Other activities include supplying liquefied natural gas (LNG) and supporting refuelling facilities for the heavy duty vehicle and industrial markets through our new EVOL LNG brand, retailing appliances at our Kleenheat Gas House stores, and operating a LPG facility in Bangladesh. We have more than 440 employees, 30 CAs, 582 dealers and numerous contractors.

Safety was a focus area for improvement this year. As a result, our safety performance improved with a reduction in LTIFR from 9.4 to 2.5. Our Occupational Health and Safety (OHS) Management System underwent a complete redevelopment to be implemented in full next year. System improvements were also achieved for our Environmental Management System (EnvMS) and further improvements are planned to ensure that our EnvMS has capabilities for changing legislative reporting requirements.

Kleenheat Gas’ strategy to be Fit for Growth continued with several achievements pursuant of growing value in LPG and LNG markets. These included the approval of the planned upgrades at two of our large depots and the launch of the EVOL LNG brand following the commissioning of a 175 tonne per day LNG plant which supplies LNG to more than 130 vehicles and remote power generation and industrial customers.

Following our employee survey last year, a Levers for Change programme was developed to promote a more constructive culture. Employees were also offered the opportunity to improve their health through the JumpStart Health and Wellbeing Programme.

New core Values of Safety, Achievement, Openness and Integrity were rolled out this year with plans to further embed the values in the business next year.

Our safety performance improved this year with a 28 per cent reduction in the total number of injuries. This is due, in part, to a shift in the focus of OHS issues from office based to field based employees. Our lost time injury and workers compensations claims significantly reduced. Our overall lost time injury frequency rate reduced from 9.4 to 2.5. Risk management programmes continued this year to minimise potential hazards posed to employees including Fatigue Management and Fit For Work. A national manual handling improvement programme has commenced and will continue next year.

Our Levers for Change programme involves six focus groups aiming to improve our effectiveness, workforce capability and to develop a more constructive culture. This initiative is supported by the new Values and the development of our leadership team. We communicate to our employees on a regular basis, providing them with timely and relevant information to increase employee awareness and engagement. A main focus has been on expanding the communication channels we use, particularly video and two way communication.

A modified JumpStart programme was offered this year. Employees were able to receive sponsorship for activities that promote health and wellbeing, 87 employees took up an offer for influenza vaccinations, 10,000 Steps challenges were run and a continuous fruit supply was available at all workplaces. Employees were educated on health and wellbeing topics through various seminars and we issued sun care and hydration packages to each employee.

The greenhouse gas emissions were largely due to fuel used in our heavy duty fleet and passenger fleet (approximately 75 per cent) and electricity used at our sites (approximately 14 per cent).

LPG produces less greenhouse gas emissions than petrol. Dedicated LPG and dual-fuelled vehicles comprise our entire passenger fleet.

LNG produces less greenhouse gases than diesel during combustion and produces less particulate matter. Our heavy duty vehicle fleet now includes 13 vehicles converted to utilise LNG with the addition this year of two dedicated LNG vehicles.

The substitution of LNG and LPG in our vehicles instead of diesel or petrol has meant that our greenhouse gas emissions are approximately 572 tonnes less than they otherwise could have been.

Our main energy use during the year related primarily to fuel and electricity. Total energy consumption was estimated to be 219,199 gigajoules, up 11 per cent on last year. This energy use is broken down into fuel from mobile sources (92 per cent of total energy consumption) and electricity (4 per cent).

Governance

The registration applies to the sourcing and distribution of LPG and assists us in ensuring we meet and exceed our customers’ needs.

This year we ceased our external certification to both the AS/NZ ISO 4801:2001 Occupational health and safety management system and the AS/NZ ISO14001:2004 Environmental management system, standards for business reasons however we continue to operate management systems aligned, as a minimum, to each respective standard.

Our Pinkenba and Kwinana depots both operate as Major Hazard Facilities. Our environmental licence

and certificate were renewed for our sites in Pinkenba and Bangladesh, as required. We were served a writ from the owner of a neighbouring site with regards to the contaminated site at Osborne Park, WA, which is currently subject to legal proceedings. We have renewed our Dangerous Goods Licenses which had lapsed at some of our sites in Western Australia briefly in early 2009.

We received remediation notices in relation to contraventions of the Dangerous Goods Safety (Storage and Handling of Non-explosives) Regulation 2007 at our Kalgoorlie (LPG and LNG), Albany, Kwinana and Esperance sites in WA. Measures were implemented and all contraventions have been rectified.

Kleenheat Gas received a notification from Armidale Dumaresq Council, NSW, regarding the noise emissions emanating from the site boundary.

A fleet of tankers and static storage vessels were branded EVOL LNG, a website was built allowing customers to access and manage their accounts, and informative brochures were published. EVOL LNG made its inaugural public appearance in April at the 2009 Australian Trucking Association National Convention.

This year we increased our equity of the LPG Terminal in Mongla, Bangladesh to 69 per cent and we continue to manage the operations.

This year we launched EVOL LNG, giving our LNG business a new brand identity.

A fleet of tankers and static storage vessels were branded EVOL LNG, a website was built allowing customers to access and manage their accounts, and informative brochures were published. EVOL LNG made its inaugural public appearance in April at the 2009 Australian Trucking Association National Convention.

This year we increased our equity of the LPG Terminal in Mongla, Bangladesh to 69 per cent and we continue to manage the operations.

• To implement the newly redeveloped OHS management system.
• Improve OHS and environmental risk management.
• Provide development opportunities for our people.
• Ensure Kleenheat Gas conducts its business activities in accordance with all relevant legal and regulatory obligations.
• Positively contribute to and engage with the communities in which we operate.
• Improve data management required for legislative reporting.

Evol lng

Kleenheat Gas is a pioneer in the field of alternative fuels, having produced and marketed Liquefied Petroleum Gas (LPG) for automotive, industrial and domestic applications for over 50 years. Over the past 10 years we have invested heavily in Liquefied Natural Gas (LNG), which is used elsewhere in the world but in its infancy in Australia.LNG has the following benefits:

• Lower fuel costs compared to diesel;
• Improved air quality;
• Less noise; and
• Secure supply.

Marketed as EVOL LNG, we currently supply LNG and supporting refuelling facilities to approximately 200 heavy duty vehicles in Australia. The brand made its inaugural public appearance at the 2009 Australian Trucking Association National Convention, and has since appeared at the Brisbane and Perth truck shows, promoting the benefits of LNG and sparking huge interest in the industry.

The EVOL LNG team does a lot more than just supply the fuel and refueller. We provide driver and workshop training, site audits and facilitate the entire conversion process for our customers.

We also support the community through our sponsorship of the Western Australian Asthma Foundation. Australia has one of the highest incidences of asthma in the world, and EVOL LNG shares the Foundation’s vision for improved air quality.

Bangladesh

Kleenheat Gas has operated an LPG Terminal in Mongla, Bangladesh as a joint venture (JV) since 2001. This year we increased our equity to 69 per cent and we continue to manage the operations. This gives us greater control in implementing safety procedures, improving employee development and ensures a sustainable supply of LPG to the local community.

Our Foreign Direct Investment (FDI) contributes directly to the local economy, providing regular employment, income and education opportunities for local community members.

There are also health benefits to the community through the use of LPG which is a cleaner burning fuel than the commonly used bio-mass alternatives. Bio-mass based fuels contribute to air pollution which is one of the causes known to aggravate asthma.

We continue to sponsor a school in the Thakurgaon district of Bangladesh which aims to provide a high standard of primary level education to the under developed region and allows the students to compete for higher education and employment opportunities. The school, which commenced with 22 students in 2006, now has 117 students enrolled in 2009. We significantly increased our financial contribution to the school this year to assist in the management of the ongoing issue of teacher retention.

In November 2007, cyclone SIDR left a trail of destruction including hitting Mongla Port head on, causing unprecedented damage to the area and leaving hundreds of thousands of people without homes and food. During the year, we continued to contribute to the rebuilding of the area by providing emergency funds to affected locals and employees who resided nearby and in some cases rebuilding houses, redrilling water bores to provide safe drinking water and supplying food. Income producing support was also given to affected families in the form of sewing machines and rickshaws to enable local families to get back on their feet.

Picture: Students with their teacher at the Sonali Soishab school in Thakurgaon, Bangladesh.