PetroIneos Fuels has awarded a two-year contract to Lewis Tankers to transport biofuel from its bulk storage tanks in Grangemouth Docks to its fuel terminal at the Grangemouth refinery. The Yorkshire-based haulier has an operating base in Grangemouth and will be utilising dedicated tanks for the contract. PetroIneos imports bulk quantities of bioethanol into Grangemouth in its natural form and denatures it by mixing it with 1% gasoline. As part of the contract, Lewis Tankers will also transfer the gasoline used in the denaturing process from PetroIneos’ terminal to the storage tanks at the docks. See the September issue of Fuel Oil News for more news from the Grangemouth refinery. http://www.lewistankers.co.uk/

With the RHI and Green Deal set to encourage a push towards alternative technologies, OFTEC has taken a look at the true costs of going green for rural homeowners. Using the Energy Saving Trust’s online ‘home energy generation selector’, costs and energy savings were calculated across a range of renewable technologies for a typical three-bedroom cottage in east Anglia, currently using oil for heating and hot water. If an existing oil-fired boiler was replaced with a biomass model then fuel bills would actually rise by £430 per year. Ground source and air source heat pumps did not fare much better – it would take between 31 and 200 years for any energy savings to make the installation costs worthwhile at today’s prices. In terms of carbon savings, the biomass boiler came out best, but at an increased running cost to the consumer. Users who switched from oil to an air source heat pump would actually be increasing their carbon emissions. The ground source heat pump represented the best option, with potential CO2 savings of 1150kg per annum.

Mabanaft UK managing director Raphael Hüttmann Mabanaft has announced that Raphael Hüttmann is to take over as UK managing director. The move forms part of a management restructure to provide increased support for development of the company’s UK business interests. Raphael, currently a board member and a former financial director of Mabanaft, will be taking over from Mark Rolph. He will be relocating to the UK with his family to take up the position. Going forward the company will continue to focus on traditional trading in physical petroleum products, focusing on the supply chain and biofuels blending. Raphael said: “I am delighted to be returning to the United Kingdom to lead Mabanaft and look forward to carrying on the excellent work which has been done to date. My remit will be, in spite of the challenging market conditions, to focus on the supply chain and the market opportunities that are continually presenting themselves to us now and in coming years.” Mark Rolph has taken up a new position as director of public affairs UK for Mabanaft’s parent company, Marquard & Bahls. He said: “It has been an exciting and fulfilling period over the last four years and I could not have managed this without the dedicated support of my team. I am now looking forward to my new role.” Mark will also continue as chairman of Downstream Fuel Association, where he works to represent the interests of the independent fuel wholesalers and leading retailers. www.mabanaft.com

 Leading oil equipment manufacturers have urged the government to include bioliquids in the Renewable Heat Incentive (RHI). In a letter to the right honourable Ed Davey MP, the secretary of state for energy and climate change, the chairman of OFTEC and MD of Riello Burners, Barry Gregory, said excluding bioliquids would encourage existing oil households to “do nothing” to make carbon savings. The campaign has the backing of a number of oil fired equipment manufacturers including Worcester Bosch, Warmflow, Grant, Watson Fuels, Firebird and Harlequin. The Federation of Petroleum Suppliers (FPS) has also pledged their support. OFTEC and the FPS have been working with the government since 2008, exploring ways in which a new liquid fuel could help de-carbonise heating. B30K, a new fuel specification with 28% less carbon content than kerosene, was developed as a “drop in” replacement for oil users. Although B30K was included in the original RHI consultation in February 2010, the fuel has been ignored in recent policy statements. In the letter Barry Gregory said: “Technologies which are included in the RHI will still be more expensive than conversion to B30K and in many cases cause severe disruption for homeowners. “We estimate that, if the RHI is granted, bioliquids could be installed in sufficient homes to save two million tonnes of CO2 per annum by 2020.”

Lewis Tankers has won a two-year contract from PetroIneos Fuels to transport biofuel (‘denatured’ bioethanol) by road from bulk storage tanks located in the Grangemouth Docks to the company’s fuel terminal at the Grangemouth refinery. To meet the UK government’s targets under the Renewable Transport Fuel Obligation, refiners are required to blend gasoline with a proportion of bioethanol, currently 5%.  PetroIneos imports bulk quantities of bioethanol into Grangemouth in its natural form and ‘denatures’ by mixing it with one per cent gasoline. As part of the contract, Lewis Tankers will also transfer the gasoline used in the ‘denaturing’ process from the PetroIneos terminal to the Docks storage tanks prior to each new shipment of bioethanol arriving. Transport is scheduled so that the tanks are empty prior to the gasoline being added to ensure accurate mixing.  PetroIneos Fuels markets and sells the fuels supplied by the refinery at Grangemouth. The business supplies in the region of 9 million litres of fuels per day.  In Northern England, the company owns a road distribution centre at Dalston, near Carlisle. Lewis Tankers currently operates a fleet of over 80 tankers from 9 operating bases within the UK.  With a string of safety awards and an exemplary operating record, Lewis Tankers serves a number of leading customers in the oils, chemicals and gases sectors, including Air BP, Scottish Fuels, Gulf Aviation, Brenntag, Univar, Stepan, Sasol, Scotia Gas Networks, Q8 and World Fuel Services.Return to emailshot

Crown Oil has won a HazardEx award for its environmental contribution to industry. The award follows a flawless operation – reported in Fuel Oil News – in which the company removed and recycled 6.4 million litres of gas oil from Derwent Power Station in Derbyshire. General manager, Mark Andrews, commented: “Transport and fuel oils are our core business. We strive to be responsible in the way we conduct the business and minimise our environmental impact in every way we can.  To win recognition for this is something of which all the team can be very proud.”  Crown Oil takes its environmental responsibilities seriously, says Mark. The company opened an environmentally friendly HQ just last year, and all fuel deliveries by the company are carbon offset.  Additionally, it offers red diesel users options to totally carbon offset their fuel.  For combined heat and power plants, Crown has a high grade biofuel, derived from 100% sustainable sources.  This enables users to collect maximum renewable obligation certificates to offset against other carbon producing activity. 

The UK’s sensitivity to oil and gas price shocks could be reduced by using low-carbon forms of electricity generation, claims energy secretary, Edward Davey. By 2050, the negative impact that global price spikes have on the UK could be reduced by more than 50%, as a result of climate change policies says an Oxford Economics report which was commissioned by the government. “Every step the UK takes towards building a low-carbon economy reduces our dependency on fossil fuels, and on volatile global energy prices,” added Davey. “Only last year, the impact of the Arab Spring on wholesale gas prices, pushed up UK household bills by 20%. “The more we can shift to alternative fuels, and use energy efficiently, the more we can ensure that our economy does not become hostage to far-flung events and to the volatility of market forces.” The government report shows that energy prices have been steadily increasing over the past decade and are becoming more and more volatile. However, once the UK fully changes to a low-carbon economy, mitigating against the volatility of fossil fuel prices – predicted to be around 2050 – many of the negative impacts of energy price volatility will be halved, it says.  www.oxfordeconomics.com Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php  

The Department for Transport and the Technology Strategy Board Industry have invested £9.5m to support the low carbon demonstration trial. Truck operators are being invited to bid for some of this funding, as part of a competition. Transport minister, Mike Penning said: “These trials will show us how low-carbon technologies perform day-to-day in the real world, providing vital data to build operator confidence in these green trucks and allowing us to make policy choices based on hard evidence.” Companies wishing to take advantage of the funding can bid for up to £750,000 by 20th June. To qualify, vehicles must deliver carbon savings of at least 15% compared with the equivalent conventional vehicle. Trials will run for two years and any data collected will be used by the government to form policy on low-carbon road freight.www.dft.gov.uk Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

The UK’s largest used cooking oil biodiesel plant was opened on Merseyside last week by renewable energy and recycling specialist, Agri. Transport minister, Norman Baker, was a special guest at the launch. The multi-million pound processing plant in Bootle will be solely dedicated to producing biodiesel from used cooking oil, and will complement Agri’s existing national used cooking oil collection business. Norman Baker told guests: “The investment made by Agri, and projects like this, can help the UK meet its ambitious carbon reduction targets while creating green jobs to rebuild the economy.“Biodiesel produced from used cooking oil can be one of the most sustainable biofuels” “Sustainable biofuels have an important role to play in our efforts to tackle climate change, particularly where there is no viable alternative fuel identified. Biodiesel produced from used cooking oil can be one of the most sustainable biofuels.” Agri’s purpose-built plant features technology that enables it to produce 16 million litres of EN14214 biodiesel per year. Plant manager, Eddie O’Reilly, said: “By using ISO 14064 methods, we can measure the carbon footprint of our biodiesel to show at least 90% less greenhouse gas emissions when compared to regular mineral diesel. This makes it the most sustainable type of biodiesel in the world.” www.agrienergy.co.uk Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php