A significant safety milestone reached at Essar Stanlow has seen a £3,000 donation made to The Alzheimer’s Society. The award recognises the recent achievement of reaching one million hours without a recordable injury at the Ellesmere Port site. The funds were raised through Essar’s ‘Let’s Give’ scheme, which links the company’s commitment to safety directly with charitable giving. Essar employees and business partners nominate a chosen charity as safety milestones are met.
Shell has announced that its contactless fuel delivery service, TapUp, is expanding to the northern city of Manchester.
Fuelling on site is not only convenient, it also reduces environmental impact and increases productivity. Fleets will not have to be driven miles to refuel, reducing associated emissions and refuelling can be done quickly with no need to plan for constant refuelling, saving time and improving efficiency.
The expansion comes as the region experiences an increase in its need for clean, contactless mobile fuel delivery. Since the start of Covid-19, Shell has increased its support for fleets providing essentials services such as parcel delivery, logistics, food delivery and construction.
Tim Bennett, general manager for Shell TopUp Europe, said: “We will have a well-established and fully utilised fleet in Manchester very soon. We will be supporting our growing customer base in their energy transition by providing cleaner energy and alternative fuels via Shell TapUp.”
This Spring sees OTS Group Ltd celebrating its 50th anniversary and, from its humble beginnings in 1971 in a farm cowshed to becoming a leader in the fuel industry, the company has never lost sight of its values.
Ulceby Truckstop in Immingham is the latest addition to Mabanaft’s growing portfolio of UK truckstops. Another top-tier site, Ulceby, was selected for its strategic location just outside Immingham docks.
Adrian Jackson, chief executive of the Oil and Pipelines Agency, has been elected as the new president of the Tank Storage Association (TSA), the trade association representing all aspects of the UK’s bulk liquid storage industry and associated logistics. Adrian succeeds Paul Denmead, director of terminal operations UK at World Fuel Services Europe.
In our March issue we reported on a ground-breaking industry trial.
Accepting the inevitability of an end date for the use of fossil fuels in home-heating, industry bodies UKIFDA and OFTEC, as well as tank manufacturers, distributors and many more are coming together to ensure there is a future for liquid biofuels in our industry. The first UK trials of alternative liquid fuels in home-heating were rolled out late last year and our content editor, Stephanie Samuel, caught up with UKIFDA chief executive Ken Cronin, OFTEC CEO Paul Rose and John and Robert Weedon, directors of South West based distributor Mitchell and Webber, to find out more about this forward-thinking approach that could make industry history.
“I have been hugely impressed by the work the industry has done on the winter trials,” said Ken Cronin, president of UKIFDA. “Both the Climate Change Committee (CCC) and the National Grid Future Energy Scenarios (FES) predict a significant proportion of our customers will require some form of biofuel by 2050 to help meet the UK’s net zero commitment. We support these assertions as these homes tend to be rural and therefore difficult to reach for grid purposes and/or of an age and construction that make retrofitting for other technologies difficult technically or economically.”
Enthusiastically embraced
Operating out of Cornwall, distributor Mitchell and Webber was the first company to deliver new, low carbon heating fuel for the UK trials in a partnership with OFTEC and UKIFDA. Commenting on the trials, which have seen a number of customers who previously relied on heating oil trialling HVO since December last year, John Weedon said:
“We pushed hard to be the ones to trial this first because we have thousands of customers who will have difficulty in changing heating technologies. Talking about alternative fuels can only get you so far, you’ve got to get up and make it happen.
“We’ve been in this industry for over 120 years and, even as the end date for fossil fuels gets ever closer, there are still 38,000 homes running on oil in Cornwall. As ever, we are determined to get the best alternative fuel for our customers.”
Speaking about the attitudes of their customers, Robert Weedon confirmed their enthusiastic interest:
“We are getting lots of enquiries from those who would be happy to participate in the trial, and we’ve had feedback that customers are delighted that we are looking towards the future for fuel, especially as so many are still using oil here.”
It is pleasing to see an early confidence in HVO already in Cornwall, as John explained:
“This positive attitude is great news for Mitchell and Webber customers, as the greater the demand for HVO, we very much hope the more affordable it will become. The positive response so far may be largely down to the fact that the cost of conversion to HVO, or other alternative fuels, is very minimal compared to the cost of heat pump installation, for example.”
A huge opportunity for a cost-effective solution
Ken Cronin commented:
“We believe very much in finding the right solution at the right cost with the least amount of disruption for each home. We know that customers are concerned about climate change but equally concerned about cost. What these trials are doing is showing that there is a very simple technical solution and I am delighted at the level of interest being shown.”
Robert Weedon said:
“We have to be practical about what is and isn’t a possibility for our customers. There is fuel poverty here in Cornwall. Not everyone can afford heat pumps which cost over £10k. The government grants will dry up by March this year and questions remain over the capabilities of the grid – especially with electric charging points for vehicles also a key topic here.”
OFTEC CEO, Paul Rose, also expressed a confidence in the biofuel and the necessity of these trials:
“We are extremely confident that HVO will be compatible with virtually all existing oil heating systems. However, undertaking rigorous trials is essential to provide the level of confidence in the new fuel that consumers and government will demand, so this is a key step in the process of bringing the fuel to market. It also enables industry to learn about the characteristics of the new fuel and to prepare the guidance information that heating technicians and fuel suppliers will require.
“The trial is in its early stages, but we have plans to make it much bigger. To do this, we are applying for government innovation funding and are hopeful this will be successful.
“There is increasing recognition by policy makers that many off-gas-grid households will not be able to convert to other types of renewable heating in a cost-effective way, due to the high cost of both the appliance and energy efficiency improvements that will be needed. Consequently, there is a huge opportunity for a renewable liquid fuel such as HVO to heat these hard-to- treat homes.
“Conversion to HVO from kerosene will lower the carbon emissions of the average home by around 88% – a huge reduction and greater than both heat pumps and biomass systems. If our industry can provide governments with the evidence that HVO offers a low cost, reliable and disruption-free solution, then we should be able to retain a significant market share and play a vital role in meeting the net zero target.”
Expansion of trials
The trial is now expanding, with other distributors trialling HVO with their own customer base. Mitchell and Webber has also expanded the appliances that they are testing HVO with, as John confirms:
“It’s working better than expected at the moment, but we are rigorously testing this over an extended period of time and also for 5 different appliances, not just boilers.”
So far, the biofuel has also been used to fuel a customer’s Aga cooker, with a pot burner conversion, and initial results show that more heat is produced with less fuel used.
Financial and policy support will be key to success
Commenting on the expansion of these trials in the UK, Paul Rose said:
“Up to now, the trials have been funded by industry itself, whether by trade associations such as OFTEC and UKIFDA, or by individual companies such as Mitchell and Webber, who are passionate about the potential that HVO offers. The fact that we have done this underlines how serious our industry is, and the good news is that this work is being coordinated by a steering committee covering both fuel distributors and OFTEC. This will enable us to capture the learning outcomes and maximise the PR and policy value of this work.”
Looking ahead to the next stages of the trials, Ken said:
“The next stage for us will be to expand the trial geographically and across the range of possible appliances and talk to government about making this a reality.”
Paul Rose also highlighted how expanding the trials will be expensive, hence the industry bodies bidding for government funding:
“The government has already supported other heating sectors – for example a massive heat pump trial is underway – so given the comparatively modest funding we will be looking for, there’s every reason to be hopeful. The aim will be to have a much-expanded trial underway for the next heating season.
Paul continues:
“This year will be important in terms of determining future heat policy and the role HVO will play. To achieve policy support for HVO, we will need to progress the field trial and overcome outstanding concerns about availability and sustainability. The latter issue should be straightforward – HVO produced in Europe already satisfies very strict sustainability regulations.
“Availability is more of a challenge because other sectors such as transportation also need the fuel. However, HVO production is ramping up rapidly and we are in direct contact with producers who are keen to supply our market. So, we are increasingly confident that supply will be available if HVO is supported in heating by government policy.
“This is essential because, at least initially, some form of subsidy may be necessary to cushion consumers from an increase in cost. However, the need to find a credible solution for hard-to-treat rural homes means that government support should be forthcoming, and this is something that everyone in our industry should be pushing for.”
In Cornwall, Mitchell and Webber continue to see successes with the trial and look ahead to welcoming the G7 leaders, who will be meeting at Carbis Bay in Cornwall, in just over two months. Commenting on why Cornwall was chosen to host this meeting to promote a better, green world, Boris Johnson was quoted in a local paper saying:
“Both these ambitions are summed up in Cornwall where the UK`s renewable energy industry and conservation projects point the way to a green industrial future.”
The visitors will include the new US President as well as the leaders of Canada, France, Germany, Italy, Japan, Australia, South Korea and the President of the EU. John Weedon commented:
“With the UK also hosting COP26 in Glasgow this November, the UK is very much under the spotlight!”
We look forward to seeing how the trials progress and expand over the next year and to covering more history-in-the-making moves from the fuel oil industry in the UK. Get all the industry insight first by subscribing here.
Channoil Consulting has relaunched as Channoil Energy and created a new division, ‘Net-Zero Solution’, to work with clients specifically on energy transition.
For more than 20 years, Channoil has been at the forefront of advising the energy and transport industry, offering in-depth expertise in the continuously evolving energy market.
Net-Zero-Solution will consult and advise on both strategy and tactics, including preparing for the transition, measuring and managing carbon footprint, lower carbon fuels, renewable energy, power storage and customer solutions.
Our team of experts are already active in driving the lower carbon agenda with our clients.
Commenting on the creation of the new division, Dermot Campbell, CEO of Channoil Energy, says: “We’re excited to be launching this new division Net-Zero-Solution, which broadens our offer as a consulting business and will provide expertise and solutions to the energy sector during a time of significant change. We have built a team of renewable energy experts and look forward to working with existing and new clients.”
UKPIA welcomes the announcement of £171 million of funding towards major decarbonisation projects involving a number of UKPIA member companies.
The Department for Business Energy and Industrial Strategy has announced Industrial Decarbonisation Fund projects that it will be supporting in coming years. UKPIA member companies are active in almost all the successful projects, which each have a significant role to play in decarbonising industry as well as supporting high quality jobs right across the UK throughout the energy transition.
bp has announced that it is developing plans for the UK’s largest blue hydrogen production facility, targeting 1GW of hydrogen production by 2030. The project would capture and send for storage up to two million tonnes of carbon dioxide (CO₂) per year, equivalent to capturing the emissions from the heating of one million UK households¹.
The proposed development, H2Teesside, would be a significant step in developing bp’s hydrogen business and make a major contribution to the UK Government’s target of developing 5GW of hydrogen production by 2030.
With close proximity to North Sea storage sites, pipe corridors and existing operational hydrogen storage and distribution capabilities, the area is uniquely placed for H2Teesside to help lead a low carbon transformation, supporting jobs, regeneration and the revitalisation of the surrounding area. Industries in Teesside account for over 5% of the UK’s industrial emissions and the region is home to five of the country’s top 25 emitters.
Dev Sanyal, bp’s executive vice president of gas and low carbon energy said: “Clean hydrogen is an essential complement to electrification on the path to net zero. Blue hydrogen, integrated with carbon capture and storage, can provide the scale and reliability needed by industrial processes. It can also play an essential role in decarbonising hard-to-electrify industries and driving down the cost of the energy transition.
“H2Teesside, together with NZT (Net Zero Teesside) and NEP (Northern Endurance Partnership), has the potential to transform the area into one of the first carbon neutral clusters in the UK, supporting thousands of jobs and enabling the UK’s Ten Point Plan.”
UK energy minister, Anne-Marie Trevelyan, added: “Driving the growth of low carbon hydrogen is a key part of the Prime Minister’s Ten Point Plan and our Energy White Paper and can play an important part in helping us end our contribution to climate change by 2050.
“Clean hydrogen has huge potential to help us fully decarbonise across the UK and it is great to see bp exploring its full potential on Teesside.”
The project would be located in Teesside in north-east England and, with a final investment decision (FID) in early 2024, could begin production in 2027 or earlier. bp has begun a feasibility study into the project to explore technologies that could capture up to 98% of carbon emissions from the hydrogen production process.
With large-scale, low cost production of clean hydrogen, H2Teesside could support the conversion of surrounding industries to use hydrogen in place of natural gas, playing an important role in decarbonising a cluster of industries in Teesside.
Blue hydrogen is produced by converting natural gas into hydrogen and CO₂, which is then captured and permanently stored. H2Teesside would be integrated with the region’s already-planned NZT and NEP carbon capture use and storage (CCUS) projects, both of which are led by bp as operator.
The project’s hydrogen output could provide clean energy to industry and residential homes, be used as a fuel for heavy transport and support the creation of sustainable fuels, including bio and e-fuels.
Find the full update from bp here.
Europump Maintenance Ltd has extended its partnership with global fuel and lubricant dispensing solutions company Hytek by becoming an approved verifier for its fuelling equipment.
The inclusion of the Hytek products in the Section 11A certificate issued by The Office for Product Safety and Standards means that Europump Maintenance Ltd has authority to carry out initial verification and in -service verification on the Pumptronics Alpha and C Series range of fuel dispensers.
“This is a great move for all parties concerned as it means our engineers can commission and verify the dispensers during the same visit, undertake any in service reverification following repairs, providing a cost effective solution to the customer ” explained Martyn Gent, Business Development Manager at Europump Maintenance Ltd.
Europump Maintenance Ltd has also welcomed the news that Hytek has purchased OLE Gauges.
OLE provides a wide range of high accuracy tank gauge equipment for the aviation, commercial fuel, petro-chemical, and road transport sectors.
“This is good news for us as it gives us easier access to the products,” Martyn Gent commented. “OLE gauges are renowned for their quality and accuracy – two things that are vital in our industry. Their accuracy is second to none and they come with ATEX approval.”
The downstream oil sector – the supplier of 96% of the UK’s transport fuels – is committed to decarbonisation of the transport system and can be an important ally in meeting net zero according to “The Future of Mobility in the UK” – the latest publication from UKPIA.
Building on its series of foresight reports, UKPIA’s “The Future of Mobility in the UK” considers the emerging trends, technologies and paradigm shifts that can combine to deliver a decarbonised transport sector in the UK.
The Future of Mobility makes three important findings:
Certas Energy has submitted plans to Isle of Wight Council to open a new fuel depot in East Cowes, following the closure of the Isle of Wight’s only fuel depot in August 2020.
The parent company for Isle of Wight Fuels (IOWF), Motor Fuel Group, carried out staff consultations and a detailed examination of the trading options before deciding to cease trading on 7th August 2020. The closure of the depot, which had been trading for 60 years, resulted in concerns over the knock-on effects for customers and companies in the supply chain.
Following a commitment of £72 million of funding, HyNet North West will transform the North West into the world’s first low carbon industrial cluster, playing a critical role in the UK’s transition to ‘net zero’ greenhouse gas emissions by 2050 and the global fight against climate change.
Environmental risk reduction business, Adler and Allan, has announced the acquisition of three companies into the group: electrical specialists AMGS Electrical, hazardous material specialist Flotech Performance Systems Limited (Flotech) and industrial sewage specialist and underground infrastructure specialist Oneline Surveys.
The acquisition announcement follows the recent changes to Adler and Allan’s senior leadership team and supports its ambitious growth plans to solve more customer challenges in a broader range of sectors with a joined-up approach to its services.
AMGS Electrical undertake a wide range of electrical services nationwide and specialise in design, installation, commissioning, and maintenance particularly in the evolving forecourt sector. With an expert team of highly accredited electrical engineers, it will provide outstanding technical support to Adler and Allan’s customers particularly in retail forecourts. This acquisition complements its existing electrical services offering.
Andrew Clarke, energy infrastructure director, Adler and Allan, said: “The acquisition allows us to further execute our strategy, helping clients maintain and decarbonise their energy infrastructure and install new electric vehicle (EV) infrastructure, as the world transitions to a mixed energy future. By combining this with our other energy and forecourt services, we are now able to be a much more strategic environmental partner to customers.”
Flotech provides design, fabrication, consultancy, project management, planned and reactive maintenance for the storage, transfer and distribution of industrial liquids, gases and waste. Its highly specialised services cover; additive and blending, fluid transfer, access solutions, storage tank equipment, and vapour recovery.
Mike Willink, group development director, Adler and Allan, said: “With our already extensive capability in hazardous materials, this acquisition helps us to handle an even greater range of substances in a broader set of situations and environments, including those that will become more important in the future, such as hydrogen. By combining this acquisition with our existing environmental services, we are now able to be a much more strategic environmental partner to our customers.”
Oneline Surveys provides highly specialised surveys of underground infrastructure as well as cleaning, handling and uplift of hazardous liquid waste from industrial tanks and sewers. Oneline has over 30 years combined experience in planning, mobilising and successfully completing large scale surveying and cleaning projects, including tank and siphon cleaning and confined space entries.
Robert Evans, environmental services director, Adler and Allan, said: “This acquisition will allow us to offer a more extensive environmental risk audit of our customers’ underground infrastructure so they can better manage and mitigate risk. It will also position us as the go-to leader in emergency response to sewerage pollution incidents. Combined with our other environmental services, we are now a more strategic environmental partnership to our customers.”
The Government has officially confirmed that the ban on sales of new petrol and diesel cars has been moved forward to 2030, while also announcing a new £20m funding pot for electric vehicle (EV) innovation.
Transport is the UK’s largest emitting sector, accounting for more than 30% of national carbon emissions. While this does include aviation, road vehicles account for around 19% of all UK emissions.
Orginally expected in 2040, Boris Johnson moved the timeline for the ban on petrol and diesel cars to 2035, which is the date cited by the CCC in its initial recommendations framework on legislating for net-zero by mid-century. With the ban confirmed, the Government wasted little time in incentivising the market to promote EV innovations.
The Government’s £20m fund will assist research and development competition for EV technology innovations. Funding could potentially support zero-emissions emergency vehicles, charging infrastructure and battery recycling. This builds upon the £1.3bn EV charging infrastructure commitment unveiled last year. Reports suggest that the UK needs to install five times as many EV charging points to meet its net-zero target.
Grant Shapps, transport secretary said: “Investing in innovation is crucial in decarbonising transport, which is why I’m delighted to see creative zero-emission projects across the UK come to life.
“The funding announced today will help harness some of the brightest talent in the UK tech industry, encouraging businesses to become global leaders in EV innovation, creating jobs and accelerating us towards our net-zero ambitions.”
The National Grid’s transport decarbonisation director, Graeme Cooper, said: “Banning the sale of new ICE cars from 2030 will cut carbon emissions and reduce air pollution. We’re pleased the Government has recognised how critical it is to accelerate the roll-out of the underlying infrastructure to facilitate to high power charging to enable the transition to EVs.
“We are confident that a faster transition is possible and the transmission network is suitably robust to cope with the likely uptake in EVs. If everyone in the UK switched to EVs overnight and used smart charging, we think peak demand would only increase by around 10%, which is still below historic peak demand.”
Exolum was one of 14 companies to win an award at the second edition of the UK-Spain Business Awards, which recognise innovation, collaboration and entrepreneurship in fourteen Spanish and British companies.
The award was presented at a virtual gala hosted by the British Ambassador and attended by Britain’s Minister for Investment at the Department for International Trade, Gerry Grimstone, and Spain’s Secretary of State for Trade, Xiana Méndez.
The UK-Spain Business Awards, which are held in conjunction with the British Chamber of Commerce in Spain and Banco Santander, recognise companies whose business activity in Spain and the United Kingdom has boosted trade relations between the two countries. Specifically, Exolum won the award in the Growth in the UK category for the significant expansion the company undertook last year in the UK.
At the end of 2020, the company added 15 new liquid product storage terminals to its portfolio, 11 of which are located in the UK. With this acquisition, Exolum has consolidated its presence in the UK market and initiated operations in the rest of Europe.
In addition, Exolum has expanded its service offering to include the storage, management and transportation of new liquid products, particularly chemical products, and has begun to operate in new sectors, such as eco-fuels, the circular economy and the development of new energy vectors.
Exolum currently employs more than 2,300 professionals and operates in eight countries, where it manages a pipeline network of over 6,000 kilometres, 68 storage terminals and 45 airport facilities with a total storage capacity of more than 11 million cubic metres.
The Grangemouth firm, Rix Petroluem (Scotland) Ltd has teamed up with a campaign launched by an ex-Scotland rugby star to help tackle motor neuron disease (MND).
The charity was set up by Doddie Weir OBE and close friends after the former international player was diagnosed with MND in 2017. The organisation has two main objectives: to raise funds to invest in MND, and to support people living with the disease and help them live as full a life as possible.
Gail Fawcett, Rix Petroleum business unit manager at its Grangemouth depot, is confident the company can support the organisation by raising a significant sum. She said: “My Name’5 Doddie is such a worthwhile cause, we want to do them proud.
“We’re planning a lot of activities that we can do despite Covid. We’re determined that won’t hamper our efforts.”
Mark Cessford, general manager at the fuel firm’s Montrose base, said: “Doddie Weir OBE is a national hero in Scotland and a household name to rugby fans across the world.
“So, when he announced he had been diagnosed with MND, it really brought home that developing this awful condition can happen to anyone. As someone who has followed his career, I admire the way he has brought as much grit and determination to his personal fight and to the My Name’5 Doddie Foundation as he did his rugby.
“Naturally then, when it became time for us to choose a charity to support, this was top of our list.”
To help the charity, Rix Petroleum has created point-of-sale material for their depots to inform customers about its work and has appealed for donations.
The company has also taken its support of the foundation on the road by displaying branding on the back of a tanker to help spread its message. Rix Petroleum is also putting together a range of Covid-friendly fundraising events and aim to raise money at any agricultural shows that go ahead in 2021.
A multi-partner plan involving the Port of Cromarty Firth has been launched to establish a green hydrogen hub in the Highlands that will see Scotland lead the world in hydrogen technology.
The North of Scotland Hydrogen Programme aims to develop a state-of-the-art hub in the Cromarty Firth to produce, store and distribute hydrogen to the region, Scotland, other parts of the UK and Europe.
One of its projects will provide distilleries in the region with hydrogen. A feasibility study into this kick starter Distilleries Project will begin this month and is due to be completed in June. It is being privately funded by partners including ScottishPower, drinks giants Glenmorangie, Whyte and Mackay and Diageo and Pale Blue Dot Energy who are also leading the project.
Green hydrogen is created using electrolysers powered by electricity from renewable sources. Power would be supplied from current and future wind farms off the coast of the Cromarty Firth, as well as onshore schemes, and fed to the hub.
Bob Buskie, chief executive of the Port, said such a hub would provide a “massive boost to Scotland’s ambitions of decarbonising its economy and establishing itself as global leaders in green hydrogen technology, a sector still in its infancy.”
The delivery of green hydrogen to Glenmorangie, Whyte and Mackay and Diageo will give them the opportunity to decarbonise the heating of their distilleries and maltings, which are situated close to the Cromarty Firth. This would be achieved by using hydrogen as a substitute for fossil fuels to create the energy needed to make steam so the distilling process can be achieved.
Bob Buskie added: “In the short term, we have a number of local partners with vast experience in hydrogen, distilling and utility provision who want to decarbonise their operations. And in the long term, there is a huge opportunity to decarbonise Highland industry, transport and heat, as well as exporting green hydrogen to other parts of the UK and mainland Europe, which doesn’t have the same offshore wind capacity as Scotland.”
Sam Gomersall, hydrogen champion at Pale Blue Dot Energy, leaders of the feasibility study commented: “Scotland has the potential to be a global forerunner of green hydrogen production on a massive scale. It cannot be underestimated the hugely positive effect this would have on Scotland’s decarbonisation plans, as well as on jobs and the economy.”
Up to 15 new offshore wind sites are due to be developed in the coming years, with a significant number of the schemes on the ‘doorstep’ of the Cromarty Firth. That, along with the Port’s deep waters, established facilities and location at the end of the gas grid and in close proximity to large amounts of renewable energy, make the area perfect for a green hydrogen hub.
Scotland’s energy minister, Paul Wheelhouse, said: “It is clear that hydrogen will not only help us end our contribution to causing climate change, but could also create significant economic opportunities in Scotland and, in helping sustain new economic opportunities in a port that has a long track record as a supply chain hub for offshore energy developments. It will also support the Just Transition of the North Sea supply chain. The North of Scotland Hydrogen Programme is an exciting example of collaboration and regional hydrogen innovation required to realise the significant economic and environmental potential that hydrogen presents in Scotland.
“Our Hydrogen Policy Statement, published last year, highlights the importance of the development of regional hubs of hydrogen activity and innovation which will be central to ensuring we can make the most of Scotland’s massive potential in this new sector – a sector in which Scotland looks likely to have a significant competitive advantage.”