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Cautious industry response to fuel resilience bill

A bill aimed at maintaining fuel supply to customers in the event of disruption has been published. The draft Downstream Oil Resilience Bill, which was introduced last month by energy minister Anne-Marie Trevelyan, sets out how the Government intends to address threats to the security of fuel supply by providing powers to ensure resilience in the downstream oil sector, including companies involved in the refining, importing distribution and marketing of oil products.

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Crown Oil partners with Kao Data in another HVO first

Crown Oil has partnered with Kao Data, specialist developer and operator of advanced, carrier neutral data centres for high performance colocation, as the company takes further steps towards its net zero ambitions by becoming the UK’s first data centre to transition all backup generators at its Harlow campus to HVO fuel. This pioneering move, made possible by the partnership, means Kao Data will eliminate up to 90% of net CO2 from their backup generators and significantly reduce nitrogen oxide, particulate matter and carbon monoxide emissions. “HVO fuel is dramatically better for the environment compared to traditional, mineral diesels. It is 100% renewable, biodegradable, sustainable and non-toxic,” said Simon Lawford, technical sales manager, Crown Oil. “We’re proud to have worked with Kao Data to initiate a first-of-its kind project, which will be transformative for the data centre industry, and help point the way forward for significant reductions in industrial greenhouse gas emissions.” Today, Kao Data delivers one of the UK’s most sustainable colocation data centre campuses. Its existing initiatives include using 100% renewable energy, utilising 100% refrigerant-free indirect evaporative cooling technologies, and incorporating hyperscale inspired design to deliver a market-leading PUE of <1.2, even at partial loads. In line with its commitments as a signatory of the Climate Neutral Data Centre Pact (CNDCP), the use of Crown Oil HVO fuel marks another significant step in the company’s plans to become a fully carbon neutral data centre operator by 2030. The company will replace an initial 45,000 litres of diesel and switch to an HVO provision of more than 750,000 litres when the campus is fully developed. Using HVO also offers a number of additional benefits in respect of infrastructure reliability. It eliminates microbial growth, which generates sludge that can contaminate fuel lines and potentially lead to engine shut down. HVO requires no modification to existing infrastructure and can be used as a direct replacement for diesel. It has a storage life that is ten times that of standard diesel and offers resilient year-round performance in both low and high temperatures. It is also easier to maintain, free from aromatics, sulphur and metals, odourless and completely biodegradable. “This pioneering approach to replace our generator’s diesel provision with HVO fuel, is a key step in the company’s efforts to become net zero, and a further demonstration of our leadership in the international data centre sustainability field,” said Gérard Thibault, chief technology officer at Kao Data. “This move effectively eliminates fossil fuels from our data centre operations and helps us reduce Scope 3 emissions in our customers’ supply chain, while delivering no degradation to the service they receive. Most importantly, it shows how our industry can take a simple and highly beneficial step forward for the good of the environment, ahead of COP26.”    

News

New remote control enhances popular fuel metering system

Following a design collaboration with ALMA, MechTronic was delighted to announce OptiControl, a new wireless remote control which supports and enables the complete management of the OptiMate delivery process. Launched as part of the recent industry Expo, run by UKIFDA, the remote control offers enhanced operational capability for the OptiMate metering system which was originally launched 5 years ago at the same event. OptiControl enables drivers to completely manage the delivery process as well as remaining at the point of delivery without needing to return to the vehicle. This, the latest remote from Mechtronic, shows in real time the delivery flow, compartment, current quantity and preset volumes. Drivers are also able to perform product/compartment line changes and adjust preset deliveries as required. A range of benefits It is a lightweight, handheld remote that can be fastened on the arm of the driver, if required, and is ATEX approved. The OptiControl remote is also fully rechargeable in the truck cab, with a dedicated socket. It features a large LCD screen and provides a range of additional benefits.

Opinion

Developing the skills for the fuels of tomorrow, today

Hydrogen is set to play a key role in decarbonising the global energy system and investment in the deployment of hydrogen production is accelerating, with national governments making increasingly ambitious commitments to the sector. As the world works to recover from the impact of coronavirus, the UK has a chance to build back better. We hear from Huw Bement, director of CompEx, the certification body that is already supporting the development of a competent workforce in a bid to make the UK a global leader in green technologies, to hear his thoughts on the challenge of developing tomorrow’s skills today. During the Spring Budget 2021, Rishi Sunak announced that the government will provide £27m for the Aberdeen Energy Transition Zone, helping to support North East Scotland play a “leading role” in meeting the nation’s net-zero ambitions. In addition, the UK government said it would provide £4.8million of funding to support the development of a hydrogen hub in Holyhead, Wales, which will pilot the creation of hydrogen from renewable energy that will be used as a zero-emission fuel in HGVs. A competent and skilled workforce is vital With regard to the implications for future skill requirements Huw explains: “The characteristics of hydrogen are well understood and already covered within existing international standards in relation to explosive atmospheres. However, hydrogen does behave differently when compared to other conventional gas fuels because of its molecular size and weight, which means that it is more prone to leakage and will rise and disperse quickly in open environments. So, whilst existing knowledge and skills are directly applicable, it is still important to ensure that there is a flexible, multi-skilled and competent workforce ready to facilitate the transition to an increasingly decarbonised energy system. “The UK has all of the ingredients to become a leading producer and exporter of hydrogen,” Huw continues. “However, if we are to fulfil the ambitions set out in OGUK’s (the leading representative body for the UK offshore oil and gas industry) roadmap to 2035, then it is vital we have a competent and skilled workforce. Our relationship with industry is critical to ensure that we can continue to provide a certification scheme that reflects future occupational requirements. Changing technology will shape the skills needed but also how we train and assess people. “We’re already consulting with key stakeholders within industry as to what a competent skilled workforce will look like for the future. Competency is more than knowing your subject, it’s about your ability to apply and synthesise it in different contexts. We are committed to help equip workers with the right skills and capabilities, as well as work closely with the UK government and the devolved administrations to build a sustainable recovery and support a net-zero future. “This isn’t about reinventing the wheel, either. Since its inception over 25 years ago, CompEx has evolved, and is ready to support the emerging hydrogen sector. We already provide competency validation across a range of sectors including food manufacturing, pharmaceutical and of course petrochemical. It is critical that we continue to update the scheme, for example we are developing a Maritime Fuels module in response to a major cruise line which is moving from heavy fuel oil to liquid natural gas-powered vessels. By recognising the unique challenges that these different industrial applications require of competent individuals operating in a variety of hazardous areas, CompEx is well-placed to support on developing a competent workforce for a diverse range of sectors, including the transition to green energy.” Huw Bement joined certification body, CompEx, as executive director in January 2021  and has already started looking at ways to guide the scheme through thenext phase of its journey. CompEx has an incredible legacy spanning nearly 30 years, so Huw is working to ensure that the needs of all its stakeholders are met for many more years to come. Huw aims to leverage CompEx’s technical expertise to increase the scheme’s reach and support improvements to standards and safety.

Opinion

Fuel industry responds to Transport Decarbonisation Plan

Commenting on the new Transport Decarbonisation Plan (TDP), Kevin Bell, transport and infrastructure partner at law firm Womble Bond Dickinson, comments: “The Government’s ground breaking and world first ‘greenprint’ launched today details plans to decarbonise all modes of domestic transport and sets out a pathway for the whole transport sector to reach net zero by 2050. Part of the Prime Minister’s Ten Point Plan, the measures look to achieve cleaner air, healthier communities, and new ‘green’ jobs through:

News

Scotland’s first vegetable oil heated home

Recycled vegetable oil is being used for the first time to heat a home in Scotland. The revolutionary renewable fuel has been identified as a key alternative clean energy source in the battle against climate change.

News

New product offers financial certainty to fuel suppliers

Specialist trade insurance broker, Attis Credit Solutions, has partnered with BondAval to bring MicroBonds to the UK fuel market. This cutting-edge product will provide S&P A-rated certainty to fuel suppliers into forecourts and is instantly accessible to buyers and suppliers who can purchase the security via the BondAval platform to meet their contractual security obligations without requiring any cross collateralisation. The MicroBond provides 100% cover, on demand with no excess. Claims for non-payment are payable, typically, within days rather than weeks. Suppliers receive investment-grade certainty that their retail clients will pay for their fuel per the terms of their contracts, while drastically reducing the friction and time involved in the security onboarding and renewal process. The BondAval platform takes only a matter of minutes to produce a MicroBond, a process that would otherwise take weeks or even months. Paul Martin, co-founder and co-MD of Attis Credit Solutions said: “Providing certainty to a CFO/FD is a powerful tool. Doing it with no time cost whilst also freeing up tied capital for the buyers is a real game-changer. The BondAval platform is cutting-edge, and we look forward to working with the team to see it deployed across the UK fuel market”. Tom Powell co-founder and CEO of BondAval said: “Working with Paul and his team is a real pleasure. Their insight, experience and expertise mean they truly understand the challenges in the fuel market, and opportunities which we can bring to market together. We’re excited to start building a long-term partnership”.    

News

OMJ expands product range

The Oil Market Journal has greatly expanded its product offering to help clients to future proof their business for the low carbon economy. In addition to providing oil prices, OMJ now also provides a wide range of prices for sustainable fuels as well as pricing for power, gas and emissions.

Opinion

Industry angered by plans to address driver shortages

Business group Logistics UK has reacted with dismay at the recent announcement that the drivers’ hours legislation, which governs the length of time which HGV drivers are legally expected to work, will continue to be relaxed until 8 August 2021. As James Firth, the organisation’s head of road freight regulation policy explains, the announcement will heap more pressure on drivers who are already stretched to the limit to deliver for UK PLC: “Government has ignored the industry in deciding to relax these road safety laws,” he explains, “and it will be the hard-pressed HGV drivers on our roads who have to carry the burden. Throughout the pandemic, the UK’s professional drivers have kept our shops, homes and businesses supplied with everything needed to keep the economy going, but the current workforce cannot be expected to fill the gaps created by the current skills shortage. The road freight industry vehemently opposed the extension of these vital road safety laws, yet the government has ignored the will of those who will be most affected by the changes. “The logistics sector has been experiencing a significant shortage of drivers for a number of years, but this situation has been exacerbated by factors including the Covid-19 pandemic and Brexit, which has seen many EU workers return to their home countries.  The industry needs a longer-term solution to the recruitment of drivers – including temporary visas for EU workers to cover the gaps while new recruits can be trained, and interest free loans for those wishing to enter the market – not a stop-gap measure that will heap more pressure on existing workers.  The relaxation of drivers hours should only be used in an emergency situation, when a foreseeable end date can be identified – or is the government suggesting that the current shortage of drivers will be resolved by 8 August?” Before the pandemic and Brexit, logistics was already experiencing a shortage of around 76,000 drivers, and Logistics UK now estimates the shortfall to be approximately 90,000 workers. Extension of working hours is not the solution Mr Firth believes that the industry is certain that an extension of drivers’ hours will not have the required impact and could, instead, be detrimental to the existing workforce: “Existing drivers have been working flat out since the start of the pandemic, and this could be the final straw for many of them. Instead of trying to paper over the gaps, government should be working with industry to produce a plan to support moving drivers through the current bottleneck of HGV driving tests and support potential new entrants to the industry with the expensive process of acquiring a professional driving licence. Industry met with Transport and Work & Pensions ministers to discuss the situation on 16 June, but no plan has been forthcoming to date – extending working hours is untenable and not the solution to the wider issue. Logistics businesses need and deserve answers, not wallpapering over the problem!” In response to the relaxation of driver hours, Tim Doggett, chief executive, Chemical Business Association (CBA) said: “Relaxing driver hours is an inadequate reaction to the chronic shortage of HGV drivers. It is also likely to be counter-productive and may even make the problem worse. Many drivers are already away from their families for considerable periods of time and already work up to 15-hour days. Expecting them to work more hours against this background is completely unrealistic.” He added: “Relaxing driver hours does not address the central problem. There is a shortage of 60,000 HGV drivers and simply extending driver’s hours is not appropriate or effective solution. This is a chronic issue that now needs urgent action. We recently called a joint Government-Industry partnership to lay the foundations for a more permanent solution to the issue, including the immediate and urgent need to establish a task force to which CBA would be willing to contribute.” Permanent solutions needed The CBA also recently wrote a letter to the Prime Minister, in support of the Road Haulage Association’s (RHA) letter, dated 23 June 2021, on the shortage of HGV drivers. The letter emphasised the critical impact of driver shortages on the UK economy, as well as thousands of manufacturing and process industries which are all dependent on road transport. The letter also stated: “We recognise and endorse the causes outlined by the RHA that have exacerbated the chronic shortage of drivers. Vocational training and the acquisition of qualifications, including sector specific areas such as the Carriage of Dangerous Goods, have been significantly hampered by Covid-19 restrictions. This can only exacerbate the current situation.” A recent Chemical Business Association survey revealed that 62% of member companies were reporting capacity issues with road haulage in the UK and 76% were reporting similar constraints in relation to cross-channel haulage. This situation will inevitably worsen over the coming months as demand increases ahead of the traditional peak season later in the year.    

News

The Prax Group appoint interim CFO

The Prax Group has appointed Rob Marrow as interim group chief financial officer (CFO) with immediate effect. The group is continuing its search for a permanent CFO and will update the market on its progress as appropriate. Rob brings with him a wealth of experience in roles that have included responsibility for strategy, corporate finance, M&A transactions, and investor relations.  He was more recently, the commercial and financial lead for the group in the acquisition of Prax Lindsey Oil Refinery. With over two decades of experience across oil and gas, manufacturing, technology, retail, supply chain and trading, he is an experienced finance leader with a proven track record of delivering growth, championing change and building teams. Sanjeev Kumar, chief executive officer, said: “Rob’s broad financial experience and comprehensive knowledge of our business make him a strong appointment as our interim group CFO, providing continuity while we continue our search for a permanent CFO.” Rob will succeed Robin Edwards, who sadly passed away on 30 June 2021.    

News

‘Future Energy’ the theme for the Fuellers Energy Conference

The Fuellers are very excited to be currently planning the second Earl of Wessex Conference, to be held on 15th November 2021, at the prestigious Royal College of Physicians, Regent’s Park. Carrie Marsh, Master Elect of the Worshipful Company of Fuellers commented: “Our first conference, held in November 2019, provided an entertaining and informative day, and was very well received.  It was one of the highlights of the year for the Fuellers and a great way for Fuellers to interact with both the wider industry and our charity partners. We are hoping to do even better this time around.”

News

Essar makes senior appointment

Essar is pleased to announce the further strengthening of its executive leadership team with the appointment of Karunakaran (Karan) Hari as chief commercial officer for Essar Oil UK.

News

Winner of UKIFDA Innovation Award announced

Cornwall-based liquid fuel distributor for the South-West Mitchell & Webber has won the UKIFDA Innovation Award for being at the forefront of the sector’s Future Fuels campaign and for making a real difference in the industry’s drive to make renewable liquid fuel a viable alternative to heating oil for off the gas grid properties. Sponsored by industry trade magazine Fuel Oil News, UKIFDA launched the Innovation Award in 2021 to find and commend the one thing that makes the industry stand out – and will always support the most innovative products, services, or initiatives.

News

Industry champions sought as award nominations open

The search has begun today (Thursday 8th July) for industry’s brightest stars, mentors, and innovators as nominations open for the 2021 OGUK Awards, sponsored by Shell UK Limited.

News

ITT Hub successful debut

The inaugural Innovation and Technology in Transport (ITT Hub) event made its debut last week (30 June-1 July 2021) – the largest show of its kind in 40 years – to spearhead the future of transport and revolutionise the commercial vehicle market as the industry transitions to net zero emissions and strives to reach maximum efficiency.

News

Excitement builds for UKIFDA EXPO 2021

As the virtual doors open tomorrow – 7th July at UKIFDA EXPO 2021 and Future Fuels Conference, some of the exhibitors at this year’s virtual exhibition have revealed launch plans for products and services during the 2-day event, UKIFDA has announced. “The excitement levels are definitely rising now we know more details of what the exhibitors have lined up for us all during our first virtual UKIFDA EXPO 2021,” says Ken Cronin, UKIFDA chief executive. “Visitors to the virtual exhibition hall will be able to see over 45 exhibitors, and many have great plans for unveiling innovative, green and customer-focussed products, technology and services during the virtual event – and some have already shared what they will be doing. “Some will be holding live demonstrations at the EXPO and all will be engaging positively with delegates, explaining the key features of their products and services and highlighting the benefits for customers too.” UKIFDA EXPO organiser the UK and Ireland Fuel Distributors Association has confirmed what several of this this year’s exhibitors intend to promote to delegates during the event. UKIFDA membership and events manager, Dawn Shakespeare comments: “We can’t wait for our first ever online exhibition and Future Fuels conference to get underway – we have lined up so many innovative companies that are bursting to share their new products and demonstrate the appeal to the liquid fuel distribution industry. “In fitting with the focus of this year’s show – the investment our industry is making in renewable liquid fuels and future plans for decarbonising residential heating – ElimiNox Ltd is exhibiting and has a new product to unveil. This company makes Fuel Conditioner that is used in all carbon-based fuels to reduce harmful emissions from diesel engines and oil burners, by reducing CO2 by 30% and boosting fuel efficiency by 8%. “The new product ElimiNox will have on display is its Diesel Bug Buster. This emulsifies free water into the fuel to prevent diesel bug from breeding. “Another product designed to keep consumers’ oil clean and fresh for maximum efficiency, is Centre Tank Services Ltd’s aqua fighter water absorber that removes free and emulsified water from fuel to keep customers’ fuel water free at all times. Unlike other water absorbers, it cuts water content levels down to less than 75ppm – meeting and exceeding the EN590 diesel fuel standards of 200ppm. “In addition, Commercial Fuel Solutions Ltd will be launching a new solution at EXPO and will hold a live demonstration of their platform during UKIFDA EXPO. “MechTronic is also launching its latest product at EXPO 2021 and delivering a live demonstration – of its OptiControl, a remote control that supports and enables you to fully manage your OptiMate delivery. OptiMate is an electronic metering system and the new remote features an LCD screen that shows the volume of fuel being delivered, alongside other relevant data. “Kingspan Energy Management Systems will be displaying their latest generation telemetry monitoring devices. Saying ‘Telemetry devices fitted to customers tanks enables level data to be seamlessly imported via API feed to fuel distributor’s software systems – typically CODAS & Fuelsoft (no need for file sending) – enabling auto-ticket generation. “Distributors can also view, monitor, and export tank data across their entire population through the Connect Sensor platform, which now comes with the addition of a mapping function. “Visitors to the Ful Additive Science Technologies Ltd virtual exhibition booth will be able to see their range of fuel additives for use in domestic, off-road, transport and industrial applications and in a range of fuel grades and the company has announced they are now the distributors for the Oil Sponge products of Phaseiii (USA). “Hazchem Safety Ltd have a variety of new products on display for the first time including the HAZTEC Caravel FR AS Jacket, Triple Stitch Seam Jacket, with EN ISO 20471 Class 1 certification. “They will also be debuting the HAZTEC FR AS ‘Green’ Coverall constructed in Sustainable and Natural ModacrylicECO™ blend fabric, designed with eco-conscious customers and our planet in mind. “These are just a few of the launches and demonstrations we have in store for visitors at UKIFDA EXPO this year – there will also be an array of new products and services with industry-wide appeal, and also networking, knowledge sharing and business news, with key topics being debated and important information being relayed through keynote speaker presentations – all via our virtual hub Whova.” UKIFDA EXPO 2021 will still have sponsors for the two days, with AON Plc and Cobo Tankers and Services sponsoring each day of the conference together with the EXPO headline sponsor Phillips 66 Ltd. Ken Cronin concludes: “It is exciting to see what exhibitors have planned for the two days. “Visitors to our online exhibition hall will have easy access to all exhibitors and enjoy the freedom to choose which live launches they engage with as well as which presentation, seminar or networking opportunity they partake in. “Visitors to the UKIFDA virtual booth will be able to talk through UKIFDA membership packages, learn more about the training we offer including our comprehensive driver training packages and discuss industry plans to introduce renewable liquid fuels and our Future Ready Fuel campaign.” To find out more about this year’s virtual UKIFDA EXPO visit ukifda.org/ukifda-expo and to sign up to the exhibition visit https://whova.com/portal/registration/uaifd_202006/.