By Luke Voogt
A proposed LPG conversion plant for Geelong is closer to reality with a business case underway, according to a gas company boss.
Elgas chief executive officer Warring Neilson said “a number of interested parties” were working together to create a plan to submit to State Government.
“We have someone who can prepare that business case for us.”
The business case was still in its early stages, Mr Neilson said.
“It’s just going through all of the issues you have to consider. We’ve got plenty of work to do but we’re working to announce a solution.”
State Industry Minister Wade Noonan the government would do all it could to support communities suffering from the closure of car manufacturing plants in Victoria.
“The Government will consider any proposals for their viability.“
In 2015 the Government commissioned a $60,000, four-month demand study with support from Gas Energy Australia and Victorian Automobile Chamber of Commerce (VACC).
Gas Energy Australia said the study identified “significant demand” for autogas vehicles.
The study recommended a business plan to evaluate the viability of building local conversion facilities.
Gas Energy Australia chief John Griffiths spoke in support of local LPG conversion facilities at an industry forum in July.
“The strong support available for new ventures from the Victorian Government is most welcome to minimise the loss of automotive jobs … as Holden, Ford and Toyota shut down their manufacturing operations,” he said.
“With Ford to close its Geelong manufacturing plant on 7 October, a large-scale LPG plant could provide some much-needed jobs for the city. We certainly hope there is a potential to absorb some of the manufacturing workers.“
Shadow industry minister Ryan Smith said the Government should stop studying issues and start delivering on its promises.
“Geelong has many highly skilled workers and the Government needs to ensure that there are strong local industries to support them.“
