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Ambitious low carbon investments

The UK Petroleum Industry Association (UKPIA) has welcomed the Department for Business, Energy and Industrial Strategy (BEIS) funding towards hydrogen projects at Essar’s Stanlow oil refinery and a renewable hydrogen Gigastack project which involves the Humber refinery. ESSAR Funding of £13 million has been awarded to the HyNet consortium, of which Essar Oil UK is a member.  Plans include the development of a Low Carbon Hydrogen Plant at the Stanlow refinery. This will produce 3TWh of low carbon hydrogen whilst also pioneering carbon capture storage (CCS) technology to capture and store over 95% of carbon used in the process. The funding will also support a front-end engineering design (FEED) study for a new hydrogen-fired combined heat and power (CHP) at Stanlow. “The HyNet project is one of the most ambitious low-carbon industrial cluster initiatives in Europe,” said Stephen Marcos Jones, UKPIA’s director-general. “As well as showing more broadly how the downstream oil sector is vital to the UK’s ambitions to reach ‘Net Zero’ emissions by 2050, this really demonstrates just how critical the refinery is to the success of these efforts to decarbonise the economy of the north west of England. PHILLIPS 66 Working in partnership with offshore wind company Ørsted, hydrogen producers ITM Power and with funding from BEIS, the Gigastack project will allow the Phillips 66 refinery site to utilise ‘green hydrogen’ produced from renewable energy in its operations and processes. “This project illustrates the potential outlined in UKPIA’s recently published ‘Future Vision’ report,” said Stephen Marcos Jones. “The project demonstrates the major role the UK’s downstream oil sector can play in the low-carbon energy transition. Working with renewable energy companies and in cooperation with government, this investment in ‘green hydrogen’ is an indication of how UK refineries can be world-leaders in decarbonising their manufacturing operations. “Downstream oil companies such as Essar Oil UK and Phillips 66 have the experience, engineering expertise and business acumen necessary to make the transition to a low-carbon future a reality for the benefit of both industry and wider society.” 

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2020 industry trends at StocExpo

StocExpo will release its first INDUSTRY TRENDS REPORT when the event returns to the Rotterdam Ahoy from 10 – 12 March 2020. According to the report, which surveyed the opinions of 171 key decision makers at businesses across the bulk liquid storage supply chain, 46% agree the skills shortage caused by ageing workforces and a lack of fresh young talent is the biggest challenge facing the industry today. Despite this, far more work is being done right now to maximise basic profit levers than to address upskilling and attracting the next generation of workers, leading the report to speculate that reducing costs and boosting capacity are relatively easy and short-term ways to salve the complex and abstract “people-problem”. The report also identifies and explores trends like the growth of LNG and hydrogen, which are on the diversification agenda for more than half of storage terminal respondents, but only 22% and 6% are storing LNG and hydrogen respectively at present. The research also highlights the rise of niche storage areas expected to grow over the next two years, including chemical and speciality chemical storage according to 48% and 43% of respondents respectively, as well as the storage of biodiesels (43%) and vegetable oils (28%). The research has directly informed the show’s conference programme, which will address all of the issues raised, such as sustainability, digitalisation, IMO 2020, skills and the rise of new storage areas, head on. “StocExpo has always focused on providing value to the bulk liquid storage industry,” said Mark Rimmer, StocExpo divisional director. “That’s why it’s the main event for the sector with our position naturally giving us a birds-eye-view of the industry and unique access to a huge number of bulk liquid storage’s best and brightest.  Something we’ve leveraged to deliver even more value this year in the form of an Industry Trends Report. “The report will offer intelligent insight into the commonalities among businesses in the supply chain and shine a light on the perceived challenges and opportunities.  That, coupled with our conference programme of expert speakers who will be talking on all the issues raised, will hopefully give the industry a sense of solidarity, direction and confidence equipping it as it faces down a somewhat demanding future.” The StocExpo Trends Report will be available for free to all delegates and exhibitors and will be made available to the wider public after the show. For more information visit www.stocexpo.com.  

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Industry engagement continues in quest to resolve FAME issues

UKIFDA, which continues to monitor and actively help resolve the issues some farmers and contractors have been experiencing with biodiesel, is ‘happy to report a significant decrease in reported issues since December last year’ with an improving picture on farming equipment 

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Hoyer and Shell

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HOYER wins new business with Shell for retail fuels delivery across the UK

HOYER is growing its Petrolog business with Shell for the delivery of retail fuels in the UK. The new contract includes two additional loading locations at Kingsbury and Hythe that will make deliveries in the Midlands and Hampshire areas and the agreement sees the relationship between HOYER and Shell in the UK extend through to June 2025. “The retention of our existing business with Shell, as well as the winning of significant additional business, is a credit to our people who have contributed to a continuously improving safety and service performance over the past few years,” said Allan Davison, operations director for the Petrolog business of HOYER in the UK.

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New HGV refuelling bunker at the Port of Southampton

With work commencing on the construction of a new HGV refuelling bunker site, Certas Energy recently hosted a ground-breaking ceremony at the Port of Southampton. Working in partnership with Associated British Ports (ABP), the new facility will be the first of its kind inside the port.

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Greenergy – ‘greater control of our supply chain’

On Monday 10th February Greenergy announced it had entered into time-charter agreements for two bunkering vessels based in the Irish Sea and English Channel. This marks another step in Greenergy’s expansion in the marine fuels sector. The two bunkering vessels, the Bergen Troll and the Northern Skaggerrak, have the capability to bunker a variety of fuels, including marine gasoil, fuel oil for ships fitted with scrubbers, and IMO 2020 compliant 0.5% fuel oil. “This an extension of our existing bunkering operations, giving us the ability to supply more fuel grades to more marine fuel customers, explained Varun Chhabria, group head of marine fuels at Greenergy. “With two bunkering vessels at our disposal, we will have greater control of our supply chain, supporting the personalised service our customers have come to expect from us.” Greenergy entered the marine fuel market in 2018 to meet emerging demand for low sulphur marine fuels ahead of new limits on ship emissions, and has quickly established itself as a trusted supplier to the market. In addition to its bunkering operations, Greenergy provides national fuel supply, storing and suppling marine fuels by truck from Navigator Thames (south east of England), Tyne (north east of England), Eastham (north west of England), Grangemouth (Scotland), Cardiff (Wales) and in Ireland,  from Dublin and Foynes.

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A change in direction for Thomas Silvey

Following an extensive review of Mabanaft’s UK-based companies – Mabanaft Limited, BWOC and Thomas Silvey – the latter is now focusing on fleet solutions. This change sees the Mabanaft OnRoute fuel card division being merged into the existing Silvey Fleet business.

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Banning the internal combustion engine

Last week’s government announcement with respect to an earlier ban on the internal combustion engine met with a variety of responses. Whilst the majority support the government’s ambition to decarbonise, many concerns were raised. UKPIA “The government’s plans to bring forward an end to the sale of internal combustion engine (ICE) vehicles from 2040 to 2035 threatens the opportunity to pursue a low-carbon strategy in the UK that embraces all technologies,” said Stephen Marcos Jones, director-general of UKPIA “The UK government risks the progress we have made in reducing our emissions by ‘picking winners’, instead of allowing for consumer choice and technological development – including low-carbon liquid fuels in ICE and hybrid vehicles – to lead the way in decarbonising our society.” The Institution of Mechanical Engineers felt it was imperative to reinforce its findings on Accelerating Road Transport Decarbonisation which was published on 28th January 2020. “In our report, we demonstrate that all forms of propulsion technology, including renewable fuels, electricity and hydrogen could have a substantial impact on GHG emissions,” said Steve Sapsford, chair of the Institution of Mechanical Engineer’s powertrain systems and fuels group. “By insisting that there is only one solution, this government announcement side lines a significant complementary opportunity to reduce GHG emission associated with road transport. “There is not a ‘one-size-fits all’ solution. We are running the risk of assuming that all a vehicle’s GHG emissions are emitted at point of use. Whilst that might be where legislation has its current focus, we need to take a more holistic approach including the GHGs associated with vehicle production, use and disposal/recycling.  Such life-cycle analysis is a technique for quantifying the environmental and human health impacts of a product over its life span and can often be referred to as “cradle-to-grave analysis.” The Petrol Retailers Association PRA chairman Brian Madderson warned that ‘the Government has no basis for achieving such an ambitious target, and that focusing so heavily on EVs could mean better long-term solutions were overlooked’. Achieving the new target would not be possible without significant investment into petrol forecourts to provide retrofitted charging infrastructure, which the government has yet to address. He added that the policy change was largely uncosted, and over reliant on driveway charging points which many drivers will not be able to access. He warned the government was again ignoring the potential for hydrogen powered vehicles, which can be refuelled quicker than battery electric vehicles (BEV), have assured longer mileage range and can be more easily catered for within existing infrastructure at petrol filling stations. He urged the government to be technology neutral to avoid leading consumers down the wrong track, in the way it did with diesel vehicles. FairFuelUK “Nobody objects to clean engines,” said Howard Cox, founder of the FairFuelUK campaign. “No-one argues against improved efficiency which cuts emissions, but there are fairer and better ways to lower emissions. There is no need for cliff edge targets banning hard pressed motorists’ prized possessions. Emissions are falling because vehicle technology is improving; cleaner fuel technology will evolve organically without the government’s new extinction threat to the internal combustion engine.” Motoring journalist, Quentin Wilson “The UK, which is woefully underprepared for vehicle electrification, is broadly ignoring marine, aviation, industrial and domestic combustion, and needs to really incentivise consumers and industry to change their behaviours. The UK needs a consistent and well-crafted national air quality strategy that’s supported by world-class scientific research.” PriceWaterhouseCoopersUK “Our own research on electric vehicles has underlined that widespread EV adoption is contingent on ensuring the appropriate charging infrastructure is in place for all users – this is a vital piece of the net zero journey,” said   Steve Jennings, PwC’s UK head of energy, utilities & resources, “We believe the electrification of fleets, from company cars to field service vans, will also be a critical catalyst in transforming the transport sector. This a theme we shall be exploring in a forthcoming report.” Freight Transport Association (FTA) Looking at the van market in particular, Christopher Snelling, head of UK policy at the Freight Transport Association (FTA) said: “The 2035 target is very ambitious unless the government takes urgent action to solve the challenges around power supply and the availability of electric vehicles. Our Electric Vehicle Report shows that operators want to switch to electric – but we need to see urgent action from government to ensure the right infrastructure is in place and the market is ready.  FTA is calling on the government to share its strategy on how it plans to power the UK’s fleet of millions of vans. Until the issue of power supply is resolved, it is very unlikely – in the view of FTA – that 100% of new vans bought after 2035 will be electrically powered.”

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Diversifying into truckstops

In a deal completed on 31st January, Mabanaft Ltd has acquired Avon Lodge, one of the UK’s top-tier independent truckstops.  The transaction highlights Mabanaft’s strategic commitment to developing a network of truckstops across the country, offering drivers and companies good-value, high-quality truckstops outside of those owned by the oil companies and large group networks.
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