Liquid fuels trade association UK and Ireland Fuel Distributors Association (UKIFDA) has submitted its views on behalf of members on the Northern Irish Government’s Energy Strategy. Designed to replace the existing Strategic Energy Framework in Northern Ireland, the Department for the Economy (DfE) is developing a new Energy Strategy and has called on industry, businesses and the public to submit their views and have their say on how the Government should best tackle climate change. “UKIFDA is always supportive of climate change strategies and welcomes the development of the new Energy Strategy by the Department for the Economy in Northern Ireland,” says Guy Pulham, UKIFDA Chief Executive.

Relief Last week’s budget announcement brought relief to agriculture, rail, fish farming and non-commercial heating with all being exempt from the abolishment of the red diesel subsidy. Whilst this news was well-received by UKIFDA, CEO Guy Pulham was ‘disappointed that the red diesel fuel duty relief freeze was not extended to the construction industry especially as a large amount of infrastructure projects were announced in the budget.’

UKPIA has welcomed the Department for Transport’s recent announcement that they are consulting on proposals to introduce petrol blended with 10% bioethanol, otherwise known as E10. Whilst this is a recognition of the significant role that low-carbon liquid hydrocarbon fuels can play in combating carbon emissions, the downstream oil sector also urges the UK government to ensure that its introduction occurs in a pragmatic and consumer-focused way. “Introducing E10 into the UK has been under discussion for a long time, and it is a welcome development that the government are now consulting with industry on how best to implement this evolution to the fuel landscape,” said UKPIA director-general Stephen Marcos Jones.

Last month BP set out its new ambition to not only become net zero by 2050 or sooner, but also to help the world get to net zero.  The ambition is supported by ten aims:   FIVE AIMS TO GET BP TO NET ZERO:

The UK Petroleum Industry Association (UKPIA) has welcomed the Department for Business, Energy and Industrial Strategy (BEIS) funding towards hydrogen projects at Essar’s Stanlow oil refinery and a renewable hydrogen Gigastack project which involves the Humber refinery. ESSAR Funding of £13 million has been awarded to the HyNet consortium, of which Essar Oil UK is a member.  Plans include the development of a Low Carbon Hydrogen Plant at the Stanlow refinery. This will produce 3TWh of low carbon hydrogen whilst also pioneering carbon capture storage (CCS) technology to capture and store over 95% of carbon used in the process. The funding will also support a front-end engineering design (FEED) study for a new hydrogen-fired combined heat and power (CHP) at Stanlow. “The HyNet project is one of the most ambitious low-carbon industrial cluster initiatives in Europe,” said Stephen Marcos Jones, UKPIA’s director-general. “As well as showing more broadly how the downstream oil sector is vital to the UK’s ambitions to reach ‘Net Zero’ emissions by 2050, this really demonstrates just how critical the refinery is to the success of these efforts to decarbonise the economy of the north west of England. PHILLIPS 66 Working in partnership with offshore wind company Ørsted, hydrogen producers ITM Power and with funding from BEIS, the Gigastack project will allow the Phillips 66 refinery site to utilise ‘green hydrogen’ produced from renewable energy in its operations and processes. “This project illustrates the potential outlined in UKPIA’s recently published ‘Future Vision’ report,” said Stephen Marcos Jones. “The project demonstrates the major role the UK’s downstream oil sector can play in the low-carbon energy transition. Working with renewable energy companies and in cooperation with government, this investment in ‘green hydrogen’ is an indication of how UK refineries can be world-leaders in decarbonising their manufacturing operations. “Downstream oil companies such as Essar Oil UK and Phillips 66 have the experience, engineering expertise and business acumen necessary to make the transition to a low-carbon future a reality for the benefit of both industry and wider society.” 

BP has announced that Tufan Erginbilgic, chief executive of BP’s Downstream segment, has decided to leave the company at the end of March 2020. Tufan Erginbilgic has been BP’s Downstream chief executive and a member of its executive team since 2014. In his time leading the segment – which includes BP’s global fuels, lubricants and petrochemicals businesses – it has delivered over $5 billion in underlying annual earnings growth and expanded in fast-growing markets, retail partnerships, electric vehicle charging and use of bioproducts. “Under Tufan’s leadership, BP’s Downstream has been at the heart of our return to growth; what he has achieved in this time is extraordinary,” said Bernard Looney, BP chief executive. “He has transformed the business, leading a team that has delivered impressive results time and again. I have always appreciated his strategic thinking, expertise and understanding of the business and will miss having him on the team.” “I am very proud of what we have achieved together in the Downstream,” added Tufan Erginbilgic. “We have gone through an incredible transformation, delivered against our clear strategy and built a strong platform for continued growth. I truly feel privileged to have led this business – we have talented, dedicated people with great capability throughout the organisation and I am confident they have what it will take to compete and lead through the energy transition.” An engineer by training, Erginbilgic joined Mobil in 1990, transferring to BP in 1997, and has held a wide variety of roles in refining and marketing in Turkey, various European countries and the UK. He became head of BP’s European fuels business in 2004 and of its global lubricants business in 2006, before moving to head the group chief executive’s office. From 2009 he was chief operating officer for the eastern hemisphere fuels value chains and lubricants businesses. Before his current role Erginbilgic had been chief operating officer of BP’s fuels business globally, accountable for all BP’s fuels, refining and marketing activities. Erginbilgic’s successor will be announced separately.

OFTEC, which has been a leading voice in the oil heating industry for more than 25 years, is helping to equip installers with the training, skills and qualifications needed to thrive in a net zero energy market.    

Trade Associations OFTEC, TSA and UKIFDA have kicked off 2020 with the launch of a future vision for liquid fuels ‘Supply Chain Strategy for Liquid Fuels’, which details the steps to be taken towards a transition to 100% biofuel to replace heating oil in 1.5m homes across the UK and 686,000 homes across Ireland.   The three trade associations will be joined by other trade bodies and industry representatives in a new ‘Taskforce for Liquid Biofuels’, which will use the policy proposals contained in this future vision document to support a transformational effect on the UK’s off grid heating market and enable Government to maintain a technology-neutral approach, as well as encourage all industries to find solutions. UKIFDA “Liquid fuel, more specifically a bio product, can be part of the solution to achieve net zero,” said Guy Pulham CEO of UKIFDA. “Government talk about large scale electrification through the use of heat pumps, but we believe they need to look at alternatives as this is not feasible due to the high installation and running costs of heat pumps for off grid homeowners; the requirement for additional National Grid generation and infrastructure costs. Recognising the Government’s targets on reducing fuel poverty, it is important any regulation around heat policy takes this into account. We can’t stress enough that electrification through the widespread use of heat pumps is not the only conclusion, especially for vulnerable consumers who might be adversely impacted if they install solutions which reduce emissions and carbon targets but lead to higher bills.”  OFTEC “Our ‘Supply Chain Strategy for Liquid Fuels’ is a clarion call to Government to respond to the huge environmental challenges we face with practical and inspiring policies that could help the 2.2m oil heated homes in the UK and Ireland switch to a low carbon liquid fuel,” comments OFTEC chief executive Paul Rose. Following detailed independent research that suggests that the cost of decarbonising liquid fuel for heating gives the best value to the consumer when compared with other low carbon solutions, we need policies to be ambitious enough for net zero but which also reflect the practical challenges and financial constraints of many households. Low carbon liquid fuels offer the highest carbon reduction impact for the lowest cost (Based on existing SAP 10.1 figures). Analysis also shows that sustainable, low carbon liquid fuels could be produced in sufficient volume in the UK, with the additional benefit of generating investment opportunities and creating new green jobs.” TSA “Together, we have developed an ambitious and realistic pathway, one which reduces risk, achieves short- and medium-term reduction in carbon emissions, puts the needs of the consumer first and encourages business to plan ahead in order to meet those needs,” adds TSA’s chief executive, Peter Davidson. “The ‘Supply Chain Strategy for Liquid Fuels’ pathway sets five key challenges to the Government to:

Offering the best decarbonisation solution for oil heated homes, OFTEC says it’s time for government to back low carbon liquid fuels as the most practical, cost-effective solution.   OFTEC’s recently released ‘Industrial Strategy for decarbonising oil heated homes’ underlines the unique challenge of reducing heat emissions from off-grid properties presents, due to the diverse character, age, design, construction and sparse distribution of these homes.  Analysis of oil–heated properties in England alone reveals almost half were built before 1919 with hard to insulate, single-skinned walls, while 51% are detached and typically larger than average. These factors greatly contribute to their poor energy efficiency, with 97% falling into EPC Bands D-G¹.  Rural households also face additional challenges including lower disposable incomes² and significantly deeper levels of fuel poverty³. This means those least able to fund carbon reduction measures are living in the hardest and most expensive homes to treat.  OFTEC says it’s difficult to understand why current decarbonisation policy favours pushing oil heated households towards these expensive, disruptive solutions when a simpler, more affordable option can be developed which is less reliant on extensive retrofit work.  “Climate change is the biggest and most urgent challenge facing the world today and decisive action from all sectors of the economy is needed, including heat, explains Paul Rose, OFTEC CEO.   “Gaining consumer support for the necessary changes will be crucial to the success of any strategy. Without this vital part of the jigsaw, there is a risk that decarbonisation targets simply won’t be met.”  “Our strategy is based on in-depth, independent research which shows that for oil heated properties, low carbon liquid fuels offer the highest carbon reduction impact for the lowest cost⁴. Analysis also shows that sustainable, low carbon liquid fuels could be produced in sufficient volume in the UK, with the additional benefit of generating investment opportunities and creating new green jobs.  “Our industry is committed to delivering a 100% liquid biofuel by 2035, starting with a 30% biofuel and 70% kerosene blend from 2027, providing a fit-for-purpose solution which will command the confidence of consumers.  “OFTEC continues to work closely with the Department of Business, Energy and Industrial Strategy (BEIS) and other key stakeholders to gain support for low carbon liquid fuels but to achieve the wholesale changes required and successfully deploy this solution, full government backing will be required.”  http://bit.ly/OFTECStrategy  ¹ BEIS Minister Written Answer, 29/10/2018 based on Analysis of National Housing Model input data, drawing from English Housing Survey 2014, Scottish Housing Condition Survey 2014, Welsh Housing Conditions Survey 2014  ² DEFRA Statistical digest of rural England, June 2019  ³ Renewable Energy Association Phase 3: Delivering the UK’s Bioenergy Potential  ⁴ Based on existing SAP 10.1 figures     

The UK Petroleum Industry Association (UKPIA) has launched an energy manifesto ahead of the December general election, calling on the next Government to take the actions needed to strengthen the UK’s economically vital downstream oil sector whilst supporting the industry’s evolution to contribute to ‘Net Zero’ carbon emissions goals by 2050. UKPIA’s energy manifesto, Action Not Words, highlights three key areas that need to be addressed in the next parliamentary term to ensure the continued success of the downstream oil sector – an industry that currently supports 300,000 jobs and £21.2 billion to GDP – whilst laying the policy framework that will enable companies to pursue the development of low-carbon energy solutions.

Worcester Bosch has met with the chancellor of the exchequer, Sajid Javid MP, to present its developments in low-carbon heating technology.

The above topics will be among those being discussed today by two industry bodies – APEA Live and The Fuellers  

Certas Energy has overseen the collaboration with the British Truck Racing Association (BTRA) and Shell to obtain FIA approval on the use of a cleaner burning diesel alternative fuel.

Commenting on the findings in Oil & Gas UK’s 2019 Economic Report ‘Roadmap to 2035: A Blueprint for net-zero’, published on 4th September, Graham Hollis, senior partner for Deloitte in Aberdeen, said:

OFTEC has been working alongside BEIS and other heating industry organisations to compile a questionnaire for installers to complete.  The news release launching this survey is below.  Please note, you only have until MONDAY 30TH SEPTEMBER to respond.

Bob Taylor, managing director of Watson Fuels – the company ‘offers a suite of high-quality products and consultancy services to help construction businesses maximise efficiency while reducing the environmental impact of their vehicles and machinery’ In October, Watson Fuels will not only be supporting the sponsorship of the 2019 British Construction Industry Awards (BCIAs) for the seventh year running, the company will also be sponsoring the Environment and Sustainability Initiative of the Year award. The BCIAs are the construction sector’s most prestigious Awards. The Awards recognise and reward excellence in project delivery, with the annual ceremony attended by over 1,000 senior executives from key industry leaders and stakeholders. Reducing the impact of construction projects and activity on the natural environment, and specifically reducing associated carbon emissions, has become a dominant theme within the industry in recent years. With projects in Low Emission Zones now often subject to stringent environmental legislation, the importance of environmental and sustainability-related initiatives and innovations is crucial. “Environmental efficiency is now at the fore of the construction sector, so it’s important to recognise key achievements in this area,” commented Bob Taylor, managing director, Watson Fuels which strives to be environmentally conscious in everything it does. As an official distributor of Texaco lubricants and Esso Diesel Efficient™ fuel, among other industry-leading brands, Watson Fuels offers a suite of high-quality products and consultancy services to help construction businesses maximise efficiency while reducing the environmental impact of their vehicles and machinery. The British Construction Industry Awards Ceremony will take place on Wednesday 9th October 2019, at the JW Marriott Grosvenor House Hotel in Mayfair, London, where winners of each of the 16 categories will be revealed.

With a shelf-life of up to 10 years, Crown Oil is backing HVO, which can be used as a drop-in replacement for regular diesel and gas oil with the approval of several major OEMs Crown Oil has invested in a stock of carbon-neutral, renewable and sustainable HVO biofuel in a bid to shift demand in the UK industrial sector from diesel and gas oil to an alternative with a vastly reduced environmental impact. This makes Crown Oil the only UK fuel supplier that can supply the synthetic premium biofuel in any quantity, within the same delivery times as all its other products. “Our commitment to the environment makes us acutely aware of the impact the fuel industry has on global warming, so we are always looking to reduce our footprint in every way we can,” commented Crown Oil’s managing director, Matt Greensmith. “We are still working towards reaching our own in-house goal of net zero emissions, but at the same time, we can help other businesses achieve their targets too.”

As in all sectors, the downstream oil sector needs to consider how it can contribute to decarbonisation goals, whilst providing security, reliability and affordable products to wider society.  Future Vision – the latest in a series of publications from UKPIA – seeks to provide a clear vision for the industry’s future. UKPIA members include key industry players – BP, Essar, ExxonMobil, Petroineos, Philips 66, Shell, Total and Valero with associate members Certas Energy, CLH, Dragon LNG, Local Fuel, National Grid and Puma Energy. “UKPIA has set out to paint a vivid picture of the range of possibilities on offer for the refining and fuel marketing industries,” said Stephen Marcos Jones, UKPIA director-general. “We also outline the opportunities available through innovation to achieve a circular economy thanks to developments in feedstocks, operations, fuels and products. UKPIA’s vision for the long-term future of the downstream oil sector is a positive one. “It is a future where new, low-carbon1 liquid fuels and products can make as much of a contribution to decarbonising the transport we use as can Electric Vehicles (EVs). Where refinery manufacturing processes can operate with maximum efficiency, potentially utilising carbon-reducing technologies such as carbon capture or, working with other sectors in industrial clusters to decarbonise together.  Where individual downstream oil companies can utilise their expertise and infrastructure to deliver low-carbon fuels and products directly to the consumer, potentially in an entirely reimagined forecourt experience. The UKPIA Future Vision: The Downstream Oil Sector in a Low-Carbon World report can be downloaded here – http://ukpia.com.publications              

Certas Energy has just released a new report entitled The Future of Liquid Fuels – the first in the New Energy Reality Series, the paper outlines how alternative fuels have a key role to play in the transition to a zero emissions future. Authored by Certas Energy product manager Rebecca Swann, the paper also explores what the current liquid fuel mix looks like and offers an insight into how these fuels can support the transport sector with the commercial challenges of reducing emission levels. This new series builds on Certas Energy’s Alternative Guide to Navigating the New Energy Mix published last year. “At present, our research shows that only 1% of commercial businesses that could be benefitting from the social, environmental and commercial advantages of a drop-in alternative liquid fuel, are currently doing so,” said Rebecca. “Certas Energy is clear that liquid fuel, whether oil for domestic or commercial heating or fuel for ‘on’ and ‘off-road’ applications, must play its part in moving towards cleaner air – and ultimately – a zero emission end point for the UK economy. Download the report at https://www.certasenergy.co.uk/my-business/future-of-liquid-fuels    

“We must focus on solutions that will address the unique issues associated with hard to treat rural properties,” says OFTEC’s CEO Paul Rose On Tuesday 18th June, OFTEC will be unveiling the results of its independent research into how oil-heated homes can best transition to a low-to-zero carbon heating solution and reduce their overall emissions.    The unveiling will take place at OFTEC’s annual conference when industry leaders unite to discuss the progress made and the next steps towards securing a sustainable future for the off-grid sector.