Wesfarmers' EVOL LNG, which successfully fuelled Woodside Petroleum's new platform supply vessel, the Siem Thiimma, at the King Pay Supply Base near Dampier in January, announced yesterday that it had identified ethane as an "attractive new business opportunity" and for speciality gases.

 

Woodside recently inked a new joint industry project with miners Rio Tinto, BHP Billiton and shipping giant Mitsui OSK to study the ability to fuel capesize iron ore carriers with LNG.

 

However, this is a completely different business opportunity for EVOL, which produces the gas at Kwinana to be transported back up to Dampier to fuel Woodside's PSV, and is now eyeing commercial opportunities for the ethane that's stripped out of the gas.

 

The timing was superb for EVOIL, unaware when it sent the release that this morning the Turnbull government would announce it had introduced legislation to cut hydrofluorocarbon (HFC) emissions.

 

HFCs - powerful synthetic greenhouse gases widely used in refrigerators, air conditioners, fire extinguishers and insulating foam - contribute up to 2% of Australia's national carbon equivalent emissions.

 

EVOL is ideally placed to replace those FHCs with ethane, as the federal government wants to phase down HFC imports starting next year and reach an 85% reduction by 2036. 

 

"Our high purity, cryogenic ethane has extremely low levels of moisture, sulphur and other contaminants making it ideal for the refrigeration industry and for speciality gases," EVOL LNG business manager Nick Rea said.

 

"Interest in ethane is growing, particularly in the refrigeration industry since the widespread phasing out of hydrofluorocarbons, so we're happy to have a market presence where customers are after a safe and reliable supplier in Australia rather than further afield.

 

"Customers realise the benefits of a shorter supply chain, with our supply available in close proximity to Fremantle Port."

 

EVOL LNG had previously supplied ethane to "a large international LNG project" and there was growing interest from the Asia Pacific region.

 

As the only Australian producer of bulk, cryogenic ethane for those applications, Rea said EVOL was looking to grow the business in Australia and in the Asian market, as can ship cryogenic ethane by ISO tank to any destination.  

 

"It's a new line of business for us but one that is showing promise and our ability to adjust our production processes to meet specific customer requirements is giving us the edge," Rea said.

 

EVOL LNG is also part of energy producer and retailer Kleenheat, which also produces hydrocarbon refrigerants and speciality gases such as propane and butane.

 

Ethane is regularly stripped out of the gas stream for use in the US, but is less often utilised in Australia.