Future Fuel 10
Enhancing collaborative culture within the offshore oil and gas industry is not only key to maximising the potential of its existing world class supply chain but could also unlock future activity in the UK Continental Shelf (UKCS) and be key to delivering a successful Net-Zero future.
Improving commercial models which support cost reduction whilst incentivising the supply chain could re-energise collaboration, according to the findings of the annual Deloitte and OGUK Collaboration Report, published on 28th January.
Deloitte and OGUK’s industry-wide Collaboration Index (CI), which measures the effectiveness of companies as partners in projects, is part of the annual UKCS upstream supply chain collaboration survey. The report showed a slight increase in the collaboration index to 7.1 in 2020 from 7.0 in 2019, highlighting the flexibility and support the supply chain showed during an exceptionally challenging year.
On top of this, collaboration success rates hit a record high in 2020 with more than 50 per cent of survey respondents saying over half of their efforts were successful. In what also marked a first in the survey’s six-year history, the overall proportion of ‘successful’ efforts was higher than ‘unsuccessful’ ones.
However, while COVID-19 saw many businesses work together to address the challenges, respondents said the pandemic and consequent economic downturn also led to disadvantageous commercial behaviours such as cancelled or modified contracts.
OGUK supply chain and operations director, Katy Heidenreich, said:
“OGUK has been encouraging industry to do business in a sustainable way to protect the supply chain. This includes finding innovative ways of working that deliver value for both sides, ensuring that industry has the skills and resources needed when activity rebounds, as well as using the Supply Chain Principles as a mechanism to improve behaviours.
“We redesigned the questions in our 2020 Collaboration survey to understand how well these Principles have been embraced since we launched them.
“Greater collaboration will be a key factor in unlocking future industry developments and to strengthening our basin, our versatility, and our resilience. The ability to work together well across companies, industry and the wider energy sector will be critical to delivering a successful energy transition which supports jobs and the communities we work in. Collaboration needs to be part of our DNA; while it is not a silver bullet, it is good for business.”
OGUK will issue a call to action to promote adherence to its Supply Chain Principles and to communicate the benefits after the survey received a broad mix of views.
Deloitte’s office senior partner (Aberdeen), Graham Hollis, said:
“In what is an extremely challenging environment, the industry must assess new opportunities and challenges as it addresses the year ahead. Organisations need to reimagine their businesses and models and focus on the right set of collaborative behaviours because as the report highlights, working closely with suppliers and customers to support one another will be vital.
“As part of this, Deloitte has produced a Framework for Action which details six building blocks that organisations should consider helping develop and continue building successful collaborative relationships – ones which deliver greater value for both operators and suppliers.”
Deloitte’s Framework for Action supports the OGUK Supply Chain Principles, and both will be key to stimulating collaborative behaviours. OGUK will also be issuing a call to action to promote adherence to its Supply Chain Principles and to communicate the benefits after the survey received a broad mix of views.
With the Supply Chain Principles, energy transition and internal collaboration being new themes explored in this year’s survey, almost two-thirds of operator respondents said they were making some progress to meet their energy transition objectives – in line with the OGUK’s Roadmap 2035: a blueprint for net zero – compared with 49 per cent of suppliers.
While some operators showed best practice in sharing the risks and rewards of working relationships appropriately, there are still opportunities to improve.
OGA’s head of supply, Bill Cattanach, said: “Successful project delivery is more predictable where there is a fair and equitable partnership between operator and supplier.
“There are encouraging signals, as shown in the report, that the industry is leaving old approaches behind and embracing the expertise which exists within the supply chain in a collaborative manner. However, there is still room for improvement, and collaboration should remain a key focus for industry going forward.”
With over 500,000 homes currently using heating oil in Northern Ireland, a new video has been released to communicate how straightforward it could be to dramatically cut CO2 emissions through the use of HVO as a near drop-in and, therefore, very cost-effective, replacement for kerosene.
David Blevings, NIOF, explains:
“Further to our November article, ‘NI Energy Strategy – an update’, we learn that OFTEC is promoting a video to local politicians ahead of the new NI Energy Strategy. The video shows how easy a transition to HVO will be for NI consumers and reinforces the immediate carbon reductions that are available for liquid fuel users.
“OFTEC has advised Government that the new strategy must be technology neutral and the inclusion of biofuels offers a seamless transition for existing liquid fuel users; a simple option for government to maximise carbon emission reductions in the off-grid sector at least cost for consumers with immediate effect.”
The video can be viewed here.
For further information contact David Blevings. (dblevings@oftec.org or david@nioil.com)
After extensive testing, Selwood has become the first UK rental company to offer pumps that can be fuelled by vegetable oil in an industry-leading move that will significantly cut greenhouse gas emissions.
Selwood has also committed to ensuring that new pumps manufactured at its headquarters in Chandlers Ford, Hampshire, for use in the UK and around the world, are HVO-compatible, subject to individual engine manufacturers’ guidelines.
Lawrence Bradbury, director of engineering at Selwood, said:
“At Selwood we are committed to reducing the environmental impact of our products and operations wherever possible. Following conversations with several large clients who were looking for alternatives to diesel fuel, our engineers have thoroughly tested the use of HVO in the Selwood range.
“We are delighted with the results – not only is HVO completely interchangeable with diesel in compatible engines, it can also be used with no negative impact on performance. We are very pleased to be able to let customers know that HVO can be used safely as part of our ongoing commitment to sustainability.”
Selwood has several ongoing initiatives to reduce its carbon footprint, including the introduction of electric vehicles to the fleet and the option of IE3 electric motors in its pump rental and sales ranges where appropriate. The company holds the ISO 14001 standard for its environmental management systems.
Greenergy announces its continued commitment to renewables through an investment in advanced biofuels. Utilising a combination of existing technologies, the project will create low carbon fuels from waste tyre feedstock.
Essar and Progressive Energy, developers of HyNet North West – the UK’s leading industrial decarbonisation cluster – have joined forces to set up a venture to produce low carbon hydrogen at Essar’s Stanlow Refinery in Cheshire, for use across the HyNet region. It will provide Essar Oil UK with low carbon hydrogen to decarbonise its own energy demand in addition to creating a hydrogen economy across North West England and North East Wales.
Natural gas and fuel gases from the refinery will be converted into low carbon hydrogen, with carbon dioxide safely captured and stored offshore in sub-surface reservoirs in Liverpool Bay. The hydrogen production hub will deliver clean energy to industry in the HyNet ‘low carbon cluster’, as well as to fuel buses, trains and heavy goods vehicles, to heat our homes, and to generate electricity when the sun is not shining or the wind blowing.
The UK’s first low carbon hydrogen hub will initially produce 3 terawatt-hours (TWh) of low carbon hydrogen each year from 2025. This will be quickly followed by a facility twice this size giving a total capacity of over 9TWh of hydrogen per annum, equivalent to the energy used for heating across the whole of Liverpool. A total investment of approximately £750m will be committed to deliver the two hydrogen production hubs. Follow on capacity growth is planned to reach 80% of the Government’s new target of 5GW of low carbon hydrogen for power, transport, industry and homes by 20301.
The project will use Johnson Matthey’s best in class Low Carbon Hydrogen (LCH™) technology. In partnership with SNC-Lavalin, engineering is well advanced with funding provided by the UK Government’s hydrogen supply competition.
Chris Manson-Whitton, director at Progressive Energy said:
“We cannot reach net zero without decarbonising industry. Today brings a key milestone in that journey as Progressive Energy and Essar Oil UK sign a Memorandum of Understanding setting out how we will work together to deliver this exciting project at Stanlow Refinery.
“Delivering net zero requires a transformation of our energy system. HyNet offers a once-in-a-generation opportunity to create real change in energy production and consumption, creating a cleaner world for future generations. It will unlock the low carbon hydrogen economy in the North West, reducing emissions and creating and safeguarding jobs.”
Stein Ivar Bye, CEO, Essar Oil UK, commented:
“Essar is committed to innovative growth as a means to create positive impact to both economy and environment. HyNet and hydrogen production is integral to Stanlow’s strategy and will set it on a journey to be the UK’s first net zero emission refinery with the ambition to avoid emissions of over 2 million tonnes of carbon dioxide to the atmosphere per year, the equivalent of taking nearly a million cars off the road.
“With the support from government to establish the appropriate business incentives, together with Progressive Energy, we are committed to undertaking the development and the financing of its construction.
“Hydrogen has a central role to play in our low carbon energy solution. We are demonstrating that the industry is committed to play its part of the UK’s transformational hydrogen strategy.”
Leading bus manufacturing company Wrightbus is looking to a positive year ahead with the creation of more than 40 new jobs at its Ballymena headquarters, highlighting a positive impact of alternative fuel developments.
Wrightbus, which launched the world’s first zero-emission hydrogen double decker bus in 2020, has created the roles in preparation for increasing production of the vehicle this year to assist global net zero ambitions and support the PM’s pledge for at least 4,000 new Zero Emission Buses to be produced during this parliament.
A recruitment drive will see it employ 46 new members of production and office staff, including coachbuilders, spray painters, welders, electrical engineers, technicians, accountants, sales staff and a project manager. Nineteen of the positions will be apprenticeships, giving a boost to opportunities for young people in the region. And an international project engineer role has also been created as the firm looks to increase sales around the world.
With interest for the hydrogen double-deckers from UK cities and from around the world, Wrightbus CEO Jo Bamford said the new jobs would allow production to keep up with demand.
“There’s no doubt that 2020 was a challenging year for everyone for many reasons,” said Mr Bamford. “We have made huge strides in 2020, despite the year being paralysed by the coronavirus pandemic, yet 2021 is going to be the year hydrogen really makes its mark.
“At Wrightbus we have already launched the world’s first zero-emission hydrogen double decker bus and this year will see us deliver significant orders into London, Birmingham, Belfast and other cities across the UK, including in Northern Ireland.
“This recruitment will help us support the Government’s investment pledge for at least 4,000 zero emission buses on the streets of the UK.
“It’s thanks to this and other orders already in the pipeline that we’ve been able to create these jobs. We’re proud to be supporting the local economy and creating opportunities for young people thanks to the apprenticeships we’ve been able to offer.”
The oil giant Royal Dutch Shell is to cut 330 jobs from its operation in the North Sea over the next two years, with most of the posts based at its Aberdeen office.
Leaving around 1,000 people at the site, some of the jobs being lost will be linked to the project of decommissioning of the Brent Charlie platform, which is expected to be completed in the next two years.
The company announced in September that up to 9,000 jobs would go worldwide due to a slump in the demand for oil. However, the company insists that it remains committed to the North Sea and will continue to invest in operations.
The oil industry is already rethinking its future plans as part of the energy transition, and the impact of COVID means companies, like Shell, are accelerating this transition.
Organisers of UKIFDA EXPO 2021 have continued to monitor the situation in relation to Covid-19 and, following the UK Government’s recent national lockdown announcement, have taken the decision to move the event from 19th & 20th May to 7th & 8th July 2021 at the Exhibition Centre Liverpool.
Chief executive Guy Pulham announced:
“As you are all aware, COVID-19 is still presenting an unprecedented challenge with the situation evolving weekly. Changing the date was not an easy decision to take, but by doing so, we believe it helps ensure confidence in the event for our exhibitors and attendees. We wanted to move the date to a time when more people will be vaccinated and restrictions lifted so the news last week about the increased number of vaccinations allied to the government’s vaccination timetable means July will be an ideal time for the industry to get together for some much-needed networking.
“We have lots planned for UKIFDA EXPO 2021 including a great line up of speakers, together with both new and long-standing exhibitors in place. By moving the date to July, it gives our liquid fuels distribution industry a great opportunity to discuss and showcase the transition to liquid biofuels highlighted in the recently published UKIFDA decarbonisation strategy document available on our website.”
For more information on UKIFDA EXPO 2021, you can contact Dawn Shakespeare, UKIFDA membership and events manager, by email ds@ukifda.org or alternatively visit the show website https://ukifda.org/ukifda-expo/.
Annual off grid energy sector event UKIFDA EXPO, is returning to the award-winning Liverpool Exhibition Centre on 19th and 20th May 2021, and organisers, UKIFDA, want the event to help drive vital business connections and its future liquid fuels objectives whilst supporting recovery efforts following COVID-19.
As well as over 100 exhibitors showcasing the latest innovations in the liquid fuels industry there will be a wide range of seminars on important topics including sustainable energy in domestic heating, decarbonisation, and the future of liquid biofuels, across the two days.
Guy Pulham, UKIFDA chief executive, says:
“We’re excited about 2021 and hosting UKIFDA EXPO again after the disappointment of cancelling this year. We believe in 2021 there will be a re-emergence of businesses and customers looking to connect, face to face in a way they have been unable to in 2020. Exhibitions such as UKIFDA EXPO offer the ideal space and opportunity to do just that. We have a fantastic line-up of exhibitors booked already and feel the diversity of both the exhibitors and seminar topics planned reflects our exhibition’s appeal to everyone in and associated with the sector.
“At a time when the liquid fuels industry and the business landscape are rapidly changing, we look forward to providing a safe environment where the industry can connect, kick-start business, and drive growth. It is our hope that both the discussions and the partnerships made at the event are going to have a long-term impact on the outlook of both the UK and Republic of Ireland liquid fuels distribution industry.
“UKIFDA EXPO 2021 marks a new era for the liquid fuels industry and the exhibition will be reflective of the changing nature of our industry, something we are all very motivated by and enthusiastic about.”
This year’s 40th anniversary exhibition has already attracted a wide array of exhibitors. Alongside the longstanding exhibitors Computer Design Services, Meller Flow Trans ltd, Dreamtec, Magyar & Cobo Tanker Services will be first-time exhibitors Nursan Trailers and HomeFuels Direct and an impressive line-up of speakers, all showcasing the industry’s hard work with regard to meeting the Government’s decarbonisation targets through the introduction of liquid biofuels.
The exhibition opens on Wednesday 19th May and the first day will once again see the popular President’s Awards event with our newly elected President Janet Kettlewell of Kettlewell Fuels. This is a key part of UKIFDA EXPO and show organiser UKIFDA’s opportunity to reward those in the industry who have gone the extra mile in the past year. Awards will be given for the best driver, depot, and best stand at the exhibition, and there will also be an environmental award.
Dawn Shakespeare, membership and events manager for UKIFDA, and organiser of the exhibition, comments: “Every year, our exhibition appeals widely across the industry, attracting owners of fuel distributors, depot managers, and personnel within HR, IT, finance and marketing, all operating across the manufacturing, distribution, supply, and technology sectors of the industry in the UK and across Europe – and this year will be no exception. In fact, we both exhibitors and visitors to the exhibition say they are really looking forward to being able to do business face to face in a COVID safe environment rather than virtually.
For more information on UKIFDA EXPO 2021 or to book your exhibition space, you can contact Dawn Shakespeare by email ds@ukifda.org or alternatively visit the show website https://ukifda.org/ukifda-expo/.
Any consultation arising from the Government’s long anticipated Heat in Buildings strategy must allow a genuine discussion on all the options to decarbonise rural homes, otherwise thousands of households could suffer severe financial consequences, warns OFTEC.
Up until now, government has given out mixed messages on its approach to cutting emissions from off grid heat, using the term ‘technology neutral’ whilst only supporting a narrow choice of technology options, primarily heat pumps and biomass boilers.
These solutions work well in some settings and heat pumps, in particular, will play an important role in the UK’s transition to net zero. But they are expensive to install and not the right option for all properties, including many energy inefficient off-grid homes without very costly and disruptive insulation improvements.
OFTEC says it’s crucial government recognises the unique challenge decarbonising rural homes presents and that any future consultation fully explores the best ways to achieve this.
Head of public affairs at OFTEC, Malcolm Farrow, comments:
“What we don’t want to see – and what rural consumers can’t afford to happen – is that the Buildings and Heat consultation, through its line of questioning, makes it impossible to bring the full range of low carbon heating options into the discussion.
“If the Government is serious about making rapid – and socially fair – progress, it must widen its perspective and adopt a truly technology neutral approach. This is the only way to encourage competition, improve consumer choice and ensure practical options are available for all housing types and incomes.
“Failing to achieve this could be disastrous for rural households as many will face a completely unaffordable financial burden. As well as causing great social harm, it could also rapidly erode support for decarbonisation and will further delay progress.”
Over 45 key players in the off-grid heating industry have already written to the Minister of State for Business, Energy and Industrial Strategy (BEIS) underlining their readiness to deliver a renewable liquid fuel alternative to kerosene which offers a cheaper, more practical solution for oil heated homes than the current options supported. Yet so far, government has shown little interest in this solution.
Malcolm Farrow continues:
“Renewable liquid fuels must be given a fair hearing in any consultation. If government continues to ignore the potential of this solution, it is turning its back on the opportunity to save rural households and the Treasury, millions of pounds. This makes no sense.
“Government needs to learn from the experience of the last six years which has shown that even with considerable incentivisation through the domestic Renewable Heat Incentive, the take up of heat pumps by rural households has remained disappointingly low.
“Now is the time to set aside any preconceived ideas around the ‘best’ solutions for off-grid households, genuinely listen to all the options on the table and trust industry to deliver.”
As COVID-19 has stopped the APEA from being able to host its annual ‘APEA Live’ national exhibitions and conference, as well as their regular regional brand meetings, a new and exciting event will be held via a free zoom webinar.
The free webinar is taking place on Thursday 3rd December and is open to members and non-members alike.
Taking place between 14:00 – 16:00 GMT, the webinar topics include:
Regulator Update – Clare Scawthorne, London Fire Brigade
This will include the outcome of the Petroleum (Consolidation) Regulations 2014 review, what this means for enforcing authorities and new guidance in place.
Standards Update – Jamie Thompson, Chairman of the APEA Technical Committee
A short presentation and it will cover standards update, with info on Brexit and what it means regarding regs and CE markings.
HVO Fuel – Simon Lawford, Crown Oils
This session will ask the questions – ‘What exactly is HVO?’, ‘Why should it play an important part of the future fuel mix?’ and ‘Can it actually be greener than battery-electric power when it comes to total CO2 emissions?’
This session will explain all about this new green direct diesel substitute and why the government is being lobbied to introduce incentives for its use.
HVO – Challenges in the Swedish market – regulations, policies and technical issues – Magdalena Streijffert, & Quentin Gauthie, Neste Sweden
This talk will cover some of the challenges with regulatory matters and policy, along with technical issues regarding tanks, preparations of etc.
Petrol dispensing vs Diesel dispensing – Andrew Olive, Pumptronics
This session will cover iDiesel & petrol hazardous zones, hybrid commercial vehicles, stage 2 vapour recovery principle and requirements, typical application on a commercial refuelling installation. This will then lead onto the Vectec presentation by Bert Fowler discussing a recent commercial installation for a major home delivery network
EV Battery Fires – Lessons learned from around the globe – Dylan Evans, London Fire Brigade
This session will cover electric vehicles, fire safety considerations for lithium ion battery vehicles & infrastructure.
Find out more about this event here.
UM Terminals’ Client Central Services team can provide customers with a wealth of important information including real-time data to make critical business decisions.
Based out of its Regent Road Terminal in Liverpool, the new service integrates all weighbridge and administration from across UM’s 8 terminals.
A dedicated portal gives clients instant access to essential weighbridge documentation and current stock levels for each tank. They also have a secure log-in and can access their data 24/7, 365 days a year via a desktop, tablet or mobile device.
Lynn McCoy, UM Terminals’ Client Central Services manager, said: “We looked at all of the administration going on across our UK sites and started to think about how we could streamline and bring it all together.
“The key was not just about centralising the service but ensuring that we maintained the same quality of personal service that customers were used to.
“Our weighbridge in particular had previously depended upon a lot of manual reporting, but which has now been moved online. Whereas before, there would have been lots of paper trails, we have now moved to a paperless solution in which information is stored electronically. The upshot is clearer, more accurate and faster information.”
The central control room at the Regent Road Terminal is filled with banks of screens giving Lynn and her team visibility of the different weighbridges along with immediate access to all customer information, such as current stock levels, via the client portal.
Lynn said: “We are one important link in the supply chain. Our job is to look after our customers’ products and their movement in and out of our terminals.
“Sometimes we don’t know until the last minute when they are going to be coming in. Operational planning and flexibility are key in a fast-moving environment like UM Terminals. At terminals like Portbury in Bristol and Gladstone in Birkenhead we can regularly be handling over 40 vehicles a day.”
Bryan Davies, managing director of UM Terminals, said: “We want to add value to the service we provide our clients and we believe the Client Central Services function has been a game-changer in providing customers with real-time data when they need it to assist their decision-making.
Lynn added: “While we have had a really positive response from customers to the centralised service, we know there is even more potential in the future to develop the client portal and the kind of reporting we can offer our customers. Ultimately, our job is to listen to and meet the needs of our clients.”
UM Terminals currently has a capacity of over 300,000 cubic metres of bulk liquid storage across 280 tanks of varying sizes. The plan is to grow this to over 400,000 cubic metres.
Product solutions include vegetable oils, industrial, food and feed, chemical, fertiliser, fuels, biofuels and base oils.
Services include blowing, blending, heating, processing and sampling among others.
The company, which employs 63 people, recently rebranded from UM Storage to UM Terminals to better reflect the range of services the company offers its clients. It is part of the UM Group which has a distinguished history stretching back almost 100 years.
Paul Rose, CEO of OFTEC, responds to the Government plan for ‘Green Industrial Revolution’:
Decarbonising heat from UK homes is a national priority that must be urgently addressed. However, we are concerned about the high costs rural households are likely to face under current government proposals to achieve this.
The Prime Minister’s plan announced today for a ‘Green Industrial Revolution’ suggests it’s likely that rural households will soon be prevented from replacing their existing oil boilers and will instead be forced to switch to expensive electric heat pumps – the government’s preferred low carbon solution for rural homes.
Heat pumps are an excellent technology but they are expensive, costing on average £10,900 to install, and need to be fitted in well insulated homes to avoid high running costs and ensure comfort. However, oil heated homes are some of the least energy efficient in the UK, with almost two thirds (65%) in EPC bands E-G, equating to 765,000 properties².
BEIS estimates that bringing EPC Band E homes heated by oil up to an acceptable Band C, would cost on average £12,300. For properties in EPC Bands F or G, the cost would be £18,900³.
This means the total bill to decarbonise all 765,000 properties will be around £19.85 billion – equivalent to an average of almost £26,000 per home – and for some, the figure will be considerably higher.
Given the current economic climate and the fact that disposable incomes in rural areas are already lower and fuel poverty levels deeper, rural households are unlikely to have the capacity to make this level of investment. It is also unlikely that government will be able to support such high costs through grants or other support mechanisms.
Even those that can afford to act may face weeks without heating due to the length of time heat pump installations and the accompanying retrofit work can take to complete.
Recently, 47 OFTEC member companies, including leading household names such as Worcester Bosch, Kingspan and Grant Engineering, wrote to Minister of State for BEIS, highlighting their readiness and commitment to introduce a far cheaper, more practical solution in the form of a renewable liquid fuel to replace heating oil.
This option offers a near ‘drop-in’ solution for existing oil-heated homes, greatly reducing capital costs. It could also deliver rapid progress towards net zero if supported though appropriate policies, potentially saving rural households and government millions of pounds. Yet to date, BEIS has shown no appetite to support this solution.
At this critical time when BEIS is soon to publish its consultation to reduce carbon emissions from heat in buildings, we are urging all rural MPs and other interested members of the House to contact the Minister and press the urgent need to support renewable liquid fuels as a more affordable way forward for rural homes.
With almost the entire global fleet still running on fossil fuels tough calls need to be made.
In LQM’s recent webinar – Analysing Future Fuels: The Road to Decarbonisation – whilst 71 percent of respondents strongly agreed that shipping must accelerate decarbonisation, as part of international efforts across all industries to reduce green house gas emissions, just 20 per cent of guests indicated there are currently enough financial incentives to decarbonise.
Future fuels will become the hot maritime topic in 2021 as the clock ticks on reducing carbon intensity by 40 per cent. The need to comply with IMO 2030 will soon loom large for ship owners.
LQM chief executive Daniel Rose, explained:
“99.2 per cent of vessels on the water are fossil-fuel based and there is currently no silver bullet or financial incentive. But what’s fascinating is the desire for change is clearly there.
“Does shipping realistically have a chance to reach the 2030 milestone? The answer is probably yes, but the path is not straight forward.
“IMO 2030 compliance can probably be achieved by using a combination of operational efficiency improvements, greener fuels – especially LNG and Biofuels. Policy will play a major role as well, but unfortunately this is likely to be based around punitive measures, instead of genuine financial incentives for the actors in the shipping sector looking to decarbonise.
“Post-2030, Ammonia and Hydrogen are probably viable solutions, albeit with different pros and cons. Regardless, the results of our recent survey make it quite clear that the economics need to shift for widespread future fuel adoption.
“At LQM we’re totally focused on helping the industry with the practical implications of compliance by 2030.”
You can watch the full webinar and subscribe to others here.
Working together to deliver a decarbonised, net zero future will form the theme and direction for SPE Offshore Europe 2021 being held in Aberdeen, Scotland, 7-10 September 2021.
The UK could see more than £3 billion invested in the emerging hydrogen sector as more businesses step forward to pledge funding – but only if PM Boris Johnson backs the low-carbon fuel in his forthcoming Net Zero speech expected this week.
Members of Hydrogen Strategy Now, which combined employs around 100,000 people and has a value of £100bn in the UK, said their shovel-ready projects would create thousands of jobs across the country, helping to kick start a post-Covid green recovery.
The group has welcomed the recent appointment of Andrew Griffith, MP for Arundel and the South Downs, as the Government’s Net Zero Business Tsar, as a positive step in the right direction from Parliament. But its members have warned that unless the sector receives load and clear backing from the Government, the UK risks being left behind the rest of the globe.
Attracting cross-party support, the Hydrogen Strategy Now collective wants to see a clear, strategic plan to help unlock significant private funding in hydrogen technologies and manufacturing across the country, driving growth and generating hundreds of thousands of green jobs.
A letter from the group to Chancellor Rishi Sunak earlier this year stated;
“As you look to design a post-COVID recovery, we encourage you to focus on creating high-skilled, green jobs, in sectors that will be critical to the future economy, such as low-carbon energy, transport and heavy industry.
“These measures would be wholly complimentary to the Government’s levelling-up agenda and long-term decarbonisation goals. For example, the Committee for Climate Change has made it clear that the UK will not meet its Net Zero targets without significant investment in the hydrogen economy.
“The global hydrogen economy is estimated to be worth $2.5 trillion by 2050, supporting 30 million jobs. Other nations, such as Australia, Japan, South Korea, Canada, and China have already set ambitious strategies for growing their hydrogen economies. Just last week, Germany joined this list with their own €9 billion hydrogen strategy. The European Commission is also creating an EU hydrogen strategy, which includes plans for multi-billion euro investment in hydrogen projects, and schemes to boost sales of hydrogen electric vehicles.
“It is now clear that hydrogen is going to play an essential role in the world’s future, low-carbon economy. The increasingly bold steps being taken by other nations underlines the need for the UK to bring forward urgent measures to establish a hydrogen strategy and unlock investment and innovation. We should not risk falling behind other nations in developing our hydrogen industry.”
Baroness Brown, vice-chair of the influential Committee on Climate Change, said;
“The UK missed the boat on wind technology and missed the boat on batteries. We can’t afford to miss the boat on hydrogen.
“I strongly agree that the UK urgently needs a hydrogen strategy, as there are too many small, piecemeal funds and projects. We need some serious private and public funding, and a coordinated effort between government and industry, to kickstart and grow a green-job-creating hydrogen economy across the country”.
The Future Fuels & Hydrogen Economy Virtual Conference is taking place 9 – 10 November 2020. Explore the fundamentals around future fuels on the market from the industry’s leading experts.
With plans to reduce shipping emissions by at least 50% by 2050, the use of e-fuels will play an important role in decarbonising the shipping and transportation industry. The conference will cover how to stay at the forefront of the IMO’s 2030 and 2050 GHG reduction targets as expert speakers dig deep into the regulations and technicalities of fuel innovations that will help you on your way to meet the imposed targets and kick start bringing these fuel options to market.
Key agenda themes:
• Macroeconomic view of trade and global economies in times of COVID-19
Assess national economies, the global supply chain and what the future holds for shipping and energy sectors moving forward.
• Bringing hydrogen forward in energy market
Understand the benefits of using hydrogen within your business and the environment, bringing the fuel to market and its current stage of development.
• Overcoming barriers in the alternative fuels market: Policy and regulatory landscape
Discover the policies, legal guidelines, IMO targets, technologies and more behind the use of alternative fuels.
Save 10% by quoting FKT3723ER at the checkout. Book online today.
A recent report released by UKPIA claims that the UK downstream oil sector is already playing a significant role in meeting societal targets for decarbonisation and is capable and willing to do more to reach net zero.
The ground-breaking report, titled “Transition, Transformation, and Innovation: Our role in the Net-Zero Challenge”, looks at credible scenarios and proposes an illustrative pathway for the UK downstream sector to achieve government mandated net zero targets, with practical policy solutions to help overcome this challenge.
Transition, Transformation, and Innovation makes three key findings:
This year’s influential annual energy outlook from BP, published at the start of BP Energy Week, suggests peak oil demand may have already been reached last year. This marks a dramatic shift from last year when the base case expected consumption to grow over the next decade reaching a peak in the 2030s.
The new report sees oil being replaced by clean electricity from windfarms, solar panels and hydropower plants as renewable energy emerges as the fastest-growing energy source on record.
Bernard Looney, who became chief executive in February, said the report was “instrumental” in developing BP’s strategy for the energy transition, although the company stressed that the scenarios are not predictions.
He commented that ‘it was very difficult to know’ how the oil market trajectory will bear out, but it was possible that demand had hit its maximum level. “Could it have happened? It could have,” he said.
The central theme of this influential report is that the combination of the pandemic and increasing climate action may have hastened ‘peak oil’ which could, potentially, see absolute demand falling for the first time in an industry that has enjoyed sustained growth for more than 100 years.
Looking at likely energy demand over the next 30 years, two of the three scenarios considered by BP suggest that demand reached a peak in 2019 and is already into the start of a decades-long decline. The third scenario, based on no acceleration in climate action, suggests that demand will plateau at the 2019 level for several years before declining from around 2035.
While oil demand is not expected to collapse, a plateau or decline in consumption would fundamentally alter the outlook for investment in the industry and the willingness of shareholders to keep funding new projects.
Looney, said he was “more convinced than ever” that BP must embrace a low-carbon future and that the findings would help the company to “better understand the changing energy landscape” and be instrumental in helping it develop its plans to become a net zero energy company by 2050.
Whilst this appears to offer a gloomy outlook for the fossil fuel industry, it can also be viewed as a further opportunity for those involved to embrace transformation. Following the publication of the outlook, Looney has shared a blog, ‘10 reasons to be positive about the energy transition’, and commented;
“Anyone who knows me will probably accept I am not one for outrage. I’d rather find solutions than take positions. But I certainly find hope in optimism. And the belief that we can do good in this world.”
OGUK has hailed the grit and resilience of the thousands of people working for the critical sector as it opened nominations for its annual awards today.
Throughout the coronavirus pandemic, key workers both on and offshore continued to safely operate installations around the UK Continental Shelf, supporting the UK’s security of energy supply. While seeking to deal with the economic fall-out of the low oil and gas prices brought about by the pandemic, the industry continued with its work on Roadmap 2035, making major commitments to halve emissions from the production of oil and gas in the next decade as well as progressing its plans to support carbon cutting solutions including carbon capture usage and storage and hydrogen.
The awards, sponsored by Shell, will be held on 10 December this year, with hopes that its virtual format will make it more accessible not only to the industry workforce, but to family, friends and anyone with an interest in how the sector is shaping up as part of a low carbon future.
Commenting as nominations open, OGUK chief executive Deirdre Michie said;
“This has been extraordinary year in which our industry, only just beginning to recover from the last downturn, finds itself facing more dark days ahead. Yet, in spite of the personal and professional challenges the coronavirus pandemic brought on all industries, companies and people, our key workers ensured our critical industry never stopped operating.
“This is the North Sea spirit and grit we are known for, working in tough circumstances to provide affordable energy to millions across the UK. It is this same resilience which should give confidence that our changing industry is and will continue to step forward by cutting its emissions and in using its skills and expertise to develop the solutions needed to meet our country’s climate ambitions. We remain on track to deliver our ambitious plan to realise the full potential of our sector through the energy transition, Roadmap 2035.
“With a new virtual format, OGUK’s annual awards are an opportunity to tell our positive story to more people than ever before. Whether it’s family, friends, or you want to know more about how our industry is changing and about the people who make this sector the amazing industry that it is, we hope everyone will enjoy taking part in acknowledging and celebrating inspirational and impressive contributions.”
Nominations close on 2 October and companies are being encouraged to champion talent and innovation, with nine awards up for grabs this year.
Shell UK upstream vice president Steve Phimister said;
“2020 has thrown down challenge after challenge for the sector. But our people have stepped up and met it, maintaining the critical energy supplies that the UK relies on, as well as starting to address the all-important subject of Energy Transition. We can all be proud of our huge efforts right across the industry, and I look forward to seeing our most important asset – our people – celebrated at these awards.”
Updates to the Renewable Transport Fuel Obligation (RTFO) in January 2021 will see fuel suppliers required to increase the amount of renewable fuel they use to comply with the scheme. Introduced in 2008 by the UK Government to drive greenhouse gas emission (GHG) reductions in the transport sector, the scheme mandates the adoption of renewable fuels for road vehicles, non-road mobile machinery and — as of 2018 — aircraft.
Transport is the UK’s biggest industry polluter, generating 28 per cent of the UK-wide total in 2019. The RTFO is proving to be a robust scheme for driving sustainability in the transport industry by reducing GHG emissions. All transport fuel suppliers who provide 450,000 litres or more of petrol, diesel or gas oil must include a percentage of renewable fuels as part of their overall supply or pay per litre to buy out of the scheme.
Each year the RTFO increases the amount of renewable fuel suppliers must include in order to generate bigger carbon savings year on year across the transport industry. These percentage increases play a vital role in enabling the UK is to meet its targets to bring all GHG emissions to net zero by 2050.
In 2021, fuel suppliers will need to increase the amount of renewable or development fuel in its supplies to 10.68 per cent of their total supply levels.
In January 2019, the RTFO added advanced development fuels into the mix, giving fuel suppliers the choice to integrate next generation biofuels into its supplies alongside standard renewables. Development fuels are made from sustainable waste or residual feedstock, with the exclusion of segregated oils and fats and renewable fuels of non-biological origin (RFNBOs). For a development fuel to qualify under the RTFO scheme the GHG saving must be at least 60 per cent more than that offset by fossil fuels. The renewable diesel must also be capable of being blended at a rate of at least 25 per cent with conventional diesel and still be able to meet the EN590 fuel specification. As a result of its superior carbon crunching credentials, fuels that meet the development fuel criteria receive double the amount of Renewable Transport Fuel Certificates (RTFCs) per litre or kilogram supplied compared with standard renewables.
“Development and advanced biofuels overcome many of the limitations of first-generation biofuels,” explained Matthew Stone, chairman of Renovare Fuels. “As an example, our fuel is physically and chemically closer to conventional fossil fuels in the way it performs and in the quality of the end product, but produces only three grams of carbon dioxide equivalent per megajoule of biomass; only three per cent of that produced by fossil fuels.
“There is a ceiling to the impact that standard biofuels can make in achieving GHG emission reductions, because of the type of feedstock they use and the low fuel quality.
“In contrast, there’s no limit at all with development fuels. They are designed specifically to eliminate any emissions in the production process and radically reduce those generated when used as an end fuel. Development fuels unlock the true potential of biofuels, and therefore have the potential to play a vital role in the UK hitting its GHG targets.”
Renovare’s development fuel is one of the first to be approved for use in the UK by the Department of Transport. The company will develop a new production facility in early 2021 at a site based in England.
The development of biofuels for the aviation sector is considered in greater depth in the October issue of Fuel Oil News.
Further underlining its commitment to reducing the carbon intensity of the fuels it produces, a huge processing unit rolls into the Phillips 66 Humber Refinery.
A UK leader in low carbon liquid fuel development and processing, Phillips 66 Limited’s Humber Refinery, based in Northern Lincolnshire has a proven history of developing new low carbon fuels, being the first in the UK to process used cooking oil. The refinery converts UK & International waste streams to finished bio road fuels.
In a significant investment that expands the refinery’s capability to process used cooking oil (UCO), it recently took delivery of a new processing module, developed by the refinery’s project group to facilitate this. The unit was transported from ENGIE Fabricom in Immingham where it was built arriving on a self-propelled modular transporter (SPMT).
Darren Cunningham, Humber Refinery general manager/UK director, said; “We are pleased to take delivery of our new UCO module at our Humber Refinery. I would like to congratulate all the teams that have been working so hard on this project through such a turbulent time, delivering the project safely. This investment further highlights the refinery’s commitment and investment to further expand our production of bio fuels and reinforces our reputation as the Refinery of the Future.”
Jeff Noble, head of UK operations, ENGIE Fabricom, also commented; “We are delighted to be partnering with Phillips 66 in successfully delivering the UCO Project. This includes off site PAU manufacture and assembly which was achieved on time, within budget and executed without incident. P66 are a valued customer and this project has provided ENGIE Fabricom with the opportunity to develop our relationship by demonstrating our full suite of capabilities. We look forward to supporting P66 with the remainder of this project and to provide long term sustainability for the refinery.”
“Our team at ENGIE Fabricom’s Immingham manufacturing facility, are proud to have worked closely with P66 in the safe delivery of this project, adapting brilliantly with the unique challenges faced by all in 2020’s unprecedented circumstances. With both companies also motivated by the environmental benefits from such innovative Bio-Fuel ventures.” Said Mark Astwood, manufacturing facility manager, ENGIE Fabricom Immingham.
This Humber Refinery expansion project enabling increased bio-fuels capacity further supports UK downstream low carbon fuels contributing to a net zero future for the UK.
Last week UKIFDA announced, through social media, that it has begun the search for a new CEO.
Posting on LinkedIn, UKIFDA outlined the high-profile role and its desire to find an inspiring leader to drive a culture of collaboration and engagement, whilst continuing to deliver UKIFDA’s strategy and future vision to steer the transition to renewable fuels in future energy policy in the UK and Ireland.
Having taken on the role in February 2018, and worked tirelessly, in support of the membership, to keep liquid fuels on the future energy agenda, current CEO Guy Pulham commented; “I look forward to handing over to my successor. Someone with renewables experience who can help ensure that bio liquid fuels are included in consumers’ decarbonisation choices in the UK and Ireland.”
A spokesperson for UKIFDA said; “In order to fulfil this role, we are seeking to appoint a dynamic candidate. Whether a serving CEO, or you are looking for a career step, the ideal candidate will have experience or a strong working knowledge within the renewable sector and a good understanding of the UK fuel distribution industry, operating and influencing at government level with established industry and government contacts and relationships”.
The closing date for applications is August 28.
UKIFDA has submitted its views on the government’s latest consultation which is looking at ending sales of petrol diesel and hybrid cars by 2035.
The association believes that petrol/diesel and hybrid vehicles should still be allowed on sale after the 2035 proposal as the “virtually zero carbon by 2050” target will be met more quickly by encouraging a competitive market in cleaner vehicles.
UKIFDA chief executive Guy Pulham comments; “The government are again focusing on one technology as they are in their heat policies. We believe 2035 is too soon and should not be suggested at this stage due to the exclusion of possible technologies, supply/demand imbalances and infrastructure issues.
“While UKIFDA supports the aims of the Paris Agreement and wants to help the UK government achieve its ambitions of net zero carbon emissions by 2050, the current consultation to ban the sales of petrol diesel and hybrid vehicles after 2035 is flawed.
“Governments need to be technology neutral in their legislation rather than set one technology above others. To reduce CO2 emissions in the long term, a sensible move would be to design the regulatory framework such that technologies such as synthetic fuel, biofuel blends and hydrogen for internal combustion engine vehicles (ICEVs) are promoted on an equal footing as battery electric vehicles (BEVs) account the full life cycle.”