a great way of providing immediate access to fuel in remote areas, off-site projects and any situation where a long-term fuel storage solution may not be financially viable.

Add-ons for Fuel Management & Security

F.E.S. TANKS have a full range of dispensing equipment that can give your hired fuel tank all the capabilities of a refuelling station, and our fuel management systems mean you can even monitor and measure metrics like fuel consumption to help with accounting and budgeting.

Dispensing equipment allows your fuel storage to act as a refuelling station – your fleet vehicles and equipment can be refuelled directly from your hired storage tank.

Worried about fuel theft and security of your hire tank? We can also provide security solutions for your hired tank, such as user-account access, that make fuel theft virtually impossible.

Free Consultancy

F.E.S. TANKS consultants have years of experience in both fuel supply and distribution – and it’s all available to our customers free of charge.

Regardless of whether the decision is made to rent or buy – we ensure that you get the right system for your needs, and are happy to provide quotes free of charge.

Not only do our staff help you stay on top of all the technical stuff, like current regulations and compliance issues for your equipment, but we can also help you figure out a combination of lease and purchasing that fits your needs perfectly.