"[This] will radically reduce emissions from construction equipment, and become a game-changer for our industry."
Ecological awareness is gradually becoming a preeminent consideration for property developers as they're initiating projects. As Ready Media Group's Sandra LoGiudice discovered recently whilst exploring the ESG framework, “organisations have devised their own ways to improve on corporate governance, be more sustainable, environmentally active, and socially responsible.” One of the ways the construction industry is being decarbonised centres around using renewable diesel to power cranes.
Whilst usage of this fuel in Australia is still limited, this renewable alternative has been generating interest in the USA for the past few years. According to the U.S. Energy Information Administration, renewable diesel production capacity in the United States totaled nearly 600 million gallons per year as of the end of 2020. That figure has increased substantially in each subsequent year.
Graph by the U.S. Energy Information Administration (EIA), demonstrating growing renewable diesel capacity in the United States
Australia is starting to see value in this budding biofuel, as indicated by both the Western Australian and New South Wales state governments publishing articles on the energy source this year. Additionally, WA utility provider Horizon Power announced earlier this year that they have signed a non-binding Memorandum of Understanding (MoU) to purchase renewable diesel from oil and gas exploration company Carnarvon Energy.
Real estate company Lendlease are now looking to join in on the party, as the organisation has started to use renewable diesel to power their tower cranes on the NSW Government's Powerhouse Parramatta project. Lendlease already use renewable diesel across the majority of their construction projects in the United Kingdom, but this action serves as their first movement into the renewable fuelling space here in Australia.
The renewable diesel being used has been produced and imported into Australia as part of a cross-industry collaboration between the groups collaborating on the Powerhouse Parramatta project, including the NSW Government, Lendlease, Marr Contracting, and Refuelling Solutions, together with builder Multiplex.
(Left-to-right) Tom Gillibrand, Head of Projects Infrastructure NSW; Gordon Marr, Marr Contracting's Technical and Product Development Director; Daniel Murphy, Multiplex's Regional Director NSW; Dane Morrison, Lendlease's Operations Manager
"We're introducing the first renewable diesel to Australia onto our project sites, in collaboration with [our] partners,” stated Lendlease Australia's Managing Direction of Construction, David Paterson. "[This] will radically reduce emissions from construction equipment, and become a game-changer for our industry."
Construction is responsible for 23% of global greenhouse gas emissions, with roughly 5.5% of these emissions directly caused by powering construction machinery and equipment, predominantly by using fossil fuel sources like mineral diesel. Mr. Paterson believes this needs to change, and sees this shift in approach as a seminal point in the construction industry's move towards more environmentally-conscious practices.
"We hope today's announcement inspires collective action from Australian contractors, the supply chain, and customers, to address one of the most critical needs of our time.”
Moving towards fossil fuel-free construction that doesn't require the use of carbon offsets is a key part of Lendlease's goal to reach 'absolute zero carbon’ across investment management, development, and construction globally by 2040.
Find out about Lendlease's popular office tower development, Melbourne Quarter Tower, here.
