News 87
LR Handing over – John Sutton and Andrew Palmer
After eight years at the helm of the Suttons Group, Andrew Palmer, group managing director, has announced his intention to retire at the end of April. John Sutton will take over in May.
Currently managing director of the Group’s International Division, John Sutton takes over the reigns from 1st May and will also join the Thomas Cradley Holdings (TCH) board. John will work with Andrew from now until the end of April to facilitate a smooth and efficient hand-over
“The board and the shareholders would like to express considerable thanks to Andrew for the way in which he has transformed the fortunes of the company, making it a highly profitable and substantial global provider of bulk logistics services with an outstanding reputation for safe, high quality services,” said chairman, Michael Sutton.
“John has managed the International Division through a period of high growth and the board looks forward to him building on the excellent work done by Andrew,” added Michael.
From 1st May, Andrew will be joining the TCH board as a non-executive director, enabling the Group to continue benefitting from his knowledge and experience. www.suttonsgroup.comFind out more about Suttons – read Liz Boardman’s exclusive interview with Andrew Palmer in the February issue of Fuel Oil News.
With widespread snow across the country reported on virtually every news bulletin, some in the industry have been in the limelight.
Whilst this Adler & Allan van was trying to get around the north east of England on Tuesday, it was captured by a BBC News camera crew.
Fuel Oil News contacted marketing manager Alan Scrafton to see if any of the team had taken a photograph of their moment in the spotlight to which he replied: “I guess they were too busy digging themselves out!”
If one of your drivers has managed to take a good snowy shot whilst out and about over the past few days, please send it to jane@fueloilnews.co.uk.
Look out for the Stevenage Oils tanker delivering in a snowy Hertfordshire in the February issue of Fuel Oil News.
VOSA has made changes to ADR first testing for new trailers, subject to European Community Whole Vehicle Type Approval (ECWVTA) or Individual Vehicle Approval (IVA).
An ADR Test and a first trailer HGV Annual Test prior to entering service is no longer necessary if new trailers subject to ECWVTA or IVA are supplied by the manufacturer with proof that they are designed and constructed in a roadworthy condition. A cursory visual inspection will be carried out to ensure there are no obvious roadworthiness defects.
It is still legally possible for trailers built in multiple stages not to need ECWVTA or IVA, provided they are supplied to be placed in service prior to 29th October 2013. These trailers will still need a first test application for a trailer (VTG2) and satisfactory HGV Annual Test pass as a condition of being issued with a first ADR certificate.
www.dft.gov.uk/vosa
To maintain compliance with O Licence regulations, Volvo Trucks has a user-friendly suite of solutions that can be used by vehicle operators.
Commercial aftermarket director, Tony Davis said: “Having trucks off the road because of non-compliance issues has a direct effect on uptime and therefore your business’ bottom-line.
“We’re working hard to get the message across to transport operators that Volvo Trucks is much, much more than a truck manufacturer.”
The Science of Compliance campaign focuses on a range of solutions to help keep operators compliant and maintain vehicle uptime.
VOSA and the Freight Transport Association (FTA) have taken part in a joint workshop to develop a new Operator Compliance Risk Score (OCRS) report.
As a result of recent changes to OCRS, VOSA found that some of the calculations were too complicated to be usefully indicated on the Encounter Report and Test History Report, and removed the scores from the report altogether. Following representations by FTA, VOSA recognised that it had removed a useful compliance too and agreed to develop a bespoke report.
At the workshop operators gave feedback on the latest draft. VOSA is expected to produce a further draft in February, although timescales have not yet been confirmed.
www.fta.co.uk
www.dft.gov.uk/vosa
A restructure at the Total Lindsey oil refinery (LOR) is set to take effect from spring 2013.
Total LOR, which has seen more than £600m of investment in the last few years, is to become a separate operating company, and will take responsibility for the daily running of the group’s refining, logistics and storage terminals interests throughout the UK.
Total has already tried to find a buyer for its Lindsey oil refinery on previous occasions, Fuel Oil News quizzed an industry insider as to whether being a separate entity would make the refinery a more attractive proposition?
“Not really, as I don’t think this is much more than a formalisation and integration of operational and reporting arrangements following the 2011 sale of the marketing business.
“The original sale structure was unusual, splitting away primary logistics and the associated terminals along with the commercial/industrial fuels sales to distributors, direct commercial customers, bitumen and aviation from those parts of the marketing organisation sold under Project Mary – principally to Rontec.
“Any prospective buyer is taking on not only a refinery, but also some downstream elements, which they may not want…”
Jacques Beuckelaers, who has taken over as general manager from Nigel Tranter, said: “The new organisation will streamline our services so that there’s a direct link from refinery to storage and then on to our customers. The ambition of Total LOR is to be a truly customer-focused organisation providing the best quality products with a first-class service.”
Total energy production, Q3 2012
Production of oil fell by 12.1% in the third quarter of 2012 when compared to the previous year. Oil consumption fell by 1.1%.
The Department of Energy and Climate Change has published the figures in Energy Trends and Quarterly Energy Prices, publications which give statistics on energy production and consumption.
The overall demand for primary oils at refineries fell by 9.2% when compared to the previous year. The closure of the Coryton refinery was a contributory factor, having previously accounted for around 10% of the UK’s refinery production, but other refineries around the country also shut down for planned maintenance work during the quarter. Consequently, petroleum imports increased by 23%.
Domestic heating oil prices rose by just 0.1% from the previous year. Domestic gas prices rose by 6.4% in real terms from the same period in 2011.
Total energy production for this period was measured at 27.1 million tonnes, a fall of 7.3%, of which oil accounted for 10.7 million tonnes. Production of gas also fell by 10.3%.www.decc.gov.uk
FPS chief executive, Mark Askew
The Federation of Petroleum Suppliers (FPS) has responded to claims of profiteering on heating oil, explaining that community buying groups should be realistic about the savings that can be gained in these times of low margins.
Chris Pomfret, founder of Community Buying unLimited, has sent letters to the FPS and prime minister, David Cameron, arguing “there is something very wrong with the price of heating oil”, and that domestic heating oil suppliers have “allowed themselves to be influenced by very short term greed”.
The statement from the FPS read: “Consumers get a pretty good deal and, with low margins, there is very little leeway to give them price reductions and still remain viable! Many claims of huge savings are actually comparing the highest quotes – possibly artificially high from a distributor who doesn’t want the business – with the lowest quote, because some of these high prices are just not feasible.
“The FPS always recommend that if buying group customers wish to receive an indication of the true saving for the fuel they should contact the distribution company who delivered their fuel and ask for a spot price for the volume which they have had delivered. The difference between this price and the price they have paid represents the true saving obtained.”
The organisation has continually urged distributors to be honest if they cannot, or do not wish to supply a community buying group with fuel, in response to news of artificially high prices being quoted to deter potential customers.
The response also highlights the benefits for consumers of buying oil individually, and building a relationship with a regular supplier, to ensure priority treatment during times of short supply.www.fpsonline.co.uk
Pictured at the certificate presentation with Hugh Nicholl and the successful advisors are NEA NI’s Pat Austin, John Dallet MLA, professor Christine Lidell, University of Ulster and Mary McKeown, Department of Enterprise, Trade and Investment
Six Nicholl Fuel Oils advisors have recently been given energy in the home training by National Energy Assessors Northern Ireland, (NEA NI).
“For some considerable time, Nicholl Fuel Oils has firmly believed that energy efficiency is the only way that people can afford energies such as oil, gas and electricity,” said director Hugh Nicholl.
“In these hard economic times, energy efficiency is extremely important. As a company, we felt we had a part to play; training our advisors is just one commitment to helping customers become more aware about energy efficiency.
“The training received equips our advisors to provide energy advice to customers by highlighting energy efficiency grants and schemes which will enable them to get the most from the energy they use.”
Commenting on the training Paul Wallace, NEA NI development manager said: “The advisors successfully achieved the NEA/City and Guilds Energy Awareness qualification and are now competent in the provision of quality energy advice to a specific standard.”www.nicholloils.com
‘Meeting today’s challenges, investing in tomorrow’s opportunities’ is the theme for this year’s International Petroleum Week in London on 18-20 February 2013.
The global outlook for the oil and gas industries is set to be tackled at the event, with the opening conference focusing on the challenges for the sector, technological advances, and the requirements to move forward for a more sustainable future.
A seminar on the global future of the downstream oil industry, including making a profit and changing demand, is being held on 20 February. The speakers include Chris Hunt, director general of the UK Petroleum Industry Association.
Dr Fatih Birol HonFEI, executive director, International Energy Agency, will present the outlook for the oil market, examining the uncertainties and certainties for the sector. Other speakers include John Hayes MP, minister of state, Department of Energy and Climate Change, and senior industry leaders from AMEC, BP, Chevron and ExxonMobil.
IP Week 2013 is sponsored by Ernst & Young, Standard Chartered Bank and Platts. It will feature conferences, seminars, a high profile luncheon, an evening reception, exhibition and will conclude with the prestigious IP Week Dinner.
www.energyinst.org/ip-week
The Oilsave website has been updated to carry new campaign material to promote oil heating to consumers.
Members of the Federation of Petroleum Suppliers (FPS) are due to receive an A5 postcard promoting the campaign shortly, and electronic copies can be obtained by emailing mfarrow@oftec.org
A leaflet which highlights the benefits of oil for homeowners, as well as providing information about improving energy efficiency of an oil heating system, is available now free of charge to registered OFTEC technicians.
The postcard promoting the campaign was sent out to registered OFTEC technicians in December, together with the latest news from OFTEC and a Green Deal registration flyer. The postcard gives details of how to get involved in the marketing campaign, and get free marketing material.
www.oilsave.org.uk
The Task Force on fuel efficient, low emission HGV technologies has recommended a range of solutions to tackle efficiency improvements.
Ricardo-AEA was commissioned by the Low Carbon Vehicle Partnership to conduct a high-profile study to identify the opportunities to overcome barriers to the uptake of low emission technologies and fuels for HGVs. The project was completed to a very tight timescale and the final report, which was presented to Stephen Hammond MP, minister for transport, has received very positive feedback.
According to the recent report, three key areas with the greatest potential to reduce the CO2 emissions of fleets are switching to gas to replace diesel, improving aerodynamic efficiency and supporting the uptake of hybrid and pure electric vehicles.
For both long haul and regional delivery vehicles, the optimum solutions presented were a dual fuel engine, using a combination of biomethane and CNG for vehicles used for regional deliveries, and a combination of biomethane, LNG and CNG for long haul use. The alternative is a dedicated natural gas engine, which would save less CO2 emissions but have a smaller payback period – between 3-6 years for regional vehicles compared to 5-10 years for a dual fuel engine, and 1-3 years for a long haul vehicle, compared to 2-4 years for dual fuel.
After a series of interviews and online responses, key barriers to fleet efficiency were identified as concerns over upfront costs and uncertainty about the payback period, and a lack of trust in the technology provider’s fuel economy claims.
OJ Williams regional manager, south west, Steve Morgan
OJ Williams has appointed a new regional manager, Steve Morgan, to oversee its commercial and domestic oil business in the south west of England.
Steve brings over 15 years of managerial experience to the role, having held several senior positions within the FMCG and car hire sectors.
Steve will be responsible for stimulating growth in the region, motivating the team and ensuring top customer service.
Paul Williams, director, England and Wales, commented: “Over his career, Steve has worked in a wide range of sectors and the skills he has acquired will complement his new position within the fuel industry. His managerial expertise, coupled with his excellent reputation for customer service, ensures he will be a key addition to the team.”
Steve said: “I’m looking forward to being able to apply my expertise as part of such a driven and dedicated team. I’m eager to contribute to OJ Williams’ continuing success and help to drive growth going forward, as well as to support the team in ensuring the OJ Williams brand is the first choice for customers across the region.”www.ojwilliams.co.uk
Figures compiled by the HHIC show a rise in oil boiler sales during October and November 2012
New statistics have revealed a welcome rise in oil boiler sales.
Figures compiled by the Heating and Hot water Industry Council (HHIC), supplied to the organisation by OFTEC members, have shown a significant recovery in sales at the end of last year, as temperatures fell in autumn.
For all but two months, 2012’s sales have been below 2011 totals. However, sales during October and November have shown a significant recovery, with November’s figures exceeding not just 2011, but 2008 and 2009 as well.
Total boiler sales for the year to mid-December were recorded at 47,413, a fall of approximately 10% on 2011.
Finding one solution to help with several issues across the business makes for a healthy investment for the distributor. FON looks at the new and improved software packages that could make the difference
New module for the WP Group
Fuelsoft implemented a new Lubricants Warehousing module at the WP Group this summer to add to the bulk fuels software already in use. The new module incorporates recommended stock ordering, automated purchase order processing, multiple bin locations, put away lists, picking lists, despatch lists, management of bulk and packaged lubes, and customer and industry specific price lists. This provides the ability to upload cost and selling prices directly from the manufacturer.
David Fairchild, WP Group managing director, said: “We are delighted with the new Lubricants Warehousing module developed by Fuelsoft. It has helped to streamline our warehouse and purchasing processes.”
Fuelsoft has also jointly developed a new Screen Popping module that allows the order entry system to automatically ‘pop’ the screen with the account details of the incoming telephone call.
John Allen, Fuelsoft software director, said: “We decided to upgrade our software with our development partner, Phoenix IT. They already specialise in screen popping software for Sage, so we knew the new product would provide our customer base with a very established and well respected application.”
New integrated solution for Hingley & Callow
Fuelsoft and Touchstar installed and implemented their integrated solution at Hingley & Callow this summer. The Touchstar solution allows scheduled orders to be transmitted directly to the Raven handheld computer in the cab, enabling the driver to print out their schedule of work and invoices eliminating the need to return any paperwork to head office. The in-cab computer returns confirmed quantities and images of the customer’s signature back to the application. The signature can then be included in the body of the invoice which can be emailed to the customer.
David Kingsman, Fuelsoft managing director added: ‘”We are very excited about the high level of integration between the Fuelsoft and Touchstar solutions. This will provide our customers with the ability to control the flow of data to and from vehicles that never return to a manned depot and improve their cash flow by invoicing earlier’. www.fuelsoft.co.uk
A common solution to vehicle tracking
Identifying a single tangible saving within a modern business can be a challenge. Potential savings tend to be spread throughout the operation, but if they can be addressed with a common solution, things can get interesting.
Temperature shrinkage, spillage, vapour loss and leakage can all cause a product loss for fuel distributors. Some also lose fuel in transit due to human interference. It is a prospect that business owners are reluctant to consider, but with soaring fuel costs, should be monitored.
In response, Mechtronic has launched the Stocksmart vehicle tracking and data transfer system. Designed specifically for the fuel oil market, StockSmart makes vehicle, stock and driver monitoring straightforward.
Other tracking systems offer benefits, but can be expensive and involve onerous contracts, while not giving all the required information. Mechtronic has developed an affordable, web based system with no contractual ties, giving easy access to satellite tracking data from any computer.
Real time vehicle tracking can be presented on Google mapping or satellite picture. Small ticket icons on the trail denote historical delivery information, and a geo-fencing feature shows entry and exit times for any designated location. A summary ticket report enables quick assessment of vehicle efficiency and allows users to spot unusual behaviour. Routers benefit from vehicle contents tracking and remote end of shift reporting, allowing efficient allocation of remaining stock.
A complete breakdown of miles travelled, driving time, stationary time and total working time gives StockSmart users a constant picture of vehicle activity. www.mechtronic.ltd.uk
A unique UAP
In April, Toptech released a new unified automation platform (UAP) unique in today’s market. Leveraging two industry leading platforms, MultiLoad II and Toptech Data Services (TDS), provide a hosted automation platform designed to offer unprecedented flexibility, ease of use, and simplicity.
The MultiLoad II acts as the control platform to manage all of the facilities loading process. Each MultiLoad connects over the internet to TDS, which serves as the user interface to visualise consolidated load data, manage business data, run reports, and perform inventory management and balancing.
MultiLoad will receive all database updates from TDS at regular intervals, so if the internet connection is severed, it will continue to function independently.
Steve Wert, director of software technologies, said: “Toptech’s UAP combines cutting edge technology with the power and reliability of our existing products. The result is a solution that allows our customers to take advantage of the flexibility and scalability of cloud computing in concert with the process control features of MultiLoad.”
Kathy West, PFT Alexander, said: “This is exactly what the next generation of this robust system needs to fit the new alternative fuels markets. With the choices offered to size the solution to the immediate customer needs and the option for additional growth later, UAP is ideal for this market.”
www.toptech.com
User friendly software for small or large fleets
Building on expertise gained through eight years of supplying fuel control systems, Hytek has successfully developed the FC10 to come with web-based software as standard. Customers can access data securely from any PC around the world, making the product ideal for small or large fleets, multi-sites and multi-user applications.
Software comes with a number of pre-prepared reports supplying the regular information required by most fleet managers, or users can simply create individual bespoke reports from scratch.
Each Alpha FC10 can store information for up to 2000 separate refuelling operations. Hytek can also programme software and data tags with individual customer details prior to delivery, enabling a quicker installation.
Replacing an old fuel wizard system, two FC10 fuel control based Alpha pumps have been installed at a council in Norfolk. Technical engineer, Scott McClean who oversaw installation and provided end user training on the software package reported positive feedback on this user friendly system. www.hytekgb.com
Integrating every aspect of fuel management
Kan’to Instruments has continued the development of its web-based suite iNTELLIGENT GAUGING.
A well-proven platform provides both real-time and historical data in tabular and most importantly, graphical formats, for inventory and alarms’ management.
Recent additions to the suite include extensive search of historical data, opening and closing stocks for reconciliation, email and SMS alerts, and stock reports.
Kan’to managing director, Dimitri Papaioannou, said: “The future of this platform lies in integrating every aspect of fuel management and depot automation, for either distributors or end-users, with scalable capability to suit both. Work is well under way in partnership with well-known organisations. Many features are in development as we speak, including remote system maintenance and diagnostics, and interactive use of the information on the web. Other features include regular stock/status reports via email or SMS.”
The concept has also been marketed successfully outside the UK. www.kanto.co.uk
Over the past 20 or so years the major integrated oil companies (refiners) have repositioned, progressively withdrawing from certain market sectors which they were formerly prepared to service. Two areas in particular spring to mind:
“Around 75% of the time, systems fail because they are designed or used incorrectly,” Peter Davidson, director – safety, commercial and projects, UKPIA, told a packed room of delegates at the Hilton Hotel in Coventry. “Both are caused by human error, and a lack of competence.”Increasing competence across each business, so that industry standards can improve, was a focus of the event.Peter argued that competence is not just about training, but also incorporates knowledge, experience and qualifications.A joint industry group formed by UKPIA and the Cogent Sector Skills Council has been set up to share good practice, within a framework of understanding the needs of the industry and the expectations of regulators.Peter explained: “We noticed a shortfall in clear and easy guidelines to enforce competency management systems, so we developed guidance to do it.”The guidelines are focused on the downstream oil industry, although they are relevant to other sectors, and have been designed to avoid jargon and be easily understandable.As the industry continues to learn and develop following the Buncefield disaster in 2005, the competency management system should be carefully designed to ensure its purpose is clearly defined, who should implement and how standards will be maintained.A copy of the guidelines is available on the UKPIA website at www.ukpia.com.Stepping up “Things aren’t half as bad as you would think if you just listened to the media,” said Phil Scott, safety & risk policy manager, Chemical Industries Association, which covers oil refineries and related transportation.He told the conference that guidance was available for the industry on process safety, but that embedding those guidelines into businesses needs a clearer strategy.“This is not an irresponsible industry,” he stressed. “There are just some companies who need to step up a bit. There is a tremendous will, and evidence that things are improving.”Peter Baker, deputy director & head of Chemical Industries Division, Hazardous Installations Directorate, HSE, suggested that the way to deal with competence issues was “a bit like an AA meeting”. He said: “We have to accept the problem, identify the problem, and then take steps to solve the problem.”In response to a question from Daniel Brain at Murco, Peter explained that in terms of significant incidents, the old chemical and downstream oil industry was above the rest ofEurope. He went on: “But in terms of overall performance we are significantly ahead – both in the way we measure performance and the way we talk about performance.”Shane Wakefield, Chemical Industries Strategy Unit, Hazardous Installations Directorate, HSE, also talked about COMAH CA’s expectations of competency management systems.While there was a focus on competency in management, the conference also acknowledged the pitfalls the tanks themselves can present, particularly as they get older.Ageing issues David Burgess, of ABB Consulting, spoke about the challenge of ageing assets in the bulk liquid storage industry. He told the audience that owners and users of equipment containing potentially hazardous fluids have a responsibility to the public and environment to minimise risk.An ageing tank can be damaged in various ways, including wall thinning which can cause corrosion, the biggest cause of tank failures in 2009. By installing an integrity management system, assigning responsibility for tank maintenance and including regular inspection, potential failure scenarios can be identified.Tank horrorsDr Rene Hoyle, Axiom Engineering Associates, told the audience about a series of storage tank failures due to corrosion and fatigue. He was forced to confirm that none of the images he had used to illustrate his presentation had been photo-shopped, despite the horrors some depicted!He used images to illustrate external corrosion, corrosion under insulation, underside corrosion, and internal pitting corrosion. Rene argued that a lack of understanding of mechanisms, lack of knowledge about the causes of corrosion, a lack of physical and financial resources to implement the necessary precautions, and perhaps even a lack of care, could all be reasons for the problems.He said: “We have the technology to stop corrosion being an issue – you just need to use it!”Oil fraudJohn Spargo, director at Customs 558, gave delegates an insight into the problem of oil fraud. The issue lies in differentiating between the excise duty responsibility of the warehouse keeper and the customer. Currently, a warehouse receiving imported oil is authored by HMRC in duty suspension, and the duty is charged when the product leaves the terminal. However, John discussed whether that duty point could be moved, to where the product is measured out of the refinery, or even to the filling station forecourt.The delegates enjoyed a varied day of presentations and discussion, but the focus remained on improving the industry for all, particularly through competency issues. All the speakers provided a wealth of information that can be put into practice in business.Peter Davidson said: “As an industry, you need to use all the resources available to you – wherever they are.”www.tankstorage.org.uk
Staff join managing director, Richard Burton to celebrate the company’s 40th anniversary
On a recent visit to Barton Petroleum’s Wellingborough head office, features writer, Liz Boardman learned more about managing director, Richard Burton’s plans to celebrate its 40th anniversary and inject new life into the company. Moving with the times
Having celebrated Barton’s 40th anniversary in style at an Oxfordshire hotel in September, Richard is keen to move Barton Petroleum forward and has recently reorganised the company. “Business is difficult, conditions are tough and the industry as a whole faces fresh challenges every day. We feel that by reorganising, we’re better placed to deal with those challenges, and I am pleased to say that we are already seeing the benefits.”
The company has increased sales resource appointing two new sales account managers and promoting Kevin Day to business development manager. Kevin has collective responsibility for sales over the entire company and is currently assembling a new team to strengthen this area of the business. In addition there are new depot managers at three out of the four depots, all of whom have come through the ranks. Steve Moulin is Leicester’s new manager, Mark Gamble takes the reigns at Wellingborough and Mark Varley has been promoted at Watford. Clive Morin has been also been promoted to develop the company’s key relationships with suppliers as well as taking overall responsibility for managing credit.
“We have some long-standing employees at Barton, and where possible, prefer to promote existing staff to new roles,” said Richard. “We’ve got a great team here and a very loyal customer base.”
Acquisitions, however, are not currently on the agenda. Richard admitted: “I’m not crazy about acquisitions. I would much rather grow the business organically from our own depots, however we will continue to evaluate opportunities as they arise.”
In line with the new changes, Barton is relaunching its website to enable domestic customers to order and pay online.
A Hertfordshire distributor has partnered with the police in a bid to help local residents protect their heating oil. Stevenage Oils has been distributing leaflets to customers containing practical advice on how to make oil tanks more secure.
Detective inspector Paul Doran of the county’s crime reduction unit said: “I’d like to thank Stevenage Oils for helping us to deliver these leaflets to those people who are most likely to benefit. The theft of heating and diesel oil always tends to increase whenever there are price rises at the petrol pumps.”
Is your company working with police to combat oil theft? Email alex@fueloilnews.co.uk.
Teresa Sayers, Downstream Fuel Association
After October’s Distributor Debate, Teresa Sayers of the Downstream Fuel Association has answered more questions received on the subject of biofuels.
With the audience keen to ask questions at October’s Distributor Debate, time ran out before all the issues shaping today’s oil market could be discussed. Teresa has provided more comments on the introduction of E10 in the January issue of Fuel Oil News. With restrictions to the bio content from food crops, what future do you see for biodiesel?
This is just a proposal at this stage and will be subject to intense lobbying and further political negotiations before becoming law in the UK. We anticipate that the process could take over two years to be finalised and implemented in the UK.
Earlier versions of the Indirect Land Use Change proposals indicated that crop based feedstocks used for the production of biodiesel would be given a significantly higher GHG default value than feedstocks used to produce bioethanol. This clearly would have disadvantaged significantly the European biodiesel industry. UK biodiesel producers would have been affected to a lesser extent due to their focus on waste feedstocks.
The current version, however, whilst maintaining a 5% limit by energy content on biofuels derived from land based feedstocks, has seen the default values as a means to calculate GHG emissions dropped from the proposal.
One of the biggest risks for the biofuels industry is the lack of policy stability and a long term trajectory for the UK biofuel mandate. This is needed to encourage R & D and investments and to develop supply chains for feedstocks that use less land and save more carbon. Read Teresa’s comments on the introduction of E10 in the January issue of the magazine.
Jeremy Hawksley, OFTEC director general
The proposed Renewable Heat Incentive (RHI) is unlikely to tackle the problem of carbon emissions from rural homes, according to OFTEC.
In a written response to the RHI consultation, OFTEC stated support for the principle behind the tariff, but was concerned that the practical impact of RHI will be to increase, not decrease, CO2 emissions from rural homes, because the incentivised technologies will run on carbon-rich electricity.
The statement also provided statistics which showed that the relevant technologies, including air and ground source heat pumps, could emit twice as much CO2 as B30K bioliquid fuel up to 2020-21. Other concerns include the cost of installing renewable technologies, when compared to converting an existing oil boiler for biofuels.
OFTEC director general, Jeremy Hawksley said: “In its current form, the RHI strategy incentivises renewables such as biomass and air source heat pumps, which can have high carbon savings. However, this is only true if they run efficiently and the electricity they use is sourced from renewable sources. Our response demonstrates that bio-liquids would be more effective at reducing carbon emissions in off-gas areas, and much cheaper and simpler for homeowners to adopt. With the weather growing colder I’m reminded of the harsh winter of 2010/11 when heat pumps performed poorly, causing higher running costs w hile failing to keep homes warm. By contrast, oil heating is much more compatible with rural homes off the mains gas network.”
Around 300,000 households could face fuel poverty in the next few weeks thanks to the continued rise in energy prices.
Fuel poverty has been defined as a household spending more than 10% of income on heating, and the Fuel Poverty Advisory Group’s tenth annual report predicts that this will apply to around nine million people by 2016.
It also shows that energy prices rose by 7% in 2012, with the average energy bill at £1247. In the case of oil, at the start of December average prices are virtually unchanged from a year ago – see prices and margins 2012, page 6 of the January issue.
The group calls for the government to use the carbon tax revenue for the benefit of low income households, and to provide a more coherent strategy to combat fuel poverty, including making homes more energy efficient.
“With a cold winter, welfare reforms cutting incomes, and all at a time of austerity measures and other rising household costs, the plight of the fuel poor has never been more serious,” Derek Lickorish, chairman of the FPAG, told the BBC.
“A toxic cocktail of rising wholesale prices, the high cost of energy reforms and cuts in incomes for many households means fuel poverty levels are set to sky rocket without radical action,” he added.
Read the report
(l-r) Malcolm Wilson, Hervé Montjotin, Patrick Bataillard and Luis Angel Gomez
Norbert Dentressangle has appointed two new executive board members.
Former managing director of the company’s logistics UK division, Malcolm Wilson, is now managing director of the group’s logistics division, whilst Luis Angel Gomez has been appointed as managing director of the transport division. Malcolm and Luis join CEO, Hervé Montjotin and CFO, Patrick Bataillard on the executive board.
Commenting on the new appointments, Hervé said: “Malcolm Wilson has considerable experience of managing logistics operations in the UK, where he is highly respected in this sector. Luis Angel Gomez gained a sound experience of transport at our Spanish subsidiary Norbert Dentressangle Gerposa, which he has successfully headed since 2008.”
(From left) Garner Group directors Mike Garner, Tim Garner and Dave Auger, and Phillips 66 manager, UK and Ireland marketing, Pete George
Garner Group Holdings has celebrated 50 years as an independent JET dealer. The two companies have been in partnership since founder Maurice Garner signed his first supply contract with JET in 1961, following the opening of his first service station near Portsmouth.
Five decades later, the Garner Group operates three JET forecourts in the region: Woolmer, Green Road and Portsbridge, all run by Maurice’s two sons, Mike and Tim, and co-director Dave Auger.
“We are delighted to reach such a milestone with Jet,” said Mike Garner. “When my father entered into partnership with the brand 50 years ago, fuel retailing was very different. The early deals he made were based on a gentleman’s agreement; contracts were written on the back of a beer mat and sealed with a handshake.”
To celebrate the 50-year milestone, Pete George, Phillips 66 manager, UK and Ireland marketing, joined manager, regional sales, Guy Pulham and territory manager Paul Carey on the forecourt of the Woolmer Service Station in Borden to toast the long-standing relationship with the Garner Group directors.
Pete George said: “We are known for the close relationships we have with our dealers and are proud to say that this approach has not changed, from the day Maurice Garner first became one of our dealers to our operations as Phillips 66 today.”