Western Australia plans $400 million renewable diesel plant to cut Middle East oil dependence

Glas Energy announced plans for a commercial-scale renewable diesel refinery near Narrogin, 180 km southeast of Perth, with an estimated investment of $400 million. The facility aims to transform roughly 70,000 tonnes of straw and residual plant material into about 20 million litres of low-carbon, 100 percent drop-in diesel each year. Developers have approached both state and federal governments for support, including a request for funding from the Clean Energy Future Fund, which would finance up to half of the project.

KTrans, which operates a fleet of 150 heavy-haul trucks consuming up to a million litres of diesel monthly, says adoption depends on the new fuel matching current diesel prices. The Shire of Narrogin’s president stresses the project's circular-economy model and its potential to shield Australian motorists from price swings caused by the US-Iran conflict and broader Middle-East oil volatility.