GORAIL - Carbon Emission Reductions Using Cleaner Fuels

BP Global Choice Partner
As part of QR’s commitment to continually investigate actions to further reduce their greenhouse gas emissions, in 2003 QR signed as a commercial participant in BP Australia’s Global Choice TM program. From the sale of BP Ultimate fuel, or in QR’s case, the commercial contribution to BP Global Choice, BP invests in independently verified greenhouse gas reduction projects.

As such, participation in the BP Global Choice program gives QR access to certified emission reduction credits via the Australian Greenhouse Office ‘Greenhouse Friendly’ scheme. Global Choice is one of only three programs accredited under this scheme and is a non profit project.

QR’s investment into BP Global Choice entitles QR to certified emission reduction credits equivalent to approximately 2,980 tonnes of greenhouse gas emissions per year. This equates to approximately 585 fewer cars on the road each year or 1.2 times the volume of gas needed to fill the Melbourne Cricket Ground. The emission reduction credits can then be used to directly offset QR’s greenhouse gas emissions from the consumption of diesel fuel.

Low Sulphur Fuels
QR began using low sulphur fuels in 2004. By 2010 all heavy duty vehicles in Australia will require fuel management systems to meet new emissions targets and 10ppm max sulphur in diesel fuels will be required. Ultra low sulphur diesel fuel is made by refining crude types that are naturally low in sulphur or by further

refining diesel fuel using a process called hydrofining which removes the sulphur, which is then used to make fertiliser. Low sulpur fuel reduces exhaust emissions and soot levels.

QR's Biodiesel Trials
In 2007 QR commenced trials of B20 (20% biofuel) in their shunting locomotives at Redbank. The initial testing phase has been completed successfully.

The next step with QR being comfortable that the 20% biofuel standard can be met with low levels of risk to the business is to test the B20 fuels on in-traffic locos on a small captive fleet of 5 - 10 locos. An ideal part of the business was identified at the Pring location near Bowen and agreement has been reached from the operational part of the business for actual fuelling, monitoring and maintenance. The project is currently on hold due to lack of supply of B20 fuels. Fuel that meets the B20 standards is available in Newcastle, however the additional transport dilutes the low GHG value of using the biofuels in the first place - therefore the active trial is currently on hold pending supply availability of B20.

Alternatively other fuel research is being done on 3 different biofuel oil sources - switch grass, Australian scrub tree varieties and algae which may be promising and QR participate in "The Future Fuels Forum" expected to produce a research paper in June 2008.

QR are working closely with Fuel companies and biofuel research because its not only good for the environment - but also ensures when supply and the technology becomes commercially available the business is well positioned for quick adoption.

GORAIL is a QR Limited and QRNational Initiative

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