News 85
The removal of proposals for a much reduced NOx emission level and a penalty on non-modulating domestic oil-fired boilers are ‘extremely positive for our industry’ says Jeremy Hawksley
When the European Commission published the draft Energy-related Products Directive six years ago, the future of the oil-fired heating sector looked bleak. Following a long campaign OFTEC has won a ‘significant victory’.
The proposed directive would have required NOx emissions levels from boilers of well below 100 milligrams per kilowatt hour. Had these limits been accepted it would have destroyed the UK and Irish oil heating industry overnight because it would have been impossible to reduce boiler emissions to the proposed levels.
However, after extensive lobbying by OFTEC and its European industry partner Eurofuel, the recently published directive has set the maximum NOx emission limit at 120 milligrams per kilowatt hours for oil boilers – a figure manufacturers believe is achievable, and are happy to work towards.
Commenting on the news, OFTEC director general Jeremy Hawksley said: “We’ve worked tirelessly with our industry partners in Europe to secure this realistic figure for NOx emissions, which is extremely positive for our industry. The new standard for oil boilers has been deferred until 2018 instead of 2016 as previously proposed, which will give manufacturers the necessary lead time to implement any product changes.
“The proposed penalty for non-modulating domestic oil-fired boilers has also been removed, which was also a significant threat to the oil industry. These positive outcomes are a direct result of the important work that OFTEC does in lobbying for the oil fired sector both at UK and European level. Without this action it probably would have been unfeasible to manufacture an oil fired boiler after 2015/16.” www.oftec.org
Although the government says it ‘remains committed to introducing a Renewable Heat Incentive (RHI) scheme for householders,’ the scheme’s introduction has been further postponed. It is now expected to be up and running in spring 2014.
Details about how the RHI scheme will work, together with tariff levels, will be published this summer with research into householder views on renewable heat helping to inform the scheme’s design.
In the meantime, the Renewable Heat Premium Payment (RHPP) scheme, which offers money off biomass boilers, solar thermal panels and heat pumps, has been extended until the end of March 2014. RHPP is targeted largely at those living off grid.
An RHI scheme for industrial and commercial customers was launched in November 2011. DECC plans to carry out a review of the tariffs under this scheme to drive forward further uptake.
Due to be launched on 1st January 2014, the scheme manager for the Petroleum Driver Passport (PDP) is the Scottish Qualifications Authority (SQA).
The scheme manager appointment follows a tendering exercise which saw SQA meet the quality and delivery requirements set by the UK Downstream Oil Distribution Forum (DODF).
Brian Worrall, DODF independent chair welcomed the appointment: “We continue to make rapid progress towards the launch of the PDP. SQA bring valuable experience and expertise which will ensure the quality and credibility of the PDP.
Detailed work is now underway to ensure that the PDP will be launched on schedule. The PDP will give assurance to fuel terminal operators, customers and the wider public that all tanker drivers have a common core of tested knowledge and competence in the loading, driving and off-loading of fuel tankers. It is supported by the PDP training standard which all tanker operators will be able to use as the basis of driver training and development.
The PDP builds on the knowledge already tested in the ADR certification process, incorporating additional knowledge and a practical assessment of skills. It includes content specific to five industry sub sectors; home heat, commercial, aviation, retail and marine.
Delivered through a combination of in-house or third party training and assessment providers accredited and audited by SQA, the passport will be valid for 5 years and will include an annual refresher day and both a written and practical assessment.
Email: john.bowman@skillsforlogistics.org
Officially launching the new filling station – CNG Services John Baldwin and Edward Timpson, MP for Crewe and Nantwich
The UK’s first compressed natural gas (CNG) filling station opened recently in Crewe. Local MP Edward Timpson officially opened the event, which attracted interest from companies across the UK.A range of cars, light commercial vehicles, buses and trucks which can run on CNG are already on the market but as yet there has been little interest from the fuel tanker market.The filling station is the largest such facility in the UK, offering a reliable fuel supply with capacity to fill 500 HGVs a day via three fast-fill hoses. The unmanned station will be used initially by commercial vehicles, providing transport and logistics operators in the area with a chance to incorporate CNG vehicles into their fleets.John Gavin, managing director of CNG Services, which will operate the station said: “The interest in CNG is being driven by the huge cost savings it offers – between 30 and 40% in comparison to diesel – and also because it is much cleaner. There are very significant savings of CO2, NOx and particulates from biomethane compared to diesel. It’s an excellent fuel as it performs well with low emissions and almost no carbon residuals.”
www.cngservices.co.uk
Operations manager, Helen Lewis believes loadsfortanker.com is a fantastic way for hauliers to create new opportunities
Lateu Logistics is to launch a new service. Loadsfortankers.com is a free to register web based portal, marrying hauliers and load placers.
Operations manager, Helen Lewis, explains: “There are so many sites out there that provide a similar service for the likes of palletised loads and do it well. But tanker loads can be a bit trickier to find.
“Loadsfortankers.com is aimed at those that move any product in a tanker. It’s a fantastic way to create opportunities for small, medium and large hauliers seeking new work or looking for backloads, and to ensure that the load placer gets a fair quote for the transportation of their product.”
The service provides a cost effective way to move loads without the hassle of dealing with multiple companies.
Charlie McLoughlin joins as commercial manager, bringing 20 years experience in the tanker business. “With so many companies under economic pressure, this is a great tool you can access from your desk to find work and grow your business,” he adds. “It’s a low cost, pay as you go service based on a flat payment, not a percentage of the quote. This way we ensure that those who use our service know exactly what the pricing will be upfront.”www.loadsfortankers.com
Director of Reynolds Training Services, John Reynolds (middle)
Reynolds Training Services (RTS) has been awarded a contract to produce training material for the National Skills Academy Process Industries (NSAPI).
The Lincolnshire-based health and safety specialist will develop six modules for the SkillsAcademy’s new process safety management for operations (PSMO) course. The course will also be supported by a train the trainer package that will provide the skills and resources for an employer’s own training personnel to deliver the PSMO in house.
“This gives us the chance to impart our knowledge and skills to a wider audience,” said director, John Reynolds.
The SkillsAcademy has worked with the Process Safety Management project board, since 2011 to develop three process safety courses which comprehensively cover all rungs of the workforce ladder.
Jill Turner receives the award from councillor John Loughnan
Carbery Plastics has been recognised at an awards ceremony hosted by its local town council.
The company was nominated for a Spirit of Clonakilty Award by councillor. Cionnaith Ó Súilleabháin. The award which recognises Carbery’s contribution to the local economy, continued commitment to innovation and sales success in Ireland, the UK and Europe, was presented to the company’s Jill Turner at a recent ceremony in the West Cork town.
“I’m delighted to receive this prestigious award on behalf of everyone at Carbery,” said Jill. It recognises the contribution and commitment of the entire team to the continued growth and success of our business. Despite a challenging macro economic environment, Carbery continues to invest in its production processes and products, ensuring the company is positioned to capitalise upon the market opportunities of the present and the future.”www.carberyplastics.com
l-r From Corrib Oil in Co Galway – Tom Connolly, Gerry Mullen, Matt Stratford, Eamonn Dalton, with Neil Stewart, Stewart Oils, Co Roscommon
70% of distributors who completed the feedback forms at the Distributor Debate in Templepatrick earlier this month, rated too much competition and poor margins as their biggest concerns.
Poor image, supply, prices, variable fuel quality, gas oil changes, legislation and the future of the oil heating market were lesser concerns to attendees, with no-one expressing worries about sharing information online or the threat from renewable energy.
Attendees reported the Distributor Debate to have been a really useful event with some good information provided by the five industry speakers – Mark Askew, Federation of Petroleum Suppliers, Angus Fraser, BP, David Kingsman, Fuelsoft, Julia Mansfield, Fuel Additive Science Technologies and David Blevings, Northern Ireland Oil Federation.
“I felt the mix of speakers was interesting,” wrote John Switzer of J Switzer Associates. “The FAST and BP presentations in particular provided a great insight into the technical and distribution side of the industry, which are both often overlooked.”
Paul Hackett, business development manager – Direct for DCC Oil Ireland, who attended the second half said: “The content of the meeting was good although I think the distributors from ROI might have wanted more reference to their issues, etc. I enjoyed the questions and the interchanges between Donall O’Connor, Sam Chambers and David Blevings.”
A report on the Distributor Debate appears in the April issue of Fuel Oil News.
________________________________________________________________Perhaps your concerns about and hopes for the fuel oil distribution industry in Ireland differ……If you’re visiting FPS Expo next month, the Fuel Oil News team hopes you will call at stand C40 to share both your concerns and your hopes about the industry’s future.We also look forward very much to seeing you at future Fuel Oil News events in Ireland.
Pictured at the pay as you go launch in 2012 (l-r) Charles Burns, commercial director Kingspan Environmental; David Blevings, OFTEC’s Ireland manager; Nelson McCausland; Philip Browne, brand director, Kingspan Environmental; and Jillian Ferris, client and stakeholder director of Carillion Energy Services
Designed to reduce heating bills for struggling families, an initiative by the Department of Social Development in Northern Ireland has been shelved following the failure of its pilot scheme, according to an Irishnews.com report
Rolled out in February 2012, the scheme – partnered by Kingspan Renewables and Carillion Energy – involved the installation of meters at 17 low income households across three counties in Northern Ireland.
Social development minister, Nelson McCausland, pulled plans to continue the scheme saying: “The results of the pilot were disappointing regarding the proportion of participants benefiting from lower oil costs.
“There are two crucial issues around the cost and delivery of introducing a pay-as-you-go oil system into the department’s mainstream energy efficiency improvement schemes:
(1) Costs associated with production and administration of the pay-as-you-go oil scheme.
(2) And, who will supply the oil to the customer?
Departmental economists have serious concerns about the feasibility of the pay-as-you-go oil scheme from a cost/benefit perspective.
“I have considered all of the information available and concluded that it’s not feasible to introduce the scheme into my department’s energy efficiency improvements’ schemes.”
Encouraging the uptake of high efficiency oil-fired appliances is Martyn Bridges, OFTEC’s new chairman
….That is the challenge for Martyn Bridges, Worcester, Bosch Group’s director of marketing and technical support who has been appointed as the new chairman of OFTEC
The appointment, which takes effect on 25th April 2013, sees Martyn commence a two-year spell as chairman of the organisation, for which he has sat on various committees since its inception in 1991.
Having started his Worcester career as a technical services engineer in 1986, Martyn has since worked in a number of roles and departments before taking up his present position, which he has held since 2005. Martyn is responsible for the training, marketing, engineering services, product management and standards departments and is also involved in a number of Bosch-wide design and product committees.
Martyn commented: “I am extremely honoured to be given the opportunity to take up this role within an organisation which is key to the ongoing development of the domestic heating industry.
“I have been in the heating industry for 35 years and involved with OFTEC for over 20 years so I look forward to helping OFTEC continue the challenge of preserving the oil market, encouraging the uptake of high efficiency oil-fired appliances and growing the combination of oil and renewable solutions.”www.oftec.org
www.worcester-bosch.co.uk
Upgrade your skid with IFC
Distributors can now cost effectively convert existing loading skids from old mechanical registers to the latest electronic automated equipment with IFC’s skid upgrade kit which brings terminal loading technology to depot distribution.
When IFC originally started building skids for depot loading, electronic batch control was still new to tanker loading and was mainly installed in refineries and terminals. Although it offered many benefits, the costs were prohibitive for smaller distributors and many chose skids with traditional mechanical registers, presets and ticket printers.
As the advantages of electronic control and automated depot loading became clearer and costs dropped, IFC started fitting electronic batch control to new skids, mainly for larger distributors with multiple sites.Why upgrade?
Although many customers have had mechanical registers for years, there are numerous benefits to upgrading. These include higher levels of security and reliability, operational flexibility, temperature compensation and data storage capacity.
Following years of discussion with customers and further developments in electronic batch control, IFC has come up with a conversion kit that allows operators of existing mechanical skids to take advantage of the benefits of electronic loading and control.
With a number of options to suit all needs, from individual electronic registers mounted at each meter point, to a central multi-point controller for the whole skid, all variations offer storage of loading data and connection to a separate printer or PC. www.inflow.co.uk
If you spot a tank in a compromising position, please take a photo on whatever you have to hand and send it to jane@fueloilnews.co.uk
Everyone knows that heating oil orders are smaller and more frequent – but, evidence that times are really hard has come from Monument Fuels….
When Trevor Rolph of Monument Fuels spotted this tank, he only had his Blackberry to hand. “I thought it was such a good example of what some people are trying to do in these tough times that I had to take the shot. Obviously, it’s not really the thing to do to your tank!”
For more comment on the impact of the recession, see the April issue of Fuel Oil News. Your copy will be with you shortly.
Delivering 115 million litres annually, Lewis Tankers will employ three dedicated aviation fuel tankers on the new Q8Aviation contract
Lewis Tankers has won a new contract with Q8Aviation to handle deliveries of aviation fuel to Bristol, Cardiff and Exeter airports from Hallen PSD, near Avonmouth.
The operation which will run over 363 days of the year will see Lewis Tankers delivering an estimated 115 million litres of fuel annually, utilising a team of up to ten drivers and three dedicated aviation fuel tankers.
The Yorkshire-based tanker operator already has contracts with Q8Aviation to deliver aviation fuel to Newcastle and Leeds/Bradford airports from Misterton PSD, near Doncaster, and to Blackpool airport from Backford PSD, near Chester.
The contract extends Lewis Tankers’ operations into the south west and has prompted the company to set up a small operating base in Avonmouth, with plans to develop its presence in the region.
Stewart MacDonald, Lewis Tankers’ managing director, said: “We’ve been working with Q8Aviation in the north of England for three years and are delighted that our performance has earned us this opportunity to demonstrate our abilities in the south west. This contract broadens our coverage of the UK and provides us with a platform for growing the business in the region.”http://www.lewistankers.co.uk/
In the December issue, fuel oil news covered the subject of tank top up services. Whilst concerns were raised about the reliability of some products, Melanie Noel, WP Group’s fuel sales manager commented: “Although there have been a few issues with older systems, mainly the battery, new telemetry has improved.”
In this issue we take a closer look at available telemetry – its features, benefits and reliability.
New contract with Total UK strengthens Suttons position as a supplier of bulk fuel transport
Suttons has landed a new contract with Total UK for the distribution of petroleum products through its road tanker division.
Suttons group managing director, Andrew Palmer said: “We are delighted Total chose to award this business to Suttons. This contract strengthens our position as a supplier of bulk fuel transport.
“Suttons will bring industry leading standards of health and safety and operational excellence to the contract and we look forward to a successful partnership.”
The contract, which focuses on business to business commercial fuel deliveries nationwide, has seen Suttons invest in new equipment for its existing fuels fleet.
Paul Maloney, B2B operations manager for Total UK, added: “We selected Suttons following a competitive tendering process. Suttons has a proven record of adding value and delivering a consistent and reliable service to its customers in the bulk fuel sector. The company also recognises that safety is paramount and must always come first.” www.suttonsgroup.com
As the Budget fast approaches, the Freight Transport Association (FTA) continues to press the case for a reduction in road fuel duty to ease the pressure on freight operators.
In its pre Budget submission to George Osborne, FTA argues that the chancellor’s priorities must be to:
• Ease cost pressure on domestic freight activity and stimulate economic growth through consumer demand by reducing road fuel duty by 3ppl with commensurate reductions in the duty rate for gas oil.
• Stimulate investment in low-carbon fuelled vehicles by fixing fuel duty rates for natural gas and biomethane relative to diesel rates for at least 10 years.
• Ensure that the introduction of the HGV Road User Levy will be tax neutral in practice by confirming: the rates of the levy that will apply; that Vehicle Excise Duty rates will not be subject to increase simply to allow that neutrality to be achieved; and that holders of Reduced Pollution Certificates will be compensated by replacement grants. www.fta.co.uk
The Federation of Petroleum Suppliers (FPS) says domestic oil consumers should be extra vigilant when it comes to safeguarding their oil supply.
The FPS recommends heating oil customers take the following measures:-
Two former oil company executives have established a new management and consulting company – Fuel Supply Solutions.
With over 60 years of combined experience, founders Patrick Hudson and Keith Guppy want to put industry insight at the forefront of their service.
Patrick Hudson explains: “End-users and resellers of petroleum products tend to focus on the current trading climate and will invariably rely too heavily on past experiences when looking forward. In the current environment of rapid industry change, we aim to have a visionary approach for our clients through consultancy, products and services that reflect where the industry is going, not where it has been.”
Keith Guppy adds: “We’ve spent several months carefully looking at key industry indicators and matching potential business partners that share our vision. Our goal is to now focus on providing valuable consultation across a wide client base including retailers, distributors, wholesalers and end users, our website will give more details of these core areas and target markets”. www.fuelsupplysolutions.co.uk
Ready for action – brand new Clugston tanker
Clugston Distribution has announced a £1.5 million capital expansion of its fleet.
The expansion is part of a strategy to increase the company’s presence in the fuels, intermodal, bulk powder and bulk ash movement markets. The investment, which will lead to ten new jobs being created, means the company will have increased its workforce by 25 people in the last year alone.
With the funds the company will acquire an additional 15 Renault Premium tractor units; five of which will be specified with ADR and Pet Reg compliance and will aid the growth of the fuels fleet on the Humber, as well as the start of the Teesside fuels operation in the summer. The remaining eight tractor units will be specified with hydraulic discharge fitted compressors for use in the company’s bulk powder operation.
On the fuels logistics side a new fuels tanker, built by Cobo will be on fleet in April and used in the new Teesside operation from June.
Commenting on the investment, Clugston Distribution’s general manager, David Heath, said: “We are extremely pleased that the group board of Clugston is backing our strategy of expansion in targeted markets. We are anticipating 2013 to be a successful growth year across all areas of the business and remain positive about reinforcing our market position with our current client base as well as new customers.” www.clugston.co.uk
Jim Allister
TUV leader, Jim Allister has hit out at the Irish justice minister’s response to fuel laundering.
He said: “How often do we not hear about HMRC finds of laundered fuels and laundering facilities, mostly in South Armagh, yet the conversion rate into convictions is abysmal.
“A recent answer to me from the justice minister confirms just how pitiful the judicial response has been. Since April 2009 the total fines imposed have been a derisory £9916. Nothing more than suspended sentences have been imposed and one defendant got his wrists slapped with a 200 hours community service order.
“The failure to bring anything other than a token number of prosecutions and sentences is a major concern. It seems you are more likely to spend time in prison if you block a road carrying a union flag, than if you cheat HM Revenue out of millions of pounds of tax. And coming from South Armagh seems to help!”
HM Revenue & Customs confirmed that in the last four financial years, including 2012-13 to date, fines of £9916, costs of £180, confiscation orders of £1,211,211 and a compensation order of £500 have been imposed. In addition, suspended prison sentences totalling 157 months have been given. Two hundred hours community service was imposed on one defendant whilst three people also received a serious crime prevention order on top of confiscation orders. www.jimallister.org
The new RHA/FTA card from The Fuelcard Company
Exclusive access to discounted fuel is now available to members of the Road Haulage Association and Freight Transport Association through a new joint fuel card.
The Fuelcard Company card operateson the Keyfuels network, which covers one in five of all UK fuel stations. The new card can be used at over 1600 sites nationwide. Many sites have dedicated HGV fast flow pumps and a third have capacity for HGVs up to 44 tonnes. Members will receive a weekly fixed price based on the bulk fuel market, which could mean savings of over £50,000 per year.*
Users will have access to the Fuelcard Company’s online fuel management systems, allowing them to keep track of fuel spend whilst its smartphone app means that they will always be able find a fuel station. In addition, the online site locator www.ftafuel.co.uk gives the option to download fuel site information straight to a sat nav.
The card is free for the first year and there is no contract to sign or cancellation fee.
FTA chief executive, Theo de Pencier said: “Joining forces with RHA means that we can pool our resources and offer members excellent discounts and price reductions. Having worked together with FairFuelUK in a successful campaign to stop fuel duty hikes, we have gone one step further towards the solution to getting fixed weekly fuel prices for our members.” www.ftafuel.co.uk
*Based against national average pump prices Jan–Dec 2012, with an average weekly volume of 30,000 litres.
From a standing start, Prax is achieving its sales targets in the Midlands and the north of England says sales and marketing director, Neil Robertson
Well established to meet demand in the south of England from storage facilities on the Thames, Prax Petroleum is using Simon Storage’s Immingham West terminal as a strategic storage and distribution hub for market expansion.
Simon Storage took the first deliveries of diesel and gas oil for Prax into Immingham West in September 2012. Securing a second terminal at Immingham allows Prax to meet growing demand for its commercial fuels on a wider national scale.
Since then product throughput has risen and last month the contract with Prax was extended to include storage of biodiesel (B100) for intank blending to comply with the Government’s Renewable Transport Fuel Obligations. Under the contract at Immingham West, Simon is providing Prax with more than 18,000m3 of storage capacity, together with road loading facilities for onward delivery to customers.
Neil Robertson, Prax’s sales and marketing director, says: “Immingham provides an optimal distribution point for supplying our customers in the Midlands and the north of England. From a standing start just a matter of months ago we are achieving our sales targets in these regions and increasing fuel supply security for all our customers.”
In addition to strategically located UK terminals, Simon’s expertise in the storage, blending and distribution of green fuels makes it an ideal partner for Prax’s venture north. Richard Sammons, Simon’s chief executive, comments: “Simon provides fuel storage and handling solutions for some of the world’s leading oil producers and distributors. We are able to offer fast-expanding fuel suppliers like Prax Petroleum a fully integrated package from receipt through to redelivery with intank or inline blending of biofuels with conventional hydrocarbons to meet RTFO regulations.”www.simonstorage.com www.praxpetroleum.com
This morning more than 40 BP tanker drivers, working out of the Grangemouth oil refinery walked out in a dispute over cuts to pay and pensions.
With the walkout scheduled to last until 8am on Monday morning (25th February), Unite believes that the action will affect aviation supplies and BP forecourts across Scotland and north east England.
According to Unite, 90% of the 42 drivers balloted voted for strike action following the transfer of an aviation contract from BP to DHL. The union estimates that drivers could lose up to £100,000 from the value of their pensions and £1,400 a year in wages as a result.
A BP spokeman said: “Our priority remains the safe delivery of fuel products to all our customers. We have been working to, and continue to work to, minimise any potential disruption the industrial action planned for this weekend at Grangemouth could cause.”
Tony Trench, Unite’s regional industrial officer remarked: “It’s an outrage that BP, a multi-national giant which earns billions every year, is exploiting the UK’s weak employment laws to effectively swindle workers out of their retirement savings and future earnings.”
The union has announced a ban on overtime from Monday and if the dispute is not resolved quickly, a second four-day strike is scheduled for 28th February.
When kerosene is being distributed by taxi rather than tanker, it’s time to take action. Air your views on the heating oil market, among other hot topics, at the Distributor Debate on Thursday 7th March. Reserve your FREE place(s) today by emailing sandra@fueloilnews.co.uk
As the Northern Ireland Housing Executive carries out a consultation on its heating policy, you are cordially invited to join in the Fuel Oil News Distributor Debate on Thursday 7th March.
Highlighting an overdependence on oil, the report says that whilst oil is technically a good heating solution, it is increasingly difficult to afford with ‘the lack of a PAYGO option a major factor’.
It also points out that switching to oil does not currently have the same benefits for tenants as it did in previous policy periods.
Among the questions being asked are:Oil heating is clean and efficient but requires bulk fill ups which are expensive. What ways do you think the problem of finding the money for this could be overcome?If you live in a rural area and oil or wood pellet systems are your only choice, what would be your preference?What are your views on schemes using saving stamps or local community “pay as you go” schemes and would you welcome such a community based scheme if it was available?
__________________________________________________________ DISTRIBUTORS ACROSS IRELAND ARE ALL WELCOME TO JOIN IN THE DISTRIBUTOR DEBATE AT THE TEMPLETON HOTEL, TEMPLEPATRICK WHEN ISSUES SUCH AS THESE WILL BE DISCUSSED. REGISTER FOR YOUR FREE PLACE(S) TODAY sandra@fueloilnews.co.uk__________________________________________________________
Responses to the consultation can be made in writing or email. Download the heating policy review document, the questions and accompanying letter at www.nihe.gov.uk/index/corporate/consultation.htm Additionally, a Rural Homes and People Draft Action Plan 2013-2015 has also been published with actions ‘designed to ensure that an equitable share of available resources is directed to rural areas’. The NIHE intends to ‘undertake the actions listed by March 2015, subject of course to the necessary funding being available’.
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