News 51
Earlier this month Crewe-based Radius Payment Solutions – the group behind the telematics and fuel card brands Kinesis and UK Fuels – acquired Plant-i, the Welsh-based provider of tracking and telemetry solutions to the plant and construction sectors.
Last week Certas Energy opened a new bunker refuelling site at the ‘fechan Truckstop (Eardley International) in Scotland. Earlier this month the company held a ground-breaking ceremony for another new HGV bunker site in the heart of the Golden Triangle of logistics in Northamptonshire.
Suttons Tankers has agreed a deal to acquire DHL Supply Chain’s domestic bulk commodity chemical business. The acquisition predominantly covers chemical transportation from sites in Billingham, County Durham and Runcorn, Merseyside.
OFTEC is encouraging households in Ireland to spring into action this National Home Improvement Month. With 4 in 10 Irish households using oil as their main heating source, homeowners are being urged to ‘spring clean’ their heating system to avoid missing out on potential savings to their fuel bills.
National Home Improvement Month calls for homeowners to love the home they live in. Recognising that the internal workings of your house help to make it a home, OFTEC has produced a ‘spring cleaning’ guide which outlines the key home heating improvements to make:
Wincanton has renewed its contract to provide fuel distribution for Valero Energy. The new deal will run for five years, which will take the working relationship between the companies to beyond 25 years.
Speaking about its submission to the Republic of Ireland’s National Energy and Climate Change Plan (NECP) 2021-2030, FPS Irish representative Nick Hayes said:
“Whilst the government’s plan is ultimately good news for everyone committed to cutting carbon in Ireland, our members currently deliver heating oil to 686,000 households, mainly in rural and off-grid locations where a great deal of consideration must be given to the impact that current proposed measures will have on those areas.
Earlier this month the UK’s logistics industry reminded politicians that a No Deal Brexit would break the prime minister’s promise – made in January 2017 – to keep trade as frictionless as possible.
“For the past two years, the logistics industry has been warning of the potential disruption and damage of a No Deal Brexit,” said James Hookham, FTA’s deputy chief executive.
“This could include short-term gridlock at ferry ports if customs’ processes and checks are not implemented smoothly, shortages of perishable foods and medicines, restrictions in the labour market caused by a shortage of workers as they return to the EU, and severe delays for imports and exports which would hinder the UK’s manufacturing and retail sectors.”
In the letter to the prime minister here, the signatories concluded by saying:
“Please be under no illusion that a rushed No Deal will halt Britain’s supply chains, and that will have an immediate and lasting impact on the UK economy.”
Craggs Environmental has purchased the Warrington-based fuel systems division of Clovemead. The acquisition, which sees the transfer of key personal and equipment, further enhances the ability of Craggs Environmental to provide UK-wide fuel & tank services to businesses, residences and public sector organisations storing red/white diesel, kerosene and other fuels.
Next month Gulf Retail will be rolling-out out Oomph across its UK network. This brand-new forecourt loyalty platform utilises the latest technology to drive new revenues to its dealers and enable them to strengthen customer retention.
Working in partnership with Azpiral, the market leader in customer engagement solutions for the forecourt and convenience sector, this major new initiative allows Gulf dealers to talk to their customers and tailor offers to specific groups via SMS, email and a dedicated phone app to boost in-store profits and strengthen community ties.
A first for the forecourt sector, Oomph will roll-out in April to dealers across the country and will be deployed across the Gempay network. The Oomph loyalty platform is easy to use and can also be integrated with an existing EPOS, providing dealers with the tools to delve deep into the shopping basket of a customer and respond accordingly with dedicated offers and calls to action. Its versatility extends to the point of purchase where customers are rewarded with points utilising the app and smart card with accumulated points redeemable to support local charities and enter a ‘big ticket’ monthly draw. In addition, dealers can reward their customers with member-only offers such as in store-discounts, free coffees and car washes.
“Oomph is being launched in response to requests from Gulf dealers and many of the larger dealer groups who see great merit in providing their customers with a nationwide loyalty platform with local marketing capabilities,” explained Gerry Welsh, retail marketing manager, Certas Energy.
“Our immediate goal is to come to market with a fresh and exciting loyalty scheme that is embraced by our dealers and their customers. We are in discussions with several global brands to further develop the ‘Monthly Prize Haul’ and shall use our COCO estate as a test bed for new ideas. We plan to make Oomph the most engaging loyalty platform in the industry for consumers and the most cost effective for dealers and can see no bounds to its future potential.”
Charged out to dealers at an affordable price with nationwide appeal, Oomph will be available to all UK Gulf forecourts and is compatible on both Apple and Android devices.
If you’re planning to visit FPS EXPO 2019 in May, why not download the new FPS EXPO app to ensure you are well-prepared in advance. Plus – find out about the broadening of this year’s event in the April issue of Fuel Oil News
To ensure its British assets stay world class for a generation, INEOS is to invest £1 billion in multiple UK projects. The biggest investment being announced is in the Forties Pipeline System (FPS).
Demonstrating its long-term commitment to the UK fuel retail market, JET has unveiled a new image prototype at JET Abbeyside in Selby, North Yorkshire, one of the fuel brand’s new company-owned sites.
The Federation of Petroleum Suppliers (FPS) and OFTEC were delighted by the Advertising Standards Authority’s decision with respect to misleading claims made on a poster by a renewable heating supplier as to the cost-efficiency of air-source heat pumps.
Essar Oil (UK), which recently announced the appointment of Mark Amor as head of commercial, is the new principal sponsor for this year’s Forecourt Trader Awards. Showcasing the petrol retailing industry, the event recognises and rewards those businesses at the leading edge of their profession.
OFTEC’s CEO, Paul Rose was quick to raise concerns following the publication of the Committee on Climate Change (CCC) report UK housing: fit for the future?
“With the threat of climate change being without doubt the most urgent global issue we face, the CCC is right to highlight the issue of carbon emissions from buildings and to raise its concerns about the energy efficiency of UK housing stock,” commented Paul Rose.
From 26th – 28th March StocExpo Europe will be celebrating 15 years of industry success at the Ahoy in Rotterdam where key terminals including Stolthaven Terminals, Inter Terminals and Oiltanking will be among the 200+ exhibitors.
Stephen Marcos Jones, UKPIA director-general
According to a new study released earlier this week, the downstream oil sector provides major economic benefits across the UK.
Independent findings in the Oxford Economics report ‘The economic contribution of the UK downstream oil sector’ – commissioned by trade association, the UK Petroleum Industry Association (UKPIA) – underscore the industry’s central economic importance, both in terms of direct value and security of the national energy supply.
The downstream oil sector encompasses a wide range of companies involved in the production, import, distribution and sale of refined products, including the UK’s refineries, storage terminals, pipelines and filling stations. Conclusions from the report include that the sector’s annual contribution to UK GDP is £21.2 billion, with 300,000 jobs supported by the industry, with every job in the sector supporting a further 1.4 jobs elsewhere in the economy. As the UK faces an ongoing productivity challenge, it was also found that the sector is 29% above the national average in terms of efficiency of output.
“Be it highly-skilled careers or tax receipts, to the way our products enable all other major sectors of the economy to grow, the downstream oil sector has a vital part to play in keeping the UK economy moving,” said Stephen Marcos Jones, UKPIA director-general.
As society looks for ways to develop low carbon solutions to reduce global emissions, we believe that the downstream oil sector can continue to deliver significant reductions in emissions as well as enable others to work towards a sustainable, just and orderly low-carbon economy.
“This report marks the first of a number of studies we will be publishing in 2019, as part of UKPIA’s Future Vision, demonstrating that the downstream oil sector has an essential role not only now, but in the decades to come.”The economic contribution of the UK downstream oil sector report is available at http://www.ukpia.com/publications or in hard copy on request from the UKPIA press office.
BP’s Kingsbury terminal which has been acquired by Essar; the company has also acquired BP’s Northampton terminal
Last week the Essar Oil UK Group of companies (Essar) unveiled the latest phase of its strategic business development, with the announcement of the acquisition of a number of assets from BP.
Under the agreement, Essar will acquire an equity stake in the UKOP pipeline, a share of the contractual joint venture (with Shell) which runs the Kingsbury terminal and a 100% interest in the Northampton terminal. The BP assets are being acquired by two wholly owned subsidiaries of EOUK, namely Essar Midlands Limited and InfraNorth Limited.
Last month World Fuel Services won two contracts with London Oxford airport and London Heliport in Battersea to supply jet A-1, Avgas and training packages with the five-year contract commencing this month.
The largest user of Avgas in the UK, London Oxford is the third largest general aviation airport in the London area with World Fuel also offering refuelling equipment, maintenance and marketing support with the possibility of a new tank farm in Oxford.
“The win of this competitive bid expands our supply to 14 UK locations including three of the top five,” said Noel Siggery, GA & market development.
“Our partnership with London Oxford and London Heliport will be an important addition to the World Fuel network as we continue to bring solutions to our customers. Our operators and card holders in the region will benefit from this partnership because they will receive quality services and a great business option in England.”
London Oxford airport is wholly owned by the Reuben Brothers whose investment activities include private equity, real estate ownership and development. In February 2012, the Reubens purchased the London Heliport, the UK’s only CAA licensed heliport. The heliport is a 22-minute helicopter ride from London Oxford airport which is one of the fastest growing airports for private business aviation in the UK.
www.wfscorp.com/en
The new Holton Heath depot, which will support Certas Energy’s regional presence in the south west, joins a network of over 130 depots across the UK
Following a £2 million investment to turn a former truck parking location into a large fuel storage depot, Certas Energy is opening a new depot at Holton Heath.
Eight delivery tankers will be based at the Holton Heath depot, which will have capacity to distribute to homes, businesses, farms, construction sites, schools and haulage companies, over a sizeable geographical area.
We’re delighted to be opening a new Certas Energy depot in Holton Heath and extending our service to more homes and businesses in and around Poole,” commented Steve Gettings, regional director in the south west of England.
“The Holton Heath site has undergone a real transformation since the start of the project and offers excellent access to local areas. A reliable supply of fuel and lubricants is key to keeping our customers moving, and we’re committed to supporting the local community over the long term with tailored solutions to meet their individual needs.”www.certasenergy.co.uk
FPS chief executive Guy Pulham and Ireland representative Nick Hayes are keen to meet up with minister Richard Bruton to discuss the opportunity of setting up a working group
Responding to the first draft of Ireland’s National Energy and Climate Plan (NECP) the Federation of Petroleum Suppliers (FPS) has not only written to Richard Bruton, Irish minister for communications, climate action and the environment, but also requested a meeting to discuss how the association can work with government to help reduce Ireland’s carbon footprint.
The FPS and its members feel strongly that oil and – more long-term – a liquid efuel and/or bio fuel, can be part of the phased solution and the association has been working closely with the European Confederation of Fuel Distributors (ECFD), boiler manufacturers and other trade associations to promote a liquid bio fuel.
“Our members play an important role in the Irish economy in supplying not only heating oil for homes and businesses but also fuel for agriculture, construction, road transport, marine fuels and importantly fuel for back-up generators for hospitals, schools, care homes and data centres,” said Nick Hayes, FPS Ireland representative.
“Several demonstration projects with heating systems running on partly renewable liquid fuels are already in place across Europe, achieving substantial levels of emissions reduction so it is disappointing that this potential is not mentioned in the minister’s recent statement.
“The minister says that at least 170,000 homes will be supported to switch from oil-fired boilers to heat pumps and solar panels. I would appreciate understanding the rationale for this figure and the technology assigned for the switch. There is a danger in making early technology decisions and also in only concentrating on a small section of oil-fired homes when industry innovation can help all oil-fired homes.”
“We have in the UK set up a working group with the government alongside different sections of the supply chain with representation from trade associations for refineries, boiler manufacturers and installers and tank storage,” added Guy Pulham, FPS chief executive.
“This working group has been welcomed by the government in providing information and ideas on action to be taken to meet carbon reduction targets in off gas grid buildings and we would welcome the opportunity of setting up a working group with minister Bruton.
“We are not trying to protect the heating oil industry at all costs and we recognise and support the Irish Government’s work to meet carbon reduction targets but our members believe that a liquid fuel should have a major role in meeting the future needs of off grid homes. There is ample supply, an effective distribution network and low-cost installation requirements to use oil for heating and cooking. These are excellent benefits which could be retained using a bio or carbon neutral liquid fuel.”
Ongoing running costs continue to be good versus electric solutions and this is supported by the recent figures released by Sutherland Tables, a recognised independent source of comparative domestic heating prices, who say the average annual cost of heating a three-bedroom home in Ireland with heating oil is €1,594 per year when the same house to heat using electric storage heaters is €2,153 per annum. Oil is also far cheaper than air source heat pumps (with radiators) at €1,890 per year and LPG €2,296.
The social implications for having a dependence on one technology are also important and should not be understated. With 400,000 households in Ireland in fuel poverty, replacing oil with high capital/high running cost alternatives will directly affect those people most in need.
The FPS believes the government should look at a tiered approach to achieving the 2050 carbon reduction target, setting a pathway of home heating carbon emission reductions. That way industry can adapt all aspects of technological innovation thereby providing the means for consumers to make cost competitive choices in meeting those targets. A change to the standard specifications of the fuel would also give industry time to implement innovative solutions.
“Such a pathway would also give consumers the opportunity to make short term efficiencies such as replacing old oil boilers now,” added Guy Pulham.
“Highly efficient, oil-fired condensing heating systems save up to 30% of fuel oil, and by adding smart meters to tanks and installing better insulation in homes further efficiencies can be achieved. We urge minister Bruton to meet with us and discuss a pathway forward.”www.fpsonline.co.uk/
Ensuring fuel tanks are well-protected
An increasing number of fuel thefts have been occurring at transport premises where stock tanks are being targeted, with some companies having encountered multiple attacks where large quantities of fuels have been stolen.
Thefts have risen sharply over the winter months according to Fuel Theft Solutions with organised criminals using adapted vehicles to take advantage of the increased darker hours and tank positioning. Traffic noise and refrigerated units running, further enables the use of fuel transfer pumps to go unnoticed.
The company also points out that there have been many reports of perimeters being breached with fences cut or unbolted. By drilling into the ullage area and passing a pipe through into the fuel, stock tanks have been targeted with a a magnetic cover used to conceal the hole. Other breaches have occurred where the top lock has been cut and the inspection cover opened.
Among the measures, the company advises to help combat theft are the installation of CCTV and improved lighting; the removal of foliage around stock tanks and perimeter fencing; the installation and use of audible padlocks and inspection hatch alarms; the use of security marked grease on the fuel tank and the use of DieselDye™ with signs warning of its use.www.dieseldye.com
“We recognise that claims are often behaviour driven, which is why we have embedded Risk Management at the heart of every policy,” commented Stewart Ower, managing director of Compass Environmental
As leaders in their respective industries, Evergreen Insurance Services and Compass Environmental Consultancy have joined forces to provide a unique insurance and risk management solution for fuel oil distributors.
Alongside their insurance partner Aviva, one of the UK’s largest insurers, they have created ‘Oilshield’, a comprehensive insurance package to provide whole business protection, all under one policy.
With ever increasing fines and significant reputational damage for causing environmental pollution, it has never been more important to have adequate protection if the worst should happen. Every year millions of deliveries are made to domestic and commercial premises. Getting it wrong, just once, could put you out of business.
“Whether it’s the bulk storage of fuel at a depot, the transportation of fuel to clients or the delivery of fuel into their facilities, we recognise that each part of the journey presents its own unique obstacles,” said Dave Gardiner, of Evergreen Insurance Services.
“That’s why Oilshield protects all aspects of fuel distribution operations – property, vehicles and driver actions all covered under one policy.
“We recognise that claims are often behaviour driven, which is why we have embedded Risk Management at the heart of every policy,” commented Stewart Ower, managing director of Compass.
“As part of an ongoing relationship, Compass Environmental will deliver a programme of risk management initiatives that are relevant to your business with emphasis on promoting continual improvement to minimise risk.”
To discuss your insurance needs, call 020 3907 1361 or visit www.oilshield.co.uk.
Guy Pulham, FPS (left) and Paul Rose (OFTEC)
Below, the Federation of Petroleum Suppliers (FPS) chief executive, Guy Pulham and OFTEC CEO Paul Rose comment:
“A wide range of responses to government’s call for evidence were received but the conclusions drawn in the document highlighted BEIS’ continued focus on the electrification of heat using heat pumps. “We believe this approach will not provide a complete solution and does not consider several recent developments in Europe which highlight how liquid fuels, whether that is a bio fuel or an efuel, can be part of the solution. There is aneed for a mix of low-emission energy sources and technologies to be deployed to meet the requirements of different buildings, dependent on their potential thermal efficiency.
“The Call for Evidence ended in June 2018 and since then the FPS has, in partnership with OFTEC and other trade associations in the UK and Europe, been working together to promote the introduction of a renewable, low carbon liquid fuel for off grid households, which would not require a complete change of infrastructure.
“We believe this should play a major role in meeting the future heating needs of off grid homes and it is a mistake to focus so much on electric solutions which offer high cost/low efficiency solutions for the 1.5m households off grid households currently using oil in the UK. Several demonstration projects with heating systems running on partly renewable liquid fuels are already in place across Europe, achieving substantial levels of emissions reduction. So, it is disappointing that this potential is not more positively promoted in the government’s response.
“The social implications for an over dependence on one technology are also important and should not be understated. Government’s response was published just after the publication of the Committee on Fuel Poverty’s (CFP) Third Annual Report which showed the number of fuel poor households in England alone has risen by 210,000 to 2.55 million.
“The report highlighted how financial assistance would be needed by the 116,000 fuel poor households who use heating oil in England, if government focuses on heat pumps or electricity as the preferred solutions to meeting future heating needs.
“Importantly, the CFP said in its report that on a pence-per-kilowatt-hour basis, it needs to be recognised that oil heating is significantly lower cost than heating by electricity. This is supported by recent figures released by Sutherland Tables, a recognised independent source of comparative domestic heating prices, which show the average annual cost of heating a three-bedroom home in Great Britain with heating oil is £1178 per year – nearly half the cost of electric storage heaters at £2069 per annum. Oil is also far cheaper than any renewable heating options; including air source heat pumps (with radiators) at £1,805 per year or with underfloor heating at £1380, and biomass (wood pellets) at £1,548 per annum.
“We were particularly concerned by the statement made in the response by government which said most off-grid homes are suitable for heat pump deployment, quoting their own study undertaken by Delta Energy and Environment (Delta EE) which estimates “that around 15% of off gas grid dwellings are currently not suitable for electric heating”.
“Unfortunately, the study is based on a tiny number of homes and appears at odds with a statement made by BEIS minister Claire Perry in the House of Commons in October 2018, in which she stated only 3% of oil-heated homes in Great Britain were in EPC band A-C which in previous studies has shown is the rating compatible with heat pumps.
“Furthermore, Delta EE also says “Heating for rural off-gas grid dwellings tends to rely on higher carbon and higher cost fossil fuel sources such as oil ….” Both the CFP and Sutherland Tables clearly show that oil heating is cheaper than electric and renewable forms such as heat pumps and has been for more than five years. Again, it is concerning that misleading statements and studies such as Delta EE’s are being used by BEIS to formulate future policy and strategy around decarbonisation of rural off-gas grid dwellings.
“In its response, BEIS stated they are implementing various studies into viable solutions and we urge BEIS to work closely with the liquid fuels industry to develop a roadmap to carbon reduction with a bio/efuel transition as part of the overall picture for off grid households.
“FPS actively supports the Industry Contact Group set up by OFTEC and BEIS and will continue to contribute to this discussion group. We believe the group can play an important part in helping BEIS shape strategy by bringing together the whole of the supply chain including the UK petroleum industry association (UKPIA) and the Tank Storage Association (TSA), whilst achieving the carbon reduction goals of 2050 and protect the cost (and choice) of heating systems available to the consumer.
“We will be looking to government for policies that unlock further development into a liquid bio or efuel. It is at least reassuring that, so far, nothing has been ruled out and that BEIS is seeking more evidence before making any decisions. It is also pleasing that BEIS has agreed with three key principles that were identified by respondents in respect to any future regulation: