Valero Energy has won a long-term agreement to supply fuel to 115 Co-op petrol filling stations.  The contract extension includes the supply of fuel to 31 new-look Co-op branded locations from mid-2020. 

A workshop hosted by fuel processing giant Petroineos at its Grangemouth refinery to discuss growing concerns that red diesel is causing damage to farm machinery saw a large turnout from those involved throughout the fuel supply chain. Having been made aware of increasing problems with both agricultural and industrial equipment Petroineos took the decision to host the workshop covering fuel quality and in particular, the addition of Biofuel to GasOil in a bid to find answers. A spokesman from Petroineos explained: “Petroineos, as Scotland’s only refinery, is a major, but not only, producer of GasOil for distribution across Scotland and has been engaged with stakeholders since the problems came to light at the beginning of October. “Petroineos manufactures fuels meeting or exceeding British Standards and has a rigorous testing and analysis process adhering to our ISO9001:2015 quality system requirements. All GasOil distributed from the Petroineos Refinery has met the requirements of BS 2869 Class A2. With widespread reports of issues including poor performance, blocked filters, low working hours before filter changes are required and injector failure there was speculation, particularly amongst the farming community, that the problems were being caused by abnormally high levels of biodiesel in the fuel.  However, independent tests of samples found levels to be within prescribed limits as set out in legislation. “We have received dozens of samples back from customers for analysis and everyone has met the required standard. We are confident in our systems, processes and product sold to market, but we are also aware of the issues being experienced which is why we arranged the workshop to bring all stakeholders together to find answers to the problems’ Attendees included representatives from NFU Scotland, Ringlink Scotland and UKIFDA as well as distributors and their customers ensuring representation from all involved in the fuel supply chain. A senior team from Petroineos including Daniel Brain, Commercial Manager – Marketing & Distribution and Russell Mann, Refinery Manager as well as members of the quality and technical team took the delegates through a short overview of Petroineos before getting into more detail with regard to the addition of FAME into fuel explaining what it is, why it is included, how it is blended and how the resultant biofuel is tested and quality assured before moving on to the potential issues with the use of FAME in GasOil A Q&A session then opened with the key question – What can be done going forward to address these issues? – and it quickly became apparent just how emotive this subject has become with many anecdotal stories and a real sense of desperation particularly amongst agricultural users. Those representing NFUS expressed concern about ‘the potential threat to the well-being of both livestock and their members’ with farmers becoming increasingly frustrated at their inability to carry out their jobs due to clogged filters causing machinery breakdown resulting in significant downtime and an increased financial burden. Many questions were asked of and fully and openly answered by the Petroineos team with regard to levels of FAME introduced, the nature and source of the FAME and the timing of increases to meet the increasing legal requirements of the Renewable Transport Fuels Obligation (RTFO). Despite the challenging discussions there was widespread appreciation that Petroineos had taken the initiative to bring all those involved together to seek a solution. The workshop left those present reassured that the fuel produced by Petroineos is up to required standard and with no doubt in their rigorous processes and commitment to their customers but the overriding feeling was that the standards imposed at governmental level through the RTFO may not be ‘fit for purpose’ and that the use of additives and good husbandry alone are not the solutions. With winter weather on its way driving a sense of urgency there was an overwhelming call for the immediate suspension of FAME addition at the current 7% levels until solutions to the end user problems are found as well as an expected frustration at the lack of immediate ‘solutions’ for distributors to take back to their customers. There was, however, a clear commitment from Petroineos to continue to act as a conduit for action with the support of all stakeholders. After the workshop a Petroineos spokesman communicated the plan, ‘We are committed to engaging with our industry associations – UKPIA, and Scottish & UK Governments. We have already held teleconferences with UKPIA and separately with appropriate Government departments, who have committed to review this issue as a matter of urgency. In order to assist Government with this review, we encourage both representative bodies present yesterday – NFUS and UKIFDA, to collate detailed information on the reported issues around equipment failures. We will continue to engage with all stakeholders on this important issue.’ A full report of the workshop and questions raised will be in the January issue of Fuel Oil news  

In 2021 the UKIFDA EXPO will move to The Scottish Event Campus (SEC) in Glasgow.  In a two-year deal with SEC the 2021 and 2022 shows will take place on 19 & 20 May (2021) and 18th & 19 May (2022). UKIFDA EXPO has been at The Exhibition Centre Liverpool since 2016 and following feedback from the recent EXPO surveys, the UKIFDA team has spent time finding a venue that provides many of the benefits of Liverpool. These include excellent access for exhibitors and a venue close to amenities as well as venue that provides a flexible exhibition space that can accommodate fluctuating exhibitor profiles, at a cost that is beneficial for UKIFDA and the exhibitors. Feedback also suggested that the EXPO should move around the UK and Ireland on a more regular basis, which is why this is only a two-year contract. The base contract for 2021 is for 6,000sqm of exhibition space which is smaller than Liverpool. This means that all exhibitors at UKIFDA EXPO 2020 in Liverpool will have first refusal on space for 2021 ahead of the event being released for general sale. “It is 20 years since EXPO was last in Scotland, so we are excited about taking UKIFDA EXPO to Glasgow and to the SEC,” commented UKIFDA chief executive, Guy Pulham. “It will be sad to say goodbye to Liverpool next year, so let’s make it a great event!” “UKIFDA EXPO 2020 on 10th/11th June will see the exhibition celebrate its 40th anniversary and already over 55% space has been sold,” added Dawn Shakespeare, UKIFDA membership and events manager. “We are also finding that UKIFDA EXPO 2020 has received more interest this year from the renewable energy sector, associated component manufacturers and equipment suppliers to meet a new market of customers. “There is a real buzz about the show already and with the added interest from the renewable energy sector I am sure it is going to make for a very exciting show as we celebrate its 40th anniversary. It is therefore fitting that we start the next decade at a new venue.”

FTA Northern Ireland is concerned that businesses shipping goods via the Irish Sea are set to be faced with additional surcharges from shipping lines, which will make the cost of doing business with GB and Europe more expensive for Northern Irish businesses.  The additional transport costs – estimated by FTA to be around £21 million per annum – are attributed to the cost of adaptation measures to comply with the new sulphur oxides targets entering into force worldwide from 1 January 2020.  Mandated by the United Nations regulatory body for shipping, the IMO, these rules will require the sulphur content of marine fuel to be no higher than 0.5% (mass percentage). “Surcharges are a bad response to this change” says Seamus Leheny, FTA’s policy manager for Northern Ireland. “While the industry has been expecting increased costs as a result of the new rules around low sulphur fuel, a new surcharge mechanism seems unnecessary.  This is the new normal, so shipping companies should be including this in normal commercial pricing arrangements.” FTA is opposed in general to the use of surcharges in the shipping industry.  The Association sees these as an old-fashioned hang-over from a previous era.  Managing input cost changes is a normal part of business and can be dealt with through fuel cost adjustment factors, or just anticipating the likely cost to come and including it in contract prices. “These changes have been known about for a long time and could have been factored into all business plans for 2020,” added Seamus Leheny. “They are not temporary, nor are they different to what is being done anywhere else in the world.  FTA wants the shipping companies to move away from this approach as quickly as possible as we see no need for this additional charging mechanism.”

Total has entered into an agreement with Harvest Energy, a member of the Prax Group, which will allow Harvest Energy to develop its network of service stations with the support and expertise of Total and to secure its fuels supply. The first Total service station will open at Thirsk in north Yorkshire before the end of 2019, with further deployment continuing in 2020. The Total outlets will offer the public and business customers the company’s full lineup of fuels and lubricants, as well as a broad range of products and services, including EV charge points. The agreement will also ensure closer co-operation for fuel supply, domestically with Lindsey Oil Refinery and internationally through Total’s trading portfolio. “We are delighted with this alliance with Harvest Energy, where we offer our partner reliable supply and customers gain access to our wide range of products and services,” commented Benoît Luc, senior vice president, Europe in marketing & services at Total. “We are pleased and excited that we have signed this partnership agreement with Total,” added Sanjeev Kumar, CEO of the Prax Group. “It is the culmination of many years of solid cooperation between our respective companies and I am sure that it will be extremely beneficial for all concerned.” Harvest Energy will capitalise on Total’s expertise to achieve its growth targets over the coming years and it is expected that the network’s appeal and services will lead to new partnerships with operators of dealer-owned service stations.        

Oil Terminal 2019, the 14th annual technical conference and exhibition, will be held on 14-15 November in Saint Petersburg. The event, which has a long and impressive history, has proved to be one of the major platforms for sharing experience and for seeking out solutions to the main issues in the industry. For the last 14 years Oil Terminals annually brings together 350+ delegates from oil and gas trading, storage, and shipping businesses representing refineries, oil terminals, and ports from 25 countries including Russia, the CIS, the Americas, Europe, and Asia, as well as CTOs and CEOs from tank farms and oil terminals of Russia, Kazakhstan and the Baltic states.

FTA’s Logistics Emission Reduction Scheme (LERS) has recently launched a FREE guide to help all road operators to reduce their use of diesel. The guide, available on LERS’ website, provides readers with advice taken from industry leading companies on how to save money and lower emissions by reducing fuel use in their diesels fleets. The average emissions from LERS members are close to 13% lower per vehicle km than the industry average,” said Rebecca Kite, FTA’s environment policy manager. “For the most part, operators have achieved this reduction by using their existing diesel fleets more efficiently, rather than adopting alternatively powered vehicles. “At FTA, we recognise that not every business is able to transition to alternatively-fuelled vehicles; that is why we have identified from this research six quick wins to reduce fuel use. From reducing empty running and aerodynamics to route optimisation and telematics, there are steps operators of all fleet sizes and budget considerations can take; these techniques also have the potential to dramatically cut fuel bills. Different strategies will be more effective for different types of operations; this guide offers advice on where and when these options are appropriate. “FTA’s goal is to help all parts of the logistics industry save costs and reduce its environmental footprint, avoiding the future need for government intervention in our sector.” To view the guide, please visit  http://lers.org.uk/home/how-to-reduce-your-emissions LERS – lers.org.uk – is a free-to-join scheme which helps members record, reduce and report emissions.

Pupils at Hoddom Primary School in Ecclefechan were very pleased to win a Certas Energy road safety poster competition held to mark the opening of the‘fechan Truckstop at Junction 19 of the A74(M).  

18-24 November Road Safety Week is the UK’s biggest road safety event, coordinated annually by Brake, the road safety charity. Road Safety Week aims to inspire thousands of schools, organisations and communities to take action on road safety and promote life-saving messages during the Week and beyond. It also provides a focal point for professionals working in road safety to boost awareness and engagement in their work. If your business has plans for Road Safety Week do please get in touch with Fuel Oil News – jane@fueloilnews.co.uk Share with Brake at Twitter (@BrakeCharity and use #RoadSafetyWeek #StepUp) and Facebook  

Five people, including the former owners of a Sussex petrol station have been sentenced for distributing and selling an estimated 4.8 million litres of illicit fuel to unsuspecting motorists, including haulage companies across the south east.

On Friday 11th October, Certas Energy opened its latest HGV refuelling site at the Red Lion Truckstop in Northamptonshire’s ‘golden triangle’ of logistics for over 30 years.

Hull-based J.R. Rix & Sons has reported a 21% rise in turnover in 2018, due to the integration of two new fuel businesses and the fluctuating price of oil.

Greenergy is to commence supply of marine fuel containing maximum 0.5% sulphur, also known as Very Low Sulphur Fuel Oil, from November, ahead of changes to marine fuel specifications effective 1 January 2020.