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Carnarvon Petroleum (ASX:CVN) forms JV for green diesel

Energy
ASX:CVN      MCAP $344.0M
06 July 2021 11:30 (AEST)
Canarvon Petroleum (ASX:CVN) - Managing Director, Adrian Cook

Source: WA Business News

Carnarvon Petroleum (CVN) has formed a joint venture with Frontier Impact Group (FIG) to green diesel.

FIG has been actively progressing a biorefinery business in Western Australia to produce renewable diesel and other highly valuable products.

The joint venture plans to use an Australian first technology to process waste lignocellulosic (plant) biomass as a feedstock and produce renewable diesel, high-quality biochar and wood vinegar.

Notably, much of this high-quality biochar could be processed further into high-quality graphene. Graphene can be used in electronics, batteries and material composites.

Production of the refinery is targeted for late 2022, ahead of the Buffalo oil field restart in 2023.

Carnarvon said one of the main attractions to the partnership was the oil price linked to renewable diesel production.

Managing Director and CEO Adrian Cook believes the joint venture underpins the company’s business endeavours.

“Earlier today, we announced the company’s commitment to delivering a net-zero carbon emissions business before 2050. This joint venture demonstrates a clear and pragmatic start to delivering on our net-zero commitment, while ensuring long-term, sustainable shareholder value remains a key determinant in our decision making,” Mr Cook said.

“The opportunity also gives us the ability to substantially scale up our operations and provide avenues to add value through our existing knowledge and experience.”

On the market this morning, Carnarvon is up 1.75 per cent and is trading at 29 cents per share at 11:01 am AEST.

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