Study to determine demand for LPG gas conversion facility


The Victorian Automobile Chamber of Commerce (VACC) will team up with Gas Energy Australia (GEA) to investigate demands for a major new LPG gas conversion facility aimed at converting more Australian vehicles to LPG in Victoria.

LPG nozzle Image credit: flick user: David Villa
LPG nozzle
Image credit: flick user: David Villa

Minister for Manufacturing David Hodgett announced on Thursday that the undertaking will be supported with a $55,000 Napthine Government grant and will focus on demand for converting Australia’s big vehicle fleets.

“The target market would be operators of big fleets that cover significant distances each year and which would see large savings in fuel costs,” Mr Hodgett said.

He said the establishment of an LPG manufacturing facility could assist workers in Victoria’s car manufacturing industry find new jobs and acquire skills to transition as Ford, Holden and Toyota relocate from Victoria by 2017.

The VACC and GEA are proposing a high-volume new-vehicle centre – modelled on those existing in Europe and the United States – to convert new Australian vehicles, provide after-market service as well as research and development to establish quality standards for the industry, and handle the accreditation of industry participants.

Mr Hodgett said if the project proved feasible, funding from the Australian Government will likely be sought.

“The Napthine Government recently announced its Victorian Jobs in the 21st Century Jobs plan. This visionary jobs plan will create more than 200,000 jobs, provide training to 850,000 Victorians and offer 60,000 apprenticeships, helping transition Victoria into its next generation of jobs,” Mr Hodgett said.