Insight

Can Northern Ireland lead the way for sustainable liquid fuels?

David Blevings, OFTEC’s Ireland Manager, shares the latest update  

Northern Ireland sustainable fuels

Every region of the UK needs to substantially reduce its carbon emissions to ensure our 2050 net zero target is achieved. In Northern Ireland energy policy is devolved, and the ‘mood music’ is positive towards sustainable biofuels for heating.

Currently, 526,000 homes in the region use liquid fuels for heating and, while the UK Government’s current ambition is to transition most homes from fossil fuel boilers to heat pumps, in Northern Ireland this will not be feasible anytime soon.

Why do we say this? Well, for several reasons. At a meeting, earlier this year, of the Northern Ireland Affairs Select Committee at Westminster, we heard from representatives of the electrical sector that it could take ‘decades’ to upgrade the infrastructure.

Furthermore, government acknowledges that to provide the ‘green power’ for the increasing adoption of electric vehicles, and to start to decarbonise the heating for homes and places of work, Northern Ireland needs to double its renewable generating capacity in the next ten years.

A huge challenge

With existing budgetary pressures across all departments, this is a huge challenge for our Assembly.

While policymakers’ attention is rightly focused on transitioning household heating to low carbon fuel sources, the industry’s focus is on reminding them of the necessity to ensure the right technology is installed in the right homes to avoid the risk of unintended consequences.

We did exactly this at the NI Affairs Committee, where we told the MPs present that, if a 20% HVO/kerosene blend was introduced as part of the UK’s RLFHO, it would see the UK meet its carbon budgets four and five (for heating), as the roll out could start immediately and would instantly impact all oil heated homes.

Decarbonisation with consent

While heat pumps may be the answer for some, for a lot of homeowners they are simply financially unviable. At present, the average cost to the consumer of installing a heat pump and retrofitting a house is around £24,000.

A switch to a blended heating product would cost little (minor adaptations to burner and a biofuel compatible fuel line) if government introduced a Renewable Liquid Heating Fuel Obligation (RLHFO), like the Renewable Transport Fuel Order (RTFO) for transport.

We have already had some success in this area when George Eustice MP managed to get an amendment to the Energy Act last year. As set out in Section 159 of the Energy Act 2023, the Government must undertake a consultation on implementing a Renewable Liquid Heating Fuel Obligation (RLHFO). There is more information on this on page 14 of this issue.

An identical obligation has successfully incentivised renewable liquid fuels in transport since 2008, and RLFs supplied under the RTFO currently contribute a third of the savings required for the UK’s transport carbon budget.

This mechanism is well understood by industry, and the supporting legislation is already written. All that is left is for the Government to push the button on the consultation and get the process moving.

Decarbonisation can only be achieved with consent, and it is crucial consumers understand policy plans, view them as fair and feel their views have been listened to.

A holistic approach

A holistic approach to any future heat policy or energy strategy is required. We believe most of Northern Ireland’s rural housing stock can be categorised as complex to decarbonise.

We continue to lobby our local politicians and most get that their constituents will struggle to fund even part of the c.£24K cost to move to a heat pump (with thermal upgrades required to their properties). The good news is that we have cross party support ahead of the energy consultation (which is due out over the summer) with the Deputy First Minister, Emma Pengelly stating that she would be supportive of inclusion (of biofuels) and will feed into any discussion on this matter.

The Economy Minister, Conor Murphy, has followed up to our written question on the inclusion of sustainable biofuels in the future energy policy with an equally positive response: “A key principle of the strategy is to replace fossil fuels with renewable energy, ultimately ending the importing of fossil fuels, and utilising renewable sources such as liquid biofuels like HVO is integral to this shift.”

This is the Minster who will ultimately sign off on a new energy strategy for Northern Ireland. For us, the future looks bright, the future looks to include sustainable biofuels for heat in Northern Ireland.

Image credit: David Blevings