In February 2004, Caltex announced it would upgrade its Kurnell and Lytton refineries to meet fuel standards for cleaner petrol and diesel, regulated to take effect from 1 January 2006 as part of the federal government's clean air program.

The scope of the project has been expanded to meet future fuel standards that are expected to take effect late this decade. Caltex will invest about $250 million over the next two years in the refinery upgrades. The estimated total project cost (2002-2005) will be $295 million.

Construction work on the new facilities began in October 2004, employing a combined workforce at both refineries of up to 600 people.

Announcing the investment, Caltex Managing Director and CEO said, "Sydney and Brisbane will have cleaner air from 2006 as a result of this major investment in our Kurnell and Lytton refineries. All other communities where Caltex-refined fuel is sold will also benefit.

"Air pollution from motor vehicles is a problem in Australia's urban areas and fuel refiners and marketers have a responsibility to help provide a solution."

Caltex selected the benzene saturation process as the most technically and commercially attractive means of meeting the 1% benzene limit in petrol. It will construct processing units to reduce the benzene content in petrol at both Kurnell and Lytton refineries using proven technology that has been implemented in many plants around the world.

Hydrotreating is a well established process for removing sulfur from diesel and petrol, which is already employed at both of Caltex's refineries. Kurnell's diesel hydrotreater will increase its capacity increased from 16,000 to 30,000 barrels per day, and the unit at Lytton will increase from 11,000 to 22,000 barrels a day.

The upgrade will improve product quality but not increase the refineries' overall output of petroleum products. The refineries will be capable of producing diesel that contains only 10 ppm sulfur and premium unleaded petrol that contains only 50 ppm sulfur.

Clean Fuels at Lytton refinery reaches a milestone
The Clean Fuels Project at Caltex's Lytton refinery in Brisbane realised a major milestone on 28 May with the raising of the 63 metre high combined reactor and distillation column.

Using one of the biggest cranes in Australia, the 300 tonne steel column now ranks as one of the taller structures at the refinery. The column is the centrepiece of the new plant which will reduce the amount of benzene in petrol.