The Department of Energy and Climate Change has published consultation documents for the introduction of the domestic Renewable Heat Incentive. The new proposals all but rule out the inclusion of B30K Bioheating Oil, stating that “we do not believe that partially renewable solutions such as the B30K blend have a sufficient role to play in the transformation of the domestic heating sector to subsidise them through the RHI.”
However, despite the likely exclusion of biofuels in the domestic RHI, there are suggestions that they will be an option for larger commercialproperties, with a proposed tariff of 4.1p/kWh – the same rate as for approved, solid biomass fuels.
Although the expected timeframe for its introduction remains unchanged (summer 2013), proposed levels of financial support for included technologies are now known.
Key proposals include:
(L-R) Kevin Knight, Andy Tout, Jamie Starr, Becky Venton, Kevin McCoy and Chris Allen
Tincknell Fuels continues to operate separately as GB Oils acquires Tincknell Lubricants on 31st August.
The lubricants business will trade as Emo Oil, an authorised Shell lubricants distributor, supplying products to commercial, agricultural and domestic customers across the south west of England.
As well as consolidating its existing customer relationships in the region, the company will expand its service across all sectors, including industrial, agricultural, aviation and automotive.
As part of the acquisition, seven former Tincknell Lubricants’ employees will join the business, all to be based on the Dawlish Road in Exeter. Kevin Knight and Jamie Starr will be business development managers, Rebekah Venton an account manager, Andy Tout a depot supervisor, whilst Chris Sampson will be a yardman and Kevin McCoy and Chris Allen will be employed as drivers.
Ross Buckland, head of lubricants at GB Oils, commented: “This acquisition will further strengthen our position in the south west of England; increasing our storage and distribution infrastructure and enhancing our ability to attract and serve existing and new customers throughout the market. We welcome the Tincknell Lubricants team to the GB Oils family and look forward to building close working relationships in the months ahead.”
A new challenge for Chris
Chris Dalton, formerly of Heil Trailer International and Reynolds Logistics has established a new company – Lateu Logistics.
Having worked in the industry for many years, managing director, Chris has experienced first hand, numerous changes within the logistics chain. He believes that as a result of rising fuel costs and banks holding back credit, there is a considerable case for fuel and lubricant distributors/suppliers to dispose of their fleets entirely, freeing cash to build their business.
Chris has taken the opportunity to fulfil a growing need for a specialist, non-asset based company in offering a flexible logistics management service, which works as an extension to an oil company/wholesaler or distributor.
Located in Albrighton near Telford, Lateu can manage in-house fleets or utilise approved sub-contractors (pre vetted to meet the high standards of the industry). In addition to logistics management the company can set up and operate all back office services, telemetry, customer care service and order taking. “As the retail sector changes and ex rack becomes a growing part of the business, the asset based logistics industry needs to reinvent itself to meet what is a logistical nightmare of multiple pick up points, split loads and relocated vehicles,” explains Chris.
“I’ve identified a need for an independent logistics company to help oil companies, wholesalers and distributors to manage their distribution requirements more cost effectively by taking a critical look at in house fleets, logistics management and outsourced contracts.
“There’s a growing case to consider 4PL managed through an experienced logistics team – a procurer of effective logistics services which integrates internal and external resources into a logistics model. The company acts as an extension to organisations and manages the supply chain within tight KPI measurements, regularly testing the market for newer, better or more cost effective solutions. Asset based logistics companies are just not independent or flexible enough to do this well and in house logistics departments are often under staffed or lacking experience. Lateu Logistics integrates into the customer’s business and can offer experience and total transparency without the in-house cost, skills need and risk associated with employing people.”
Former Heil operations director, Wendy Dalton joins Chris on the board as Lateu’s operations director.info@lateulogistics.com
Mick (second from left), joins colleagues at Suckling’s Race Day in June
Mick Smith, transport manager, Suckling Transport reports from the Freight Transport Association’s recent dangerous goods seminar.ADR photo cards
Fraser Talbot from the Scottish Qualification Authority (SQA) explained pending changes to ADR certificates. Certificates will now be issued by the SQA on behalf of the Department for Transport instead of the DVLA. Although the format will change from paper to a photo card, the good news is that there will be no additional cost. Drivers will simply have to produce a passport-style photo when attending a refresher course. It is expected that this will take place in October.Fire extinguisher failures
Terry Laker of the Health and Safety Executive spoke about the carriage of dangerous goods and road enforcement. He was particularly concerned that historically, hauliers are continuing to make the same mistakes and highlighted the high percentage of fire extinguisher failures.Changes to OCRS
The Vehicle and Operator Services Agency’s (VOSA) Matt Barker was on hand to talk about recent changes to the Operator Compliance Risk Score (OCRS) system. Key changes include:-
Targeting priorities
Points
OCRS bands
Timescales of point allocation for prosecution
Removal of predictive scoring
Weighting factor according to age of event
Larger data sets calculated more frequently
Straight-to-red for prosecutions and most serious infringement
New events included
Matt explained that the changes have been designed to help examiners to target non-compliant hauliers. www.vosa.gov.ukwww.fta.co.uk
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Stoddards shows off its new RTN tanker with Alpeco equipment
Stoddards has taken delivery of a brand new baby tanker from Road Tankers Northern.
The tanker is fully equipped with Alpeco bottom loading and vapour recovery equipment and the MF400 electronic meter system with metered uplift facility.
Judith Stoddard explained: “With so many of our drops being to rural villages, homes and farms we needed a small truck to cope with difficult access such as narrow gates and entrances. This was the prime motivating factor in going for a small truck just to carry on servicing those customers.
“My father used to buy trucks from RTN and we have continued to buy from them as they are knowledgeable about our business and offer an excellent product. The drivers like the Alpeco meters and are familiar with them and particularly like the remote control feature. I would think it fair to say that all the trucks we have in the future will be fitted with this facility.”
Clive Felton, RTN’s sales manager added. “We’ve dealt with Stoddards since the 1990s and have been their preferred supplier of fuel delivery vehicles ever since. The latest vehicle is 3-compartment, 8600 litre, aluminium, fully ADR and petroleum regulations compliant. The vehicle has been built on a DAF LF45 210 chassis.”http://www.stoddards.co.uk/
The Seal Sands terminal, located at the mouth of the River Tees
Harvest Energy is expanding its presence in the UK road fuels market through its partnership with Simon Storage.
Less than three years ago Harvest Energy began storing fuels at Simon’s Seal Sands terminal. Now it utilises a substantial proportion of the terminal’s fuels storage.
As well as fuel storage, Simon provides Harvest Energy with specialist biofuels blending to help the company meet the Renewable Transport Fuels Obligation. A bioethanol in-line injection system is provided for the company’s unleaded and super unleaded gasoline products, while diesel and FAME are blended in-tank.
Harvest Energy took over a biodiesel production plant at Seal Sands two years ago. Simon stores and handles raw materials for the plant, including used cooking oil. FAME produced by the plant is transferred by pipeline from the plant into the terminal for use in Harvest Energy’s biodiesel blending operations or for export to out-buyers.
Simon Davis, head of sales and logistics, Harvest Energy, believes reliable supply partners like Simon Storage are vital. “Simon’s expertise in storage and handling helps us to provide products that are competitively priced, supplied and delivered with a customer-focus. The Seal Sands terminal plays a critical role in Harvest Energy’s UK-based storage and supply network and we look forward to developing new market opportunities with Simon’s support.”
Harvest Energy has recently announced that Trafigura has invested in the company, providing a long term financing platform and enabling future growth in the UK market.www.SimonStorage.comwww.harvestenergy.co.uk
Emco Wheaton has been named as a preferred supplier to Vopak.
Under the terms of the three year partnership agreement, Emco Wheaton will supply, install and maintain marine loading arms for Vopak. The partnership, which has a further two year option, also covers the erection and servicing of marine loading arms, designed to ensure the safe loading and unloading of gas, oil and other fluids from super tankers to storage facilities on shore.
Emco Wheaton designs and manufactures a wide range of highly engineered marine loading arms to load and unload almost any liquid and compressed gas product from river barges, ships and ocean going super tankers. Each loading arm incorporates advanced safety features combined with pantograph balanced mechanical link technology, to provide stability and strength.
www.emcowheaton.com
Hertel staff celebrate six years of safety
Six years of safe working have been achieved by maintenance and services provider, Hertel, at the Phillips 66 oil refinery in Humberside.
The period spans a total of 823,857 hours without an Occupational Safety and Health Association (OSHA) recordable incident. A ceremony was held onsite to mark the occasion. The company’s UK operations director, Nick Henderson, was joined by Phillips 66 senior management to present the team with certificates of achievement and a commemorative jacket.
Nick commented: “Six years without a lost-time incident is a significant landmark both for Hertel and the client. It’s a demonstration of the commitment of staff to achieving a world-class performance through safe working practices.”www.hertel.com
The National Skills Academy has launched a one day Petroleum Safety Training course.
Aimed at contractors working at top tier COMAH petroleum sites, the course has been designed to supplement existing safety passport schemes such as Client Contractor National Safety Group (CCNSG).
The first train the trainer event is being held on 3rd October. To book a place email industry@process.nsacademy.co.uk
Latest figures released by Lewis Tankers show a much improved financial performance for 2011.
Revenues grew 53% over the previous year to £11 million, and there was a 90% improvement in gross margin, which resulted in a break even at operating profit (after interest) – a turnaround of £450,000 from 2010.
Performance is now ahead of the original five year business plan prepared by directors in 2009.
New business with Kuwait, World Fuel Services, Univar, and Brenntag, contributed to revenue growth, while the company has implemented a new operational control system, which has led to significant efficiencies. During the year the company restructured its management team to improve market focus by bringing together operational and commercial responsibilities.
As with the previous two years, business started poorly in 2012 due to unseasonal good weather, which affected volumes in fuel distribution, especially in Scotland. However, trading in other sectors has remained strong and the company expects to hit its financial targets.
Managing director Stewart MacDonald commented: “We’re pleased with our 2011 performance and are confident that we can continue to successfully develop the company. We continue to sign new business and our pipeline remains very strong for the balance of the year and beyond. With that in mind we are continuing to invest in new people and new vehicles. Staff numbers have grown from 108 to 120 and our tanker fleet has increased from 71 to 85.
“Probably the biggest challenge now facing us is to determine our geographical strategy. Increasingly, we’re producing new business opportunities outside our traditional operating locations in the north of England and Scotland, and we need to find sensible solutions – probably by small-scale acquisitions.”
http://www.lewistankers.co.uk/
Further Reading
The Fleet Safety Forum, a division of Brake, has published new guidance for fleet managers on managing agency drivers.
The guidance, sponsored by Pertemps, provides advice on how to minimise the risks posed by using agency drivers.
Research has shown that agency drivers are more prone to be involved in collisions, and with 42% of UK companies using temporary staff as drivers, it is a key safety issue.
The new guidance covers effective partnership working with the driver agency, rigorous inductions on company safe driving policy and vehicle checks and subjecting agency drivers to the same spot checks, e.g. for drug and alcohol use, as company employed drivers. The guidance features a best practice case study of a fleet operator that has successfully mitigated the risks associated with agency drivers.
The guidance is free to Fleet Safety Forum subscribers or £5 for non-subscribers. Email admin@brake.org.uk.
Fairbanks has been awarded a three-year wetstock management contract by Shell.Fairbankswill partner Tokheim as part of the contract, to deliver its services to more than 3,000 petrol stations, in 25 countries, across three continents.
A combination of hardware and software applications will provide automatic, real-time data to a team ofFairbanksanalysts. This will enable the delivery of detailed statistical inventory reconciliation (SIR) analysis of wetstock data to Shell. It will also help the company to benefit from improved wetstock protection and reduce the potential for fuel loss incidents.
Fairbanks director, Steve Jones, commented: “We’re delighted that Shell has chosenFairbanks. We feel we provide something truly unique and valuable to the marketplace; a suite of remote wetstock management services combined with a dedicated team of analysts that add value and insight to our client’s data.
“Shell employs a number of systems across its global networks and Fairbanksis well equipped to provide a service that works to meet Shell’s current and future business development ambitions.
www.fairbanks.co.uk
Cameron Forecourt has expanded its customer support team by appointing Ellie Nieuwenhuizen as telesales administrator, aiming to boost continued growth in the commercial sector.
The company’s new flash evaporation plant is helping it to exceed stringent PFO legislation
M2environmental has recently re-branded, reverting back to its original name of Malary.
Alongside its core business of manufacturing M2 processed fuel oil, Malary also produces cost effective solutions for hazardous waste streams which historically have been sent to land fill or incineration.
To accommodate an anticipated increase in chemists, business and equipment, a new laboratory is currently being built, which will more than double the existing work area. The laboratory was initially installed to provide seven day support to the company’s processed fuel oil production, but in the last six months it has branched out to provide external services. This includes the analysis of processed fuel oil, waste water, used oils, contaminated soils and hazardous waste.
Following a £300,000 investment the company commissioned a new PFO evaporation plant earlier this year. By introducing an additional process, Malary can reduce water content in PFO to as little as 0.1%, whilst also improving fuel quality and increasing production capacity. The investment also included the building of a new control room and the commencement of an automation project.
Operations director, Peter Oxley, commented: “We’re really pleased with the results which show that the time spent on R&D during 2011 has really paid off. This is a major step for the company, increasing production capacity by more than 25%, and moving us one step closer towards full automation.”
Recently installed – Caldo’s new Alpeco skid
Alpeco has recently installed a new bottom loading skid at Caldo Oils’ St Helen’s depot.
The company’s main depot was originally fitted with a top loading facility, which although was regularly serviced and maintained, was deemed too old. Managing director, Mike Scott was keen to replace the unit with an analogue installation: “I specifically elected to use an analogue system as I’m a traditionalist. I very much liked the cogs and wheels of our previous system, which lasted more than 30 years, so we’ve no reason to expect any less from the new installation.”
Alpeco was awarded the contract to supply and install a brand new bottom-loading skid, equipped with four loading arms and mechanical meters configured for 900 lpm loading rates. Alpeco also provided a finance package through its business finance partner, CBF.
“Although we have a number of depots, we provide all our fuel supplies from the St Helens facility as this is our only wet depot. Alpeco came up with a very good deal through CBF and we believe that it’s much easier to use one source to design, manufacture, install and even finance the whole project,” Mike explained.
“Alpeco also offers a very good back up service. This means a lot, as I can pick up the phone certain in the knowledge that they won’t present us with an invoice for something that should have been provided in the first place. Also you can actually speak to someone, which is always a great help.”
The convenient but safe and secure lock box
Hytek is now offering out-of-hours collections. Simply let the company know that you’d like to pick up your order after hours and it will be stored in an outdoor lock box. The steel box is equipped with a high security combination padlock. The combination will be sent by the Hytek team, once it has received confirmation that the order will be picked up.
The company’s new 2012/2013 catalogue is to be its biggest yet.
The catalogue, which has an extra 14 pages and over 100 new products, boasts more than 12 different product sections. Grouping similar products together in these sections means that the new catalogue is an easy to navigate tool.
Many products have remained the same price as last year and in some cases prices have fallen.www.hytekgb.com
Fuel Oil News
Invites you to
THE DISTRIBUTOR DEBATE
On Wednesday 17th October at Manchester Central
This exciting event gives you the opportunity to:
– Take part in a frank and open discussion about the challenges and opportunities facing those operating in downstream fuel distribution
– Listen to short factual presentations from leading industry speakers on the issues that concern every distributor every day, prices, supply, refining, logistics
– Question Robin Lloyd, Mabanaft’s operations and biofuels manager on the gas oil changes in 2013
-With increasing pressure to adopt renewables and numbers of community buying schemes climbing – join in the debate on the future of oil heating.
Many industry experts have committed to attending, while others have already started preparing their presentations.
50 distribution terminals currently serve the UK inland market. An updated wall map will be sent to Fuel Oil News subscribers in early 2013
A dislocation of fuel product supply – affecting around 20% of regional requirements – followed the explosion at the Hertfordshire Oil Storage terminal at Buncefield in December 2005.
Coming just a few years after fuel supplies were almost totally paralysed during fuel price protests in September 2000, these events prompted a heightened awareness of the importance of an infrastructure that is essential to the wider economy and, indeed, everyone’s daily life.
In government circles, this heightened awareness resulted in the setting up of the Downstream Oil Industry Forum. A forum charged with addressing the diverse challenges faced by the downstream sector, and, in particular, improving the resilience of both the physical infrastructure and the security and continuity of supply.
Commissioned by the Department for Energy and Climate Change (DECC), three separate reports on the subject have been undertaken by WoodMackenzie, Deloitte, and Purvin & Gertz.
v UKdownstream oil infrastructure
v Downstream oil – short term resilience and longer term security of supply
v Developments in the international downstream oil markets and their drivers: Implications for theUKrefining sector
The above reports can be downloaded at www.decc.gov.ukThe refinery network
Following the closures of Petroplus’ Teesside facility in 2009 and Coryton in June this year, the UK now has 7 operating refineries. From the start of 2005 only the twoHumberrefineries and Fawley are under their original ownership.
Since the last refinery – Murco’s Milford Haven – was commissioned in 1973, refinery numbers have progressively declined – from 18 with a total distillation capacity of 132 million metric tonnes (mt) to 7 with a total capacity of 77 million mt.
In the 1970s/80s refineries invested in fluid catalytic cracking capacity to upgrade surplus fuel oil into petrol; then the chosen motoring fuel*. The next two decades saw the introduction of more stringent specifications for clean fuels and a need for refineries to invest to ensure compliance.
Prior to the recent Coryton shut-down, around two thirds of refinery production was delivered to the inland market with approximately 80 % of the crude oil feedstock being sourced from theUKand Norwegian sectors of theNorth Sea.Refinery challenges
Poor profitability conditions in refining have been evident since 2008 and will continue, with no prospect of improvement expected, for another two to three years.
*UK refineries now have excess petrol production capacity and a shortfall for middle distillate grades. Finding outlets for this petrol surplus will become an increasing challenge.
UK and European refiners face increased competition from Asian and Middle Eastern export refineries. From January 2013, they will also face additional costs associated with the requirement to comply with the EU Emissions Trading Scheme; additional costs not being borne by Asian and Middle Eastern competition.Bulk product movements – by pipeline
Over half of all bulk movements are made on the oil company owned pipeline network.UKOP links the Thames and Mersey refineries, serving theMidlands (Kingsbury) and BuncefieldEsso Pipeline System serves West London (Heathrow), Purfleet (Gatwick), Avonmouth and theMidlands (Bromford) from FawleyMainline serves the Midlands (Kingsbury) andNorth West (Manchester) from Pembroke and Milford HavenFinaline services Buncefield (Heathrow) from Lindsey; currently restricted to Jet A-1
Two aviation systems feed Heathrow and Gatwick airports from Buncefield and Walton terminals
Originally commissioned before World War II, the government pipeline system is primarily a strategic defence facility used to supply military JetA-1; it also supplies Heathrow (from Avonmouth by Q8 Petroleum) and Stansted airports. Third party commercial use is limited to Killingholme to Bramhall in south Manchester. Former road loading terminals at Blackmoor, Hallen and Aldermaston are no longer in third party commercial use.– by rail
Rail movements account for 15% of bulk movements.
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