Future Fuel 8
In a significant expansion of its future fuels capabilities, marine energy specialist KPI OceanConnect has announced the launch of its Alternative Fuels and Special Projects division led by Bill Wakeling, an expert in marine fuels. As pressure intensifies for the shipping industry to become more sustainable, the new division will capitalise on its experience and expertise to enable its clients to achieve net-zero emissions from their marine fuels.
Bill Wakeling will head up this new division of KPI OceanConnect, a leading global broker and trader in marine fuels for more than 50 years and will lead on all matters relating to alternative fuels and decarbonisation, as well as exploring opportunities for new ventures and projects. With his rich experience in marine fuels, Bill is well-positioned to lead this new function, and drive measurable environmental and sustainability change throughout the marine fuel supply chain.
Speaking on his appointment, Bill commented: “I’m honoured to lead KPI OceanConnect’s alternative fuels and sustainability operations at a time where the industry must accelerate its decarbonisation progress in line with the International Maritime Organization’s 2030 and 2050 targets.
“In the last 18 months, we’ve helped our partners successfully navigate through IMO 2020, and showcased our agility and innovation by completing one of the shipping industry’s first carbon offsets. However, there is no shortage of challenges for shipowners and operators as they seek to realise a more sustainable future, and we’ll be working with them side by side through our long-term partnership approach to help achieve their sustainability ambitions and regulatory compliance.”
Commenting on the announcement, KPI OceanConnect’s CEO, Søren Høll, said: “This new function signifies our commitment to advancing decarbonisation in the maritime industry, and Bill Wakeling is the ideal person to head it up; there are few people with his track record, marine fuels expertise, and commercial awareness.
Our clients have a growing and sustained need for innovative solutions that can enable them to fulfil their green objectives, and they’re going to be in very safe hands with Bill and his team.”
Crown Oil has partnered with Kao Data, specialist developer and operator of advanced, carrier neutral data centres for high performance colocation, as the company takes further steps towards its net zero ambitions by becoming the UK’s first data centre to transition all backup generators at its Harlow campus to HVO fuel. This pioneering move, made possible by the partnership, means Kao Data will eliminate up to 90% of net CO2 from their backup generators and significantly reduce nitrogen oxide, particulate matter and carbon monoxide emissions.
“HVO fuel is dramatically better for the environment compared to traditional, mineral diesels. It is 100% renewable, biodegradable, sustainable and non-toxic,” said Simon Lawford, technical sales manager, Crown Oil. “We’re proud to have worked with Kao Data to initiate a first-of-its kind project, which will be transformative for the data centre industry, and help point the way forward for significant reductions in industrial greenhouse gas emissions.”
Today, Kao Data delivers one of the UK’s most sustainable colocation data centre campuses. Its existing initiatives include using 100% renewable energy, utilising 100% refrigerant-free indirect evaporative cooling technologies, and incorporating hyperscale inspired design to deliver a market-leading PUE of <1.2, even at partial loads. In line with its commitments as a signatory of the Climate Neutral Data Centre Pact (CNDCP), the use of Crown Oil HVO fuel marks another significant step in the company’s plans to become a fully carbon neutral data centre operator by 2030. The company will replace an initial 45,000 litres of diesel and switch to an HVO provision of more than 750,000 litres when the campus is fully developed.
Using HVO also offers a number of additional benefits in respect of infrastructure reliability. It eliminates microbial growth, which generates sludge that can contaminate fuel lines and potentially lead to engine shut down. HVO requires no modification to existing infrastructure and can be used as a direct replacement for diesel. It has a storage life that is ten times that of standard diesel and offers resilient year-round performance in both low and high temperatures. It is also easier to maintain, free from aromatics, sulphur and metals, odourless and completely biodegradable.
“This pioneering approach to replace our generator’s diesel provision with HVO fuel, is a key step in the company’s efforts to become net zero, and a further demonstration of our leadership in the international data centre sustainability field,” said Gérard Thibault, chief technology officer at Kao Data. “This move effectively eliminates fossil fuels from our data centre operations and helps us reduce Scope 3 emissions in our customers’ supply chain, while delivering no degradation to the service they receive. Most importantly, it shows how our industry can take a simple and highly beneficial step forward for the good of the environment, ahead of COP26.”
Hydrogen is set to play a key role in decarbonising the global energy system and investment in the deployment of hydrogen production is accelerating, with national governments making increasingly ambitious commitments to the sector. As the world works to recover from the impact of coronavirus, the UK has a chance to build back better. We hear from Huw Bement, director of CompEx, the certification body that is already supporting the development of a competent workforce in a bid to make the UK a global leader in green technologies, to hear his thoughts on the challenge of developing tomorrow’s skills today.
During the Spring Budget 2021, Rishi Sunak announced that the government will provide £27m for the Aberdeen Energy Transition Zone, helping to support North East Scotland play a “leading role” in meeting the nation’s net-zero ambitions. In addition, the UK government said it would provide £4.8million of funding to support the development of a hydrogen hub in Holyhead, Wales, which will pilot the creation of hydrogen from renewable energy that will be used as a zero-emission fuel in HGVs.
A competent and skilled workforce is vital
With regard to the implications for future skill requirements Huw explains: “The characteristics of hydrogen are well understood and already covered within existing international standards in relation to explosive atmospheres. However, hydrogen does behave differently when compared to other conventional gas fuels
because of its molecular size and weight, which means that it is more prone to leakage and will rise and disperse quickly in open environments.
So, whilst existing knowledge and skills are directly applicable, it is still important to ensure that there is a flexible, multi-skilled and competent workforce ready to facilitate the transition to an increasingly decarbonised energy system.
“The UK has all of the ingredients to become a leading producer and exporter of
hydrogen,” Huw continues. “However, if we are to fulfil the ambitions set out in OGUK’s (the leading representative body for the UK offshore oil and gas industry) roadmap to 2035, then it is vital we have a competent and skilled workforce. Our relationship with industry is critical to ensure that we can continue to provide a certification scheme that reflects future occupational requirements. Changing
technology will shape the skills needed but also how we train and assess people.
“We’re already consulting with key stakeholders within industry as to what a
competent skilled workforce will look like for the future. Competency is more than knowing your subject, it’s about your ability to apply and synthesise it in different contexts. We are committed to help equip workers with the right skills and capabilities, as well as work closely with the UK government and the devolved
administrations to build a sustainable recovery and support a net-zero future.
“This isn’t about reinventing the wheel, either. Since its inception over 25 years ago, CompEx has evolved, and is ready to support the emerging hydrogen sector. We already provide competency validation across a range of sectors including food manufacturing, pharmaceutical and of course petrochemical. It is critical that we continue to update the scheme, for example we are developing a Maritime Fuels module in response to a major cruise line which is moving from heavy fuel
oil to liquid natural gas-powered vessels. By recognising the unique challenges that these different industrial applications require of competent individuals operating in a variety of hazardous areas, CompEx is well-placed to support on developing a competent workforce for a diverse range of sectors, including the transition to green energy.”
Huw Bement joined certification body, CompEx, as executive director in January 2021 and has already started looking at ways to guide the scheme through thenext phase of its journey. CompEx has an incredible legacy spanning nearly 30 years, so Huw is working to ensure that the needs of all its stakeholders are met for many more years to come. Huw aims to leverage CompEx’s technical expertise to increase the scheme’s reach and support improvements to standards and safety.
Recycled vegetable oil is being used for the first time to heat a home in Scotland. The revolutionary renewable fuel has been identified as a key alternative clean energy source in the battle against climate change.
The Fuellers are very excited to be currently planning the second Earl of Wessex Conference, to be held on 15th November 2021, at the prestigious Royal College of Physicians, Regent’s Park.
Carrie Marsh, Master Elect of the Worshipful Company of Fuellers commented: “Our first conference, held in November 2019, provided an entertaining and informative day, and was very well received. It was one of the highlights of the year for the Fuellers and a great way for Fuellers to interact with both the wider industry and our charity partners. We are hoping to do even better this time around.”
Cornwall-based liquid fuel distributor for the South-West Mitchell & Webber has won the UKIFDA Innovation Award for being at the forefront of the sector’s Future Fuels campaign and for making a real difference in the industry’s drive to make renewable liquid fuel a viable alternative to heating oil for off the gas grid properties.
Sponsored by industry trade magazine Fuel Oil News, UKIFDA launched the Innovation Award in 2021 to find and commend the one thing that makes the industry stand out – and will always support the most innovative products, services, or initiatives.
Wrightbus, already leading the world with its pioneering hydrogen technology, today unveiled the latest addition to its zero-emission arsenal – a rapid-charge electric double-deck.
North West fuel supplier Crown Oil is now running its entire fleet on renewable diesel fuel as it commits to reduce its direct CO2 greenhouse gas emissions by 90 per cent.
The Greater Manchester business, part of the £420m-turnover Crown Oil family of companies, believes it is the first supplier in the UK to run all of its oil delivery vehicles on hydrotreated vegetable oil (HVO).
Crown Oil, based in Bury, has now called on the UK government to introduce tax relief on fuels such as HVO to encourage greater uptake.
The family-owned business predicts a saving of around 3,080 tonnes of CO2 in 12 months from running its 85 delivery vehicles on HVO compared to standard diesel. To put this into context, one tonne of carbon dioxide is the average emission of one passenger on a return flight between Paris and New York.
Crown’s fleet is made up of HGVs, pickups, trailers and vans which are all approved to run on HVO fuel without technical adjustments or any reduction in vehicle performance.
HVO offers a fast and simple step towards net zero without the need for electrification or vehicle modifications, reducing net CO2 emissions by 90 per cent and nitrogen oxide emissions by up to 27 per cent.
Managing director Matthew Greensmith said it was important for Crown Oil to set the standard as it aims to become the UK’s leading alternative fuels supplier. The move showcases the fuel’s ability to perform faultlessly as a diesel alternative, he said, and will enable the business to significantly reduce its direct greenhouse gas emissions.
Matthew said: “We can’t expect others to make a change without leading by example, and we’re proud to run our entire fleet on HVO.
“We believe we’re currently the first and only UK supplier to power our vehicles with the renewable diesel and we hope it encourages businesses to go green with their fleets too.”
Since heavily investing in HVO in 2018, Crown’s customers have saved 18,945 tonnes of CO2 by switching over to the renewable diesel. Crown HVO can be used in vehicles, commercial boilers (running on gas oil), tractors, generators, machinery and inland waterway vessels.
The oil supplier is pioneering change within the industry and has called on the UK government to follow the example of Sweden by introducing duty relief on fuels such as HVO to encourage uptake.
Matthew added: “When it comes to reducing greenhouse gas emissions, we hope the government will adopt a multi-point strategy to include the use of high-content renewable fuels in addition to the development of the electric vehicle market.
“In 2017, the Swedish government passed a bill that enabled biofuels to be subject to tax exemption, which led to a 124% increase in HVO sales in October 2017 compared with the previous year.
“The UK government is planning to scrap red diesel duty relief for many sectors from 1 April 2022 to encourage the use of cleaner alternatives and we are calling for duty relief on fuels such as HVO to help encourage uptake.”
UKIFDA has revealed it will be donating £2,000 to National Energy Action (NEA) from the proceeds of this year’s UKIFDA EXPO and Future Fuels conference being held on 7-8 July.
“We are delighted to announce our plans to donate £2,000 to NEA from the profits of our UKIFDA EXPO 2021,” says Ken Cronin, UKIFDA chief executive.
Redruth-based Mitchell and Webber, the first company in the UK to put HVO fuel to the test during the successful trials started last November, has supplied the renewable hydrotreated vegetable oil to heat a primary school in Gwinear.
Mitchell and Webber director John Weedon commented: “We all appreciate the need to help the environment as a priority and these trials are to ensure the fuel will work well when converting existing set-ups.
“We are pleased that only a low-cost conversion is needed in many cases and so far tests are extremely promising with all boilers performing well.”
Gwinear Community Primary School is the first in the country to use the renewable liquid fuel. Head teacher, Lee Gardiner, said: “Since our school is such a historic building it is extremely difficult to insulate using more modern techniques. Installing a completely new system would likely be disruptive to daily school life and could possibly damage such an important structure.
“So when I saw the success of Mitchell and Webber’s HVO conversions in other settings across Cornwall, I knew I had found the perfect option for Gwinear.”
Local MP and Secretary of State for environment, food and rural affairs, George Eustice, said on visiting the school: “It could be a very important stepping stone on the way to net zero in rural areas like this.
“There are a lot of people still reliant on old oil-fired boilers and this is a more environmentally-friendly fuel.
“They’re getting good results on boilers large and small.”
Fuel Oil News looks forward to seeing more success stories highlighting the positive future for alternative liquid fuels.
Despite objections, Certas Energy’s plans for a new £1.5 million fuel depot on the Isle of Wight have been given the go ahead, with Certas promising to be on the Island “for the long-haul”.
Croftamie based James D Bilsland recently shared images of its brand new tanker, running on HVO.
Jodie Allan, manager, James D Bilsland commented: “We have just purchased a new truck from RTN and have made the decision to run this vehicle on HVO, enabling us to reduce our carbon emissions by up to 90% with this vehicle and start decarbonising the rest of our fleet. We are pleased to be able to offer this fuel to customers looking to decarbonise, as it is a great product that produces positive results without any modification to vehicles.”
The company is currently partaking in the first trials of using HVO renewable fuels as an alternative to home heating oil in Scotland, as part of the future fuels trial.
Jodie continued: “We are so far pleased with how HVO is performing as an alternative to Kerosene in the domestic market within a property that we have converted.”
With UK developments in sustainable fuel increasing both the range available, as well as the ways in which they can be used, OTS Group identified the need to ensure that there are appropriate fuel delivery, storage and maintenance systems available for these sustainable fuels. Working with organisations like the Fuel Experts Association (FEA), which represents companies who are developing clean energy and clean liquid biofuels such as HVO, the group has developed its sustainable fuels storage offering.
OTS Group, the UK distributor for the ‘Green’ storage tanks, is leading the way to aid end users with temporary (and permanent) storage solutions for sustainable fuels, which are available for purchase, hire or loan, while they evaluate their desired route for sustainability.
The flagship products are the double-walled polyethylene tanks intended for storage and distribution of HVO (or other biodiesel fuels). These tanks are made of high-quality polyethylene, the main feature of which is resistance to various weather conditions and come with built in dispensing equipment stowed in a secure cabinet.
The AdBlue® tanks are made of special materials compliant with DIN 70 070, a European Chemical Industry standard, due to the corrosive properties of the substance.
“Throughout this constant evolution, innovation has remained the underlying principle to everything we do,” comments OTS Group chairman, Bruce Woodal, and managing director Steve Gain believes that there is a bright future for clean drop-in fuels: “One of the main opportunities for these fuels is that they can be manufactured to directly replace conventional fossil fuels (so called “drop-in” fuels) which means that the uptake is likely to be quick and widespread as it can be used by the existing fleet.”
There are currently in excess of 34 million passenger vehicles on the road in the UK using conventional engines, and more will be added between now and 2035.
Nicholl Fuel Oils has installed Northern Ireland’s first hydrotreated vegetable oil (HVO) fuelling facility at its Carryduff 24-hour forecourt with plans to make this new, renewable biofuel available across all of the Nicholl Auto 365 forecourts as well as available for bulk purchase in 2021/2022.
Could biomethane hold the key to reduction of HGV emissions?
The Transport Policy Briefing, hosted by ADBA (Anaerobic Digestion and Bioresources Association) has revealed its agenda, including a discussion on the potential of biomethane to decarbonise fleets and cities.
The briefing, taking place on the 9th June 2021, will host panel discussions on the potential of biomethane, why it could be used to fuel vehicles and how switching to biomethane could save money as well as the planet.
Guest speakers include Philip Fjeld, CEO of CNG Fuels, Gary Mason, engineering director of Nottingham City Transport, David Hurren, CEO of Air Liquide and more.
If you would like to find out more about the potential of biomethane to decarbonise fleet operations, click here.
UKPIA welcomes the recent UK Government announcement of £166 million towards green technology projects. The association is particularly pleased to see the investment in hydrogen as a primary decarbonisation technology for manufacturing processes.
As part of this announcement, it has been confirmed Essar Oil (UK) Limited will receive a grant of over £7 million towards the upgrade of a distillation unit with a new, net zero ready furnace at Stanlow. Phillips 66 Limited will also receive a grant of over £500,000 towards research into fuel switching in the Humber refinery’s gas fired heaters, to see how greater use could be made of hydrogen in that process.
Find out more about Essar Oil UK’s project here.
Whilst hydrogen is already an important part of the refining process, use of low carbon hydrogen would result in significant reductions of emissions at the refinery and, therefore, across the lifecycle of all of its products.
UKPIA eagerly awaits the publication of the UK Government’s Hydrogen Strategy to help industry further to align long-term investment decisions with a low carbon future.
UKPIA director-general, Stephen Marcos Jones, comments:
A new project that forms part of Essar’s plans to decarbonise the Stanlow Refinery in North West England has secured a £7.2m grant from the Industrial Energy Transformation Fund.
The funding has been made available through the Department for Business, Energy & Industrial Strategy (BEIS) and will be invested in a project to install a new furnace in the crude distillation unit at Stanlow that will be able to run on a 100% hydrogen fuel source. It will be the UK’s first refinery-based furnace able to be fuelled entirely by hydrogen.
Once completed and operational, the net zero ready furnace will reduce Stanlow’s CO2 emissions by 11% per year and deliver immediate energy efficiency improvements. The furnace will use hydrogen produced by the HyNet North West project at Stanlow, with the first stage of the initiative set to come on stream in 2025.
The new furnace is another element in Essar’s transition to becoming a ‘Low Carbon Energy Provider’ of the future. This will also include the construction of two blue hydrogen production hubs at Stanlow under the HyNet project, which will attract £750 million in total investment and support a hydrogen economy across North West England and North Wales. HyNet’s hydrogen and carbon capture and storage (CCS) chain represents a major step forward for low carbon energy technology and innovation in the UK.
Together with HyNet, Essar has also announced plans to create a new facility to convert non[1]recyclable household waste into sustainable aviation fuel (SAF) for use by airlines operating at UK airports. The £600m project involves Essar Oil UK, Fulcrum BioEnergy and Essar’s subsidiary company Stanlow Terminals Limited and will convert several hundred thousand tonnes of pre-processed waste, otherwise destined for incineration or landfill, into approximately 100 million litres of low carbon SAF annually.
Essar chief operating officer Jon Barden commented: “This year has been about beginning to execute the strategy we’ve put in place to decarbonise Stanlow and position the site as a provider of sustainable fuels for the future. The investment into CD4, alongside the HyNet and Fulcrum projects, demonstrates our commitment to developing low carbon operations, with the ambition of becoming a net zero site by 2040.
“The funding from BEIS is an endorsement of the steps we’re taking, as well as a signal of the Government’s intent to transform the North West into a clean energy hub supporting jobs and economic growth for years to come.”
The key speakers and industry topics have been revealed by UKIFDA for the two-day Future Fuels conference during UKIFDA EXPO 2021 on 7-8 July which will include a ministerial address by Lord Callanan, minister for climate change & corporate responsibility.
“We are very pleased with the plans for this year’s EXPO and what will be our first ever virtual event and Future Fuels conference – and delighted to reveal the line-up of speakers and talks for the two days,” says Ken Cronin, UKIFDA chief executive.
“At its core, this year’s exhibition is focused on Future Fuels – the incredible investment our industry is making in renewable liquid fuels and the central issues associated with it, including the role of next generation renewable fuels in helping both the UK and Irish Governments achieve net zero targets and the transition to renewable liquid fuels.”
Across the two days of the conference there will be a number of breaks to allow delegates to visit exhibitors’ booths and also for exhibitors to make announcements or invite people to specific presentations.
The programmes for the two days are sponsored by Aon and Cobo Tankers and Services Ltd, who will each sponsor a day together with EXPO headline sponsor Phillips 66 Ltd.
Ken Cronin will launch UKIFDA EXPO 2021 with an overview of how the two days will run, to make it as easy as possible for exhibitors, visitors, members, and delegates, to make the most of what’s on offer virtually this year.
UKIFDA membership and events manager, Dawn Shakespeare, comments: “We will kick off day one with sponsors Aon who are providing our keynote speech to get everyone geared up for a great two days of knowledge sharing, networking, and business deals.
“James Spencer, managing director of Portland, will then present an analysis of market trends that includes key trends of the past 2 years and highlights for the future, followed by an EU-focussed roundtable discussion on key events in the EU that will impact our industry over the next decade. Participating in these discussions are Kevin McPartlin of Fuels for Ireland, Nick Hayes of UKIFDA, and Thierry Javit of the European Confederation of Fuel Distributors.
“There will also be a policy roundtable with the Department for Transport, BEIS and the treasury on the key themes of the current policy landscape covering heat, transport and taxation.
“In the afternoon of day one a discussion on fuel poverty will take place, focusing on the goals for fuel poverty and how our industry help. This will feature representatives from the UK Government’s Committee on Fuel Poverty, National Energy Action, The Home Group, and the National Housing Federation.
“Towards the end of the day, representatives of the trade associations and countries will be setting the scene for future fuels, what needs to be done and the new norm. Taking part will be Ken Cronin of UKIFDA, Paul Rose of OFTEC and David Blevings of NIOILS.
“The day will end with awards being handed out by UKIFDA president Janet Kettlewell, for depot of the year, driver of the year, green award, and an award for innovation.”
The format for UKIFDA EXPO 2021 is similar to the programme for previous EXPOs that have taken place during the past 40 years – only this time everything has been designed with the virtual experience in mind.
“Day two will be opened with an address by Lord Callanan, who has ministerial oversight of our sector, followed by Simon Holt of headline sponsors Phillips 66 Ltd and a presentation from Fernando Gomis and Joby Clark of day two sponsors Cobo Tankers and Services Ltd,” adds Dawn Shakespeare.
“A discussion on the key trends in the production of biofuels and next generation renewable fuels will be a highlight of the second day, with analytical contributions from representatives of Argus Media, Climate Change Committee and key suppliers Neste, Greenergy, Prax/Harvest, Phillips 66 Ltd and Argent Energy.
“Day two will also feature an important and insightful roundtable Q&A on the how the industry trials of HVO renewable liquid fuel are progressing in UK homes.
UKIFDA CEO Ken Cronin adds: “It’s a busy couple of days, to say the least – and we genuinely cannot wait to engage with exhibitors, members, visitors, and delegates during the exhibition and conference.
“We have all worked extremely hard on the planning of this year’s virtual event and have put together a fantastic line-up of key speakers together with relevant, thought-provoking topics in a range of formats that include presentations, discussions, Q&As and informal exchanges.
“The programmes for the two days will no doubt be fine-tuned between now and 7/8 July but we wanted to share our plans to-date and to encourage as many companies and individuals as possible to join us online and make our first virtual UKIFDA EXPO a huge success. As time gets closer to the event we will be using the conference app more and more to communicate information.”
To register as a delegate please click here.
Being a virtual conference we are able to take bookings to be an exhibitor much closer to the day so it is not too late! For further information please contact Dawn Shakespeare via email.
Essar Oil (UK) Limited (EOUK), which owns and operates the Stanlow Refinery, today announced that it has closed new financial arrangements of over US$850 million. This has allowed EOUK to replace its former credit facility as well as access additional capital, thereby strengthening its financial position.
The funding is made up of liquidity from a diversified range of sources, including bilateral arrangements with many of its key customers on enhanced payment terms and other long-term financings, linked primarily to crude supply.
With these financial arrangements now in place, EOUK has more low-cost liquidity to meet its upcoming requirements and can continue to focus its energies on its transition to become a “Low Carbon Energy Provider” of the future. EOUK is already working on delivering two blue hydrogen production hubs at Stanlow, which will attract £750 million in total investment.
Find out more about Essar’s transition to becoming a ‘Low Carbon Energy Provider’ of the future here.
Follow-on capacity growth is planned to work towards the Government’s new target of 5GW of low carbon hydrogen for power, transport, industry and homes. Stanlow is committed to reaching 80% of the Government-set targets. In addition, EOUK remains committed to delivering the necessary operational cost reductions at the refinery over the course of the coming year in order to help secure its long-term future and to ensure it remains competitive in its traditional refining business.
EOUK has also recently completed a review and update of its corporate governance and its board has adopted the recommendations arising out of that review process, which included independent input from Ashurst LLP. As a result of that process, the board has committed to appointing two independent non-executive directors to the board.
Commenting on the recent developments, chairman Prashant Ruia said: “Securing this financing demonstrates the confidence all our stakeholders have in our long-term vision for Stanlow.
“We believe this confidence will be further bolstered by the updates we have made to our corporate governance, which includes a commitment to appoint two new independent non-executive directors to our board. These appointments will further enhance our overall governance and risk assessment processes, as well as providing insights and strategic inputs to the business as it continues its transition to low carbon operations.
“With a strong economic recovery driven by the UK Government’s roadmap out of the pandemic, I feel that our business has moved into a positive and progressive phase for the benefit of all of our stakeholders and employees. We look forward to furthering our investments in exciting new technologies, securing high-tech jobs and the Stanlow’s future at the heart of the UK’s green revolution.”
Essar was delighted to host a visit to Stanlow Refinery today by Andrew Stephenson MP, minister of state at the Department for Transport. The minister met senior company representatives and discussed plans to create a new facility to convert non-recyclable household waste into sustainable aviation fuel (SAF) for use by airlines operating at UK airports.
A leading campaign group is launching an industry-wide survey to discover the ‘State of the Hydrogen Nation’ ahead of the expected publication of the UK’s Hydrogen Strategy in June.
Members of the cross-industry Hydrogen Strategy Now (HSN) group, which combined employ more than 100,000 people and have a value of £100bn in the UK, stand ready to invest up to £3bn in hydrogen projects and create thousands of jobs across the country.
The group is launching a survey to find out the true scale of the sector that already exists in the UK – and to highlight the untapped potential that could be boosted by the introduction of an ambitious hydrogen strategy from the Government.
The HSN campaign is encouraging as many organisations as possible with links to hydrogen to get involved – whether they are HSN members or not.
A spokesperson for the campaign said: “Today, industry stands ready to invest, create lots of high-quality jobs and deliver net zero gains, and we’re keen to demonstrate this via our survey.
“We’re hoping for a high response rate so we can showcase the true potential of the sector and the scale of its economic, job creation and environmental ambitions.
“As a collective, the Hydrogen Strategy Now group believes the UK has what it takes to become a global leader in low-carbon hydrogen technology, but we must move fast to realise this opportunity and achieve the maximum economic benefit.
“Hydrogen will play an essential role in the world’s future, low-carbon economy – and with the government setting even more ambitious climate change targets, now is the perfect time to unlock the UK’s hydrogen potential.”
The group was established last year to call for the government to make a serious commitment to invest in hydrogen technologies and to publish a clear, strategic plan for hydrogen to unlock significant private funding.
They HSN collective, which has 60 members and support from 67 cross-party peers and MPs, believes a UK-wide hydrogen economy will:
UKIFDA has revealed the sponsor for the first day of the two-day Future Fuels conference on 7-8 July as insurance broker Aon, and for the second day of the conference, Cobo Tankers and Services Ltd.
Long standing supporters of UKIFDA EXPO, Aon and Cobo Tankers and Services Ltd will sponsor this year’s inaugural virtual conference – and join headline sponsor Phillips 66 Ltd as supporters of this annual event, which is this year, celebrating its 40th anniversary.
UKIFDA chief executive, Ken Cronin says: “This year’s EXPO promises to be just as positive and rewarding for those involved as all our previous events have been and we’re hugely excited that this will be our first virtual EXPO in its 40-year history.
“Given all that we are doing as an industry to contribute to the Government’s net zero target, we wanted to ensure the opportunity that EXPO presents for exhibitors, Members and delegates to discuss and showcase the transition to renewable liquid fuels, went ahead this year.”
UKIFDA made the decision back in January to make this year’s exhibition virtual for the first time in order to enable everyone to attend and participate in the two days’ programmes in the safest possible way without any Covid-related restrictions or worries.
John Jenkins, Aon says: “It is fantastic to be sponsoring the opening day of the first ever virtual UKIFDA EXPO as Aon. Having been involved in so many of the previous EXPOs over the years as both The John Reynolds Group and Henderson Insurance Brokers, it’s wonderful that as our first year fully integrated into Aon that we are able to support the Future Fuels conference in its new online format.
“We know that exhibitors and visitors will enjoy the virtual experience and get so much from it as it really is the industry’s key event and provides the chance to discuss important issues and connect with others from across the sector.”
Fernando Gomis, Cobo Tankers and Services UK Ltd says: “We’re delighted to be sponsoring day two of the first ever virtual UKIFDA EXPO. It’s such welcome news UKIFDA found a way to make it safe for the annual event to take place in the current climate, and we’re proud to be involved in such a big way in the programme plans for the second day which focuses on the future of the industry and future fuels.”
As well as being sponsors of the 2nd day of the conference Cobo Tankers and Services is also exhibiting and are promising exciting new things to showcase to visitors to their virtual exhibition booth.
Dawn Shakespeare, UKIFDA membership and events manager, comments: “With three months left to go before the exhibition takes place, we have over 25 confirmed exhibitors already. These include longstanding exhibitors such as Phillips 66 Ltd, Cobo Tankers and Services Ltd, Dunraven Systems Ltd, Greenergy, Fuelsoft, Williams Tanker Services, Maygar SA, Oilshield and Mechtronic and new and returning exhibitors such as Commercial Fuel Solutions Ltd, Kingspan Water & Energy and Hospital & Medical Care Association. We are anticipating around 50 exhibitors in total online this year and are looking forward to booking more exhibitors over the next few months.”
Ken Cronin adds: “We’ve turned our initial disappointment at not having a physical EXPO this year into determination to make our first virtual event the best it can be – and just as successful as previous EXPOs have been for the past 40 years. We’ve realised that as well as bigger challenges to arranging a virtual event there are bigger opportunities too, and we intend to seize both and work hard to make this virtual exhibition a real achievement for everyone involved with it.
“We’re excited by the line-up for the two days as it’s varied, current and future-focussed. Every aspect of the days has been designed for easy discussion and interaction with our online audience, both exhibitors and delegates alike.
“Across both days, we will showcase the industry’s hard work with regard to meeting carbon emission targets through the introduction of renewable liquid fuels and a roadmap for a decarbonised future.
“We want as many companies and individuals, exhibitors and visitors, as possible to join us virtually on 7th and 8th July and join our discussions across the two-day event – and can’t wait to connect with everyone.”
For further information on this year’s virtual UKIFDA EXPO, please contact Dawn Shakespeare via email ds@ukifda.org or visit ukifda.org/ukifda-expo to sign up to the exhibition or to book a stand.
In our March issue we reported on a ground-breaking industry trial.
Accepting the inevitability of an end date for the use of fossil fuels in home-heating, industry bodies UKIFDA and OFTEC, as well as tank manufacturers, distributors and many more are coming together to ensure there is a future for liquid biofuels in our industry. The first UK trials of alternative liquid fuels in home-heating were rolled out late last year and our content editor, Stephanie Samuel, caught up with UKIFDA chief executive Ken Cronin, OFTEC CEO Paul Rose and John and Robert Weedon, directors of South West based distributor Mitchell and Webber, to find out more about this forward-thinking approach that could make industry history.
“I have been hugely impressed by the work the industry has done on the winter trials,” said Ken Cronin, president of UKIFDA. “Both the Climate Change Committee (CCC) and the National Grid Future Energy Scenarios (FES) predict a significant proportion of our customers will require some form of biofuel by 2050 to help meet the UK’s net zero commitment. We support these assertions as these homes tend to be rural and therefore difficult to reach for grid purposes and/or of an age and construction that make retrofitting for other technologies difficult technically or economically.”
Enthusiastically embraced
Operating out of Cornwall, distributor Mitchell and Webber was the first company to deliver new, low carbon heating fuel for the UK trials in a partnership with OFTEC and UKIFDA. Commenting on the trials, which have seen a number of customers who previously relied on heating oil trialling HVO since December last year, John Weedon said:
“We pushed hard to be the ones to trial this first because we have thousands of customers who will have difficulty in changing heating technologies. Talking about alternative fuels can only get you so far, you’ve got to get up and make it happen.
“We’ve been in this industry for over 120 years and, even as the end date for fossil fuels gets ever closer, there are still 38,000 homes running on oil in Cornwall. As ever, we are determined to get the best alternative fuel for our customers.”
Speaking about the attitudes of their customers, Robert Weedon confirmed their enthusiastic interest:
“We are getting lots of enquiries from those who would be happy to participate in the trial, and we’ve had feedback that customers are delighted that we are looking towards the future for fuel, especially as so many are still using oil here.”
It is pleasing to see an early confidence in HVO already in Cornwall, as John explained:
“This positive attitude is great news for Mitchell and Webber customers, as the greater the demand for HVO, we very much hope the more affordable it will become. The positive response so far may be largely down to the fact that the cost of conversion to HVO, or other alternative fuels, is very minimal compared to the cost of heat pump installation, for example.”
A huge opportunity for a cost-effective solution
Ken Cronin commented:
“We believe very much in finding the right solution at the right cost with the least amount of disruption for each home. We know that customers are concerned about climate change but equally concerned about cost. What these trials are doing is showing that there is a very simple technical solution and I am delighted at the level of interest being shown.”
Robert Weedon said:
“We have to be practical about what is and isn’t a possibility for our customers. There is fuel poverty here in Cornwall. Not everyone can afford heat pumps which cost over £10k. The government grants will dry up by March this year and questions remain over the capabilities of the grid – especially with electric charging points for vehicles also a key topic here.”
OFTEC CEO, Paul Rose, also expressed a confidence in the biofuel and the necessity of these trials:
“We are extremely confident that HVO will be compatible with virtually all existing oil heating systems. However, undertaking rigorous trials is essential to provide the level of confidence in the new fuel that consumers and government will demand, so this is a key step in the process of bringing the fuel to market. It also enables industry to learn about the characteristics of the new fuel and to prepare the guidance information that heating technicians and fuel suppliers will require.
“The trial is in its early stages, but we have plans to make it much bigger. To do this, we are applying for government innovation funding and are hopeful this will be successful.
“There is increasing recognition by policy makers that many off-gas-grid households will not be able to convert to other types of renewable heating in a cost-effective way, due to the high cost of both the appliance and energy efficiency improvements that will be needed. Consequently, there is a huge opportunity for a renewable liquid fuel such as HVO to heat these hard-to- treat homes.
“Conversion to HVO from kerosene will lower the carbon emissions of the average home by around 88% – a huge reduction and greater than both heat pumps and biomass systems. If our industry can provide governments with the evidence that HVO offers a low cost, reliable and disruption-free solution, then we should be able to retain a significant market share and play a vital role in meeting the net zero target.”
Expansion of trials
The trial is now expanding, with other distributors trialling HVO with their own customer base. Mitchell and Webber has also expanded the appliances that they are testing HVO with, as John confirms:
“It’s working better than expected at the moment, but we are rigorously testing this over an extended period of time and also for 5 different appliances, not just boilers.”
So far, the biofuel has also been used to fuel a customer’s Aga cooker, with a pot burner conversion, and initial results show that more heat is produced with less fuel used.
Financial and policy support will be key to success
Commenting on the expansion of these trials in the UK, Paul Rose said:
“Up to now, the trials have been funded by industry itself, whether by trade associations such as OFTEC and UKIFDA, or by individual companies such as Mitchell and Webber, who are passionate about the potential that HVO offers. The fact that we have done this underlines how serious our industry is, and the good news is that this work is being coordinated by a steering committee covering both fuel distributors and OFTEC. This will enable us to capture the learning outcomes and maximise the PR and policy value of this work.”
Looking ahead to the next stages of the trials, Ken said:
“The next stage for us will be to expand the trial geographically and across the range of possible appliances and talk to government about making this a reality.”
Paul Rose also highlighted how expanding the trials will be expensive, hence the industry bodies bidding for government funding:
“The government has already supported other heating sectors – for example a massive heat pump trial is underway – so given the comparatively modest funding we will be looking for, there’s every reason to be hopeful. The aim will be to have a much-expanded trial underway for the next heating season.
Paul continues:
“This year will be important in terms of determining future heat policy and the role HVO will play. To achieve policy support for HVO, we will need to progress the field trial and overcome outstanding concerns about availability and sustainability. The latter issue should be straightforward – HVO produced in Europe already satisfies very strict sustainability regulations.
“Availability is more of a challenge because other sectors such as transportation also need the fuel. However, HVO production is ramping up rapidly and we are in direct contact with producers who are keen to supply our market. So, we are increasingly confident that supply will be available if HVO is supported in heating by government policy.
“This is essential because, at least initially, some form of subsidy may be necessary to cushion consumers from an increase in cost. However, the need to find a credible solution for hard-to-treat rural homes means that government support should be forthcoming, and this is something that everyone in our industry should be pushing for.”
In Cornwall, Mitchell and Webber continue to see successes with the trial and look ahead to welcoming the G7 leaders, who will be meeting at Carbis Bay in Cornwall, in just over two months. Commenting on why Cornwall was chosen to host this meeting to promote a better, green world, Boris Johnson was quoted in a local paper saying:
“Both these ambitions are summed up in Cornwall where the UK`s renewable energy industry and conservation projects point the way to a green industrial future.”
The visitors will include the new US President as well as the leaders of Canada, France, Germany, Italy, Japan, Australia, South Korea and the President of the EU. John Weedon commented:
“With the UK also hosting COP26 in Glasgow this November, the UK is very much under the spotlight!”
We look forward to seeing how the trials progress and expand over the next year and to covering more history-in-the-making moves from the fuel oil industry in the UK. Get all the industry insight first by subscribing here.
Channoil Consulting has relaunched as Channoil Energy and created a new division, ‘Net-Zero Solution’, to work with clients specifically on energy transition.
For more than 20 years, Channoil has been at the forefront of advising the energy and transport industry, offering in-depth expertise in the continuously evolving energy market.
Net-Zero-Solution will consult and advise on both strategy and tactics, including preparing for the transition, measuring and managing carbon footprint, lower carbon fuels, renewable energy, power storage and customer solutions.
Our team of experts are already active in driving the lower carbon agenda with our clients.
Commenting on the creation of the new division, Dermot Campbell, CEO of Channoil Energy, says: “We’re excited to be launching this new division Net-Zero-Solution, which broadens our offer as a consulting business and will provide expertise and solutions to the energy sector during a time of significant change. We have built a team of renewable energy experts and look forward to working with existing and new clients.”