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Becoming the fourth oil major to commit to ‘net zero’, Total has announced its target of net zero emissions in Europe by 2050. The company has also committed to becoming carbon-neutral across its worldwide operations by 2050 or sooner and confirmed its target of a renewable generation gross capacity of 25GW in 2025.
Patrick Pouyanné, chairman of Total’s board, declared; “Energy markets are changing, driven by climate change, technology and societal expectations. Total is committed to helping solve the dual challenge of providing more energy with fewer emissions. The Board believes that Total’s global roadmap, strategy and actions set out a path that is consistent with goals of the Paris agreement.
Emphasising the role the company has to play in the future energy transition, Patrick continued; “Only by remaining a world-class investment can we most effectively play our part in advancing a low carbon future. This is the reason why our people are already in action across Total, seeking opportunities to reduce our emissions, improve our products and develop new low-carbon businesses.”
This ambition is supported by the strategy to develop Total as a broad-energy company, with oil and gas, low-carbon electricity, and carbon-neutrality solutions as integrated parts of its business.
Total says the new climate strategy is already in action as the firm has already achieved a 6% reduction of its average indirect carbon intensity since 2015.
Active support of the energy transition
Regarding the commitment to become a net-zero energy business in Europe, Patrick commented; “As the EU has set the target to achieve net zero emissions by 2050 and thereby lead the way for other regions to become carbon neutral over time, Total takes that commitment to become neutral for all its businesses in Europe. Total wants to be an exemplary European corporate Citizen and offers its active support for the EU to achieve net zero emissions by 2050. Total will work together with other businesses to enable decarbonization of energy use.”
Total confirms its target of a renewable generation gross capacity of 25 GW in 2025 and will continue to expand its business to become a leading international player in renewable energies. Total currently allocates more than 10% of its Capex to low carbon electricity, the highest level among the oil majors. To actively contribute to the energy transition, Total will further increase its allocation of Capex in favour of low carbon electricity to 20% by 2030 or sooner.
Certas Energy is supporting forecourt retailers with the launch of a new online resource that offers free access to personal wellbeing tools, learning courses and discounts from leading brands.
Certas Energy Dealer Rewards provides tailored wellbeing programmes that can help forecourt retailers and their employees to improve their personal wellbeing and navigate these challenging times.
The platform’s online learning resources offer hundreds of courses to support professional growth, with categories including Business & Management, Health & Psychology, Technology and many more.
Richard Billington, retail director at Certas Energy, commented; “Our team is working non-stop to find creative solutions to support our dealers and their workforce throughout and beyond this national emergency. What’s been difficult for many people is finding new ways to spend the additional hours we’re all at home – whether it’s business as usual or not.
“That’s why I’m delighted to launch Certas Energy Dealer Rewards to help our retail network and their teams get the best from this extra time at home. With its wide range of learning and wellbeing tools, we hope our colleagues will find the platform to be a useful resource for personal and professional development as we prepare for the time when we can all return to normality.”
Certas Energy Dealer Rewards is available to all Gulf and Pace dealer employees at no additional cost.
Joining forces with its retail dealers to show appreciation to our front-line NHS heroes, Essar is supporting them with 10p per litre discount off their fuel.
In a move that took effect from 7th May, NHS staff can claim their discount when filling up their personal cars at Essar branded retail forecourts by simply showing their NHS ID cards at the till point.
Ramsay MacDonald, Essar head of retail, said; “There aren’t many people who deserve to be rewarded more during the Coronavirus outbreak than NHS workers. We hope providing them with a discount is a small way for the energy industry to show its appreciation to them.”
“Essar recognises the extraordinary job that NHS workers are doing to care for others, and they deserve all our support through this crisis. We have been delighted with the great response from Essar dealers, who have enthusiastically helped deliver this recognition across our dealer network.”
Terms and conditions apply. To find out more visit the Essar website: www.essar.co.uk
In a move that could be viewed as a bellwether for the UK’s energy sector, leading training centres Survivex, in Aberdeen, and AIS Training, in Newcastle, reopened this week after enforced closure due to coronavirus. As part of 3T Energy Group which counts BP, Shell and Total among its clients and is the UK’s biggest training provider to the sector, the reopening of the two world-renowned training centres, indicates an industry gearing back up after the lockdown and the impacts of the global pandemic.
Kevin Franklin, CEO of 3T Energy Group says: “We have adapted to the ‘new normal’ by leaving no stone unturned in ensuring our sites are the safest on the market. We have worked day and night since March to adapt to the Coronavirus challenge, and we are now ready for the post lockdown training environment.”
Ahead of the reopening 3T carried out full, detailed risk assessments at both facilities, implementing even more stringent measures to ensure the safety of everyone on site including on-site medical questionnaires and checks, temperature checks, and operating at 20% capacity with reconfigured classrooms to allow for safe reopening as well as daily protocol reviews. The company has also been using the downtime caused to develop world-first technology-driven training techniques for launch to the market soon, parts of which will be rolled into its training centres immediately. State-of-the-art video technology and tablet use are now in place in every relevant location.
Helping to get the sector moving again
With 3T specialising in training delegates in critical skills for use across the whole energy sector, including onshore and offshore Oil & Gas, the reopening of the centres represents a turning point following Coronavirus-related disruption. Many delegates have not been able to complete essential training and refresher courses that allow them to safely carry out their duties on site.
Paul Stonebanks, president of 3T Energy Group, says: “Health and safety training is an essential cog in many industries, but none more so than energy. Delegates need to be able to continue their development and access refresher training on their skills so that they are ready to go back on to site, whether that’s offshore or onshore.
“Over the past few months, we have been developing new technology that will truly revolutionise training in the energy industry. We’ll be rolling that out in due course, but for the time being we’ve included some of this into the training centres to ensure customers receive the very best service in the market.”
As Kevin adds; “We would categorically not be reopening if we could not provide a safe environment. We are the number one training provider for a reason and our dedication to safety on site is second to none – the measures we have put in place are testament to that. These precautions are the new normal.“Our facilities have been upgraded to combat Coronavirus and have changed completely as a result, without compromising quality of training. Customers and staff go through rigorous entrance procedures to maintain the new standard and protect all employees and delegates”.
Paul concludes; “We’re glad to be doing our bit to help the sector and the local and UK economy get moving again.”
UKIFDA says off grid homeowners across Great Britain are seeing prices of heating oil drop by up to 27% since the same time last year, according to the latest figures from Sutherland Tables, a provider of comparative home heating costs for the most common fuels in the UK and Republic of Ireland.
This drop has prompted UKIFDA to urge households who use oil to heat their home to reap the rewards of using liquid fuel as their heating source and to consider how they can benefit from these low prices and also consider their future energy options.
Guy Pulham, CEO of UKIFDA comments; “The Sutherland Tables data is fantastic news for everyone using heating oil as it confirms that this form of energy is the cheapest right now. The price of oil has continued to fall over the last quarter and the cost of home heating using oil is now cheaper than gas heating, regardless of the type of property you live in or whether you have a conventional or condensing boiler. The latest data shows that families in an average 3-bedroom house with an oil boiler in Great Britain are paying around £808 a year for heating and hot water, compared to £938 for those using a gas boiler, £1392 for those using air source heat pumps with underfloor heating, £1502 for wood pellets, £1551 for those using LPG, £1819 for those with air source heat pump with radiators and £2084 per annum for those on Electric.
“At the same time as enjoying low prices we do want to help domestic consumers of oil in the UK and Ireland understand how the decarbonisation of off-gas grid home heating could impact their home and impact the choices they need to make either now or in the future. As a result, we have over the last year been working with our Members and other trade associations on a pathway to decarbonising liquid fuel to help consumers find a personal pathway that fits the finances of the household but still contributes to lower carbon emissions in a timescale that meets net zero goals.”
The UK Government has outlined its intentions to replace the Renewable Heat Incentive (RHI) with a new Clean Heat Grant which aims to help households and businesses decarbonise through technology and push the nation towards its net-zero target for 2050 by phasing out high carbon fossil fuel heating.
In the Government’s publication of its consultation on future support for low carbon heat its proposal to make grants of £4,000 available for consumers wishing to replace fossil fuel boilers has drawn particular attention. The grant would provide support for heat pumps and, in limited circumstances, biomass and would replace the Domestic RHI tariff scheme which is due to close on March 31, 2022.
In its introduction to the consultation BEIS highlights that currently, heating our homes, businesses and industry is responsible for a third of the UK’s greenhouse gas emissions meaning that the decarbonisation of heat is one of the biggest challenges faced in meeting climate targets. The government Heat and Buildings Strategy which will be published later this year will set out actions to reduce emissions from buildings.
The government is considering a range of measures to improve energy efficiency and support the move to low carbon heating and has pledged significant financial support. The consultation sets out plans for a successor to the current RHI scheme – a Clean Heat Grant scheme – to help deliver the phase-out of high carbon fossil fuel heating. The stated aim is to build on the 2017 Clean Growth Strategy, with its announced intention to phase out the installation of high carbon fossil fuels in the 2020s for properties off gas grid.
According to BEIS, the grant will support the deployment of air source, ground source and water source heat pumps and high and low temperature systems, but hybrid heat pumps will not be included.
The full consultation, including details on how to respond, is available online at: https://tinyurl.com/ydyhzvb5
In the context of the biggest replacement investment in the company’s history, the HOYER Group has taken delivery of more than 500 new trucks throughout Europe, for which it has invested around 42.7 million Euro, to transport mineral oil, chemical products and gases. The trucks have innovative technologies that more than fulfil the legal requirements relating to safety and offer added value with regard to economic efficiency and environmental protection.
The HOYER Group ordered the majority of the trucks to supply mineral oil in Great Britain whilst commissioning the latest generation of trucks from Volvo for supplies to service stations in Germany. The first units have already been delivered, and the entire fleet will be gradually replaced by the end of 2020.
According to Rudolf Schumacher, Fleet Manager of the HOYER Group in Dormagen, Germany: “The safety of our drivers and of other road users has top priority. We transport highly sensitive goods every day and consider it our duty to reduce risks and dangers to the absolute minimum.”
“Thanks to our fleet’s innovative safety equipment, we more than satisfy the legal requirements and set standards in the sector. Moreover, we emphasise the continuous instruction and further education of our personnel. We regularly and intensively train our drivers on the topic of safety in the framework of classroom training sessions and online training courses.”
The trucks are fitted with new-generation Euro-6 engines that offer added value regarding economic efficiency and sustainability, meaning that after the modernisation is complete, 98 per cent of the HOYER Group fleet of more than 2,200 trucks will be equipped with these low-pollution engines.
Four of the new truck models will even be operated using an alternative LNG engine. This means the HOYER Group has increased the number of trucks running on liquid natural gas to nine. The first LNG truck was acquired in 2018 and are intended to transport gases and mineral oil. The fact that the service station network for alternative energies has not yet been expanded to cover all areas is currently preventing further procurements.
UKIFDA has urged the Scottish Government to consider the 135,000 households in Scotland who use oil to heat their homes when setting the energy policy in its response to the recent ‘Energy Efficient Scotland: Improving energy efficiency in owner occupied homes’ consultation.
Proposals outlined in the government consultation which closed earlier this month include the introduction of a legally binding standard to ensure all homes in Scotland meet Energy Performance Certificate (EPC) rating C, at point of sale or major renovation, from 2024.
UKIFDA chief executive, Guy Pulham comments; “In submitting our views to this consultation by the Scottish Government, we expressed our support for the proposals to improve the fabric of homes and improve energy efficiency and we agree EPC Band C is a realistic target. It is important though that this must be rolled out in a way which does not adversely affect owner occupiers who are already struggling with household costs. Energy efficiency improvements must not be pursued at the cost of making housing unaffordable for people and put added burden on those currently in fuel poverty. The focus must be on providing tailored support, including financial, and advice on the most suitable technology available to households.
“We agree that new homes should be first to adapt new technologies given the fabric of the building allows for a range of solutions but off gas grid homes are not the easy low hanging fruit that many seem to suggest. The very specific nature of the housing stock that our UKIFDA members serve – generally larger, older homes, in rural locations with poorer than average insulation means they are difficult to adapt to new technologies such as heat pumps and are perfectly suited to new drop in liquid biofuels.
“The design of these houses (and this includes a very high proportion of farmhouses and buildings) is such that retrofitting heat pumps will require a huge capital expenditure to improve the insulation of the properties. If this work is not carried out, the running costs of any form of heat pump would be prohibitive.
“A further challenge here is that the demographics mean that many of the owners are cash poor and asset rich (pensioners, farmers etc) and they will find it very difficult to raise the required capital to undertake major refurbishment of these homes. With the introduction of biofuels as a replacement to heating oil it would mean off grid households would not need such a large capital investment to improve the energy performance of their homes”.
In the run up to this consultation being published, UKIFDA has been lobbying the Scottish Government to consider liquid biofuels as part of any energy strategy and is currently working with other industry trade associations OFTEC and the Tank Storage Association on the introduction of a low carbon liquid fuel to replace heating oil.
Guy Pulham adds: “To ensure that the whole industry can invest and implement engineering advancements such as biofuels, we believe government should outline the energy efficiency plans in 2020 for implementation.”
“We also believe it is also important that once an Energy Efficiency standard is in place it should be subject to periodic review, where it can change with improvements such as technology, innovation, fuel prices and carbon emissions. In the longer term where it can be assumed that energy efficiency will improve over time, improved EPC targets could be then introduced.
“Ultimately, we would like policy-makers to recognise the positive contribution that evolving liquid fuels can make to an economically and socially fair energy transition. It is crucial to maintain a varied energy mix and a free choice of technologies by consumers to alleviate fuel poverty. By focussing on the consumer and meeting their individual needs, we can meet both the net zero targets and do so in a realistic, supportive fashion.”
Commitment to achieve net zero emissions by 2050 “or sooner” is part of the significant action on climate change outlined by global energy company Shell following engagement with investors as part of Climate Action 100+.
Building on commitments of previous years, Shell will be publishing a series of detailed steps to achieve the plans outlined in the oil giant’s Responsible Investment Annual Briefing in April. These will include an ambition to be net zero on emissions from the manufacture of all products (scope one and two) by 2050 at the latest, accelerating its Net Carbon Footprint ambition and, most crucially in terms of the wider impact, ”pivoting towards serving businesses and sectors that by 2050 are also net zero emissions.”
It comes during a period of immense challenge for the global oil industry, with demand forecast by the IEA to fall 29 percent in April and 9 percent this year as a result of the coronavirus pandemic. IEA executive director Fatih Birol, said 2020 was likely to be “the worst year in the history of global oil markets.”
But Shell chief executive Ben van Beurden suggested the company’s net zero commitments would not be derailed by the crisis.
“With the COVID-19 pandemic having a serious impact on people’s health and our economies, these are extraordinary times,” he said. “Yet even at this time of immediate challenge, we must also maintain the focus on the long term.
“Society’s expectations have shifted quickly in the debate around climate change. Shell now needs to go further with our own ambitions, which is why we aim to be a net zero emissions energy business by 2050 or sooner. Society, and our customers, expect nothing less.”
Wider impacts
As one of the world’s largest energy companies, Shell’s commitment to realising net zero emissions is of significance for the broader energy sector.
“It’s imperative we see companies across the entire oil and gas sector put strategies in place to achieve net zero emission if we are to tackle climate change. This applies to the fuels and products companies sell, as well as emissions from operations,” explains Stephanie Pfeifer, a member of the global Climate Action 100+ Steering Committee and CEO, Institutional Investors Group on Climate Change (IIGCC). “Investors will now look to other energy companies to match, and build on, the welcome ambition Shell is showing.”
After previous announcements in 2017 and 2018, Shell’s example has been followed by other oil and gas companies. With investors hoping that the latest announcement will again have a domino effect Simon Pilcher, chief executive of USS Investment Management, echoed the feelings of many; “As investors we need to be ambitious in our expectations of how the companies in which we invest can address the shift to a low carbon future and today’s announcement demonstrates that collaborative engagement can encourage corporate action on this crucial issue.”
The announcement has additional significance, given the short to medium-term implications of the Covid-19 pandemic faced by the sector as Fiona Reynolds, a member of the Climate Action 100+ Steering Committee and CEO, Principles for Responsible Investment (PRI) observes; “As we can see from this time of crisis, it is not possible to separate the health of people, the planet and the economy, as they all need to be aligned.
“Timely action to address the devastating social and economic effects of Covid-19 is essential and we welcome Shell’s significant commitment to become a net zero emissions energy business by 2050. It’s imperative that companies continue to focus on the long-term impacts of investments on the climate.”
Peter Ferket of investment giant Robeco, commented; “The new ambitions prove that the strong and committed engagement of institutional investors with Shell can help accelerate the pace of change to deliver the goals of the Paris Agreement,” he added. “It raises the bar and sets out an approach for others in the oil and gas sector to follow.”
The plan is the latest in a series from Shell and other oil majors to bolster their emissions reductions strategies. Earlier this year BP similarly unveiled wide-ranging net zero ambitions, while several top oil firms have acquired leading clean tech firms in a bid to diversify their portfolios.
Total is also facing increasing pressure from shareholders to step up its climate targets, after a group of investors recently tabled a resolution calling on the French oil major to set absolute emissions reduction targets for its entire business and value chain aligned with the Paris Agreement goals.
Drivers employed as part of HOYER’s UK Petrolog fuel tanker delivery team have received training to deliver medical grade oxygen to NHS hospitals treating patients with COVID-19.
The potential deployment comes after the company approached the Government to see how it could both support the national effort to fight the virus and protect jobs, by providing support in delivering essential goods.
Jonathan Lawrence, Divisional Director, Field Operations for the Petrolog business of HOYER in the UK, said: “The MoD quickly got in touch with us, and we began speaking directly to Air Products about how we could assist them in the critical delivery of oxygen to hospitals, supporting the NHS.”
“We were asked if we could provide drivers with a Class 1 LGV licence and a Class 2 ADR licence, who were based near Air Products’ depots at Didcot in Oxfordshire and Carrington in Manchester. HOYER sought volunteers from our Hemel and Stanlow depots and received a resounding response with many colleagues answering the call and willing to do their bit to help in supporting the NHS.”
The first ten Petrolog drivers from the company’s depots at Stanlow Refinery in Cheshire and Hemel Hempstead in Hertfordshire, have now completed medical grade oxygen product training with Air Products.
Jonathan Lawrence added: “Whilst both HOYER and Air Products hope that our support is not required, we now have a group of drivers who can be deployed quickly to ensure that these lifesaving deliveries can continue uninterrupted.”
Allan Davison, Operations Director for the Petrolog business of HOYER in the UK said: “With demand for medical essentials increasing daily, the need for high levels of logistical expertise is more prominent than ever. Alongside our highly trained workforce we are able to quickly support other companies and more importantly key workers during this unprecedented time and we are proud of our team for stepping forward for this.”
Ian Moore, director of the Oil Market Journal (OMJ) shares his insight into oil market movements from March and April this year.
The trade association for the liquid fuels sector in Ireland, UKIFDA, has lobbied Finance Minister Paschal Donohoe in a bid to get the Irish government to consider a delay to the €6 increase of carbon tax on heating oil, used by over 686,000 households across Ireland, and gas oil, used by the farming and construction industry, due in May this year.
Callow Oils teams up with Pensons restaurant to deliver three-course meals to NHS key workers.
Helen Needham, director of Callow Oils, said: “I saw that Pensons were providing prepared meals to nominated key workers through social media and, as we are already connected with the restaurant as their fuel supplier, wondered if we could collaborate to deliver meals to nearby hospitals.”
“Delighted with the collaboration, and with us providing our LPG van as transport, we were able to deliver 100 prepared meals to the hard-working NHS staff at Worcester Hospital.”
With donations of cream and lamb from Mawley Milk and Hodgehill, the Michelin star three course meals were delivered to staff at the Worcestershire Acute Hospitals NHS Trust in April.
As well as providing meals, Callow Oils has also offered its thanks to all NHS staff and key workers in the form of rainbow signage on two of its tankers.
Helen commented, “we use a local company for our sign writing and asked if they could provide us with rainbow thank you messages for our tankers, which they did. We were happy to support a local business and are overjoyed with how they look!”
As the collaboration continues, Pensons restaurant carries on preparing meals for nominated key workers and NHS staff whilst Callow Oils continues to deliver fuel oil to grateful customers.
Following the news that West Texas Intermediate (WTI) Futures traded at negative prices for the first time in history last week there has been rampant social media
Following the publication of a report by the Sustainable Energy Association (SEA) UKIFDA is looking forward to “digesting the detail” and “working with SEA on lobbying government to engage on these plans”
Calling on the government to bring in a ‘carbon intensity standard’ for the UK to drive down emissions in heating, the SEA report ‘Off Grid, Off Carbon: Regulating the Decarbonisation of Heat in homes off the gas grid’ followed a consultation with industry stakeholders. It outlines the benefits of introducing a carbon intensity standard for heating within the Buildings Strategy allowing for carbon reduction to be achieved by a combination of means including insulation, installation of new technologies or replacement fuel solutions, depending on consumer choice and situation.
The proposed standard would be administered at industry level and encouraged through a range of enablers to facilitate its introduction including rebalancing fuel duties, customer incentives and a robust enforcement framework. SEA argues that, together, these would complement energy efficiency improvements and encourage greater uptake of insulation and low carbon heating systems in a way that guarantees lower carbon emissions while also maintaining consumer choice.
It is this focus on the customer that ties in with the approach of UKIFDA. Representing a distributor membership that delivers over 70% of the domestic heating oil in the UK and Ireland UKIFDA accepts the need to decarbonize but is also lobbying for a customer focused transition plan emphasizing the need to achieve significant carbon reduction without putting unseasonable measures and costs on off gas grid homeowners which could lead to fuel poverty for many.
Highlighting the SEA report, CEO of UKIDFA Guy Pulham stated; “We are currently digesting the detail but the idea of a customer focused transition plan for oil heating ties in with our own consumer focused blog and our commitment to ready our part of the supply chain for increasing percentages of biofuels in the 2020s.
Collaborations
A collaboration at the start of 2020 between trade associations OFTEC, the Tank Storage Association (TSA) and UKIFDA showcased a future vision for liquid fuels which detailed steps to be taken toward a transition to 100% biofuel to replace heating oil in 1.5m homes across the UK and 686,000 homes across Ireland, reflective of SEA’s vision for replacement fuel solutions as one contribution to carbon reduction.
In the light of the ongoing challenge of heat decarbonization Guy comments; “I look forward to working with Sustainable Energy Association on lobbying government to engage on these plans”
Jade Lewis, Chief Executive of the Sustainable Energy Association commented; “This report is a demonstration of how industry can collaborate to tackle some of the greatest challenges ahead of us, and there is no doubt that heat decarbonisation is one of those.
“At a time of great uncertainty is it paramount that regulation is introduced to provide confidence and stability so that investors and manufacturers of low carbon heating systems can scale up investment and production, encourage innovation, and upskill the workforce.”
She added: “The SEA is hopeful that the proposals put forward will influence Government plans to decarbonise the UK’s building stock and ensure that homes are fit for the generations to come.”
With its teams juggling the challenge of working from home while looking after children, Abbey Logistics asked them to send in their most creative rainbow pictures. As the UK’s largest road tanker logistics company for bulk food powders and liquids wanted to find a way to remind everyone to stay positive and to show their support for all drivers across the UK continuing to fulfil essential services.Abbey was also delighted to work with Holy Name Primary School in Fazakerley, Liverpool. The school, which is operating as a Liverpool City Council Hub for children of key workers, had created a lesson about logistics, and wanted to lend their support and send in their rainbow pictures too.
An Abbey Logistics spokesperson shared their surprise at the quality and scale of the response to the request; “The company was overwhelmed by the number, creativity and variety of pictures sent in, along with some wonderful messages of support.
“As a result we have decided to select six of the submitted images to install on the dome end of six new tanker trailers so more people can see some of these brilliant pictures and help show support for all frontline workers across the UK.”