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Contents
Contents .................................................................................................................................................1
What is a blended fuel? .........................................................................................................................3
Reporting blended fuels.........................................................................................................................3
Blending fuels to produce a non-energy commodity ............................................................................4
Reporting consumption of blends which are non-energy commodities ...............................................4
Blending fuels to produce a new energy commodity ............................................................................6
Reporting consumption of blends which are energy commodities ......................................................7
How do I estimate the composition of purchased blended fuels? ........................................................8
Other fuel mixes.....................................................................................................................................8
How do I report bitumen? .....................................................................................................................8
Further information ...............................................................................................................................9
GPO Box 621 Canberra ACT 2601
1300 553 542
enquiries@cleanenergyregulator.gov.au
www.cleanenergyregulator.gov.au
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This document outlines what is required to be reported by corporations that consume and produce
blended fuels and other fuel mixes.
What is a blended fuel?
Under section 1.8 of the National Greenhouse and Energy Reporting (Measurement) Determination
2008 (NGER Measurement Determination)) a blended fuel is a fuel that is a blend of fossil and
biogenic carbon fuels. For example, E10 is a blend of gasoline (fossil fuel) and up to 10 per cent
ethanol (biogenic carbon fuel).
The NGER Measurement Determination defines ‘biogenic carbon fuel’ as energy that is:
a)
derived from plant and animal material, such as wood from forests, residues from
agriculture and forestry processes and industrial, human or animal wastes, and
b)
not embedded in the earth, like coal oil or natural gas.
Examples of biogenic carbon fuels under the NGER legislation are listed in items 10–16 and 28–30
of Schedule 1 of the National Greenhouse and Energy Reporting Regulations 2008 (NGER
Regulations).
The NGER legislation does not define fossil fuels. However, taking the ordinary meaning of the
term, a fossil fuel is a carbon-based fuel from fossil hydrocarbon deposits, including coal, oil and
natural gas.
Reporting blended fuels
Reportable energy commodities under the NGER legislation
Energy includes ‘fuel, or any other energy commodity, of a kind specified in the regulations’ (s 7
of the National Greenhouse and Energy Reporting Act 2007 (NGER Act). Fuels and energy
commodities are set out at Schedule 1 of the NGER Regulations. Listed items are considered
energy commodities for NGER purposes; while commodities not referred to in Schedule 1 are
considered non-energy commodities for NGER purposes.
Section 19 of the NGER Act requires a controlling corporation to provide a report to the Clean
Energy Regulator relating to the energy production, energy consumption and greenhouse gas
emissions from the operation of facilities under the operational control of members of the
corporation’s group during the previous financial year. This includes reporting in relation to
blended fuels.
GPO Box 621 Canberra ACT 2601
1300 553 542
enquiries@cleanenergyregulator.gov.au
www.cleanenergyregulator.gov.au
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The reporting requirements for blended fuels will depend on the:

ingredients (fuels / energy commodities) in the blend

product created by the blending, and

end use of the blended fuel.
There are two distinct scenarios corporations should consider when determining how to report
production of blended fuels under the NGER legislation:
1.
blending fuels to produce a non-energy commodity, and
2.
blending fuels to produce a new energy commodity.
Corporations should note that this document describes the reporting requirements for the lifecycle
of blended fuels; this may take place across facility boundaries. Corporations will need to
determine which reporting requirements are relevant to their specific circumstances.
Blending fuels to produce a non-energy
commodity
If energy commodities are blended to form a non-energy commodity, corporations should report
the:
•
production of the ingredient energy commodities, and
•
consumption of the ingredient energy commodities.
Corporations should note that when the resulting product is not a listed energy commodity, the
blending of the ingredient energy commodities does not need to be reported, as no new energy
commodity is produced. That is, the product of the blending is not listed in Schedule 1 of the NGER
Regulations.
Reporting consumption of blends which are nonenergy commodities
The end use of a blended fuel will determine whether a corporation, whose activities consume the
resultant blended fuel, will need to report the ingredient energy commodities as consumed with or
without combustion.
GPO Box 621 Canberra ACT 2601
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enquiries@cleanenergyregulator.gov.au
www.cleanenergyregulator.gov.au
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Reporting consumption without combustion
Regulation 4.22 details the reporting requirements for energy consumption reporting under the
NGER Act. Energy consumption must be reported where energy is consumed:
•
by combustion (r 4.22(1)(a))
•
by means other than combustion (r 4.22 (1)(b)), and
•
to produce a mineral, chemical or metal product (r 4.22(2) and (3)).
A registered corporation’s report must include:
The amount of energy consumed by means other than combustion if the amount:
•
exceeds the reporting thresholds mentioned in the Measurement Determination for this
paragraph, and
•
is not reported under paragraph 4.22 (1)(a) or subregulation 4.22 (2) or (3).
(r 4.22(1)(b) NGER Regulations)
If any energy commodity listed in the NGER Measurement Determination or the NGER
Regulations is consumed without combustion, then the thresholds and methodology in section
2.68 of the NGER Measurement Determination apply. It is important to note that section 2.68 is
only applicable where no combustion of the fuel takes place.
GPO Box 621 Canberra ACT 2601
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Box 1: Example—reporting blended fuels that are non-energy commodities
E10 is a common blended fuel produced by blending up to 10 per cent ethanol with gasoline.
A facility (Facility A) purchases 10,000 litres of E10 for use in a transport facility. Using the product
specifications provided by the manufacturer, it is determined that the E10 is made up of 7 per cent
ethanol and 93 per cent gasoline. Therefore, the E10 contains 700 litres of ethanol and 9300 litres
of gasoline.
The E10 is used to fuel fleet cars for Facility A, meaning that the fuel is combusted for use in an
internal combustion engine.
As both ethanol and gasoline are listed energy commodities, the corporation with operational
control of Facility A must report the:
•
use of ethanol (item 51—ethanol for use in an internal combustion engine) as consumed
with combustion, and
•
use of gasoline (item 53—gasoline (other than for use as fuel in an aircraft) as consumed
with combustion.
The production of the gasoline and ethanol is reported by the corporation (or corporations) that
produced the fuels.
Blending fuels to produce a new energy
commodity
If energy commodities are blended to produce a new energy commodity, then corporations should
report the:
•
production of the ingredient energy commodities
•
blending of the ingredient energy commodities as consumption without combustion under s
2.68 of the NGER Measurement Determination
•
production of the new energy commodity, and
•
consumption (with or without combustion, depending on end use) of the new energy
commodity.
By reporting consumption without combustion, the end use of the ingredient energy commodities
is captured.
GPO Box 621 Canberra ACT 2601
1300 553 542
enquiries@cleanenergyregulator.gov.au
www.cleanenergyregulator.gov.au
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Reporting consumption of blends which are energy
commodities
Consumption of the new energy commodity created from the blending will also need to be
reported. How this is reported will depend on the way in which consumption of the new energy
commodity occurs. That is, if the new energy commodity is used for combustion purposes, then it
will be reported as consumed with combustion. If the new product is used for non-combustion
purposes, then it will be reported as consumed without combustion.
Box 2: Example—reporting blended fuels that are energy commodities for consumption without
combustion
Facility 1 produces energy commodities A and B and blends them on-site to produce energy
commodity C, which is then sold to Facility 2.
The corporation with reporting obligations for Facility 1 must report the production of energy
commodities A, B and C. In addition, the corporation must report consumption of A and B without
combustion.
Facility 2 uses energy commodity C without combustion. The corporation with reporting obligations
for Facility 2 must report consumption of C without combustion.
Box 3: Example—reporting blended fuels that are energy commodities for consumption with
combustion
Facility 3 produces energy commodities X and Y and blends them on-site to produce energy
commodity Z, which is then sold to Facility 4.
The corporation with reporting obligations for Facility 3 must report the production of energy
commodities X, Y and Z. In addition, the corporation must report consumption of X and Y without
combustion.
Facility 4 uses energy commodity Z by combustion. The corporation with reporting obligations for
Facility 4 must report consumption of energy commodity Z with combustion.
GPO Box 621 Canberra ACT 2601
1300 553 542
enquiries@cleanenergyregulator.gov.au
www.cleanenergyregulator.gov.au
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How do I estimate the composition of purchased
blended fuels?
Part 2.6 of the NGER Measurement Determination sets out the ways in which corporations can
determine the amounts of each kind of fuel that are in blended solid and liquid fuels.
Corporations are able to adopt the outcome of:
1.
sampling undertaken by the manufacturer, or
2.
their own sampling.
The NGER Measurement Determination sets out the standards that must be met in order to adopt
each of these methods.
Other fuel mixes
Under the NGER Measurement Determination, blended fuels refer to fuels that are a blend of
fossil and biogenic carbon fuels. However, corporations are still required to report the production
and use of other fuel mixes, such as explosives and bitumen used in the manufacture of asphalt.
In general, the production and consumption of all energy commodities listed in the NGER legislation
must be reported. Where a corporation is unsure how to report a fuel mix, they should contact the
Clean Energy Regulator.
How do I report bitumen?
Bitumen is a heavy petroleum derivative used in asphalt production and is used in the majority of
road surfaces around Australia. All bitumen in Australia is consumed without combustion.
An amendment to the NGER Regulations (item 49 Schedule 1) redefined bitumen to exclude
reporting of bitumen that is consumed for non-combustion purposes. Corporations are still
required to report bitumen production. This amendment for bitumen took effect from the 2011–12
reporting year onwards.
GPO Box 621 Canberra ACT 2601
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www.cleanenergyregulator.gov.au
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Box 4: Example—reporting bitumen (after 2011-12 reporting year)
Asphalt is a composite material commonly used in the manufacture of road surfaces. It is produced
by mixing bitumen, heated aggregate and filler.
A facility (Facility B) mixes 20 tonnes (t) of bitumen with heated aggregate and filler to produce
asphalt. The asphalt is mixed at a batching plant prior to delivery to the site where it is to be laid.
The batching plant is part of Facility B which is under the operational control of Corporation Y.
As bitumen consumed without combustion is excluded from reporting, Corporation Y does not
report the consumption without combustion of the 20 t of bitumen.
As the aggregate, filler and asphalt are not listed energy commodities, their production and use is
not reportable under the NGER legislation.
The production of the bitumen must still be reported by the corporation with operational control of
the facility that produced the bitumen.
Further information
Email: reporting@cleanenergyregulator.gov.au
Phone: 1300 553 542 within Australia
Web: www.cleanenergyregulator.gov.au
This guideline should be read in conjunction with the National Greenhouse and Energy Reporting
Act 2007, the National Greenhouse and Energy Reporting Regulations 2008 and the National
Greenhouse and Energy Reporting (Measurement) Determination 2008 (current versions can be
found on the Comlaw website). Changes to the legislation may affect the information in this
guideline. This guideline is not intended to comprehensively deal with its subject area or to provide
legal advice. If corporations have concerns about the application of legislation in their particular
circumstances, they should seek professional advice.
GPO Box 621 Canberra ACT 2601
1300 553 542
enquiries@cleanenergyregulator.gov.au
www.cleanenergyregulator.gov.au
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