$260,000 penalty for Elwood & St Kilda beach spill

A Moorabbin based chemical manufacturer has been ordered to pay $260,000 for a 28,000-litre spill that left an oily mess on Elwood and St Kilda beaches in January 2023, following civil proceedings initiated by EPA Victoria. 

Quaker Houghton Australia Pty Ltd, will also pay the Department of Transport and Planning $21,054 compensation for clean-up costs and an additional $18,946 to EPA for our legal costs. 

On 3 January 2023, a vat storing the industrial chemical Palmera A1813 (derived from palm oil) leaked, contaminating the stormwater system. The chemical flowed into the Elster and Elwood Canals, Elwood Beach, St Kilda Beach, and the waters around St Kilda Pier. 

The spill started with an equipment failure during the 2024 Christmas break and was undiscovered for several days, leaving an oil layer in the water and is considered likely to have caused the death of toadfish found washed up on shore at St Kilda Beach. 

 EPA initiated civil proceedings against the company for breaching the Environment Protection Act 2017 by depositing industrial waste into the public stormwater system—an unauthorised location—and failing to use plant and equipment in a way that reasonably minimised the risk of harm. 

The Supreme Court was told the product consisted mostly of oleic acid, which can cause depletion of oxygen levels in the water and cause injury and death to aquatic wildlife. 

The court also heard that oleic acid is a fatty acid that is used in various industries, including food, personal care, manufacturing, and pharmaceuticals. The company had been storing it for use in the production of lubricants and similar products.  

The company admitted both contraventions to the court. Since the event, it has introduced improved equipment and staff training, and increased the size and capacity of the protective bund around its storage tanks to more effectively contain any future leak. 

The company has been ordered to publicise the offence and the penalty in local newspapers in bayside suburbs. 

“Everyone must act to protect the environment and when that hasn’t happened EPA will take action through the courts if necessary,” said EPA interim CEO Joss Crawford. 

“Quaker Houghton Australia should have had better controls in place to confine and manage any spill and because they did not, the resulting pollution caused harm to our environment and will now cost the company nearly $300,000.”