Overview

Applicant: Esso Australia Pty Ltd

Activity site: 11 Bayview Rd, Hastings, VIC, 3915

Application number: APP09563

Esso Australia Pty Ltd (Esso) has applied for a development licence to install three power generation units at their existing site at 11 Bayview Rd, Hastings. These will convert excess ethane gas (a by-product of the liquid petroleum gas (LPG) processing) into 35-40 megawatts of electricity to power Victorian homes.

What does the application propose?

The natural gas liquids (ethane, propane and butane) are sent to the Long Island Point Fractionation Plant (LIP) in Hastings, operated by Esso Australia Pty Ltd (Applicant), for further processing prior to LPG being distributed locally and internationally. The ethane by-product of this process has, for many years, been sent through a pipeline to a customer in Altona for plastics manufacture.

When the customer is unable to accept the ethane as a result of maintenance, in most cases, Esso either needs to reduce the gas liquids flowing to Long Island Point, reducing the supply of propane and butane to Victoria, or need to flare the ethane. In some circumstances, this could result in the need to significantly curtail natural gas supply to reduce the production of these gas liquids, which would impact the supply of natural gas to Victoria.

In the event the customer is unable to accept the ethane, the Applicant requires an alternative use for the ethane. Generating power from ethane, will enable Esso to safely and reliably utilise undersubscribed ethane, avoiding the need to flare this gas at Long Island Point or reduce natural gas production for the south east Australian gas market.

Esso has submitted a development licence application to EPA to install three small power generation units at a site adjacent to LIP. These will be capable of converting ethane into 35-40 megawatts of electricity to power Victorian homes. As the demand for natural gas declines, so will the quantity of ethane gas requiring disposal and Esso expects the facility will cease operation around 2033.

Under the Environment Protection Regulations 2021, the activities the subject of the application are: L01 (General emissions to air) and K01 (Power generation) and require a development licence under the Environment Protection Act 2017.

The full application can be found in the Supporting documents section of this page.

Latest updates

Development licence issued

On 11 August 2022, a development licence was issued to Esso Australia Pty Ltd under section 69(1)(a) of the Act. The development licence is subject to conditions. The application is proposed to be undertaken in a way that meets environmental standards.

A copy of the statutory document and assessment can be found in the Supporting Documents section of this page.

EPA assessed the application against all requirements under section 69(3) of the Act, focusing on air emissions, noise impacts, greenhouse gas emissions, and ethane flaring at the Long Island Point Fractionation Plant.

EPA has set conditions that will ensure the design and operation of  the three power generation units reduces risks so far as is reasonably practicable.

If you object to the issuing of the Development licence or its conditions, you may have the decision reviewed at VCAT by applying in writing within 15 business days of the date of issue to:

Registrar, Planning and Environment Division
Victorian Civil and Administrative Tribunal (VCAT)
7th Floor, 55 King Street, Melbourne

An application fee may be applicable when lodging an appeal with VCAT. Contact VCAT on 03 9628 9777 for further details on fees associated with an appeal.

A copy of the appeal should also be forwarded, within seven days of lodgement, to:

Manager, Development Assessments Unit
Environment Protection Authority Victoria
GPO Box 4395, Melbourne 3001

The first public submission and comment period for this development licence application was held from 16 March until 13 April 2022. In total, 9 submissions were received, including a late submission accepted on 22 April 2022.

Common concerns in the submissions were air emissions, climate change and community consultation. Specifically, the most common concerns related to emissions from the existing flare, how the project fits in with local climate change policies and lack of community consultation undertaken.

The second public submission and comment period for this development licence application was from 21 June until 4 July 2022. In total, 7 submissions were received.

Submissions received

First consultation

• Submissions 1-6 (PDF 559KB)
• Written submission 5 (PDF 1,491KB)
• Written submission 7 (PDF 101KB)
• Written submission 8 (PDF 25,545KB)
• Written submission 9 (PDF 283KB)

Second consultation

• Submission 1 (PDF 153KB)
• Submission 2 (PDF 404KB)
• Submission 3 (PDF 160KB)
• Submission 4 (PDF 82KB)
• Submission 5 (PDF 280KB)
• Submission 6 (PDF 269KB)
• Submission 7 part 1 of 2 (PDF 140KB)
• Submission 7 part 2 of 2 (PDF 110KB)

Request for information issued

On 14 April 2022, EPA issued the applicant with a Request for Further Information (RFI) under section 50(3) of the Environment Protection Act 2017. The RFI asked that the applicant respond to the community submissions received during the public consultation period.

The statutory clock or time limit for making a decision on the development licence application was paused from the date the RFI is issued until EPA receives a response from the applicant.

Further information provided

On May 5, the applicant provided further information. Specifically, the applicant provided a response to the community submissions received during the public consultation period. The additional information can be reviewed in the supporting documents section of this page.

Information session hosted by Esso Australia Pty Ltd

On May 5, Esso Australia Pty Ltd hosted an information session at Sanctuary Inn Hotel, 126 Marine Pared in Hastings. EPA attended the event to further understand community concerns. 

Second request for further information

On 13 May, EPA issued the applicant with a second Request for Further Information (RFI) under section 50(3) of the Environment Protection Act 2017.

The statutory clock or time limit for making a decision on the development licence application is paused from the date the RFI is issued until EPA receives a response from the applicant. The second RFI is attached below.

• Second RFI sent to Esso (PDF 671KB)

Further information provided

On June 15, the applicant provided further information. The additional information can be reviewed in the supporting documents section of this page.

The additional information provided is now open for community comments until 4 July 2022.

Please forward any comments to: permissioning.engagement@epa.vic.gov.au.

You can view the development licence application and supporting documentation below.

Development licence decision

• Statutory document (PDF 710KB)
• Esso Australia Pty Ltd Assessment Summary (PDF 3MB)
• Esso Australia Pty Ltd Assessment Report (PDF 2,695KB)

Development licence application

• APP009563 - Application Details (PDF 106KB)
• Development Licence Application (PDF 4,965KB)

Appendices

• DL Attachment 1A_Site Sketch 015 (PDF 822KB)
• DL Attachment 1B_Site Sketch 016 (PDF 521KB)
• DL Attachment 1C_Site Sketch 017 (PDF 1,017KB)
• DL Attachment 2 - Figures and Maps (PDF 729KB)
• DL Attachment 2a - Geological and Geomorphologic Figures (PDF 1,208KB)
• DL Attachment 2b - Site Vegetation (PDF 4,632KB)
• DL Attachment 3 Project Alternatives (PDF 1,357KB)
• DL Attachment 4 GHG Assessment Report (PDF 689KB)
• DL Attachment 5 Environment Management Plan (PDF 459KB)
• DL Attachment 6_Air Quality Assessment (PDF 11,437KB)
• DL Attachment 7 Environmental Noise Impact Assessment (PDF 1,099KB)
• DL Attachment 8 Cultural Heritage Assessment (PDF 2,415KB)
• DL Attachment 9 - Threatened Flora and Fauna Likely to occur in Project Area (PDF 156KB)
• DL Attachment 10 - Victorian Heritage Register (PDF 118KB)
• DL Attachment 11 Environment and Human Health Risk Assessment (PDF 265KB)
• DL Attachment 12 Decommissioning Plan (PDF 1,267KB)
• DL Attachment 13_Stakeholder Engagement Plan Rev (PDF 211KB)
• VOC Emissions Supplementary Info_040222 (PDF 432KB)

Further information provided 5 May 2022

• Response to questions raised during public consultation (PDF 429KB)
• Esso generators good for the environment, Frankston Times 29 March 2022 (PDF 111KB)
• WPN_22nd September 2021p14 (PDF 1,983KB)
• WPN_23rd March 2022p12 (PDF 1,600KB)

Further information provided 15 June 2022

• APP009563 EPA RFI 13 May 2022
• Ambient Air Screening Report 2019
• Attachment A – Hastings Environmental Noise Impact Assessment Rev.2
• Attachment B - Hastings Noise Control Addendum
• Attachment C - Hastings Infrasound Addendum

Response to second round of public consultation

• Response to second round consultation (PDF 439KB)

Update to air quality assessment report

• Hastings Power Generation Project (PDF 3MB)

• 15 January 2022
  • Application received.
• 17 February 2022
  • Application accepted.
• 16 March 2022
  • Public submissions open.
• 13 April 2022 (20 business days)
  • Public submissions close.
• 14 April 2022
  • EPA issue a request for further information. Statutory clock paused.
• 5 May 2022
  • The applicant provides a response to the request for further information.
• 14 May 2022
  • EPA issue a second request for further information. Statutory clock paused.
• 15 June 2022
  • The applicant provides a response to the request for further information.
• 11 August 2022
  • EPA approves the development licence application.

Make a submission

Submissions for this development licence application are now closed.

Collection notice

EPA is committed to protecting the personal information it collects in carrying out its regulatory functions in accordance with its Privacy Policy and the Victorian Privacy and Data Protection Act 2014. The submission you provide to EPA will be used to identify community concerns regarding an application for a development licence.

Your submission will be de-identified and provided to the applicant to give the applicant an opportunity to address the concerns raised. EPA will then complete its assessment of the application, considering all the submissions it has received and any applicant responses. Your de-identified submission will also be made available on this website.

To protect the privacy of individuals, EPA will remove personal information (for example, name and contact details) from the submissions it receives. Personal information will be retained by EPA so that it may contact you to clarify your submission if necessary or to provide you with updates regarding EPA’s assessment. If you do not wish to be identified, please ensure there is no other information in your submission that could identify you or other individuals.

Please note, if all requested information is not provided, we will not be able to process your submission. If you do not provide your e-mail address, we will not be able to identify your submission, should you wish to access it, make a correction, or require technical support.

For more information on how EPA handles the personal information it collects in carrying out its regulatory functions, please refer to our privacy policy or, for any other questions, please contact our Privacy Officer by email at privacyofficer@epa.vic.gov.au.