Caltex Corio – November 2012 Introducing biodiesel blends

1. Caltex Corio – November 2012 Introducing biodiesel blends

2. Bonney Energy Pty Ltd Announced as Caltex Biodiesel Blending Plant in Victoria Caltex Depot Facility in Corio (Geelong) operated by Bonney Energy Pty Ltd has been approved to blend Biodiesel on behalf of Caltex Australia for the Victoria market. Earmarked for closure the Depot facility has undertaken a very extensive makeover to transform into a fully approved facility. Blends of B5 and B20 Biodiesel are now available from our Corio facility completely supported by Caltex Australia. Bonney Energy are very exited with the extension to their product range within their marketing area. Staff have been trained in the handling and marketing of these new Biodiesel products

3. COMMITMENT BEYOND WORDS QUALITY PRODUCTS Leadership in Australian Biofuels • Within Caltex, there is a strong focus on innovating products to offer our customers access to alternative options to reduce their emissions. This is most apparent through our commitment to and involvement in the Australian biofuels industry. • Caltex is Australia’s leading supplier of biofuel blends, with the broadest range of products from E10 to E85, known as Bio E-Flex, and B2, B5 and B20. Caltex first started selling ethanol blends in 1996 (under the Bogas brand) and biodiesel blends in 2004 ahead of any biofuels mandates or targets. • This leadership in Australian biofuels continues today.

4. Biofuels – part of the mix • Caltex accepts the science behind global warming and is committed to addressing the significant risks posed to economies, societies and the environment. • Caltex supports setting a national goal for reducing greenhouse gas emissions. This goal should be determined and adjusted from time to time on the basis of the best available science. • Will sell 125 million litres of neat biofuels in 2012. • More than $25M invested into terminal & service station conversions for biofuels blending & distribution. • E10 available from 6 terminals & at over 500 branded service stations. • Biodiesel blends available in 6 markets. • Work with all domestic suppliers of biodiesel. • All our current suppliers have signed declarations of compliance with the principles of the Roundtable of Sustinable Biofuels version 0. QUICK FACTS:

5. Biodiesel blends availability • B5 & B20 available ex • Rocklea • Newcastle • Adelaide • Sydney • Perth • Corio, Victoria      

6. Sustainable practices – zero harm ROUNDTABLE OF SUSTAINABLE BIOFUELS The Roundtable on Sustainable Biofuels (RSB) provides and promotes the global standard and certification scheme for socially, environmentally and economically sustainable production of biomass and biofuels. RSB Certificates are recognized by the European Union under the Renewable Energy Directive. • Caltex will only purchase biodiesel from reputable suppliers. • All of Caltex’s suppliers have declared conformance to the principles and criteria published by the RSB. • Caltex has a no palm oil or palm derivative policy.

7. CHARACTERISTICS OF BIODIESEL Understanding biodiesel One of the most common concerns for customers is how using biodiesel blends will affect their engines. Here are some quick, well-worn facts about biodiesel blends: • No engine modification is required to use biodiesel blends up to 20%. • All vehicles and machinery that normally run on automotive diesel can use B5 diesel with no engine modifications. • The Australian diesel standard allows for the inclusion of 5% biodiesel in recognition of this. • B20 is accepted by some manufacturers, and does have differing properties that may affect performance in some engines, so consult your engine manufacturer prior to use. “Nothing in life is to be feared. It is only to be understood.” – Madame Marie Curie, Nobel Prize winner 1911 • Biodiesel is a mild solvent, so in older machinery may loosen sediment and require one or two filter changes. • Some biodiesels are more stable than others. Poor stability can lead to the formation of gums and sediments that will plug filters. • Storage for neat and blended biodiesel fuels longer than 6 months may require antioxidants. • Biodiesel blends readily with all types of distillates, splash blends well on top of distillate. • Biodiesel is biodegradable and non-toxic, and typically contain no sulfur. • Biodiesel blends can be stored in standard storage tanks, however require stricter controls over moisture and water presence. • Biodiesel blends will not separate in the presence of water. • As with all liquid petroleum fuels, free water leads to corrosion and fuel deterioration. • Biodiesel is a richer microbial food source than mineral diesel as it is more oxygenated. Water provides a fertile growing place for microbes (‘bugs’) and this can generate sludge which can block filters. Eliminating water is the most effective way of controlling microbial growth.

8. VEHICLE COMPATIBILITY WITH BIODIESEL BLENDS REASONS TO PURCHASE YOUR DIESEL FROM CALTEX Biodiesel • The Australian Diesel Standard allows diesel to contain up to 5% biodiesel: • There is no requirement to label the content as it does not significantly change the properties of the fuel. • The Federal Chamber of Automotive Industry (FCAI), the industry body for car and engine manufacturers in Australia, accepts biodiesel blended with conventional diesel fuel up to 5% (vol/vol). • All vehicles and machinery that normally run on automotive diesel can use biodiesel blends up to 5%. • Experience: Caltex Australia has almost a decade’s experience in supplying biodiesel blends. We understand biodiesel and know what qualities it needs to give engines the best performance. • Stricter quality standards: We impose tougher quality specifications on our fuels than the Australian standard to ensure the highest quality product. The biodiesel is carefully blended with regular diesel at Caltex terminals and depots to meet Caltex’s strict quality standards. • Sustainability: Caltex only purchases biofuels from producers that can declare they conform to the principles and criteria published by the Roundtable on Sustainable Biofuels – an international initiative concerned with ensuring the sustainability of biofuels production and processing. • Local industry: Caltex prefers biofuels supplied by Australian producers, which supports our local industry. Using locally produced biodiesel helps support employment and local businesses in regional Australia. • Stewardship:Caltex will help you get the best performance from your fuel by helping you manage the introduction seamlessly. We will also recommend and help establish best practice storage and handling to make sure your fuel quality is protected.

9. Comparing diesels

10. Caltex B5 & B20 Diesels Quality assurance • We impose tougher quality specifications on our biodiesel than the Australian national standard for biodiesel. We do this so we can offer you the best biodiesel blends on the market. • Caltex imposes stricter limits on properties critical to good operability: • Caltex also screens each and every biodiesel delivery into our terminals for quality prior to accepting the product. • This biodiesel is then carefully stored and blended at our terminals producing our high quality B5 and B20 blends.

11. Caltex B5 & B20 Diesels Transitioning to biodiesel blends • Caltex will help manage the introduction of biodiesel blends into your sites seamlessly. We will also recommend and help establish best practice storage and handling to make sure your fuel quality is protected. • This will include, but not limited to, tank and dispense point sampling, cleanliness testing, microbial contamination testing and recommendations on fuel system optimisation and on ongoing monitoring practices.

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