Future Fuel 9
bp has announced that it is developing plans for the UK’s largest blue hydrogen production facility, targeting 1GW of hydrogen production by 2030. The project would capture and send for storage up to two million tonnes of carbon dioxide (CO₂) per year, equivalent to capturing the emissions from the heating of one million UK households¹.
The proposed development, H2Teesside, would be a significant step in developing bp’s hydrogen business and make a major contribution to the UK Government’s target of developing 5GW of hydrogen production by 2030.
With close proximity to North Sea storage sites, pipe corridors and existing operational hydrogen storage and distribution capabilities, the area is uniquely placed for H2Teesside to help lead a low carbon transformation, supporting jobs, regeneration and the revitalisation of the surrounding area. Industries in Teesside account for over 5% of the UK’s industrial emissions and the region is home to five of the country’s top 25 emitters.
Dev Sanyal, bp’s executive vice president of gas and low carbon energy said: “Clean hydrogen is an essential complement to electrification on the path to net zero. Blue hydrogen, integrated with carbon capture and storage, can provide the scale and reliability needed by industrial processes. It can also play an essential role in decarbonising hard-to-electrify industries and driving down the cost of the energy transition.
“H2Teesside, together with NZT (Net Zero Teesside) and NEP (Northern Endurance Partnership), has the potential to transform the area into one of the first carbon neutral clusters in the UK, supporting thousands of jobs and enabling the UK’s Ten Point Plan.”
UK energy minister, Anne-Marie Trevelyan, added: “Driving the growth of low carbon hydrogen is a key part of the Prime Minister’s Ten Point Plan and our Energy White Paper and can play an important part in helping us end our contribution to climate change by 2050.
“Clean hydrogen has huge potential to help us fully decarbonise across the UK and it is great to see bp exploring its full potential on Teesside.”
The project would be located in Teesside in north-east England and, with a final investment decision (FID) in early 2024, could begin production in 2027 or earlier. bp has begun a feasibility study into the project to explore technologies that could capture up to 98% of carbon emissions from the hydrogen production process.
With large-scale, low cost production of clean hydrogen, H2Teesside could support the conversion of surrounding industries to use hydrogen in place of natural gas, playing an important role in decarbonising a cluster of industries in Teesside.
Blue hydrogen is produced by converting natural gas into hydrogen and CO₂, which is then captured and permanently stored. H2Teesside would be integrated with the region’s already-planned NZT and NEP carbon capture use and storage (CCUS) projects, both of which are led by bp as operator.
The project’s hydrogen output could provide clean energy to industry and residential homes, be used as a fuel for heavy transport and support the creation of sustainable fuels, including bio and e-fuels.
Find the full update from bp here.
The downstream oil sector – the supplier of 96% of the UK’s transport fuels – is committed to decarbonisation of the transport system and can be an important ally in meeting net zero according to “The Future of Mobility in the UK” – the latest publication from UKPIA.
Building on its series of foresight reports, UKPIA’s “The Future of Mobility in the UK” considers the emerging trends, technologies and paradigm shifts that can combine to deliver a decarbonised transport sector in the UK.
The Future of Mobility makes three important findings:
Following a commitment of £72 million of funding, HyNet North West will transform the North West into the world’s first low carbon industrial cluster, playing a critical role in the UK’s transition to ‘net zero’ greenhouse gas emissions by 2050 and the global fight against climate change.
A multi-partner plan involving the Port of Cromarty Firth has been launched to establish a green hydrogen hub in the Highlands that will see Scotland lead the world in hydrogen technology.
The North of Scotland Hydrogen Programme aims to develop a state-of-the-art hub in the Cromarty Firth to produce, store and distribute hydrogen to the region, Scotland, other parts of the UK and Europe.
One of its projects will provide distilleries in the region with hydrogen. A feasibility study into this kick starter Distilleries Project will begin this month and is due to be completed in June. It is being privately funded by partners including ScottishPower, drinks giants Glenmorangie, Whyte and Mackay and Diageo and Pale Blue Dot Energy who are also leading the project.
Green hydrogen is created using electrolysers powered by electricity from renewable sources. Power would be supplied from current and future wind farms off the coast of the Cromarty Firth, as well as onshore schemes, and fed to the hub.
Bob Buskie, chief executive of the Port, said such a hub would provide a “massive boost to Scotland’s ambitions of decarbonising its economy and establishing itself as global leaders in green hydrogen technology, a sector still in its infancy.”
The delivery of green hydrogen to Glenmorangie, Whyte and Mackay and Diageo will give them the opportunity to decarbonise the heating of their distilleries and maltings, which are situated close to the Cromarty Firth. This would be achieved by using hydrogen as a substitute for fossil fuels to create the energy needed to make steam so the distilling process can be achieved.
Bob Buskie added: “In the short term, we have a number of local partners with vast experience in hydrogen, distilling and utility provision who want to decarbonise their operations. And in the long term, there is a huge opportunity to decarbonise Highland industry, transport and heat, as well as exporting green hydrogen to other parts of the UK and mainland Europe, which doesn’t have the same offshore wind capacity as Scotland.”
Sam Gomersall, hydrogen champion at Pale Blue Dot Energy, leaders of the feasibility study commented: “Scotland has the potential to be a global forerunner of green hydrogen production on a massive scale. It cannot be underestimated the hugely positive effect this would have on Scotland’s decarbonisation plans, as well as on jobs and the economy.”
Up to 15 new offshore wind sites are due to be developed in the coming years, with a significant number of the schemes on the ‘doorstep’ of the Cromarty Firth. That, along with the Port’s deep waters, established facilities and location at the end of the gas grid and in close proximity to large amounts of renewable energy, make the area perfect for a green hydrogen hub.
Scotland’s energy minister, Paul Wheelhouse, said: “It is clear that hydrogen will not only help us end our contribution to causing climate change, but could also create significant economic opportunities in Scotland and, in helping sustain new economic opportunities in a port that has a long track record as a supply chain hub for offshore energy developments. It will also support the Just Transition of the North Sea supply chain. The North of Scotland Hydrogen Programme is an exciting example of collaboration and regional hydrogen innovation required to realise the significant economic and environmental potential that hydrogen presents in Scotland.
“Our Hydrogen Policy Statement, published last year, highlights the importance of the development of regional hubs of hydrogen activity and innovation which will be central to ensuring we can make the most of Scotland’s massive potential in this new sector – a sector in which Scotland looks likely to have a significant competitive advantage.”
Maersk Training UK (MTUK) has launched the first half of its refurbished Aberdeen safety and survival centre which has undergone a £720k refurbishment to ensure it meets the needs of the industry as it looks to the future and the energy transition.
A new collaboration between the biggest commercial vessel operator on the Thames, GPS Marine and Green Biofuels, the UK’s leading provider of clean advanced fuel GreenD+, will help reduce London’s carbon emissions, improve local air quality, and boost the Thames’ drive to clean up and reduce pollution.
The organiser of the liquid fuels distribution industry annual event, UKIFDA, is delighted to announce that, for the first time in its 40-year history, EXPO will go virtual and will give centre stage to the industry’s Future Fuels initiative.
In addition to the new format and emphasis UKIFDA is also announcing that the headline sponsor will be industry titan Phillips 66 Limited.
The event will take place on 7th and 8th July 2021.
UKIFDA’s new chief executive Ken Cronin says:
“Having discussed this widely with our exhibitors and our members it was clear holding a physical event this year was shrouded with too much uncertainty. To expect commercial decisions to be made on such a basis would be grossly unfair. The safety of everyone has to be paramount.
“The EXPO has been running for more than 40 years and is the pivotal event for the liquid fuels distribution industry. In keeping with the spirit of EXPO we wanted to hold an event and do something bold which would be accessible to everyone and would bring people together to meet and discuss the important issues of the day bridging the gap between now and when we can meet safely.
“It is also fantastic to reveal Phillips 66 Limited as our headline sponsor. Phillips 66 has been a major part of UKIFDA EXPO for a large part of our history and we will be working closely with them to make this event a great success. I am also delighted at the strong response we have had from everyone in the premarketing of this event.
“Given everything we’re doing as an industry to contribute to the Government’s Net Zero target – with the investment we’re making in and the campaigning for the inclusion of renewable liquid fuels – this is an exceptionally important year for our industry and our customers and why we have decided to focus on Future Fuels.”
Renee Semiz, managing director, UK Marketing, Phillips 66 Limited: “We are thrilled that, despite the unprecedented challenges of the last 12 months, UKIFDA EXPO 2021 is going ahead and we are proud to be the headline sponsor. Operating excellence, environmental stewardship and social responsibility sit at the very heart of Phillips 66 and we look forward to the opportunity to be part of a key event in our industry’s calendar that is shining a light on the Future Fuels initiative.”
UKIFDA membership and events manager Dawn Shakespeare adds: “We have already secured the services of a leading event platform provider to ensure success and the best possible virtual experience for exhibitors and visitors alike.
“The social nature of the annual UKIFDA EXPO is key and will be a big part of the new virtual version, which will have a dedicated exhibitor area.
“This area will provide the ability for exhibitors to display pictures, videos and leaflets, as well as organise events, presentations and announcements, and to hold meetings with interested parties.
“There will be an entire separate conference section with the ability to hold presentations and to engage in interactive Q&A sessions.
“Day 2 of the event will be focused on what the future of the industry looks like and will be fully devoted to the Future Fuels Project. There will be opportunities for exhibitors, Members and delegates alike to discuss and showcase the transition to low carbon liquid fuels.”
“This year’s virtual UKIFDA EXPO will provide the industry with the connection it needs – and will bridge the way to when we hope to host a physical EXPO once more in April 2022 at the Exhibition Centre Liverpool.
“We hope as many exhibitors and visitors as we normally attract to our annual exhibition will support us this year and join us online for what promises to be a highly rewarding two days of exhibits, seminars, presentations, announcements, meetings, networking, Q&As, and more.
“We’re excited about our decision to go virtual this year and can’t wait to connect with everyone online on 7th and 8th July.”
For more information or to book your exhibition space or one of our remaining sponsorship packages, you can contact Dawn Shakespeare, UKIFDA membership and events manager, via email ds@ukifda.org or alternatively visit the show website www.ukifda.org/ukifda-expo/ to register to attend.
Green entrepreneur Jo Bamford said: “The PM has said the UK will be “putting a big bet on hydrogen” and the Budget’s green light for the Freeport East Hydrogen Hub is a major step towards delivering on these words. The Freeport East Hydrogen Hub will support the creation of thousands of green jobs and feature innovative uses in hydrogen for zero emissions buses, construction equipment, marine and agriculture. Crucially, these UK-made Net Zero technologies can be in use within 12 months and will place East Anglia at the forefront of the global hydrogen economy.”
George Kieffer, chairman, Freeport East Project Board, said: “We are delighted to have been chosen by the Chancellor as one of the first new Freeports in the UK for a number of years. Freeport East offers a unique opportunity to build a truly global trade hub at the same time as accelerating opportunities in green energy and helping level-up the economy. We look forward to working with Government to further develop our business plan and to realising the potential that this opportunity represents.”
Julia Pyke, financing director of Sizewell C, added: “This is a great step forward for the East of England. The Freeport East Hydrogen Hub will deliver on six parts of the PM’s Ten Point Plan for a Green Industrial Revolution. The Chancellor’s commitment to Freeport East will now turbo-charge private investment in Net Zero nuclear and hydrogen technology across East Anglia and support the development of one of the world’s most exciting and innovative decarbonisation projects.
“We will now develop our hydrogen offering in close cooperation with the port and with the Suffolk councils in order to get national competitive advantage by pursuing things at scale and speed.”
The March issue of Fuel Oil News looks in depth at the industry efforts to find future fuel solutions.
Responding to the 2021 Budget, OFTEC chief executive Paul Rose said: “The Chancellor didn’t hold back in outlining the financial toll the Covid-19 pandemic has taken on the UK economy, so it’s perhaps not surprising there were very few new green announcements, other than re-commitments to existing policies.
For the first time in Belgium, hydrogen will be used in a commercial scale cogeneration plant designed to generate electricity and heat from natural gas. The aim of the pilot project by INEOS and ENGIE is to replace natural gas with hydrogen used by the INEOS gas turbine. Initially 10% of the gas feed will be replaced by hydrogen. If this goes well the feed will be increased to 20%. The CHP plant at the INEOS Phenol site in Doel, one of the first to be built in Belgium, has the ideal profile to realise this test.
Hydrogen is expected to become an important link in the transition towards climate-neutral energy across society. One possible evolution in the coming decades is the gradual replacement of natural gas by hydrogen and in time ‘green hydrogen’ generated from renewable energy via electrolysis. This will gradually reduce the CO₂ emissions of current processes based on natural gas.
ENGIE is responsible for the design, installation and operation of the technology at the Antwerp site. INEOS Phenol has experience in handling hydrogen as a raw material for its production processes and also has the necessary permits for the hydrogen project. The commercial scale project plays a pioneering role in the energy transition of the chemical industry. This practical exploration by ENGIE and INEOS will provide both partners with valuable insights and data in the use of hydrogen in industrial facilities such as monitoring efficiency and measuring emissions during combustion, which is essential in the development of a next generation of burners.
ENGIE and INEOS are also joining forces on the Power-to-Methanol project in the Port of Antwerp. Both companies sit on the consortium with other partners to produce green methanol by reusing captured CO₂ in combination with sustainably generated hydrogen. INOVYN, an INEOS business, will operate this demonstration plant at the Lillo site.
The initiative is part of the roadmap that INEOS defined at the end of last year for its Antwerp sites to become climate neutral by 2050 and to reduce emissions by 55% by 2030 compared to 1990. The roadmap consists of a combination of measures such as the reuse of hydrogen and CO₂, further investments in electrification, the switch to recycled or bio-based raw materials where possible, and the use of ‘green heat’ and renewable energy. To this end, last year INEOS concluded two major contracts for the purchase of offshore wind energy, including the largest Belgian industrial contract ever with ENGIE.
Cedric Osterrieth, CEO ENGIE Generation Europe, said: “ENGIE believes in hydrogen as a key link to a carbon-neutral economy and wants to take a pioneering role with these industrial-scale tests, both in terms of research and practical implementation. We can again count on the expertise and support of INEOS, a key partner for ENGIE in the energy transition. This pilot project will give us better insights into the use of hydrogen to reduce carbon emissions, bringing us one step closer to a carbon-neutral future. It is a strong complement to our already ongoing projects across the country in which we are developing hydrogen solutions for industrial and mobility applications, starting from our expertise in renewable energy production, storage and infrastructure.”
Hans Casier, CEO INEOS Phenol: “This test is fully in line with INEOS’ strategy to avoid CO2 emissions at source. It marks a further step for INEOS Phenol in Doel, where 20% green steam is already being purchased via the connection to the Ecluse network. Today, INEOS already produces 300,000 tons of hydrogen on an annual basis as a ‘co-product’ of its chemical processes. This hydrogen is largely used as a low-carbon fuel and as a raw material in its own production processes so that fewer fossil raw materials have to be used. INEOS recently started a new business activity that focuses on the development of ‘clean hydrogen capacity’. For this, INEOS can rely on the expertise of INOVYN, which, as a chlorine and PVC producer within the group, specialises in electrolysis, an important technology for producing hydrogen.”
Today’s announcement that the UK Government will mandate the introduction of E10 fuel – petrol containing up to 10% of sustainable bioethanol, from September this year – has been welcomed by the industry with open arms.
Ken Cronin CEO of the UK and Ireland Fuel Distributors Association (UKIFDA) comments:
“Today’s announcement that E10 petrol is to be introduced from September 2021 is a major step towards the decarbonisation of existing cars in the UK, on the way to our 2050 net zero target.
UKPIA welcomes the UK Government announcement today that mandates higher ethanol content petrol – E10 – following consultation and will continue to seek close government-industry partnership on the rollout of the policy to enable a seamless transition for all consumers.
This transition to lower carbon petrol is fully supported by the downstream oil sector as a practical measure to further reduce transport carbon emissions – the equivalent of taking up to 350,000 cars off our roads – with minimal impact on drivers, filling station operators or the wider community.
E10 is petrol containing up to 10% ethanol – with the remainder made up of hydrocarbons. Currently, standard (or ‘premium’) petrol contains up to 5% ethanol.* Ethanol from renewable feedstocks is added to petrol to reduce the fuel’s carbon emissions.
The introduction of E10 is a practical step that increases renewable fuel use in the UK now and UKPIA looks forward to the UK Government’s consultation on updating the Renewable Transport Fuel Obligation to take further steps to deploy renewable fuels.
Today’s policy announcement is an important step in the UK’s broader energy transition journey. Updated renewable transport fuels policies are essential in reducing the emissions of the light road vehicle sector and, in time, such policies should help reduce emissions in more difficult to decarbonise transport sectors – such as aviation and HGVs – whereas part of a range of technologies, low carbon liquid fuels and hydrogen will have an important role to play.
UKPIA director-general, Stephen Marcos Jones, comments:
“The downstream oil sector is clear on the need for action on climate change and supports this step towards a higher uptake of low carbon fuels.
“UKPIA has been calling for a mandated introduction to E10 since 2018 and we are pleased government has made this announcement today.
“With E10 grade fuel to power cars in the UK from September 2021, carbon emissions should continue to reduce in the transport sector, an important means for meeting the Net-Zero commitment.
“As UKPIA has set out in its Transition, Transformation, and Innovation Report, with the right policies, the UK could become a trailblazer in the development of low carbon liquid fuels and electric vehicle technologies, as well as maintaining its leading role as a hub for sustainable aviation fuels. We look forward to working with government to progress these opportunities further.”
Southampton-based fuel supplier WP Group is fuelling change for a cleaner greener future by moving its own fleet over to the more sustainable Esso Diesel Efficient™ fuel, as it has shown to be not only more efficient than standard diesel fuel, but also more cost-effective and improves the carbon footprint of the vehicles that use it.
The WP Group’s Fuelling Change strategy demonstrates its commitment to more sustainable and efficient fuelling solutions that provide practical benefits, both commercially and environmentally.
The innovative company provides a range of fuel management solutions which improve operational efficiencies to UK customers in the fields of construction, traffic and fleet, airports, port and marine, agriculture, energy and power.
The Esso Diesel Efficient™ fuel delivers lower CO2 emissions, resulting in cleaner air quality. Compared to standard Esso™ diesel, the Esso Diesel Efficient™ fuel helps to reduce Nitrogen Oxide emissions by an average of 10 per cent and carbon dioxide emissions by an average of 2.8 per cent.
Independent tests on Esso Diesel Efficient™ fuel also showed a reduction in fuel use of 2.8%, amounting to 28 litres of fuel saved for every 1000 litres purchased and a saving on the business fuel bill.
Mark Clouter, business development sales manager at WP Group, said:
“We’ve seen the benefits that this additised fuel can deliver and have switched our own fleet to run on Esso Diesel Efficient™ fuel to support our company’s sustainability in the future.
“We recognise that our position as a supplier of diesel products, in today’s market, requires continual business evolution and this allows us to support the increasingly demanding requirements our customers are faced with when working to achieve their business objectives.
“We offer a comprehensive selection of fuelling solutions, from ISO standard diesel to HVO, a fossil-free, low carbon drop-in diesel replacement. And, importantly, we work with our customers to ensure, whichever fuel they use, it is used in the most efficient way possible.
“Our own switch to using Esso Diesel Efficient™ fuel in our fleet is a small step but a logical and significant one towards fuelling change.”
Tests at Millbrook Proving Ground, one of the most comprehensive test facilities in the world for conducting independent fuels testing, conducted with heavy-duty vehicles over a five-month period of normal daily on-road operations found that Esso Diesel Efficient™ fuel helped to reduce emissions; 10% NOx, 22% PM and 2.8% CO2, and improve fuel consumption by an average of 2.8% when compared to unadditised diesel.
Vehicle type, engine type, driving behaviour, and other factors also impact fuel and vehicle performance, emissions, and fuel economy. You can find out more about Esso Diesel Efficient™ fuel and the independent tests performed at Millbrook Proving Ground Ltd at www.thewp-group.co.uk/esso-diesel-efficient.
Oil services companies can no longer delay making a choice on their future direction according to the latest report from PwC Strategy&, called ‘Time to Choose’. The options are to stick with their hydrocarbon heritage; becoming ultra-efficient and digitally enabled or pivot towards low carbon growth opportunities such as offshore wind or carbon capture, using hydrocarbons as the cash generating engine to fund this transition.
‘Time to Choose’ states that a perfect storm of COVID-19, increasing public scrutiny and the growing momentum of Environmental, Social and Governance (ESG) factors influencing investor and buying decisions, has accelerated the pace and impact of energy transition in many regions.
According to the report’s respondents, many oil services companies already recognise the need to transform in order to better align with their customers, with some helping to set the pace of decarbonisation alongside major players.
Transformation influences
Low carbon credentials could become an area of significant competitive advantage. The report highlights how oil services companies can increasingly showcase their decarbonisation credentials as a means of securing tenders. Some respondents also mentioned increasing pressure being brought to bear by some majors who are keen for supply chain decarbonisation credentials to help support their own strategic direction and licence to operate.
Where firms operate can also influence the pace of transformation. As governments around the world respond to the pandemic, fiscal stimulus packages have been developed with many countries looking to use this pivotal moment in time to stimulate a green recovery to ‘build back better’. For those companies with a major footprint or head office in Europe, energy transition and ESG themes are likely to be much higher up the corporate agenda than other regions, such as the Middle East, which will see hydrocarbons retain their importance as a focal point.
Drew Stevenson, PwC’s Energy, Utilities and Resources leader, commented:
“We believe the oil services sector has a significant contribution to make in the UK’s energy transition journey.
“From engineering expertise and innovation to project management and global operational scale, these businesses have a golden opportunity to not only channel this capability into market leading credentials that will be in-demand globally, but to play a role in shifting the conversation about how this industry fuels and sustains energy and employment into the future.”
Decarbonisation driven by digital technology, deals and diversifying skills
In many ways COVID-19 has accelerated the need to adopt and deploy digital solutions. Given the physical impact of coronavirus on the workforce, companies in the oil and gas sector have been forced to increase automation and use of digital technologies, such as remote controlled vessels and robots to inspect underwater pipe networks and conduct maintenance scans of industrial complexes.
Needless to say, while digital offers great potential for efficiency gains in the oil services segment, in the short term at least, it will be balanced against tight cost control. As a strategic imperative, investment in digital solutions cannot be cut off.
M&A is another means by which energy transition could be accelerated, with complimentary skills, technologies and credentials likely to be highly sought after as entry points into new markets. Premium valuations are already evident for renewable-facing businesses. The availability of finance will probably also be a driver of this transition.
As for the transferability of skills between oil and gas and low carbon, this is not always easy or evident. All oil services companies have core capabilities in particular areas – some may have skills that are transferable while others may struggle.
Have you selected a strategic pathway that will allow you to flourish in an increasingly volatile trading environment? Let us know.
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/.