News 41
Centre Tank Services Ltd (CTS) has added another reputable, quality, and well-known brand to its list of distributorships with the announcement that it is the new agent of GoldenRod fuel tank filters for the UK and Ireland.
Goldenrod has been a leading filter brand, particularly popular in the agricultural market thanks to their compatibility with gravity systems, for many years. Their range of filters, designed for the removal of either particles or water content from diesel, petrol, kerosene and biofuels, includes the 495 Fuel Tank Filter, 496 Water Block Fuel Tank Filter and 497 BIO-FLO Fuel Tank Filter.
GoldenRod filters from US based Dutton-Lainson group, are widely recognised in the fuel industry thanks to their distinctive amber coloured bowl. Dutton Lainson were established in 1886 and have gone from a manufacturer of agricultural goods, to a leading manufacturer of quality products for the agricultural, marine, industrial, and automotive markets all over the world. This includes their market leading GoldenRod fuel tank filter range, making them a perfect addition to the distributorships held by Centre Tank Services.
As the new agent for the UK and Ireland, CTS has heavily invested in stock levels to remain a reliable source to its network of distributors.
Buyers or resellers should contact CTS for trade and quantity-based pricing.
Shrewsbury-based Morris Lubricants, which celebrated its 150th birthday last December, has received the green light from its board to invest £1.6m in two major projects to improve production and reception facilities.
The first project will see production lines brought together in one location at the Castle Foregate works and a brand-new array of storage tanks installed to serve them.
“Workflow and material handling will be optimised and blending facilities will be enhanced to enable us to make smaller volumes of lubricants more efficiently,” said managing director Chris Slezakowski. “This will meet the needs of a changing market where our range of premium products is a key strength.”
The second project will refurbish and upgrade the reception area of the company’s offices to provide up-to-date meeting facilities befitting a leading supplier of premium lubricants.
Both projects will be led by Steve Reading, group engineering manager, who last year designed and managed the installation of a new £200,000 digitally controlled bulk filling line.
“The time scale for completion of the production facilities is around two years because it’s important that we maintain supplies while carrying out the work,” added Slezakowski. “We will be relocating stores, production lines and workstations to free up space to build the new facilities. The reception area project will be completed much quicker.
“I am excited about the board’s confidence in the business and the benefits that these investments will bring to the long-term future of Morris Lubricants.”
The Covid-19 outbreak may have delayed this process and there will be a review in July to see how it can progress. The investment demonstrates the necessity to be constantly forward thinking as well as the company’s ambition to come out of this crisis stronger and more efficient than ever. In addition to the new bulk filling line, Morris Lubricants also invested £150,000 last year to improve its delivery service, ensuring that most customers receive their orders within 48 hours. The company is also expected to announce plans, later this year, to develop its sister business, GB Lubricants in Gateshead.
With a brand-new website and the introduction of a sister company, Halso UK Fuels Ltd continues its exciting journey from modest beginnings to a thriving business recognised as one of the country’s experts in petroleum, gas & oil supply and distribution.
Progressing from its launch in a caravan in 1967 through the wooden huts which still exist to the current modern offices it has always been renowned for excellent customer care and service which remain second to none.
Supplying fuels to industrial, commercial and domestic customers, this family run business is now in its third generation. Emma Osborn-Wilkes, granddaughter of founder Sid Osborn, is managing director of both Halso and its new sister company EL Oils which has been trading in some capacity for the last 50 years.
Emma commented; “We still supply fuel, oils and lubricants to our local farmers and domestic, residential customers but now we also service commercial clients nationwide.
“It was little over 12 months ago we decided to diversify, offering our lubricants, oils and greases under our sister brand EL Oils. We find this to be a much cleaner way of showcasing our varied product portfolio.”
Emma continued; “Halso continues to be our brand for fuel management and distillates, and EL Oils offers our additional products, as well as services including tank cleaning, oil changes and tank monitoring.
“EL Oils, like Halso, is a very proud family business with high standards offering a personal service to all customers. We want to seamlessly support all of our commercial or domestic clients with their fuel, oil and lubricant needs. It’s our job to power your business and home.”
An agreement to extend the deal on record production cuts until the end of July which was reached at a virtual meeting of OPEC+ on 4 June, saw oil prices climb to their highest level in 3 months.
In addition to the extension, it was announced that Saudi Arabia will be reversing nearly all the discounts on its crude, with some of the increases resulting in the sharpest jumps in over 20 years.
Michael Burns, energy partner at law firm Ashurst, commented; “The extension of cuts has seen prices rise. Hopefully this provides a platform for companies that a few weeks ago were looking extremely challenged to build from. However, the fall in demand from coronavirus remains a real issue for markets and companies to wrestle with.”
The days running up to the meeting saw prices rise to almost $40/bbl as expectations grew for an extension of the OPEC+ production cut, with OPEC and Russia reportedly moving closer to an agreement for the July and August period then dropping back as doubts began to emerge over the next step.
Russia and Saudi Arabia’s relations were in the spotlight once again during the virtual meeting, brought forward from the 9 June, with Moscow indicating a desire to ease constraints on cuts, while the Kingdom showed its preference for measures to remain the same throughout July. The outcome was a victory for both however, who put their price war behind them to jointly persuade Nigeria, Iraq and others to fulfil their promises to cut production.
It was in April during the first wave of the COVID-19 pandemic, that OPEC+ agreed to cut output by a record 9.7 million barrels per day, equivalent to around 10% of global output. This decision was made in order to lift prices that had dropped dramatically due to near-worldwide lockdown measures. The resultant reduction in output not only from OPEC+ members (predominantly Saudi Arabia and Russia) but also from the USA and Canada, helped to lift oil prices back around $35 per barrel.
With several countries easing lockdown measures creating fears of a second wave of the virus, the decision to extend production cuts for one month, whilst falling short of market hopes, will help to underpin the oil market’s recovery and could see prices rise to as much as $50 a barrel.
The cartel will meet in the second half of the month to review the oil market once again with the next full ministerial OPEC+ meeting scheduled for 30 November.
In planning prior to the Coronavirus lockdown, North Yorkshire-based independent fuel oil supplier, Kettlewell Fuels has now completed a management buyout (MBO) by its senior leadership team.
Managed by Janet and Trevor Kettlewell since 1996, the MBO means the husband and wife team takes ownership of the business outright from the Kettlewell family, which also owns other family businesses.
Continuing as a Phillips 66 authorised JET distributor, it is business as usual for customers of the company which delivers domestic heating oil, agricultural gas oil and commercial DERV to homes, farms and businesses across North Yorkshire. Janet Kettlewell retains responsibility for the operational and customer service side of the business and the same experienced and friendly, local customer service team will continue to help customers make the right fuel choices for their needs.
Trevor Kettlewell will carry on managing the fleet and delivery logistics supported by the highly trained Kettlewell Fuels drivers who ensure customers receive a swift, reliable delivery service in a safe and timely manner.
Expanding the team and premises
Strengthening the company’s management team, Janet and Trevor are delighted to be joined on the board of directors by John Skinner. John was previously finance director and company secretary for 15 years at one of Yorkshire’s leading estate agents, having experience also in the healthcare, packaging and banking sectors.
The MBO also provides the opportunity for the business to move to larger premises which will still be within the Melmerby area. Commenting on the MBO, Janet Kettlewell said; “It’s another step forward in Kettlewell Fuels’ 33-year history.
“Kettlewell Fuels is more than just a business to us. Taking sole control means we will be in a position to focus our energies on offering our customers a service that suits their changing needs whilst ensuring they continue to receive the outstanding level of service that has enabled us to grow the business. Our relationship with the other Kettlewell companies, Kettlewell Commercials and M Kettlewell (Melmerby), will continue and we’re really looking forward to exciting times ahead.”
Advisory assistance was provided by law firm Schofield Sweeney and accountants Saffery Champness, with completion taking place at a safe social distance in line with government guidance.
Martin Holden, who advised on behalf of Saffery Champness, said; “Janet and Trevor have some exciting plans for the future direction of the business and this MBO provides a strong foundation for growth.
“We are delighted to have been able to offer the support they needed to achieve their ambition and look forward to watching the business flourish under their continued leadership.”
David Strachan, who led the Schofield Sweeney team, added; “My colleague Lucy Holroyd and I were also delighted to advise on this significant development for Kettlewell Fuels, and we wish the company every success in future”.
BP has announced plans to cut 10,000 jobs worldwide following the global slump in demand for oil. Having paused redundancies during the peak of the pandemic the CEO of the oil giant told staff at the start of this week that the company is responding to the economic fallout of the Covid-19 pandemic.
Chief executive Bernard Looney laid the blame squarely at the door of the drop in oil prices and the global collapse in demand for oil owing to the coronavirus pandemic as he told staff; “You are already aware that, beyond the clear human tragedy, there has been widespread economic fallout, along with consequences for our industry and our company.
“The oil price has plunged well below the level we need to turn a profit. We are spending much, much more than we make – I am talking millions of dollars, every day. And as a result, our net debt rose by $6bn in the first quarter.”
An industry reducing costs
The job losses represent about 15% of the oil group’s 70,000 staff worldwide with the jobs due to go by the end of the year. The London-headquartered group has not said how many jobs will be lost in the UK but it is thought the figure could be close to 2,000. BP employs around 15,000 people in the UK with the firm’s office-based workers expected to bear the brunt of the redundancies which will not affect any of its retail staff.
The changes are expected to significantly impact its senior ranks, cutting the number of group leaders by a third with the company saying it will make the senior structure flatter. The CEO emphasised that BP must reinvent itself and emerge from the crisis a “leaner, faster-moving and lower carbon company”.
Looney, who took over as chief executive of 111-year-old BP in February, said: “We will now begin a process that will see close to 10,000 people leaving BP – most by the end of this year. The majority of people affected will be in office-based jobs. We are protecting the frontline of the company and, as always, prioritising safe and reliable operations.”
The Brent crude oil price started the year at about $64 (£50) a barrel but plunged as low as $19 in April as the pandemic took hold. It has since recovered to about $35 a barrel but the drop has taken its toll on the industry.
Professor David Elmes, energy expert from Warwick Business School, said; “The job losses at BP are symptomatic of the wider challenges facing the industry.
“Coronavirus has reduced oil demand and the price per barrel has plummeted, but that has happened in a wider context of short-term and long-term decline.”
“All firms in the sector will all be looking at how they can cut costs, shift their activities to the lowest cost field, trim investment, and thinking hard about what dividend they can pay.”
The latest addition to the Crown Oil tanker fleet is ready to deliver HVO across the UK.
The 8-wheeler DAF tanker joined Crown Oil’s fleet last week, and with the registration number BIO HVO, it is no secret as to what it will be carrying across the country.
A spokesperson for Bury based Crown Oil, said; “We’re excited to announce a brand new edition to our fleet! Our green tanker is ready to deliver our green diesel across the UK.”
Speedy Fuels and Lubricants, a member of the Crown Group established in 2012 to serve the London region, also added a 6-wheeler DAF tanker to its own fleet in March this year. The company, which has gone from strength to strength and now deliver to customers nationwide also uses its new tanker to transport HVO.
Find out more about Crown Oil’s journey into low carbon fuels in the next issue of Fuel Oil News out in July.
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Last week, in another significant industry step towards contributing to the UK Government’s Net zero objectives, Phillips 66, Uniper and VPI Immingham announced a memorandum of understanding to co-develop Humber Zero.
A multi-million pound carbon capture and hydrogen project on the South Humber Bank, Humber Zero will decarbonise eight million tonnes per annum of CO2 emissions, with the potential to target 30 million tonnes of CO2 emissions from the wider Humber cluster to the west of Immingham
Recent changes to Government advice on the use of face covers mean it is now recommended that individuals cover their faces when out in public to help stop the spread of COVID-19.
In a generous response, Northern-based Craggs Energy has sprung into action and produced over 1,200 face covers which have been distributed free to customers and communities across Yorkshire and the North West.
Chris Bingham, CEO at Craggs Energy said; “As keyworkers, we have adapted the way we work and our number one priority is the safety and wellbeing of our colleagues, their families and our whole community. We are determined to help as best we can and give something back.
“We already produce our own water removal device called a TankSponge Eco and we decided to engage this resource to start making the face covers. All of the face covers we have produced are free of charge and we are looking to supply two per customer with an instructional leaflet on how best to use.”
Lee Roe, Ribble FM director & station manager who manages the Ribble FM’s COVID-19 support programme said; “Craggs Energy has donated 50 face covers to our COVID-19 support programme which are designed to be used when out and about. They conform to government specifications for shielding masks and are designed to be worn when shopping etc. These are totally free and available to those who require this protection the most.
“There are so many people who just don’t get looked after these days but with the generosity of local companies like Craggs Energy and the exposure from Ribble FM together we are looking to change that.”
The initial response has been overwhelming and almost all Craggs Energy customers have jumped at the chance for the free face covers which are available to all domestic, commercial and agricultural customers.
Craggs Energy is also working with local initiatives like the Ribble FM Support Programme and the Overgate Hospice to provide bulk donations to local communities in the North West and throughout Yorkshire.
The leading representative body for the UK’s offshore oil and gas industry, OGUK, has called for the transition to net-zero greenhouse gas emissions to be at the heart of its recovery plan after a stark warning that up to 30,000 industry jobs could be lost.
UKIFDA has submitted its views on the Government’s consultation on the introduction of E10 petrol at filling stations across the UK which closed on 3 May and called for views from industry on the best way to introduce E10 petrol as the standard grade of petrol at forecourts from 2021.
“We have expressed our full support for the Government’s proposals to replace the 95 E5 Premium grade petrol with E10 petrol, and think a direct replacement is the right way to ensure successful implementation and take-up by consumers,” says Guy Pulham, UKIFDA chief executive.
“The introduction of E10 petrol would drastically reduce emissions from petrol vehicles – according to the Government, it could lead to a CO2 saving of 750,000 tonnes, which is equivalent in emissions reductions to taking up to 350,000 cars off the road every year.
“We agree that increasing the bioethanol percentage from up to 5% in current E5 petrol to up to 10% in E10 petrol can only be a good thing. The E10 blend is already in use in other countries across Europe including France, Germany, Belgium and Finland, and its introduction in the UK is very welcome – where the majority of petrol cars could use E10 petrol from its introduction.”
Since 2011, all modern petrol cars have been designed to use E10 effectively, and most petrol cars since 2000 have also been certified to use the proposed blend. However, there is still a small number of older and classic cars not able to use E10, which is why the Government is proposing the ongoing availability of E5 petrol.
As a fifth-generation family business that has been operating in East Yorkshire for more than 140 years, J.R. Rix & Sons has always believed in supporting the local community.
That’s why during the coronavirus outbreak, the company has gone out of its way to provide help and resources to local businesses and organisations hit by the pandemic, and those fighting to contain it.
In one such move, J.R. Rix & Sons donated £10,000 to entrepreneur Alex Youden who designed a face mask and respirator that protects frontline medical staff against COVID-19.
Alex makes the masks on this 3D printer and the donation enabled him to buy raw materials. J.R. Rix & Sons also provided furloughed volunteers to help distribute the PPE.
The family business has also dug deep within its own stores to donate products to help protect people and to carry on with daily life.
Rix-owned businesses Rix Petroleum, Victory Leisure Homes and Jordans Cars donated spare PPE to frontline workers at Hull City Council, and the business gave a number of used laptops to underprivileged children at a primary school, enabling them to continue their education at home.
Victory Leisure Homes, the group’s holiday home and lodge manufacturing business, is also making an isolation unit for a local care home, so elderly residents can receive visits from family members.
Rory Clarke, managing director of J.R. Rix & Sons, said everyone had to pull together during the crisis and the company was delighted to do what it could.
He said: “We’ve said from the start of the outbreak that it is the duty of everyone who can help to do so.
“As a fifth-generation family company with deep ties to our local community, we’ve tried to do that in as many was as we can.”
FTA, the business organisation representing the logistics sector, has learned this month that the long-awaited LGD Driver Apprenticeship Standard for Cat C+E licences, is to be published this summer.
As Mags Simpson, policy manager at FTA, explains, the standard cannot come quickly enough for an industry which has been plagued with skills shortages in recent years; “The news that the C+E apprenticeship standard has finally been approved for roll out is great news for our sector,” she says.
“It is testament to the hard work of the Apprenticeships Trailblazer group, co-chaired by Jim French and Gary Austin, which we have been in constant contact with. This new standard will give operators from across logistics the opportunity to draw down from the Apprenticeship Levy fund and start to develop the logistics stars of tomorrow – an opportunity previously denied to the industry due to the lack of appropriate standards against which to train staff.
“To date, the logistics sector has paid over £410 million into the Apprenticeship Levy pot, but only 10% of these funds have so far been drawn down, due, to a large extent, to the fact that no appropriate standard was available for businesses to utilise. Now that the sector has an apprenticeship standard relevant to its recruitment needs, we will be able to train candidates towards achieving a full LGV licence, and this in turn will ensure that those individuals will not be prohibited in the type of work they go on to do across the industry.”
In further good news for the sector, Ms Simpson has reasserted FTA’s commitment to ensuring that further apprenticeship standards are developed and accepted for other employment opportunities.
“We continue to work with the Trailblazer group to ensure that the sector will have access to the skilled workforce it needs moving forwards. Our next priority is to gain accreditation for the Urban Delivery standard, as well as progressing the Transport and Warehouse Supervisor L3 apprenticeship, which is already under way. We all know how much variety and enjoyment can be gained from a role in logistics and we look forward as an industry to welcoming the skilled workforce of tomorrow once these standards are approved.”
With many companies reconfiguring production lines, or starting up new ones, to increase the supply of hand sanitiser in response to the current pandemic, companies are being urged to consider the incendiary risk.
Industry groups like the Solvents Industry Association are concerned with reports of inappropriate packaging of solvents and an incident of a static discharge igniting vapours present on an operator’s hand after the application of hand sanitiser.
Mike O’Brien, managing director of Newson Gale, considers the approaches that can be taken in terms of managing the risk of solvents (including alcohols) being ignited by uncontrolled discharges of electrostatic sparks in a recently released guidance note.
The importance of grounding people
Managers of facilities where operators have exposure to potentially flammable or combustible atmospheres need to ensure the operators are grounded. This is because people isolated from a ground source (e.g. flooring capable of dissipating static charge to earth) can accumulate large electrical potentials beyond 20,000 volts without even realising it until they discharge a spark.
In addition, if operators are regularly applying hand sanitisers, either inside or outside a designated hazardous area, it is important to ensure that they do not have the potential to accumulate electrostatic charge on their bodies.
Ignition of vapours emanating from the hand can occur if the person approaches or touches a grounded object such as a door handle or stair railing, resulting in a static spark discharge with enough energy to ignite the vapour.
The most effective means of grounding personnel is safety footwear that meets the required static dissipative criteria and testing all footwear prior to entry into the facility is recommended. Easy to use footwear testers can be installed at designated entry points to hazardous areas in the facility.
Such testers utilise a simple plate on which an individual stands, with their safety shoes on, and presses a button with their index finger. If the resistance threshold of the shoes is below the required level, the test will indicate a positive output with a green LED indicator which
provides the operator with a “GOOD-TO-GO” message to enter the hazardous area.
If the shoes fail the test the indicator will stay red and the tester’s buzzer alarm will activate. At this point the operator should not enter the hazardous area and should report the failed shoe test.
Containers used in production and transportation
In relation to the use of containers, they should, ideally, be of an all metal construction so that when they are grounded, electrostatic charge cannot accumulate on the surface of the container. If the supply or use of fully metal IBCs is not possible, then the metal cages that contain the plastic container should be grounded. Splash filling should be avoided as this increases the rate of charge generation.
If electrostatic charge is permitted to accumulate the voltage of the IBC will rise very rapidly and result in this energy being discharged in the form of an electrostatic spark onto a grounded object like an operator. If the spark energy is sufficiently high, it will ignite the surrounding vapours with little effort.
It is not possible to cover every potential process involving the use of solvents. A more comprehensive summary can be viewed on the European Solvents Industry Group website.
https://www.esig.org/solvents-and-static-electricity/
Organiser of UKIFDA EXPO 2020, the UK and Ireland Fuel Distributors Association (UKIFDA) has taken the decision to cancel the 2020 exhibition due to take place on 18 & 19 August at the Exhibition Centre Liverpool.
Guy Pulham CEO of UKIFDA says; “Following the publication of the Government’s Plan To Rebuild Strategy, UKIFDA has been working with Exhibition Centre Liverpool (ECL) on ways in which the 2020 EXPO could be safely organised and hosted. As you know, we have worked hard to try and keep the 2020 event in the calendar as a positive marker of lives returning to some sort of normality.
“In the end, and with great reluctance, we have concluded that it is just not possible to safely run the event that our members, exhibitors and delegates would want – namely a large-scale, high quality event where business gets done. The lack of clarity in the government plan from July onwards (unavoidable given that future stages depends on how the early stages progress) means that we do not know if
Becoming the fourth oil major to commit to ‘net zero’, Total has announced its target of net zero emissions in Europe by 2050. The company has also committed to becoming carbon-neutral across its worldwide operations by 2050 or sooner and confirmed its target of a renewable generation gross capacity of 25GW in 2025.
Patrick Pouyanné, chairman of Total’s board, declared; “Energy markets are changing, driven by climate change, technology and societal expectations. Total is committed to helping solve the dual challenge of providing more energy with fewer emissions. The Board believes that Total’s global roadmap, strategy and actions set out a path that is consistent with goals of the Paris agreement.
Emphasising the role the company has to play in the future energy transition, Patrick continued; “Only by remaining a world-class investment can we most effectively play our part in advancing a low carbon future. This is the reason why our people are already in action across Total, seeking opportunities to reduce our emissions, improve our products and develop new low-carbon businesses.”
This ambition is supported by the strategy to develop Total as a broad-energy company, with oil and gas, low-carbon electricity, and carbon-neutrality solutions as integrated parts of its business.
Total says the new climate strategy is already in action as the firm has already achieved a 6% reduction of its average indirect carbon intensity since 2015.
Active support of the energy transition
Regarding the commitment to become a net-zero energy business in Europe, Patrick commented; “As the EU has set the target to achieve net zero emissions by 2050 and thereby lead the way for other regions to become carbon neutral over time, Total takes that commitment to become neutral for all its businesses in Europe. Total wants to be an exemplary European corporate Citizen and offers its active support for the EU to achieve net zero emissions by 2050. Total will work together with other businesses to enable decarbonization of energy use.”
Total confirms its target of a renewable generation gross capacity of 25 GW in 2025 and will continue to expand its business to become a leading international player in renewable energies. Total currently allocates more than 10% of its Capex to low carbon electricity, the highest level among the oil majors. To actively contribute to the energy transition, Total will further increase its allocation of Capex in favour of low carbon electricity to 20% by 2030 or sooner.
Certas Energy is supporting forecourt retailers with the launch of a new online resource that offers free access to personal wellbeing tools, learning courses and discounts from leading brands.
Certas Energy Dealer Rewards provides tailored wellbeing programmes that can help forecourt retailers and their employees to improve their personal wellbeing and navigate these challenging times.
The platform’s online learning resources offer hundreds of courses to support professional growth, with categories including Business & Management, Health & Psychology, Technology and many more.
Richard Billington, retail director at Certas Energy, commented; “Our team is working non-stop to find creative solutions to support our dealers and their workforce throughout and beyond this national emergency. What’s been difficult for many people is finding new ways to spend the additional hours we’re all at home – whether it’s business as usual or not.
“That’s why I’m delighted to launch Certas Energy Dealer Rewards to help our retail network and their teams get the best from this extra time at home. With its wide range of learning and wellbeing tools, we hope our colleagues will find the platform to be a useful resource for personal and professional development as we prepare for the time when we can all return to normality.”
Certas Energy Dealer Rewards is available to all Gulf and Pace dealer employees at no additional cost.
Joining forces with its retail dealers to show appreciation to our front-line NHS heroes, Essar is supporting them with 10p per litre discount off their fuel.
In a move that took effect from 7th May, NHS staff can claim their discount when filling up their personal cars at Essar branded retail forecourts by simply showing their NHS ID cards at the till point.
Ramsay MacDonald, Essar head of retail, said; “There aren’t many people who deserve to be rewarded more during the Coronavirus outbreak than NHS workers. We hope providing them with a discount is a small way for the energy industry to show its appreciation to them.”
“Essar recognises the extraordinary job that NHS workers are doing to care for others, and they deserve all our support through this crisis. We have been delighted with the great response from Essar dealers, who have enthusiastically helped deliver this recognition across our dealer network.”
Terms and conditions apply. To find out more visit the Essar website: www.essar.co.uk
In a move that could be viewed as a bellwether for the UK’s energy sector, leading training centres Survivex, in Aberdeen, and AIS Training, in Newcastle, reopened this week after enforced closure due to coronavirus. As part of 3T Energy Group which counts BP, Shell and Total among its clients and is the UK’s biggest training provider to the sector, the reopening of the two world-renowned training centres, indicates an industry gearing back up after the lockdown and the impacts of the global pandemic.
Kevin Franklin, CEO of 3T Energy Group says: “We have adapted to the ‘new normal’ by leaving no stone unturned in ensuring our sites are the safest on the market. We have worked day and night since March to adapt to the Coronavirus challenge, and we are now ready for the post lockdown training environment.”
Ahead of the reopening 3T carried out full, detailed risk assessments at both facilities, implementing even more stringent measures to ensure the safety of everyone on site including on-site medical questionnaires and checks, temperature checks, and operating at 20% capacity with reconfigured classrooms to allow for safe reopening as well as daily protocol reviews. The company has also been using the downtime caused to develop world-first technology-driven training techniques for launch to the market soon, parts of which will be rolled into its training centres immediately. State-of-the-art video technology and tablet use are now in place in every relevant location.
Helping to get the sector moving again
With 3T specialising in training delegates in critical skills for use across the whole energy sector, including onshore and offshore Oil & Gas, the reopening of the centres represents a turning point following Coronavirus-related disruption. Many delegates have not been able to complete essential training and refresher courses that allow them to safely carry out their duties on site.
Paul Stonebanks, president of 3T Energy Group, says: “Health and safety training is an essential cog in many industries, but none more so than energy. Delegates need to be able to continue their development and access refresher training on their skills so that they are ready to go back on to site, whether that’s offshore or onshore.
“Over the past few months, we have been developing new technology that will truly revolutionise training in the energy industry. We’ll be rolling that out in due course, but for the time being we’ve included some of this into the training centres to ensure customers receive the very best service in the market.”
As Kevin adds; “We would categorically not be reopening if we could not provide a safe environment. We are the number one training provider for a reason and our dedication to safety on site is second to none – the measures we have put in place are testament to that. These precautions are the new normal.“Our facilities have been upgraded to combat Coronavirus and have changed completely as a result, without compromising quality of training. Customers and staff go through rigorous entrance procedures to maintain the new standard and protect all employees and delegates”.
Paul concludes; “We’re glad to be doing our bit to help the sector and the local and UK economy get moving again.”
UKIFDA says off grid homeowners across Great Britain are seeing prices of heating oil drop by up to 27% since the same time last year, according to the latest figures from Sutherland Tables, a provider of comparative home heating costs for the most common fuels in the UK and Republic of Ireland.
This drop has prompted UKIFDA to urge households who use oil to heat their home to reap the rewards of using liquid fuel as their heating source and to consider how they can benefit from these low prices and also consider their future energy options.
Guy Pulham, CEO of UKIFDA comments; “The Sutherland Tables data is fantastic news for everyone using heating oil as it confirms that this form of energy is the cheapest right now. The price of oil has continued to fall over the last quarter and the cost of home heating using oil is now cheaper than gas heating, regardless of the type of property you live in or whether you have a conventional or condensing boiler. The latest data shows that families in an average 3-bedroom house with an oil boiler in Great Britain are paying around £808 a year for heating and hot water, compared to £938 for those using a gas boiler, £1392 for those using air source heat pumps with underfloor heating, £1502 for wood pellets, £1551 for those using LPG, £1819 for those with air source heat pump with radiators and £2084 per annum for those on Electric.
“At the same time as enjoying low prices we do want to help domestic consumers of oil in the UK and Ireland understand how the decarbonisation of off-gas grid home heating could impact their home and impact the choices they need to make either now or in the future. As a result, we have over the last year been working with our Members and other trade associations on a pathway to decarbonising liquid fuel to help consumers find a personal pathway that fits the finances of the household but still contributes to lower carbon emissions in a timescale that meets net zero goals.”
The UK Government has outlined its intentions to replace the Renewable Heat Incentive (RHI) with a new Clean Heat Grant which aims to help households and businesses decarbonise through technology and push the nation towards its net-zero target for 2050 by phasing out high carbon fossil fuel heating.
In the Government’s publication of its consultation on future support for low carbon heat its proposal to make grants of £4,000 available for consumers wishing to replace fossil fuel boilers has drawn particular attention. The grant would provide support for heat pumps and, in limited circumstances, biomass and would replace the Domestic RHI tariff scheme which is due to close on March 31, 2022.
In its introduction to the consultation BEIS highlights that currently, heating our homes, businesses and industry is responsible for a third of the UK’s greenhouse gas emissions meaning that the decarbonisation of heat is one of the biggest challenges faced in meeting climate targets. The government Heat and Buildings Strategy which will be published later this year will set out actions to reduce emissions from buildings.
The government is considering a range of measures to improve energy efficiency and support the move to low carbon heating and has pledged significant financial support. The consultation sets out plans for a successor to the current RHI scheme – a Clean Heat Grant scheme – to help deliver the phase-out of high carbon fossil fuel heating. The stated aim is to build on the 2017 Clean Growth Strategy, with its announced intention to phase out the installation of high carbon fossil fuels in the 2020s for properties off gas grid.
According to BEIS, the grant will support the deployment of air source, ground source and water source heat pumps and high and low temperature systems, but hybrid heat pumps will not be included.
The full consultation, including details on how to respond, is available online at: https://tinyurl.com/ydyhzvb5
In the context of the biggest replacement investment in the company’s history, the HOYER Group has taken delivery of more than 500 new trucks throughout Europe, for which it has invested around 42.7 million Euro, to transport mineral oil, chemical products and gases. The trucks have innovative technologies that more than fulfil the legal requirements relating to safety and offer added value with regard to economic efficiency and environmental protection.
The HOYER Group ordered the majority of the trucks to supply mineral oil in Great Britain whilst commissioning the latest generation of trucks from Volvo for supplies to service stations in Germany. The first units have already been delivered, and the entire fleet will be gradually replaced by the end of 2020.
According to Rudolf Schumacher, Fleet Manager of the HOYER Group in Dormagen, Germany: “The safety of our drivers and of other road users has top priority. We transport highly sensitive goods every day and consider it our duty to reduce risks and dangers to the absolute minimum.”
“Thanks to our fleet’s innovative safety equipment, we more than satisfy the legal requirements and set standards in the sector. Moreover, we emphasise the continuous instruction and further education of our personnel. We regularly and intensively train our drivers on the topic of safety in the framework of classroom training sessions and online training courses.”
The trucks are fitted with new-generation Euro-6 engines that offer added value regarding economic efficiency and sustainability, meaning that after the modernisation is complete, 98 per cent of the HOYER Group fleet of more than 2,200 trucks will be equipped with these low-pollution engines.
Four of the new truck models will even be operated using an alternative LNG engine. This means the HOYER Group has increased the number of trucks running on liquid natural gas to nine. The first LNG truck was acquired in 2018 and are intended to transport gases and mineral oil. The fact that the service station network for alternative energies has not yet been expanded to cover all areas is currently preventing further procurements.
UKIFDA has urged the Scottish Government to consider the 135,000 households in Scotland who use oil to heat their homes when setting the energy policy in its response to the recent ‘Energy Efficient Scotland: Improving energy efficiency in owner occupied homes’ consultation.
Proposals outlined in the government consultation which closed earlier this month include the introduction of a legally binding standard to ensure all homes in Scotland meet Energy Performance Certificate (EPC) rating C, at point of sale or major renovation, from 2024.
UKIFDA chief executive, Guy Pulham comments; “In submitting our views to this consultation by the Scottish Government, we expressed our support for the proposals to improve the fabric of homes and improve energy efficiency and we agree EPC Band C is a realistic target. It is important though that this must be rolled out in a way which does not adversely affect owner occupiers who are already struggling with household costs. Energy efficiency improvements must not be pursued at the cost of making housing unaffordable for people and put added burden on those currently in fuel poverty. The focus must be on providing tailored support, including financial, and advice on the most suitable technology available to households.
“We agree that new homes should be first to adapt new technologies given the fabric of the building allows for a range of solutions but off gas grid homes are not the easy low hanging fruit that many seem to suggest. The very specific nature of the housing stock that our UKIFDA members serve – generally larger, older homes, in rural locations with poorer than average insulation means they are difficult to adapt to new technologies such as heat pumps and are perfectly suited to new drop in liquid biofuels.
“The design of these houses (and this includes a very high proportion of farmhouses and buildings) is such that retrofitting heat pumps will require a huge capital expenditure to improve the insulation of the properties. If this work is not carried out, the running costs of any form of heat pump would be prohibitive.
“A further challenge here is that the demographics mean that many of the owners are cash poor and asset rich (pensioners, farmers etc) and they will find it very difficult to raise the required capital to undertake major refurbishment of these homes. With the introduction of biofuels as a replacement to heating oil it would mean off grid households would not need such a large capital investment to improve the energy performance of their homes”.
In the run up to this consultation being published, UKIFDA has been lobbying the Scottish Government to consider liquid biofuels as part of any energy strategy and is currently working with other industry trade associations OFTEC and the Tank Storage Association on the introduction of a low carbon liquid fuel to replace heating oil.
Guy Pulham adds: “To ensure that the whole industry can invest and implement engineering advancements such as biofuels, we believe government should outline the energy efficiency plans in 2020 for implementation.”
“We also believe it is also important that once an Energy Efficiency standard is in place it should be subject to periodic review, where it can change with improvements such as technology, innovation, fuel prices and carbon emissions. In the longer term where it can be assumed that energy efficiency will improve over time, improved EPC targets could be then introduced.
“Ultimately, we would like policy-makers to recognise the positive contribution that evolving liquid fuels can make to an economically and socially fair energy transition. It is crucial to maintain a varied energy mix and a free choice of technologies by consumers to alleviate fuel poverty. By focussing on the consumer and meeting their individual needs, we can meet both the net zero targets and do so in a realistic, supportive fashion.”
Commitment to achieve net zero emissions by 2050 “or sooner” is part of the significant action on climate change outlined by global energy company Shell following engagement with investors as part of Climate Action 100+.
Building on commitments of previous years, Shell will be publishing a series of detailed steps to achieve the plans outlined in the oil giant’s Responsible Investment Annual Briefing in April. These will include an ambition to be net zero on emissions from the manufacture of all products (scope one and two) by 2050 at the latest, accelerating its Net Carbon Footprint ambition and, most crucially in terms of the wider impact, ”pivoting towards serving businesses and sectors that by 2050 are also net zero emissions.”
It comes during a period of immense challenge for the global oil industry, with demand forecast by the IEA to fall 29 percent in April and 9 percent this year as a result of the coronavirus pandemic. IEA executive director Fatih Birol, said 2020 was likely to be “the worst year in the history of global oil markets.”
But Shell chief executive Ben van Beurden suggested the company’s net zero commitments would not be derailed by the crisis.
“With the COVID-19 pandemic having a serious impact on people’s health and our economies, these are extraordinary times,” he said. “Yet even at this time of immediate challenge, we must also maintain the focus on the long term.
“Society’s expectations have shifted quickly in the debate around climate change. Shell now needs to go further with our own ambitions, which is why we aim to be a net zero emissions energy business by 2050 or sooner. Society, and our customers, expect nothing less.”
Wider impacts
As one of the world’s largest energy companies, Shell’s commitment to realising net zero emissions is of significance for the broader energy sector.
“It’s imperative we see companies across the entire oil and gas sector put strategies in place to achieve net zero emission if we are to tackle climate change. This applies to the fuels and products companies sell, as well as emissions from operations,” explains Stephanie Pfeifer, a member of the global Climate Action 100+ Steering Committee and CEO, Institutional Investors Group on Climate Change (IIGCC). “Investors will now look to other energy companies to match, and build on, the welcome ambition Shell is showing.”
After previous announcements in 2017 and 2018, Shell’s example has been followed by other oil and gas companies. With investors hoping that the latest announcement will again have a domino effect Simon Pilcher, chief executive of USS Investment Management, echoed the feelings of many; “As investors we need to be ambitious in our expectations of how the companies in which we invest can address the shift to a low carbon future and today’s announcement demonstrates that collaborative engagement can encourage corporate action on this crucial issue.”
The announcement has additional significance, given the short to medium-term implications of the Covid-19 pandemic faced by the sector as Fiona Reynolds, a member of the Climate Action 100+ Steering Committee and CEO, Principles for Responsible Investment (PRI) observes; “As we can see from this time of crisis, it is not possible to separate the health of people, the planet and the economy, as they all need to be aligned.
“Timely action to address the devastating social and economic effects of Covid-19 is essential and we welcome Shell’s significant commitment to become a net zero emissions energy business by 2050. It’s imperative that companies continue to focus on the long-term impacts of investments on the climate.”
Peter Ferket of investment giant Robeco, commented; “The new ambitions prove that the strong and committed engagement of institutional investors with Shell can help accelerate the pace of change to deliver the goals of the Paris Agreement,” he added. “It raises the bar and sets out an approach for others in the oil and gas sector to follow.”
The plan is the latest in a series from Shell and other oil majors to bolster their emissions reductions strategies. Earlier this year BP similarly unveiled wide-ranging net zero ambitions, while several top oil firms have acquired leading clean tech firms in a bid to diversify their portfolios.
Total is also facing increasing pressure from shareholders to step up its climate targets, after a group of investors recently tabled a resolution calling on the French oil major to set absolute emissions reduction targets for its entire business and value chain aligned with the Paris Agreement goals.