News 47

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Greenergy – ‘greater control of our supply chain’

On Monday 10th February Greenergy announced it had entered into time-charter agreements for two bunkering vessels based in the Irish Sea and English Channel. This marks another step in Greenergy’s expansion in the marine fuels sector. The two bunkering vessels, the Bergen Troll and the Northern Skaggerrak, have the capability to bunker a variety of fuels, including marine gasoil, fuel oil for ships fitted with scrubbers, and IMO 2020 compliant 0.5% fuel oil. “This an extension of our existing bunkering operations, giving us the ability to supply more fuel grades to more marine fuel customers, explained Varun Chhabria, group head of marine fuels at Greenergy. “With two bunkering vessels at our disposal, we will have greater control of our supply chain, supporting the personalised service our customers have come to expect from us.” Greenergy entered the marine fuel market in 2018 to meet emerging demand for low sulphur marine fuels ahead of new limits on ship emissions, and has quickly established itself as a trusted supplier to the market. In addition to its bunkering operations, Greenergy provides national fuel supply, storing and suppling marine fuels by truck from Navigator Thames (south east of England), Tyne (north east of England), Eastham (north west of England), Grangemouth (Scotland), Cardiff (Wales) and in Ireland,  from Dublin and Foynes.

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A change in direction for Thomas Silvey

Following an extensive review of Mabanaft’s UK-based companies – Mabanaft Limited, BWOC and Thomas Silvey – the latter is now focusing on fleet solutions. This change sees the Mabanaft OnRoute fuel card division being merged into the existing Silvey Fleet business.

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Banning the internal combustion engine

Last week’s government announcement with respect to an earlier ban on the internal combustion engine met with a variety of responses. Whilst the majority support the government’s ambition to decarbonise, many concerns were raised. UKPIA “The government’s plans to bring forward an end to the sale of internal combustion engine (ICE) vehicles from 2040 to 2035 threatens the opportunity to pursue a low-carbon strategy in the UK that embraces all technologies,” said Stephen Marcos Jones, director-general of UKPIA “The UK government risks the progress we have made in reducing our emissions by ‘picking winners’, instead of allowing for consumer choice and technological development – including low-carbon liquid fuels in ICE and hybrid vehicles – to lead the way in decarbonising our society.” The Institution of Mechanical Engineers felt it was imperative to reinforce its findings on Accelerating Road Transport Decarbonisation which was published on 28th January 2020. “In our report, we demonstrate that all forms of propulsion technology, including renewable fuels, electricity and hydrogen could have a substantial impact on GHG emissions,” said Steve Sapsford, chair of the Institution of Mechanical Engineer’s powertrain systems and fuels group. “By insisting that there is only one solution, this government announcement side lines a significant complementary opportunity to reduce GHG emission associated with road transport. “There is not a ‘one-size-fits all’ solution. We are running the risk of assuming that all a vehicle’s GHG emissions are emitted at point of use. Whilst that might be where legislation has its current focus, we need to take a more holistic approach including the GHGs associated with vehicle production, use and disposal/recycling.  Such life-cycle analysis is a technique for quantifying the environmental and human health impacts of a product over its life span and can often be referred to as “cradle-to-grave analysis.” The Petrol Retailers Association PRA chairman Brian Madderson warned that ‘the Government has no basis for achieving such an ambitious target, and that focusing so heavily on EVs could mean better long-term solutions were overlooked’. Achieving the new target would not be possible without significant investment into petrol forecourts to provide retrofitted charging infrastructure, which the government has yet to address. He added that the policy change was largely uncosted, and over reliant on driveway charging points which many drivers will not be able to access. He warned the government was again ignoring the potential for hydrogen powered vehicles, which can be refuelled quicker than battery electric vehicles (BEV), have assured longer mileage range and can be more easily catered for within existing infrastructure at petrol filling stations. He urged the government to be technology neutral to avoid leading consumers down the wrong track, in the way it did with diesel vehicles. FairFuelUK “Nobody objects to clean engines,” said Howard Cox, founder of the FairFuelUK campaign. “No-one argues against improved efficiency which cuts emissions, but there are fairer and better ways to lower emissions. There is no need for cliff edge targets banning hard pressed motorists’ prized possessions. Emissions are falling because vehicle technology is improving; cleaner fuel technology will evolve organically without the government’s new extinction threat to the internal combustion engine.” Motoring journalist, Quentin Wilson “The UK, which is woefully underprepared for vehicle electrification, is broadly ignoring marine, aviation, industrial and domestic combustion, and needs to really incentivise consumers and industry to change their behaviours. The UK needs a consistent and well-crafted national air quality strategy that’s supported by world-class scientific research.” PriceWaterhouseCoopersUK “Our own research on electric vehicles has underlined that widespread EV adoption is contingent on ensuring the appropriate charging infrastructure is in place for all users – this is a vital piece of the net zero journey,” said   Steve Jennings, PwC’s UK head of energy, utilities & resources, “We believe the electrification of fleets, from company cars to field service vans, will also be a critical catalyst in transforming the transport sector. This a theme we shall be exploring in a forthcoming report.” Freight Transport Association (FTA) Looking at the van market in particular, Christopher Snelling, head of UK policy at the Freight Transport Association (FTA) said: “The 2035 target is very ambitious unless the government takes urgent action to solve the challenges around power supply and the availability of electric vehicles. Our Electric Vehicle Report shows that operators want to switch to electric – but we need to see urgent action from government to ensure the right infrastructure is in place and the market is ready.  FTA is calling on the government to share its strategy on how it plans to power the UK’s fleet of millions of vans. Until the issue of power supply is resolved, it is very unlikely – in the view of FTA – that 100% of new vans bought after 2035 will be electrically powered.”

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Diversifying into truckstops

In a deal completed on 31st January, Mabanaft Ltd has acquired Avon Lodge, one of the UK’s top-tier independent truckstops.  The transaction highlights Mabanaft’s strategic commitment to developing a network of truckstops across the country, offering drivers and companies good-value, high-quality truckstops outside of those owned by the oil companies and large group networks.

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Downstream chief executive Tufan Erginbilgic to leave BP

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.

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OFTEC supports installer transition to decarbonised world

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.    

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Creating a Taskforce for Liquid Biofuels

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:

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New CEO at Essar Oil UK

This week Essar Oil UK confirmed the appointment of Mark Wilson as chief executive officer (CEO).  He will be based at the Stanlow Manufacturing Complex and succeeds S. Thangapandian, who informed the board of his intention to return to India after almost three years in the UK.

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Argus Media – bunker fuels and a crude and products forum

Sales of IMO 2020-compliant bunker fuels began at key ports around the globe in December. The volumes are still small as the 0.5% market is in its infancy, but suppliers are confirming they have now sold bunker quantities of LSFO.

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JET strengthens its presence in the Scottish Highlands

JET has further strengthened its presence in the north of Scotland with West End Filling Station in Dingwall joining the fuel brand’s network. Having won the contract Highland Fuels is directly supplying Phillips 66 fuels to the 2.4 mlpa site, using the JET brand under licence from Phillips 66.

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The role of the bulk liquid storage sector in the energy transition

According to a brand-new report from the Tank Storage Association, the bulk liquid storage sector and associated logistics will have a key role to play in the energy transition and in supporting the achievement of the UK’s decarbonisation targets.

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Meeting customers’ needs

Harvest Energy, a member of the Prax Group of companies, has opened a new Morrisons Daily Store at its Sandringham service station in Leicester. Having bought this site along with 62 others just over a year ago, the company plans to convert a number of its forecourt convenience stores to Morrisons Daily Stores in the coming months.

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Increasing the conversion of plastic waste

INEOS has opened a new advanced polymer pilot plant in Rosignano, Italy to not only produce new plastics from increasingly higher levels of waste plastic, but also to help replace oil and gas as a raw material.   

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Further gains for the JET brand

JET Retail UK – a wholly-owned subsidiary company of Phillips 66 Limited – has acquired Harrogate Investments Limited and its operating company, Kenworth Limited, from owner Barry Raw. 

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Craggs Environmental to double in size, coverage and capacity

On 18th December 2019 Craggs Environmental, one of the UK’s leading fuel and tank infrastructure servicing companies, acquired the LCM Environmental business and combined the two companies to double their size, coverage and operational capacity.

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Valero – bringing ‘best in class’ standards to Mid-West region

With the opening of its new €3million flagship Parkway Service Station in Limerick City, Valero Energy (Ireland) has put down a marker to which other service station owners’ contemplating a switch to the Texaco brand might be advised to take note.

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Oil-fired heating – time to back the most cost-effective option  

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     

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Long-term contract for Valero 

Valero Energy has won a long-term agreement to supply fuel to 115 Co-op petrol filling stations.  The contract extension includes the supply of fuel to 31 new-look Co-op branded locations from mid-2020. 

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Spreading Christmas cheer in Glasgow 

With the support of customers from numerous forecourts within Certas Energy’s Scottish company–owned network, the company has raised over £3,000 for Glasgow’s Royal Hospital for Children. 

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Major rebrand for Scottish Oil Club

The Scottish Oil Club has announced a relaunch, with a new name and refreshed branding that better reflects its role as a discussion forum for professionals from across the energy sector.