Transition 19
January 2020 saw a new limit on the sulphur content in the fuel oil used on board ships come into force, marking a significant milestone to improve air quality, preserve the environment and protect human health. Known as ‘IMO 2020’, the rule limits the sulphur in the fuel oil used on board ships operating outside designated emission control areas to 0.50% m/m (mass by mass) – a significant reduction from the previous limit of 3.5%.
The implementation of IMO 2020 represented the most dramatic change to ships’ propulsion since the end of coal bunkers, and the beginning of a transition to decarbonisation that will alter the marine fuels market, as we currently know it, beyond recognition. In conjunction with the logistical challenges of Covid-19, as well as the impact of the OPEC+ oil price, this has made fuel compatibility and quality as well as finance a more prominent issue for shipowners.
Given the impacts of the virus, lockdown, oil prices and environmental imperatives on the whole fuel market and the implications for strategic planning and buying relationships we speak with Brian Coyne, managing director of KPI OceanConnect, one of the most experienced independent marine energy service providers, to consider the very specific issues related to marine fuels in the light of IMO 2020 regulatory obligations as well as how owners and operators can deliver cost-effective marine energy procurement strategies in this new, complex market environment
Brian explains: “IMO 2020 presented numerous new challenges for shipowners to consider before purchasing bunkers. Concerns about compliance, compatibility, and availability of fuels dominated but they were far from the only challenges the industry faced.
A need for trusted partners
One of the biggest ones was the interlinked demands of credit and creditworthiness. This stressed some industry balance sheets after years of volatile freight rates, and the higher cost of IMO 2020 compliant fuels made it much more difficult for smaller firms to keep doing the same level of business with their existing credit lines. When Covid-19 arrived, risks across the supply chain increased and created headwinds for many maritime businesses. We saw some companies who did not have adequate risk management in place go into insolvency. Although, the pandemic suppressed demand and subsequently prices, the market is rising again as vaccines are rolled out and demand returns to pre-pandemic levels.
At a structural level, the shipping industry has also seen a decline in capital availability for all but the strongest players. This is due to many large banks, such as ABN AMRO, Rabobank, and BNP Paribas, pulling out of commodity trade financing. This has created additional costs, liquidity and transaction complexities for shipowners and bunkering companies. Forensic due diligence has become far more common and a perception of lenient corporate governance in some corners of the shipping industry further inhibited banks from lending to the sector.
Fundamentally, this new dynamic highlights the need for trusted partners, acting transparently and collaboratively with customers and stakeholders across the industry to implement robust risk management strategies. As a result, tightening lending criteria are locking some firms out of the market and creating daily liquidity struggles for others. The bigger, better run players’ ability to meet these rising standards through robust and stable capital reserves and advanced risk management tools has been readily apparent.
Regional Disparities
Elsewhere, the compound effects of Covid-19 and IMO 2020 had different impacts on the marine fuels market. For bunkering hubs in some oil export regions, such as Fujairah, the decline in the number of tankers arriving to load crude cargoes has had a noticeable impact on total sales. Whereas in Singapore and Rotterdam, total volumes were up considerably year-on-year.
In major markets there has – for the most part – been plenty of IMO 2020 compliant fuels. However, in smaller markets and some regional niches it remains a complex challenge to procure compliant product. When I spoke to clients last year, the feedback was almost always the same: suppliers without a resilient global network and staff with local expertise are finding it difficult to consistently source the bunkers their clients needed.
With a continuation of oil price volatility and a price trending upwards, we also expect increasing bunker prices. In previous years when the price per barrel of WTI/Brent has risen, there have been reports of unscrupulous suppliers or feedstock providers using cheaper blending components. Unfortunately, our experience suggests that the impact of these changes are often detrimental to vessel operations.
Looking to the future
The environmental benefits of IMO 2020 are apparent. There has been a 70% reduction in sulfur oxide emissions thanks to the global sulfur cap with compliance levels strong. IMO also has an action plan for further air quality improvements.
Moving forward, we expect to see more consolidation across the sector as the transition towards future fuels and alternative sources grows. Consolidation, such as our merger of KPI Bridge Oil and OceanConnect Marine to form KPI OceanConnect, demonstrates that we are at the front, driving the change needed in our industry.
Partnering with an organisation that delivers advanced marine energy solutions on a global scale, by leveraging enhanced synergies and adopting a consultative approach, adds value for shipowners, operators, and charterers. Today, we are in a strong position and fully prepared for the rebounding bunker volumes, which are gradually starting to increase in line with the Covid-19 vaccination rollout.
The marine energy supply chain will transform immensely in the years to come, and there will be challenges ahead for the entire bunkering sector, as old, purely transactional processes are replaced with comprehensive consulting services. Implementing a comprehensive bunker procurement strategy to manage risks is crucial as we continue to endure price volatility in the immediate, if not long term.
KPI OceanConnect is well positioned in the value chain to help the industry manage this new dynamic through its partnership approach, offering reliable and trusted expertise and real time market intelligence.
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.
Commenting on the new Transport Decarbonisation Plan (TDP), Kevin Bell, transport and infrastructure partner at law firm Womble Bond Dickinson, comments: “The Government’s ground breaking and world first ‘greenprint’ launched today details plans to decarbonise all modes of domestic transport and sets out a pathway for the whole transport sector to reach net zero by 2050.
Part of the Prime Minister’s Ten Point Plan, the measures look to achieve cleaner air, healthier communities, and new ‘green’ jobs through:
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”.
Hazchem Safety, a technical workwear provider to the fuel & gas distribution industry for the past 25 years, explains to fuel oil news some of the ways in which it is working to supply sustainable variations of hi-vis workwear, footwear and PPE as well as ways to recycle end-of-life garments.
Working in an industry where carbon emissions are, for now, inevitable, the small efforts which businesses make to become more sustainable are crucial. Slight changes in operations from paperless transactions to eco-friendly uniforms are some of the ways to work towards net zero.
Whatever your specification of workwear or PPE, Hazchem believes that you don’t have to be left out of the Green Revolution and is working to offer sustainable solutions.
Why should you consider sustainable garments?
The clothing industry contributes a shocking 10% of the planet’s greenhouse gas emissions, which is more than the entire aviation or shipping industries. Most unwanted clothing ends up in landfill or is incinerated when the raw materials could be reused in further garment production, a process which uses less fossil fuel and produces less emissions, than if they were to be made from brand new materials.
Sustainable garments are set to become permanent fixtures within technical workwear product lines, offering the same necessary safety specifications with less damage to the planet.
In response to end users’ needs for ‘green’ solutions to everyday operations, Hazchem is expanding its product lines to give customers a choice of sustainable options, such as the Ecovis range of hi-vis EN ISO 20471 garments, produced with 100% recycled polyester, with the same visibility and added environmental considerations, such as bio-degradable product packaging.
Something new – FR Fabrics with sustainable sources and processes
Taking advantage of innovations such as ModacrylicECO™ blend fabrics, Hazchem product manager, Rick Clark, explained how the company is developing inherent flame resistant and ARC Workwear using a sustainable and natural fibre. With customers at the focus point, Hazchem is keen to source and develop environmentally conscious workwear options which can be used seamlessly within the industry.
ModacrylicECO™ fabrics from HAZTEC® include a substantial content that is from sustainable materials and sources, and produced with eco-friendly processes requiring less transportation than that needed for the production of cotton. This content has minimal environmental impact, and even solvents used in the process are captured to be used again.
Sustainable safety footwear
Committed to providing customers with what they need, Hazchem is seeking out sustainable workwear options such as the COFRA GreenFit footwear range, constructed with eco-friendly materials.
Using COFRA’s own innovative material, ‘Poly-Green’, a blend of virgin and recycled Polyurethane used in various parts of the shoe, makes for a perfect combination of support and shock absorption. Without compromising on necessary technical specifications, this carefully considered material is also antistatic, antibacterial, and anatomic, keeping the feet dry and the wearer safe and comfortable.
Chosen for its commitment to sustainability, the COFRA footwear range features laces and labels made from 100% recycled bottles. In addition, each pair from this range is packaged in a 100% recycled paper carton.
Want not? Waste not! End of life garment recycling
Responding to common problems experienced with technical workwear by their customers, Hazchem has developed a 100% sustainable and traceable system for securely disposing of company branded garments – through shredding end-of life garments so they are ready to be re-used as Geotextiles, special papers, and other innovative products.
Recycling technical workwear may seem a complex, specialised process, but Hazchem’s system is simple, with a straightforward collection service from your site. Whether this collection is a one-off, weekly, monthly or every 6 months, your end-of-life garments are safely shredded, re-purposed, and a certificate is issued to prove it.
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.
Diversification is a constant theme of our industry currently as those involved in all aspects of fuel production and distribution find ways to keep pace with the evolving nature of fuel demand. Here we speak with Damian Fusco, owner of Bangor Fuels in Northern Ireland, to learn how the business has grown and diversified since he took the bold step to take it on 20 years ago.
It began with belief
Now a multi-faceted business, Bangor Fuels is where it all started, and where Damian clearly still feels the greatest sense of pride. Damian takes us back:
“Most local people will recall Rayker Fuels, a coal business. Well, I managed them from 1994 and, after a few years there, I saw an opportunity to buy the business.”
It turns out that ‘buying the business’ was a different arrangement to the way it would usually be understood. Damian didn’t have the ready cash to invest in the way he wanted to but he did have sufficient belief in the future of the business to propose a bolder arrangement.
“I offered the owners the opportunity to sell to me and for me to pay them back out of annual profits. Accepted, I took over in 2001, and so it began. I had just backed myself to make a success of it and be able to make a living as well as paying for the business!”
A lot of hard work followed over the next 12 months leading to two major developments. January 2002 saw the purchase of a first oil tanker and then the business moved to Gransha Stores later that same year.
The years that followed were about keeping his head down and building a reputation.
“There is no real secret to those years,” Damian admitted. “It was largely down to hard work, making sure that our service was second to none, and holding a keen price. I didn’t have a grand vision of where the business was going, and none at all of me being where I am now.”
An unspoken testimony to the personal graft that Damian has invested over the years is that his hands are black. They are, in fact, ‘permanently black’ due to the number of times he lay under lorries and vehicles until the early hours of the morning putting in new clutches or doing what was needed to keep the wheels moving.
“If it needed done I just did it myself, whatever it was.” A commitment well understood by other self-made businesses but, as Damian is first to acknowledge, family and friends were also a ‘massive support’.
Constant investment and growth
As the company has grown it has continually looked for ways to improve and diversify through investment. By 2007, a new home was needed, and 5 Balloo Way was purchased, which is where Bangor Fuels remains now.
With the rapid growth experienced under his ownership, we asked Damian to explain the principles the business was so successfully built on and he answers without hesitation:
“Quicker, cheaper and more reliable. That’s what I set out to be and how we’ve succeeded. Furthermore, we are now renowned for our respected ‘one price promise’ – irrespective of distance.”
This approach proved to be a successful growth strategy, very popular with customers and, having started in North Down and Ards, BT1 to BT9 and BT16 were soon incorporated, and in time, greater Belfast and beyond as Damian confirms:
“We now go to Antrim and Larne, as demand has pushed expansion.”
Diversification came naturally
Another driving force is the desire to add value to the local area and employ people who are willing and keen to work. Constantly regarding challenges as opportunities has led to natural diversification and the business became businesses, with Damian now proud owner of not only Bangor Fuels, but also Fusco Vehicle Sales, Maypole Garden Services, Maypole Construction Design & Build, Maypole Lawnmowers and, most recently, Wolseys Bar & Restaurant. All are now prosperous, well-known local brands important to the local area with Bangor Fuels employing 35 people and 85 employed in total across the companies.
When asked how these other businesses came about Damian explains:
“What do you do with drivers in the summer when orders are down? How do you keep seasonal factors at bay and keep paying people? Well, we put an ad in the Spectator and opened a gardening company!”
And this ability to create an opportunity from a challenge wasn’t a one-off.
“What happens when you build a fleet of vehicles that need replaced, and need repaired, and lawnmowers that need updated and fixed. Well, you get the drift.”
At each challenge the business has evolved and grown, and we wonder what other developments may be coming.
“The challenges of the future are not just operational, such as the fact that it is now much harder to get qualified tanker drivers, but also how far to expand and develop the business.” Damian replies thoughtfully.
“I’m not necessarily going to grow province-wide, but the business is expanding organically as new customers continue to come to us. And I’m still very passionate about Bangor. All my businesses are in Bangor and I try to support the local community where possible. It would have been easier and less rick to tick along as Bangor Fuels, but I’m keen to invest locally, which is why I’ve expanded into other local areas”.
It seems that Damian is not a man to rest on his laurels and our suspicions are confirmed when we ask about his out of work passions. Damian thinks for a while then admits: “When I’m not working, I’m in work”.
Given this passion for the business and the area we have no doubt there will be more developments to hear from Bangor Fuels soon and we will look forward to sharing them.
The hands may be black, but the future certainly doesn’t appear to be so.
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.
Exolum’s CEO, Jorge Lanza, recently addressed the evolution of the business and the new challenges faced in the current energy transition. The company will continue its traditional business of hydrocarbon transport and storage in an efficient and sustainable manner, ensuring that society has access to fuels, while progressing towards the diversification and expansion of logistics services for other products. This will enable the company to leverage its capabilities and guarantee business sustainability.
To support this diversification, a dedicated division, promoting innovation and entrepreneurship within the company under the name of Exolum Ventures, cooperates with other entrepreneurs or start-ups that can contribute to faster and better innovation.
Hydrogen
Exolum has submitted a portfolio of renewable hydrogen-based projects to the call for expressions of interest launched by the Ministry for Ecological Transition and Demographic Challenge and the Ministry of Industry. This portfolio of projects has associated investments reaching over 500 million euros and includes different projects to be developed on the Iberian Peninsula, the Balearic Islands and the Canary Islands.
Exolum focuses on integrating solutions throughout the value chain for the production, transport, storage and distribution of green hydrogen. One of the most ambitious projects is the development of hydrogen corridors that cover the whole Iberian Peninsula, thus allowing the new energy vector to have a uniform penetration. The company is also developing alliances throughout the hydrogen value chain that enable the development of new technologies.
The circular economy
Exolum is looking to use its excellent location and its extensive experience in the hydrocarbon sector to develop projects relating to water and waste treatment. One such project is the building of a waste recycling plant in the port of Algeciras which will make it possible to transform wastewater into fuel for ships.
Eco-fuels
Exolum manages infrastructures in Spain that are fully adapted to biofuel storage and distribution and cooperates with the oil sector in the development and promotion of 2nd generation advanced biofuels.
Sustainable aviation fuel (SAF)
Exolum’s AVIKOR platform offers both individuals and companies flying from Spain the chance to do so more sustainably by enabling them to reduce the emissions from their flights by using sustainable aviation fuel.
Sustainability
Exolum has signed the UN Global Compact committing to making a contribution to compliance with the Sustainable Development Goals established by the UN in 2015 and has a sustainability strategy that aims to reduce its CO2 emissions by 50% in 2025 and to become a zero-emissions company in 2050.