Transition 20
Luc Smets has been appointed general manager of the Prax Lindsey Oil Refinery at North Killingholme, bringing with him more than three decades of experience in the petrochemical industry, with 23 of those years spent with ExxonMobil.
Watson Fuels has recently announced that customers can now purchase Carbon Offset Fuel from the company. A proportion of the price paid for fuel will go towards projects that compensate for the carbon impact of the fuel being used.
The company has stated that it only purchases carbon offsets from projects that have been independently verified against international standards, providing a robust methodology and registry process that ensures emission reductions are real, additional, permanent and unique.
The offsets are currently being procured from a range of solar and wind projects across India through Watson Fuels’ sister company World Kinect Energy Services, with all projects meeting the Gold Standard or Verified Carbon Standard (VCS). The offsets represent reduction happening in the last five years and support UN Sustainable Development goals 7 and 13.
As part of the combustion process, all liquid fuels release greenhouse gases into the atmosphere. CO2E (CO2 equivalent) is a metric used to convert the net impact of these gases into an equivalent amount of carbon dioxide with the same global warming potential. All liquid fuels have a CO2E conversion factor. Buying fuel from Watson Fuels means that a proportion of the price paid for fuel goes towards projects that compensate for the carbon impact of the fuel used.
“We were pleased to launch our Carbon Offset Fuel offering to customers this April,” comments Ian Probert, marketing director. “We’ve been fortunate to be able to leverage the expertise, scale and buying power of our colleagues at World Kinect Energy Services, who have decades of experience in both the carbon markets and the sustainability space.”
Any distributors looking to purchase carbon offsets through World Fuel Services, are invited to call the wholesale fuel desk on 0207 808 5137.
A leading campaign group is launching an industry-wide survey to discover the ‘State of the Hydrogen Nation’ ahead of the expected publication of the UK’s Hydrogen Strategy in June.
Members of the cross-industry Hydrogen Strategy Now (HSN) group, which combined employ more than 100,000 people and have a value of £100bn in the UK, stand ready to invest up to £3bn in hydrogen projects and create thousands of jobs across the country.
The group is launching a survey to find out the true scale of the sector that already exists in the UK – and to highlight the untapped potential that could be boosted by the introduction of an ambitious hydrogen strategy from the Government.
The HSN campaign is encouraging as many organisations as possible with links to hydrogen to get involved – whether they are HSN members or not.
A spokesperson for the campaign said: “Today, industry stands ready to invest, create lots of high-quality jobs and deliver net zero gains, and we’re keen to demonstrate this via our survey.
“We’re hoping for a high response rate so we can showcase the true potential of the sector and the scale of its economic, job creation and environmental ambitions.
“As a collective, the Hydrogen Strategy Now group believes the UK has what it takes to become a global leader in low-carbon hydrogen technology, but we must move fast to realise this opportunity and achieve the maximum economic benefit.
“Hydrogen will play an essential role in the world’s future, low-carbon economy – and with the government setting even more ambitious climate change targets, now is the perfect time to unlock the UK’s hydrogen potential.”
The group was established last year to call for the government to make a serious commitment to invest in hydrogen technologies and to publish a clear, strategic plan for hydrogen to unlock significant private funding.
They HSN collective, which has 60 members and support from 67 cross-party peers and MPs, believes a UK-wide hydrogen economy will:
UKIFDA has revealed the sponsor for the first day of the two-day Future Fuels conference on 7-8 July as insurance broker Aon, and for the second day of the conference, Cobo Tankers and Services Ltd.
Long standing supporters of UKIFDA EXPO, Aon and Cobo Tankers and Services Ltd will sponsor this year’s inaugural virtual conference – and join headline sponsor Phillips 66 Ltd as supporters of this annual event, which is this year, celebrating its 40th anniversary.
UKIFDA chief executive, Ken Cronin says: “This year’s EXPO promises to be just as positive and rewarding for those involved as all our previous events have been and we’re hugely excited that this will be our first virtual EXPO in its 40-year history.
“Given all that we are doing as an industry to contribute to the Government’s net zero target, we wanted to ensure the opportunity that EXPO presents for exhibitors, Members and delegates to discuss and showcase the transition to renewable liquid fuels, went ahead this year.”
UKIFDA made the decision back in January to make this year’s exhibition virtual for the first time in order to enable everyone to attend and participate in the two days’ programmes in the safest possible way without any Covid-related restrictions or worries.
John Jenkins, Aon says: “It is fantastic to be sponsoring the opening day of the first ever virtual UKIFDA EXPO as Aon. Having been involved in so many of the previous EXPOs over the years as both The John Reynolds Group and Henderson Insurance Brokers, it’s wonderful that as our first year fully integrated into Aon that we are able to support the Future Fuels conference in its new online format.
“We know that exhibitors and visitors will enjoy the virtual experience and get so much from it as it really is the industry’s key event and provides the chance to discuss important issues and connect with others from across the sector.”
Fernando Gomis, Cobo Tankers and Services UK Ltd says: “We’re delighted to be sponsoring day two of the first ever virtual UKIFDA EXPO. It’s such welcome news UKIFDA found a way to make it safe for the annual event to take place in the current climate, and we’re proud to be involved in such a big way in the programme plans for the second day which focuses on the future of the industry and future fuels.”
As well as being sponsors of the 2nd day of the conference Cobo Tankers and Services is also exhibiting and are promising exciting new things to showcase to visitors to their virtual exhibition booth.
Dawn Shakespeare, UKIFDA membership and events manager, comments: “With three months left to go before the exhibition takes place, we have over 25 confirmed exhibitors already. These include longstanding exhibitors such as Phillips 66 Ltd, Cobo Tankers and Services Ltd, Dunraven Systems Ltd, Greenergy, Fuelsoft, Williams Tanker Services, Maygar SA, Oilshield and Mechtronic and new and returning exhibitors such as Commercial Fuel Solutions Ltd, Kingspan Water & Energy and Hospital & Medical Care Association. We are anticipating around 50 exhibitors in total online this year and are looking forward to booking more exhibitors over the next few months.”
Ken Cronin adds: “We’ve turned our initial disappointment at not having a physical EXPO this year into determination to make our first virtual event the best it can be – and just as successful as previous EXPOs have been for the past 40 years. We’ve realised that as well as bigger challenges to arranging a virtual event there are bigger opportunities too, and we intend to seize both and work hard to make this virtual exhibition a real achievement for everyone involved with it.
“We’re excited by the line-up for the two days as it’s varied, current and future-focussed. Every aspect of the days has been designed for easy discussion and interaction with our online audience, both exhibitors and delegates alike.
“Across both days, we will showcase the industry’s hard work with regard to meeting carbon emission targets through the introduction of renewable liquid fuels and a roadmap for a decarbonised future.
“We want as many companies and individuals, exhibitors and visitors, as possible to join us virtually on 7th and 8th July and join our discussions across the two-day event – and can’t wait to connect with everyone.”
For further information on this year’s virtual UKIFDA EXPO, please contact Dawn Shakespeare via email ds@ukifda.org or visit ukifda.org/ukifda-expo to sign up to the exhibition or to book a stand.
This spring sees OTS Group Ltd celebrating its 50th anniversary and, from humble beginnings in 1971 in a farm cowshed to becoming a leader in the fuel industry, the company has never lost sight of its values.
UKIFDA has launched the 2021 UKIFDA Green Awards in collaboration with insurance and risk management solution Oilshield.
Now in its third year, the UKIFDA Green Award is sponsored by Oilshield and raises awareness of environmental initiatives within the liquid fuel distribution industry – recognising and rewarding those who are leading the way in sustainability and environmental performance for a decarbonised future.
The awards will be presented during the first Future Fuels conference at this year’s virtual UKIFDA EXPO on 7th-8th July.
Judges (Oilshield and UKIFDA) are looking for a company who can demonstrate:
Essar-owned Stanlow refinery, located in Ellesmere Port, is reportedly facing financial problems, but the company has said it is fully committed to its operations at the Ellesmere Port oil refinery, including plans to decarbonise its activities and produce sustainable fuel there.
It has been reported that the plunging demand for fuel during the pandemic has forced Essar Oil UK to have discussions with the Government with regard to its financial position.
Essar has recently said that there was a ‘material uncertainty’ that could throw doubt over its ability to continue as a going concern. The company also added that a ‘significant drop in demand and poor refining margins, coupled with market volatility caused operating losses’.
A spokesperson for Essar said the company has ‘historically been very profitable, but the pandemic has affected all refiners, with repeated lockdowns leading to reduced products demand and depressed refining margins’.
“We are not a levered business. We remain confident we can manage through this period and come out stronger as the economy continues to recover.”
Essar bought the former Shell refinery at Stanlow in 2011. The site directly employs around 900 staff, with up to a further 800 contractors and produces 16pc of the UK’s diesel and petrol as well as almost 10bn litres of aviation fuel a year.
With reports suggesting that discussions could involve a request for direct financial support, questions would be sure to arise around the ‘optic’ of the government providing such support to the fossil fuel industry in the year of COP26. It will be interesting to see if this could be avoided by placing the emphasis of any support on Essar’s plans to move to more sustainable ventures.
Diversifying to thrive or survive?
In January 2021, plans were announced to create a £760m hydrogen production plant at Stanlow with Essar and Progressive Energy, developers of HyNet North West, joining forces in a venture to produce low carbon hydrogen at the Ellesmere port refinery. The hydrogen will be manufactured for use across the HyNet region and is expected to create hundreds of construction jobs, followed by thousands more across the region once the network is completed.
Stein Ivar Bye, Essar Oil UK chief executive, said at the time:
“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 two 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.”
February brought Essar’s announcement that it has joined forces with Fulcrum BioEnergy and Stanlow Terminals to create a new £600m facility which will convert non-recyclable household waste into sustainable aviation fuel (SAF) for use by airlines operating at UK airports.
This project, Fulcrum NorthPoint, will create 800 direct and indirect jobs during the design, build and commissioning process and more than 100 permanent jobs during its operation.
A spokesperson for Essar said:
“Historically, Essar Oil UK has been a very profitable business that has attracted over $1bn in investment since its acquisition in 2011. It is a long-standing private company without public shareholders.
“The global COVID pandemic has affected all refiners, with repeated lockdowns leading to reduced product demand and depressed refining margins.
“We have successfully traded through a very difficult 12 months and are now seeing increased demand for road transport fuels and improving refining margins, which has resulted in increased throughput at the Stanlow Manufacturing Complex.
“We are not a levered business and currently we do not have any short term or long-term bank debt on the company, other than working capital lines.
“Prior to coronavirus, we were generating EBITDA in excess of $300m per year. We remain confident that we can manage through this period and come out stronger as the economy clearly continues to recover.”
This Spring sees OTS Group Ltd celebrating its 50th anniversary and, from its humble beginnings in 1971 in a farm cowshed to becoming a leader in the fuel industry, the company has never lost sight of its values.
In our March issue we reported on a ground-breaking industry trial.
Accepting the inevitability of an end date for the use of fossil fuels in home-heating, industry bodies UKIFDA and OFTEC, as well as tank manufacturers, distributors and many more are coming together to ensure there is a future for liquid biofuels in our industry. The first UK trials of alternative liquid fuels in home-heating were rolled out late last year and our content editor, Stephanie Samuel, caught up with UKIFDA chief executive Ken Cronin, OFTEC CEO Paul Rose and John and Robert Weedon, directors of South West based distributor Mitchell and Webber, to find out more about this forward-thinking approach that could make industry history.
“I have been hugely impressed by the work the industry has done on the winter trials,” said Ken Cronin, president of UKIFDA. “Both the Climate Change Committee (CCC) and the National Grid Future Energy Scenarios (FES) predict a significant proportion of our customers will require some form of biofuel by 2050 to help meet the UK’s net zero commitment. We support these assertions as these homes tend to be rural and therefore difficult to reach for grid purposes and/or of an age and construction that make retrofitting for other technologies difficult technically or economically.”
Enthusiastically embraced
Operating out of Cornwall, distributor Mitchell and Webber was the first company to deliver new, low carbon heating fuel for the UK trials in a partnership with OFTEC and UKIFDA. Commenting on the trials, which have seen a number of customers who previously relied on heating oil trialling HVO since December last year, John Weedon said:
“We pushed hard to be the ones to trial this first because we have thousands of customers who will have difficulty in changing heating technologies. Talking about alternative fuels can only get you so far, you’ve got to get up and make it happen.
“We’ve been in this industry for over 120 years and, even as the end date for fossil fuels gets ever closer, there are still 38,000 homes running on oil in Cornwall. As ever, we are determined to get the best alternative fuel for our customers.”
Speaking about the attitudes of their customers, Robert Weedon confirmed their enthusiastic interest:
“We are getting lots of enquiries from those who would be happy to participate in the trial, and we’ve had feedback that customers are delighted that we are looking towards the future for fuel, especially as so many are still using oil here.”
It is pleasing to see an early confidence in HVO already in Cornwall, as John explained:
“This positive attitude is great news for Mitchell and Webber customers, as the greater the demand for HVO, we very much hope the more affordable it will become. The positive response so far may be largely down to the fact that the cost of conversion to HVO, or other alternative fuels, is very minimal compared to the cost of heat pump installation, for example.”
A huge opportunity for a cost-effective solution
Ken Cronin commented:
“We believe very much in finding the right solution at the right cost with the least amount of disruption for each home. We know that customers are concerned about climate change but equally concerned about cost. What these trials are doing is showing that there is a very simple technical solution and I am delighted at the level of interest being shown.”
Robert Weedon said:
“We have to be practical about what is and isn’t a possibility for our customers. There is fuel poverty here in Cornwall. Not everyone can afford heat pumps which cost over £10k. The government grants will dry up by March this year and questions remain over the capabilities of the grid – especially with electric charging points for vehicles also a key topic here.”
OFTEC CEO, Paul Rose, also expressed a confidence in the biofuel and the necessity of these trials:
“We are extremely confident that HVO will be compatible with virtually all existing oil heating systems. However, undertaking rigorous trials is essential to provide the level of confidence in the new fuel that consumers and government will demand, so this is a key step in the process of bringing the fuel to market. It also enables industry to learn about the characteristics of the new fuel and to prepare the guidance information that heating technicians and fuel suppliers will require.
“The trial is in its early stages, but we have plans to make it much bigger. To do this, we are applying for government innovation funding and are hopeful this will be successful.
“There is increasing recognition by policy makers that many off-gas-grid households will not be able to convert to other types of renewable heating in a cost-effective way, due to the high cost of both the appliance and energy efficiency improvements that will be needed. Consequently, there is a huge opportunity for a renewable liquid fuel such as HVO to heat these hard-to- treat homes.
“Conversion to HVO from kerosene will lower the carbon emissions of the average home by around 88% – a huge reduction and greater than both heat pumps and biomass systems. If our industry can provide governments with the evidence that HVO offers a low cost, reliable and disruption-free solution, then we should be able to retain a significant market share and play a vital role in meeting the net zero target.”
Expansion of trials
The trial is now expanding, with other distributors trialling HVO with their own customer base. Mitchell and Webber has also expanded the appliances that they are testing HVO with, as John confirms:
“It’s working better than expected at the moment, but we are rigorously testing this over an extended period of time and also for 5 different appliances, not just boilers.”
So far, the biofuel has also been used to fuel a customer’s Aga cooker, with a pot burner conversion, and initial results show that more heat is produced with less fuel used.
Financial and policy support will be key to success
Commenting on the expansion of these trials in the UK, Paul Rose said:
“Up to now, the trials have been funded by industry itself, whether by trade associations such as OFTEC and UKIFDA, or by individual companies such as Mitchell and Webber, who are passionate about the potential that HVO offers. The fact that we have done this underlines how serious our industry is, and the good news is that this work is being coordinated by a steering committee covering both fuel distributors and OFTEC. This will enable us to capture the learning outcomes and maximise the PR and policy value of this work.”
Looking ahead to the next stages of the trials, Ken said:
“The next stage for us will be to expand the trial geographically and across the range of possible appliances and talk to government about making this a reality.”
Paul Rose also highlighted how expanding the trials will be expensive, hence the industry bodies bidding for government funding:
“The government has already supported other heating sectors – for example a massive heat pump trial is underway – so given the comparatively modest funding we will be looking for, there’s every reason to be hopeful. The aim will be to have a much-expanded trial underway for the next heating season.
Paul continues:
“This year will be important in terms of determining future heat policy and the role HVO will play. To achieve policy support for HVO, we will need to progress the field trial and overcome outstanding concerns about availability and sustainability. The latter issue should be straightforward – HVO produced in Europe already satisfies very strict sustainability regulations.
“Availability is more of a challenge because other sectors such as transportation also need the fuel. However, HVO production is ramping up rapidly and we are in direct contact with producers who are keen to supply our market. So, we are increasingly confident that supply will be available if HVO is supported in heating by government policy.
“This is essential because, at least initially, some form of subsidy may be necessary to cushion consumers from an increase in cost. However, the need to find a credible solution for hard-to-treat rural homes means that government support should be forthcoming, and this is something that everyone in our industry should be pushing for.”
In Cornwall, Mitchell and Webber continue to see successes with the trial and look ahead to welcoming the G7 leaders, who will be meeting at Carbis Bay in Cornwall, in just over two months. Commenting on why Cornwall was chosen to host this meeting to promote a better, green world, Boris Johnson was quoted in a local paper saying:
“Both these ambitions are summed up in Cornwall where the UK`s renewable energy industry and conservation projects point the way to a green industrial future.”
The visitors will include the new US President as well as the leaders of Canada, France, Germany, Italy, Japan, Australia, South Korea and the President of the EU. John Weedon commented:
“With the UK also hosting COP26 in Glasgow this November, the UK is very much under the spotlight!”
We look forward to seeing how the trials progress and expand over the next year and to covering more history-in-the-making moves from the fuel oil industry in the UK. Get all the industry insight first by subscribing here.
Channoil Consulting has relaunched as Channoil Energy and created a new division, ‘Net-Zero Solution’, to work with clients specifically on energy transition.
For more than 20 years, Channoil has been at the forefront of advising the energy and transport industry, offering in-depth expertise in the continuously evolving energy market.
Net-Zero-Solution will consult and advise on both strategy and tactics, including preparing for the transition, measuring and managing carbon footprint, lower carbon fuels, renewable energy, power storage and customer solutions.
Our team of experts are already active in driving the lower carbon agenda with our clients.
Commenting on the creation of the new division, Dermot Campbell, CEO of Channoil Energy, says: “We’re excited to be launching this new division Net-Zero-Solution, which broadens our offer as a consulting business and will provide expertise and solutions to the energy sector during a time of significant change. We have built a team of renewable energy experts and look forward to working with existing and new clients.”
UKPIA welcomes the announcement of £171 million of funding towards major decarbonisation projects involving a number of UKPIA member companies.
The Department for Business Energy and Industrial Strategy has announced Industrial Decarbonisation Fund projects that it will be supporting in coming years. UKPIA member companies are active in almost all the successful projects, which each have a significant role to play in decarbonising industry as well as supporting high quality jobs right across the UK throughout the energy transition.
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.
Derek Leith, EY’s global oil and gas tax leader comments on today’s Budget:
“It would be an unusual Budget if the Chancellor didn’t find some space for an oil and gas measure: oil and gas has only been absent from a UK Budget on two occasions in the past 25 years. Budget 2021 didn’t disappoint with a specific clarification on the detailed rules for oil and gas decommissioning relief. There are also some knock-on effects of the Chancellor’s announcements on the corporation tax rate, the super deduction for investment, and the extended loss carry-back.
“Papers accompanying today’s Budget included further changes to the corporation tax rules on the decommissioning of UK oil and gas assets. I’m sure clarification of the decommissioning tax rules will be welcomed by the sector as both industry and the Treasury are incentivised to see activities carried out efficiently and at the lowest cost.
“There will be an increase in the rate of corporation tax for businesses with taxable profits of over £250,000, from the current 19% rate to 25% from 1 April 2023. The rate of corporation tax for oil and gas companies active in the UK and UKCS remains at 30% with the supplementary charge an additional 10%. To the extent oil and gas companies have income that falls outside the upstream regime, such as interest arising from cash balances, they will be liable at the increased rate from 2023.
“The heavily trailed increase in corporation tax rate, quietly abandoning the current policy to have the lowest corporate tax rate in the G20 in favour of the lowest rate in the G7, is no surprise. Some of the sting is taken out by delaying the change for two years. The extended loss carry-back will be welcomed by smaller businesses where it will have a material impact. The super-deduction will also be welcome but unsurprisingly it is time-limited to the period up to 31 March 2023 so doesn’t apply when the tax rate increased from 19% to 25%.”
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.”
Exolum is the new brand name chosen by the CLH Group, strengthening the identification of the company with its future aims, focused on adapting its business to decarbonisation and the energy transition, the digitalisation of activities and the fight against climate change.
This rebranding is due to the need to adapt to the new environment and to transform the company itself, which, in addition to carrying out oil product storage and transport activities in Spain, has embarked on an international growth process and is now present in 7 other countries. The group has expanded its activity to the storage, management and transportation of liquid products, especially chemical products, operating in new sectors, such as eco-fuels, the circular economy and the development of new energy vectors.
In recent years, the CLH Group has experienced a series of notable changes, mainly focused on sustainable diversification, both of the geographical areas where it operates and the services offered to customers, over and above hydrocarbon logistics. Therefore, it became necessary to renew the brand and align it with this new era of the company.
“We want these initiatives for diversification and adaptation of the company to be aligned with the new challenges of the sector with a change in our corporate identity that reflects our growth and leadership,” explains Jorge Lanza, CEO of Exolum. “This brand reflects the transformation process that we are going through internally, to align with the company’s new business models and transmit our company values. These values are innovation and trust, reflecting the open and flexible way that we face the future, promoting new business opportunities committed to the development and sustainability of the planet.”
The new name, simple but modern, shows a spirit where innovation is the key. The brand is easily recognised in any language and the company will use this one name for all its business, both in Spain and six other countries where it currently operates (UK, Ireland, Germany, Netherlands, Panama and Ecuador – in Oman, it will continue to operate with the joint venture OQ Logistics), thus reinforcing the global identity of the group and creating a great brand that is sound, international and unifying.
With Exolum, the company sets itself a challenge to maintain the same level of recognition, extending it to the public at large, adapted to meet the aim of the company: “We create innovative solutions to improve our world”.