Transition 21
Today’s announcement that the UK Government will mandate the introduction of E10 fuel – petrol containing up to 10% of sustainable bioethanol, from September this year – has been welcomed by the industry with open arms.
Ken Cronin CEO of the UK and Ireland Fuel Distributors Association (UKIFDA) comments:
“Today’s announcement that E10 petrol is to be introduced from September 2021 is a major step towards the decarbonisation of existing cars in the UK, on the way to our 2050 net zero target.
UKPIA welcomes the UK Government announcement today that mandates higher ethanol content petrol – E10 – following consultation and will continue to seek close government-industry partnership on the rollout of the policy to enable a seamless transition for all consumers.
This transition to lower carbon petrol is fully supported by the downstream oil sector as a practical measure to further reduce transport carbon emissions – the equivalent of taking up to 350,000 cars off our roads – with minimal impact on drivers, filling station operators or the wider community.
E10 is petrol containing up to 10% ethanol – with the remainder made up of hydrocarbons. Currently, standard (or ‘premium’) petrol contains up to 5% ethanol.* Ethanol from renewable feedstocks is added to petrol to reduce the fuel’s carbon emissions.
The introduction of E10 is a practical step that increases renewable fuel use in the UK now and UKPIA looks forward to the UK Government’s consultation on updating the Renewable Transport Fuel Obligation to take further steps to deploy renewable fuels.
Today’s policy announcement is an important step in the UK’s broader energy transition journey. Updated renewable transport fuels policies are essential in reducing the emissions of the light road vehicle sector and, in time, such policies should help reduce emissions in more difficult to decarbonise transport sectors – such as aviation and HGVs – whereas part of a range of technologies, low carbon liquid fuels and hydrogen will have an important role to play.
UKPIA director-general, Stephen Marcos Jones, comments:
“The downstream oil sector is clear on the need for action on climate change and supports this step towards a higher uptake of low carbon fuels.
“UKPIA has been calling for a mandated introduction to E10 since 2018 and we are pleased government has made this announcement today.
“With E10 grade fuel to power cars in the UK from September 2021, carbon emissions should continue to reduce in the transport sector, an important means for meeting the Net-Zero commitment.
“As UKPIA has set out in its Transition, Transformation, and Innovation Report, with the right policies, the UK could become a trailblazer in the development of low carbon liquid fuels and electric vehicle technologies, as well as maintaining its leading role as a hub for sustainable aviation fuels. We look forward to working with government to progress these opportunities further.”
Southampton-based fuel supplier WP Group is fuelling change for a cleaner greener future by moving its own fleet over to the more sustainable Esso Diesel Efficient™ fuel, as it has shown to be not only more efficient than standard diesel fuel, but also more cost-effective and improves the carbon footprint of the vehicles that use it.
The WP Group’s Fuelling Change strategy demonstrates its commitment to more sustainable and efficient fuelling solutions that provide practical benefits, both commercially and environmentally.
The innovative company provides a range of fuel management solutions which improve operational efficiencies to UK customers in the fields of construction, traffic and fleet, airports, port and marine, agriculture, energy and power.
The Esso Diesel Efficient™ fuel delivers lower CO2 emissions, resulting in cleaner air quality. Compared to standard Esso™ diesel, the Esso Diesel Efficient™ fuel helps to reduce Nitrogen Oxide emissions by an average of 10 per cent and carbon dioxide emissions by an average of 2.8 per cent.
Independent tests on Esso Diesel Efficient™ fuel also showed a reduction in fuel use of 2.8%, amounting to 28 litres of fuel saved for every 1000 litres purchased and a saving on the business fuel bill.
Mark Clouter, business development sales manager at WP Group, said:
“We’ve seen the benefits that this additised fuel can deliver and have switched our own fleet to run on Esso Diesel Efficient™ fuel to support our company’s sustainability in the future.
“We recognise that our position as a supplier of diesel products, in today’s market, requires continual business evolution and this allows us to support the increasingly demanding requirements our customers are faced with when working to achieve their business objectives.
“We offer a comprehensive selection of fuelling solutions, from ISO standard diesel to HVO, a fossil-free, low carbon drop-in diesel replacement. And, importantly, we work with our customers to ensure, whichever fuel they use, it is used in the most efficient way possible.
“Our own switch to using Esso Diesel Efficient™ fuel in our fleet is a small step but a logical and significant one towards fuelling change.”
Tests at Millbrook Proving Ground, one of the most comprehensive test facilities in the world for conducting independent fuels testing, conducted with heavy-duty vehicles over a five-month period of normal daily on-road operations found that Esso Diesel Efficient™ fuel helped to reduce emissions; 10% NOx, 22% PM and 2.8% CO2, and improve fuel consumption by an average of 2.8% when compared to unadditised diesel.
Vehicle type, engine type, driving behaviour, and other factors also impact fuel and vehicle performance, emissions, and fuel economy. You can find out more about Esso Diesel Efficient™ fuel and the independent tests performed at Millbrook Proving Ground Ltd at www.thewp-group.co.uk/esso-diesel-efficient.
Commenting on Shell’s pledge made on 11th February, to accelerate the drive for net zero emissions, OGUK sustainability director Mike Tholen said:
“It is an exciting time for the country’s oil and gas industry as we see companies including Shell demonstrate how our sector is transforming to meet the clean energy challenge, putting their expertise to work, as other companies are also doing, to help achieve our climate goals here in the UK.
“Now is the time to develop a sustainable future. By reducing the carbon impact of oil and gas as we invest in low carbon technologies, we can unlock a homegrown move towards net zero which maintains consumer affordability, promotes our world class supply chain and protects jobs and the energy communities we support.
“Everyday we see more examples of how this industry is changing. As we continue to face the challenges brought about by the pandemic, the UK economy should build on its strengths. The North Sea Transition Deal proposed in the Energy White Paper will be essential to accelerating investment and creating employment opportunities in new technologies while reducing emissions from production.”
Oil services companies can no longer delay making a choice on their future direction according to the latest report from PwC Strategy&, called ‘Time to Choose’. The options are to stick with their hydrocarbon heritage; becoming ultra-efficient and digitally enabled or pivot towards low carbon growth opportunities such as offshore wind or carbon capture, using hydrocarbons as the cash generating engine to fund this transition.
‘Time to Choose’ states that a perfect storm of COVID-19, increasing public scrutiny and the growing momentum of Environmental, Social and Governance (ESG) factors influencing investor and buying decisions, has accelerated the pace and impact of energy transition in many regions.
According to the report’s respondents, many oil services companies already recognise the need to transform in order to better align with their customers, with some helping to set the pace of decarbonisation alongside major players.
Transformation influences
Low carbon credentials could become an area of significant competitive advantage. The report highlights how oil services companies can increasingly showcase their decarbonisation credentials as a means of securing tenders. Some respondents also mentioned increasing pressure being brought to bear by some majors who are keen for supply chain decarbonisation credentials to help support their own strategic direction and licence to operate.
Where firms operate can also influence the pace of transformation. As governments around the world respond to the pandemic, fiscal stimulus packages have been developed with many countries looking to use this pivotal moment in time to stimulate a green recovery to ‘build back better’. For those companies with a major footprint or head office in Europe, energy transition and ESG themes are likely to be much higher up the corporate agenda than other regions, such as the Middle East, which will see hydrocarbons retain their importance as a focal point.
Drew Stevenson, PwC’s Energy, Utilities and Resources leader, commented:
“We believe the oil services sector has a significant contribution to make in the UK’s energy transition journey.
“From engineering expertise and innovation to project management and global operational scale, these businesses have a golden opportunity to not only channel this capability into market leading credentials that will be in-demand globally, but to play a role in shifting the conversation about how this industry fuels and sustains energy and employment into the future.”
Decarbonisation driven by digital technology, deals and diversifying skills
In many ways COVID-19 has accelerated the need to adopt and deploy digital solutions. Given the physical impact of coronavirus on the workforce, companies in the oil and gas sector have been forced to increase automation and use of digital technologies, such as remote controlled vessels and robots to inspect underwater pipe networks and conduct maintenance scans of industrial complexes.
Needless to say, while digital offers great potential for efficiency gains in the oil services segment, in the short term at least, it will be balanced against tight cost control. As a strategic imperative, investment in digital solutions cannot be cut off.
M&A is another means by which energy transition could be accelerated, with complimentary skills, technologies and credentials likely to be highly sought after as entry points into new markets. Premium valuations are already evident for renewable-facing businesses. The availability of finance will probably also be a driver of this transition.
As for the transferability of skills between oil and gas and low carbon, this is not always easy or evident. All oil services companies have core capabilities in particular areas – some may have skills that are transferable while others may struggle.
Have you selected a strategic pathway that will allow you to flourish in an increasingly volatile trading environment? Let us know.
Otley-based company, Tate Oil, has partnered with Yorkshire Dales Millennium Trust (YDMT) to plant 3,000 trees over the next three years, in a bid to reduce its carbon footprint.
Launching on 1st January 2021, family-run Tate Oil will be planting a tree for every 4th order a qualifying customer places – helping the 1.5 million homeowners using heating oil to offset their carbon emissions. As a completely free service to the customer, Tate Oil’s scheme is one of the first of its kind in Yorkshire and focuses on giving back to the local community.
Working with local trust, the scheme will support the target of planting 100,000 trees within the county, including areas such as Nidderdale and the Yorkshire Dales. The charity will be working with landowners and farmers to facilitate the tree planting, with customers able to visit their tree.
Michael Devlin, deputy CEO at YDMT added:
“Through our ‘Together for Trees’ campaign we are working with many supporters and partners such as Tate Oil to plant 100,000 additional trees across the region. Trees are hugely valuable as a habitat for wildlife, supporting some of our most endangered woodland animals, like red squirrels, dormice and cuckoos.
“They are also important for our mental health and wellbeing and we believe that everyone should have access to them. The appeal aims to raise funds to create beautiful woodlands that everyone can enjoy for years to come.”
Tate Oil has ambitious goals for their new green initiative:
“This is a really exciting opportunity for us to help our customers offset their carbon emissions” says Andrew Tate, director of the company. “This is the next step in Tate Oil becoming a greener company, and we’re pleased to be working with a local charity doing great things for our county”.
The scheme will offset approximately 3,000 tonnes of CO² from the atmosphere, bringing Yorkshire a step closer to achieving the UK’s net-zero emissions target by 2050.
Enhancing collaborative culture within the offshore oil and gas industry is not only key to maximising the potential of its existing world class supply chain but could also unlock future activity in the UK Continental Shelf (UKCS) and be key to delivering a successful Net-Zero future.
Improving commercial models which support cost reduction whilst incentivising the supply chain could re-energise collaboration, according to the findings of the annual Deloitte and OGUK Collaboration Report, published on 28th January.
Deloitte and OGUK’s industry-wide Collaboration Index (CI), which measures the effectiveness of companies as partners in projects, is part of the annual UKCS upstream supply chain collaboration survey. The report showed a slight increase in the collaboration index to 7.1 in 2020 from 7.0 in 2019, highlighting the flexibility and support the supply chain showed during an exceptionally challenging year.
On top of this, collaboration success rates hit a record high in 2020 with more than 50 per cent of survey respondents saying over half of their efforts were successful. In what also marked a first in the survey’s six-year history, the overall proportion of ‘successful’ efforts was higher than ‘unsuccessful’ ones.
However, while COVID-19 saw many businesses work together to address the challenges, respondents said the pandemic and consequent economic downturn also led to disadvantageous commercial behaviours such as cancelled or modified contracts.
OGUK supply chain and operations director, Katy Heidenreich, said:
“OGUK has been encouraging industry to do business in a sustainable way to protect the supply chain. This includes finding innovative ways of working that deliver value for both sides, ensuring that industry has the skills and resources needed when activity rebounds, as well as using the Supply Chain Principles as a mechanism to improve behaviours.
“We redesigned the questions in our 2020 Collaboration survey to understand how well these Principles have been embraced since we launched them.
“Greater collaboration will be a key factor in unlocking future industry developments and to strengthening our basin, our versatility, and our resilience. The ability to work together well across companies, industry and the wider energy sector will be critical to delivering a successful energy transition which supports jobs and the communities we work in. Collaboration needs to be part of our DNA; while it is not a silver bullet, it is good for business.”
OGUK will issue a call to action to promote adherence to its Supply Chain Principles and to communicate the benefits after the survey received a broad mix of views.
Deloitte’s office senior partner (Aberdeen), Graham Hollis, said:
“In what is an extremely challenging environment, the industry must assess new opportunities and challenges as it addresses the year ahead. Organisations need to reimagine their businesses and models and focus on the right set of collaborative behaviours because as the report highlights, working closely with suppliers and customers to support one another will be vital.
“As part of this, Deloitte has produced a Framework for Action which details six building blocks that organisations should consider helping develop and continue building successful collaborative relationships – ones which deliver greater value for both operators and suppliers.”
Deloitte’s Framework for Action supports the OGUK Supply Chain Principles, and both will be key to stimulating collaborative behaviours. OGUK will also be issuing a call to action to promote adherence to its Supply Chain Principles and to communicate the benefits after the survey received a broad mix of views.
With the Supply Chain Principles, energy transition and internal collaboration being new themes explored in this year’s survey, almost two-thirds of operator respondents said they were making some progress to meet their energy transition objectives – in line with the OGUK’s Roadmap 2035: a blueprint for net zero – compared with 49 per cent of suppliers.
While some operators showed best practice in sharing the risks and rewards of working relationships appropriately, there are still opportunities to improve.
OGA’s head of supply, Bill Cattanach, said: “Successful project delivery is more predictable where there is a fair and equitable partnership between operator and supplier.
“There are encouraging signals, as shown in the report, that the industry is leaving old approaches behind and embracing the expertise which exists within the supply chain in a collaborative manner. However, there is still room for improvement, and collaboration should remain a key focus for industry going forward.”
Since his inauguration, the new American President, Joe Biden, has wasted no time in initiating the shift away from coal, oil and natural gas – once the bedrock of US prosperity.
John Kerry, previously Barack Obama’s secretary of state and key architect of the Paris climate change summit in 2015, has been tasked with drawing up the new President’s climate plans. He commented:
“It is one of his top priorities, without any questions whatsoever. He’ll make more progress on the issue than any previous President.”
Whilst many of Biden’s actions were expected, the speed of implementation was not, and the world watched as the US changed its stance on fossil fuels almost overnight.
In his first few days of Presidency, Biden stopped the giant Keystone XL oil pipeline dead in its track by pulling the permit, re-joined the Paris climate accord and ordered the Pentagon to make climate change an issue of national security.
Whole government approach
Kerry explained:
“He is mobilising every department, every agency of the United States government to focus on climate and he is determined to try and restore America’s credibility and reputation.”
The intense ‘whole government’ approach to the issue of climate change, with drastic actions and commitments already in play, raises the possibility of returning to the notion ‘where America leads, the rest of the world will follow’ in an arena where, until now, the US has been left far behind.
Veteran environmental campaigner Bill McKibben comments that the President wants to send ‘a decisive signal about the end of one epoch and the beginning of another’ – a signal aimed at investors: “Fossil fuel, Biden is making clear, is not a safe bet, or even a good bet, for making real money.”
An economic stimulus
With share prices plummeting and Goldman Sachs warning of a drop in US crude supplies, one oil services company CEO told Bloomberg: “The industry is aghast at these changes. They are more direct, more fierce and quicker than what folks expected.”
Biden has been careful in casting the agenda as an exercise in job creations and economic stimulus in the wake of the Covid-19 crisis. Kerry comments: “If we’re going to invest new money, let’s invest it in clean energy, invest it in clean jobs, invest it in those technologies and other things that will build the future, rather than simply being the prisoners of the past.”
Biden has reiterated his desire to end all fossil fuel subsidies, ordered a ban on new oil and gas leases on federal land and said a third of all federal land must be reserved for conservation.
Displaced workers put to use
The President plans to reinstate and strengthen Obama-era regulations on the three largest sources of greenhouse gas emissions: vehicles, power plants and methane leaks from oil and gas wells.
Many displaced fossil-fuel workers will be put to work sealing off the estimated one million leaking oil and gas wells whilst millions of ‘prevailing wage’ jobs will be created in line with the plan is to build 1.5 million energy-efficient homes and install half a million EV charging stations.
Not without opposition
Although some big oil companies have acknowledged some of the curbs on emissions lifted by President Trump need to be reinstated, backlash is expected from others in the fossil fuel industry.
The democratic senator for West Virginia, Joe Manchin, is likely to be one such voice. Elected as a defender of his states coal industry, Machin famously campaigned with a TV ad that featured him using a hunting rifle to shoot a copy of one of Obama’s climate change bills.
Working with the UK
Kerry and the rest of the administration is also set to work hard with the UK government to ensure that the UN Climate Change Conference (COP26), which is scheduled to take place in November 2021 in Glasgow, is a success.
With over 500,000 homes currently using heating oil in Northern Ireland, a new video has been released to communicate how straightforward it could be to dramatically cut CO2 emissions through the use of HVO as a near drop-in and, therefore, very cost-effective, replacement for kerosene.
David Blevings, NIOF, explains:
“Further to our November article, ‘NI Energy Strategy – an update’, we learn that OFTEC is promoting a video to local politicians ahead of the new NI Energy Strategy. The video shows how easy a transition to HVO will be for NI consumers and reinforces the immediate carbon reductions that are available for liquid fuel users.
“OFTEC has advised Government that the new strategy must be technology neutral and the inclusion of biofuels offers a seamless transition for existing liquid fuel users; a simple option for government to maximise carbon emission reductions in the off-grid sector at least cost for consumers with immediate effect.”
The video can be viewed here.
For further information contact David Blevings. (dblevings@oftec.org or david@nioil.com)
After extensive testing, Selwood has become the first UK rental company to offer pumps that can be fuelled by vegetable oil in an industry-leading move that will significantly cut greenhouse gas emissions.
Selwood has also committed to ensuring that new pumps manufactured at its headquarters in Chandlers Ford, Hampshire, for use in the UK and around the world, are HVO-compatible, subject to individual engine manufacturers’ guidelines.
Lawrence Bradbury, director of engineering at Selwood, said:
“At Selwood we are committed to reducing the environmental impact of our products and operations wherever possible. Following conversations with several large clients who were looking for alternatives to diesel fuel, our engineers have thoroughly tested the use of HVO in the Selwood range.
“We are delighted with the results – not only is HVO completely interchangeable with diesel in compatible engines, it can also be used with no negative impact on performance. We are very pleased to be able to let customers know that HVO can be used safely as part of our ongoing commitment to sustainability.”
Selwood has several ongoing initiatives to reduce its carbon footprint, including the introduction of electric vehicles to the fleet and the option of IE3 electric motors in its pump rental and sales ranges where appropriate. The company holds the ISO 14001 standard for its environmental management systems.
Greenergy announces its continued commitment to renewables through an investment in advanced biofuels. Utilising a combination of existing technologies, the project will create low carbon fuels from waste tyre feedstock.
Essar and Progressive Energy, developers of HyNet North West – the UK’s leading industrial decarbonisation cluster – have joined forces to set up a venture to produce low carbon hydrogen at Essar’s Stanlow Refinery in Cheshire, for use across the HyNet region. It will provide Essar Oil UK with low carbon hydrogen to decarbonise its own energy demand in addition to creating a hydrogen economy across North West England and North East Wales.
Natural gas and fuel gases from the refinery will be converted into low carbon hydrogen, with carbon dioxide safely captured and stored offshore in sub-surface reservoirs in Liverpool Bay. The hydrogen production hub will deliver clean energy to industry in the HyNet ‘low carbon cluster’, as well as to fuel buses, trains and heavy goods vehicles, to heat our homes, and to generate electricity when the sun is not shining or the wind blowing.
The UK’s first low carbon hydrogen hub will initially produce 3 terawatt-hours (TWh) of low carbon hydrogen each year from 2025. This will be quickly followed by a facility twice this size giving a total capacity of over 9TWh of hydrogen per annum, equivalent to the energy used for heating across the whole of Liverpool. A total investment of approximately £750m will be committed to deliver the two hydrogen production hubs. Follow on capacity growth is planned to reach 80% of the Government’s new target of 5GW of low carbon hydrogen for power, transport, industry and homes by 20301.
The project will use Johnson Matthey’s best in class Low Carbon Hydrogen (LCH™) technology. In partnership with SNC-Lavalin, engineering is well advanced with funding provided by the UK Government’s hydrogen supply competition.
Chris Manson-Whitton, director at Progressive Energy said:
“We cannot reach net zero without decarbonising industry. Today brings a key milestone in that journey as Progressive Energy and Essar Oil UK sign a Memorandum of Understanding setting out how we will work together to deliver this exciting project at Stanlow Refinery.
“Delivering net zero requires a transformation of our energy system. HyNet offers a once-in-a-generation opportunity to create real change in energy production and consumption, creating a cleaner world for future generations. It will unlock the low carbon hydrogen economy in the North West, reducing emissions and creating and safeguarding jobs.”
Stein Ivar Bye, CEO, Essar Oil UK, commented:
“Essar is committed to innovative growth as a means to create positive impact to both economy and environment. HyNet and hydrogen production is integral to Stanlow’s strategy and will set it on a journey to be the UK’s first net zero emission refinery with the ambition to avoid emissions of over 2 million tonnes of carbon dioxide to the atmosphere per year, the equivalent of taking nearly a million cars off the road.
“With the support from government to establish the appropriate business incentives, together with Progressive Energy, we are committed to undertaking the development and the financing of its construction.
“Hydrogen has a central role to play in our low carbon energy solution. We are demonstrating that the industry is committed to play its part of the UK’s transformational hydrogen strategy.”
Leading bus manufacturing company Wrightbus is looking to a positive year ahead with the creation of more than 40 new jobs at its Ballymena headquarters, highlighting a positive impact of alternative fuel developments.
Wrightbus, which launched the world’s first zero-emission hydrogen double decker bus in 2020, has created the roles in preparation for increasing production of the vehicle this year to assist global net zero ambitions and support the PM’s pledge for at least 4,000 new Zero Emission Buses to be produced during this parliament.
A recruitment drive will see it employ 46 new members of production and office staff, including coachbuilders, spray painters, welders, electrical engineers, technicians, accountants, sales staff and a project manager. Nineteen of the positions will be apprenticeships, giving a boost to opportunities for young people in the region. And an international project engineer role has also been created as the firm looks to increase sales around the world.
With interest for the hydrogen double-deckers from UK cities and from around the world, Wrightbus CEO Jo Bamford said the new jobs would allow production to keep up with demand.
“There’s no doubt that 2020 was a challenging year for everyone for many reasons,” said Mr Bamford. “We have made huge strides in 2020, despite the year being paralysed by the coronavirus pandemic, yet 2021 is going to be the year hydrogen really makes its mark.
“At Wrightbus we have already launched the world’s first zero-emission hydrogen double decker bus and this year will see us deliver significant orders into London, Birmingham, Belfast and other cities across the UK, including in Northern Ireland.
“This recruitment will help us support the Government’s investment pledge for at least 4,000 zero emission buses on the streets of the UK.
“It’s thanks to this and other orders already in the pipeline that we’ve been able to create these jobs. We’re proud to be supporting the local economy and creating opportunities for young people thanks to the apprenticeships we’ve been able to offer.”
The oil giant Royal Dutch Shell is to cut 330 jobs from its operation in the North Sea over the next two years, with most of the posts based at its Aberdeen office.
Leaving around 1,000 people at the site, some of the jobs being lost will be linked to the project of decommissioning of the Brent Charlie platform, which is expected to be completed in the next two years.
The company announced in September that up to 9,000 jobs would go worldwide due to a slump in the demand for oil. However, the company insists that it remains committed to the North Sea and will continue to invest in operations.
The oil industry is already rethinking its future plans as part of the energy transition, and the impact of COVID means companies, like Shell, are accelerating this transition.
OGUK chief executive Deirdre Michie OBE appeared before the House of Commons Business Energy and Industrial Strategy (BEIS) Select Committee to give evidence on the Energy White Paper (EWP) calling for it to be an opportunity for jobs and communities.
Organisers of UKIFDA EXPO 2021 have continued to monitor the situation in relation to Covid-19 and, following the UK Government’s recent national lockdown announcement, have taken the decision to move the event from 19th & 20th May to 7th & 8th July 2021 at the Exhibition Centre Liverpool.
Chief executive Guy Pulham announced:
“As you are all aware, COVID-19 is still presenting an unprecedented challenge with the situation evolving weekly. Changing the date was not an easy decision to take, but by doing so, we believe it helps ensure confidence in the event for our exhibitors and attendees. We wanted to move the date to a time when more people will be vaccinated and restrictions lifted so the news last week about the increased number of vaccinations allied to the government’s vaccination timetable means July will be an ideal time for the industry to get together for some much-needed networking.
“We have lots planned for UKIFDA EXPO 2021 including a great line up of speakers, together with both new and long-standing exhibitors in place. By moving the date to July, it gives our liquid fuels distribution industry a great opportunity to discuss and showcase the transition to liquid biofuels highlighted in the recently published UKIFDA decarbonisation strategy document available on our website.”
For more information on UKIFDA EXPO 2021, you can contact Dawn Shakespeare, UKIFDA membership and events manager, by email ds@ukifda.org or alternatively visit the show website https://ukifda.org/ukifda-expo/.
With Government acknowledging the positive contribution that the industry can make in the transition to net zero in its recently published Energy White Paper, UKPIA and OGUK have welcomed the report.
Annual off grid energy sector event UKIFDA EXPO, is returning to the award-winning Liverpool Exhibition Centre on 19th and 20th May 2021, and organisers, UKIFDA, want the event to help drive vital business connections and its future liquid fuels objectives whilst supporting recovery efforts following COVID-19.
As well as over 100 exhibitors showcasing the latest innovations in the liquid fuels industry there will be a wide range of seminars on important topics including sustainable energy in domestic heating, decarbonisation, and the future of liquid biofuels, across the two days.
Guy Pulham, UKIFDA chief executive, says:
“We’re excited about 2021 and hosting UKIFDA EXPO again after the disappointment of cancelling this year. We believe in 2021 there will be a re-emergence of businesses and customers looking to connect, face to face in a way they have been unable to in 2020. Exhibitions such as UKIFDA EXPO offer the ideal space and opportunity to do just that. We have a fantastic line-up of exhibitors booked already and feel the diversity of both the exhibitors and seminar topics planned reflects our exhibition’s appeal to everyone in and associated with the sector.
“At a time when the liquid fuels industry and the business landscape are rapidly changing, we look forward to providing a safe environment where the industry can connect, kick-start business, and drive growth. It is our hope that both the discussions and the partnerships made at the event are going to have a long-term impact on the outlook of both the UK and Republic of Ireland liquid fuels distribution industry.
“UKIFDA EXPO 2021 marks a new era for the liquid fuels industry and the exhibition will be reflective of the changing nature of our industry, something we are all very motivated by and enthusiastic about.”
This year’s 40th anniversary exhibition has already attracted a wide array of exhibitors. Alongside the longstanding exhibitors Computer Design Services, Meller Flow Trans ltd, Dreamtec, Magyar & Cobo Tanker Services will be first-time exhibitors Nursan Trailers and HomeFuels Direct and an impressive line-up of speakers, all showcasing the industry’s hard work with regard to meeting the Government’s decarbonisation targets through the introduction of liquid biofuels.
The exhibition opens on Wednesday 19th May and the first day will once again see the popular President’s Awards event with our newly elected President Janet Kettlewell of Kettlewell Fuels. This is a key part of UKIFDA EXPO and show organiser UKIFDA’s opportunity to reward those in the industry who have gone the extra mile in the past year. Awards will be given for the best driver, depot, and best stand at the exhibition, and there will also be an environmental award.
Dawn Shakespeare, membership and events manager for UKIFDA, and organiser of the exhibition, comments: “Every year, our exhibition appeals widely across the industry, attracting owners of fuel distributors, depot managers, and personnel within HR, IT, finance and marketing, all operating across the manufacturing, distribution, supply, and technology sectors of the industry in the UK and across Europe – and this year will be no exception. In fact, we both exhibitors and visitors to the exhibition say they are really looking forward to being able to do business face to face in a COVID safe environment rather than virtually.
For more information on UKIFDA EXPO 2021 or to book your exhibition space, you can contact Dawn Shakespeare by email ds@ukifda.org or alternatively visit the show website https://ukifda.org/ukifda-expo/.
Any consultation arising from the Government’s long anticipated Heat in Buildings strategy must allow a genuine discussion on all the options to decarbonise rural homes, otherwise thousands of households could suffer severe financial consequences, warns OFTEC.
Up until now, government has given out mixed messages on its approach to cutting emissions from off grid heat, using the term ‘technology neutral’ whilst only supporting a narrow choice of technology options, primarily heat pumps and biomass boilers.
These solutions work well in some settings and heat pumps, in particular, will play an important role in the UK’s transition to net zero. But they are expensive to install and not the right option for all properties, including many energy inefficient off-grid homes without very costly and disruptive insulation improvements.
OFTEC says it’s crucial government recognises the unique challenge decarbonising rural homes presents and that any future consultation fully explores the best ways to achieve this.
Head of public affairs at OFTEC, Malcolm Farrow, comments:
“What we don’t want to see – and what rural consumers can’t afford to happen – is that the Buildings and Heat consultation, through its line of questioning, makes it impossible to bring the full range of low carbon heating options into the discussion.
“If the Government is serious about making rapid – and socially fair – progress, it must widen its perspective and adopt a truly technology neutral approach. This is the only way to encourage competition, improve consumer choice and ensure practical options are available for all housing types and incomes.
“Failing to achieve this could be disastrous for rural households as many will face a completely unaffordable financial burden. As well as causing great social harm, it could also rapidly erode support for decarbonisation and will further delay progress.”
Over 45 key players in the off-grid heating industry have already written to the Minister of State for Business, Energy and Industrial Strategy (BEIS) underlining their readiness to deliver a renewable liquid fuel alternative to kerosene which offers a cheaper, more practical solution for oil heated homes than the current options supported. Yet so far, government has shown little interest in this solution.
Malcolm Farrow continues:
“Renewable liquid fuels must be given a fair hearing in any consultation. If government continues to ignore the potential of this solution, it is turning its back on the opportunity to save rural households and the Treasury, millions of pounds. This makes no sense.
“Government needs to learn from the experience of the last six years which has shown that even with considerable incentivisation through the domestic Renewable Heat Incentive, the take up of heat pumps by rural households has remained disappointingly low.
“Now is the time to set aside any preconceived ideas around the ‘best’ solutions for off-grid households, genuinely listen to all the options on the table and trust industry to deliver.”
As COVID-19 has stopped the APEA from being able to host its annual ‘APEA Live’ national exhibitions and conference, as well as their regular regional brand meetings, a new and exciting event will be held via a free zoom webinar.
The free webinar is taking place on Thursday 3rd December and is open to members and non-members alike.
Taking place between 14:00 – 16:00 GMT, the webinar topics include:
Regulator Update – Clare Scawthorne, London Fire Brigade
This will include the outcome of the Petroleum (Consolidation) Regulations 2014 review, what this means for enforcing authorities and new guidance in place.
Standards Update – Jamie Thompson, Chairman of the APEA Technical Committee
A short presentation and it will cover standards update, with info on Brexit and what it means regarding regs and CE markings.
HVO Fuel – Simon Lawford, Crown Oils
This session will ask the questions – ‘What exactly is HVO?’, ‘Why should it play an important part of the future fuel mix?’ and ‘Can it actually be greener than battery-electric power when it comes to total CO2 emissions?’
This session will explain all about this new green direct diesel substitute and why the government is being lobbied to introduce incentives for its use.
HVO – Challenges in the Swedish market – regulations, policies and technical issues – Magdalena Streijffert, & Quentin Gauthie, Neste Sweden
This talk will cover some of the challenges with regulatory matters and policy, along with technical issues regarding tanks, preparations of etc.
Petrol dispensing vs Diesel dispensing – Andrew Olive, Pumptronics
This session will cover iDiesel & petrol hazardous zones, hybrid commercial vehicles, stage 2 vapour recovery principle and requirements, typical application on a commercial refuelling installation. This will then lead onto the Vectec presentation by Bert Fowler discussing a recent commercial installation for a major home delivery network
EV Battery Fires – Lessons learned from around the globe – Dylan Evans, London Fire Brigade
This session will cover electric vehicles, fire safety considerations for lithium ion battery vehicles & infrastructure.
Find out more about this event here.
UM Terminals’ Client Central Services team can provide customers with a wealth of important information including real-time data to make critical business decisions.
Based out of its Regent Road Terminal in Liverpool, the new service integrates all weighbridge and administration from across UM’s 8 terminals.
A dedicated portal gives clients instant access to essential weighbridge documentation and current stock levels for each tank. They also have a secure log-in and can access their data 24/7, 365 days a year via a desktop, tablet or mobile device.
Lynn McCoy, UM Terminals’ Client Central Services manager, said: “We looked at all of the administration going on across our UK sites and started to think about how we could streamline and bring it all together.
“The key was not just about centralising the service but ensuring that we maintained the same quality of personal service that customers were used to.
“Our weighbridge in particular had previously depended upon a lot of manual reporting, but which has now been moved online. Whereas before, there would have been lots of paper trails, we have now moved to a paperless solution in which information is stored electronically. The upshot is clearer, more accurate and faster information.”
The central control room at the Regent Road Terminal is filled with banks of screens giving Lynn and her team visibility of the different weighbridges along with immediate access to all customer information, such as current stock levels, via the client portal.
Lynn said: “We are one important link in the supply chain. Our job is to look after our customers’ products and their movement in and out of our terminals.
“Sometimes we don’t know until the last minute when they are going to be coming in. Operational planning and flexibility are key in a fast-moving environment like UM Terminals. At terminals like Portbury in Bristol and Gladstone in Birkenhead we can regularly be handling over 40 vehicles a day.”
Bryan Davies, managing director of UM Terminals, said: “We want to add value to the service we provide our clients and we believe the Client Central Services function has been a game-changer in providing customers with real-time data when they need it to assist their decision-making.
Lynn added: “While we have had a really positive response from customers to the centralised service, we know there is even more potential in the future to develop the client portal and the kind of reporting we can offer our customers. Ultimately, our job is to listen to and meet the needs of our clients.”
UM Terminals currently has a capacity of over 300,000 cubic metres of bulk liquid storage across 280 tanks of varying sizes. The plan is to grow this to over 400,000 cubic metres.
Product solutions include vegetable oils, industrial, food and feed, chemical, fertiliser, fuels, biofuels and base oils.
Services include blowing, blending, heating, processing and sampling among others.
The company, which employs 63 people, recently rebranded from UM Storage to UM Terminals to better reflect the range of services the company offers its clients. It is part of the UM Group which has a distinguished history stretching back almost 100 years.
Paul Rose, CEO of OFTEC, responds to the Government plan for ‘Green Industrial Revolution’:
Decarbonising heat from UK homes is a national priority that must be urgently addressed. However, we are concerned about the high costs rural households are likely to face under current government proposals to achieve this.
The Prime Minister’s plan announced today for a ‘Green Industrial Revolution’ suggests it’s likely that rural households will soon be prevented from replacing their existing oil boilers and will instead be forced to switch to expensive electric heat pumps – the government’s preferred low carbon solution for rural homes.
Heat pumps are an excellent technology but they are expensive, costing on average £10,900 to install, and need to be fitted in well insulated homes to avoid high running costs and ensure comfort. However, oil heated homes are some of the least energy efficient in the UK, with almost two thirds (65%) in EPC bands E-G, equating to 765,000 properties².
BEIS estimates that bringing EPC Band E homes heated by oil up to an acceptable Band C, would cost on average £12,300. For properties in EPC Bands F or G, the cost would be £18,900³.
This means the total bill to decarbonise all 765,000 properties will be around £19.85 billion – equivalent to an average of almost £26,000 per home – and for some, the figure will be considerably higher.
Given the current economic climate and the fact that disposable incomes in rural areas are already lower and fuel poverty levels deeper, rural households are unlikely to have the capacity to make this level of investment. It is also unlikely that government will be able to support such high costs through grants or other support mechanisms.
Even those that can afford to act may face weeks without heating due to the length of time heat pump installations and the accompanying retrofit work can take to complete.
Recently, 47 OFTEC member companies, including leading household names such as Worcester Bosch, Kingspan and Grant Engineering, wrote to Minister of State for BEIS, highlighting their readiness and commitment to introduce a far cheaper, more practical solution in the form of a renewable liquid fuel to replace heating oil.
This option offers a near ‘drop-in’ solution for existing oil-heated homes, greatly reducing capital costs. It could also deliver rapid progress towards net zero if supported though appropriate policies, potentially saving rural households and government millions of pounds. Yet to date, BEIS has shown no appetite to support this solution.
At this critical time when BEIS is soon to publish its consultation to reduce carbon emissions from heat in buildings, we are urging all rural MPs and other interested members of the House to contact the Minister and press the urgent need to support renewable liquid fuels as a more affordable way forward for rural homes.
With almost the entire global fleet still running on fossil fuels tough calls need to be made.
In LQM’s recent webinar – Analysing Future Fuels: The Road to Decarbonisation – whilst 71 percent of respondents strongly agreed that shipping must accelerate decarbonisation, as part of international efforts across all industries to reduce green house gas emissions, just 20 per cent of guests indicated there are currently enough financial incentives to decarbonise.
Future fuels will become the hot maritime topic in 2021 as the clock ticks on reducing carbon intensity by 40 per cent. The need to comply with IMO 2030 will soon loom large for ship owners.
LQM chief executive Daniel Rose, explained:
“99.2 per cent of vessels on the water are fossil-fuel based and there is currently no silver bullet or financial incentive. But what’s fascinating is the desire for change is clearly there.
“Does shipping realistically have a chance to reach the 2030 milestone? The answer is probably yes, but the path is not straight forward.
“IMO 2030 compliance can probably be achieved by using a combination of operational efficiency improvements, greener fuels – especially LNG and Biofuels. Policy will play a major role as well, but unfortunately this is likely to be based around punitive measures, instead of genuine financial incentives for the actors in the shipping sector looking to decarbonise.
“Post-2030, Ammonia and Hydrogen are probably viable solutions, albeit with different pros and cons. Regardless, the results of our recent survey make it quite clear that the economics need to shift for widespread future fuel adoption.
“At LQM we’re totally focused on helping the industry with the practical implications of compliance by 2030.”
You can watch the full webinar and subscribe to others here.
In its aims to decarbonise transport the UK Government has today announced plans for an end to sales of new conventional combustion engines from 2030. UKPIA fully supports the decarbonisation of transport and will continue to work with its members to deliver that aim but believes that, as well as encouraging EV uptake in light vehicles, government should support the uptake of a range of technologies to reduce carbon emissions in light transport without a ban, but welcomes the acceptance that hybrids have an important role to play.