News 89
With the RHI and Green Deal set to encourage a push towards alternative technologies, OFTEC has taken a look at the true costs of going green for rural homeowners.
Using the Energy Saving Trust’s online ‘home energy generation selector’, costs and energy savings were calculated across a range of renewable technologies for a typical three-bedroom cottage in east Anglia, currently using oil for heating and hot water.
If an existing oil-fired boiler was replaced with a biomass model then fuel bills would actually rise by £430 per year. Ground source and air source heat pumps did not fare much better – it would take between 31 and 200 years for any energy savings to make the installation costs worthwhile at today’s prices.
In terms of carbon savings, the biomass boiler came out best, but at an increased running cost to the consumer. Users who switched from oil to an air source heat pump would actually be increasing their carbon emissions. The ground source heat pump represented the best option, with potential CO2 savings of 1150kg per annum.
The joint administrators of Petroplus Refining & Marketing have published their first progress report on the administration, which illustrates the depth of the financial challenges faced in continuing to operate the Coryton refinery.
The report provides creditors with a detailed description of progress that has been made in the six months since the appointment of the administrators.
Trading losses from refining during the six-month period of administration are currently estimated at $22m-$31m, on sales of some $347m. Of this loss, some $20m relates to capital expenditure incurred and written off in the period.
The report also states that an extensive exercise to obtain the best value for creditors from the sale of Coryton found that offers to run the site as a refinery were materially lower than for an alternative use.
It is currently estimated that the net funds available for distribution to unsecured creditors may be in the order of $102m-$135m. Gross realisations from the assets of the company are projected to be $199m-$209m.
Steven Pearson, joint administrator and PwC partner, said: “This has been an exceptionally difficult administration. The information we have published today illustrates the scale of financial and operational challenges we faced in operating the refinery for nearly six months.
“The unfortunate reality is that, despite rigorous cost control, the refinery incurred significant losses from operations between January and June. This high risk, low reward environment was the main driver in having to cease operations – put simply, we could not afford to incur the ongoing losses associated with continuing refining.”
DCC has reached agreement to acquire BP’s LPG distribution business in Britain. Completion of the acquisition is expected to take place at the end of September 2012.
The deal is worth approximately £40.5m, to be satisfied at completion, after the net tangible operating assets of the LPG business were valued at approximately £30m (€38m) on 31 December 2011.
The Bristol-based business currently supplies a wide range of industrial, commercial and domestic customers with an annual volume of approximately 87,000 tonnes of bulk and cylinder LPG. It has 116 staff and operates from a network of 13 locations throughout Britain with a fleet of 62 delivery vehicles. Haulage services are principally outsourced.
Flogas, DCC’s existing LPG arm in Britain, has annual sales volumes of approximately 190,000 tonnes.
Tommy Breen, DCC chief executive, said: “We have a successful track record in acquiring energy distribution businesses from the oil majors as they exit downstream activities. This transaction will enhance DCC’s position as the leading oil and LPG sales, marketing and distribution business in Britain.”
www.dcc.ie
Mabanaft has sought feedback from customers to gain a deeper appreciation of their wants, and to focus on developing services for further improvement.
The company recently conducted an online survey, and results found that, in addition to price, customer service, continuity of supply, accuracy of invoicing and efficiency of loading times were rated as being of key importance.
Mabanaft was delighted that almost all participants rated them as above average across all of these areas, with 95% rating their customer service as very good or excellent and more than eight out of ten marking continuity of supply, efficiency of loading times and accuracy of invoicing as very good or excellent. The company also achieved a resounding vote of confidence in the quality of advice and expertise that they provide to customers, with 86% saying they found it to be very good or excellent.
Stephen Rhodes, marketing manager, said: “I am extremely pleased with these results as they confirm that we are delivering on the things that matter most to our customers. I am also thrilled with some of the comments we received and proud of my team for delivering such high levels of service. We will now be looking to address any areas where customers feel there is room for improvement.”
www.mabanaft.co.uk
Jet is running a special sports and fitness promotion this summer, encouraging customers to enjoy a broad range of exciting activities. The campaign is set to run until October 31.
Vouchers will be handed out to customers through the Jet Distributor network, and redeemable on the Jet-Local.co.uk website. One voucher will be distributed per transaction until October 31, set to be redeemable up to September 2013.
During an Olympic summer when the country has embraced a wide variety of sports, the Jet Active promotion includes deals on swimming, golf, and martial arts. Free lessons and discounts are also available on experiences such as paintballing and holiday club visits.
Additionally, in partnership with Blockbuster, customers will be offered a five week trial of the two DVD Unlimited plan, so they can look forward to a film on the sofa after a busy day of sports.
People taking advantage of the deal will be encouraged to try a variety of experiences, with customers only allowed to redeem their voucher once at a specific venue.
www.jetactive.co.uk
A captain’s eye view of the M. T. Lerrix
It was a day of celebration on the waterfront of Hull at the end of May when members of the Rix family, and their colleagues from heating oil and commercial fuels specialists, J.R. Rix & Sons, and sister company, Maritime Bunkering, witnessed the launch of the latest vessel to join the Rix Shipping tanker fleet.
As maritime tradition dictates, a bottle of champagne was smashed against the distinctive green hull of the 1254 ton ship as she was named the M.T. Lerrix by Lucinda Rix, daughter of company chairman, John Rix. The name “Lerrix”, explained John, comes from Lucinda’s initials (Lucinda Emily Rix), coupled with the company convention of having the letters R,I,X, ending the six-letter name of all its ships.
Watching on, as special guests at the ceremony – held at the Dunston Shipyard at Hull’s William Wright Dock – were more than 70 customers, suppliers and employees of the company. Lord Haskins, chairman of the Humber Local Economic Partnership, responded to John Rix’s speech on behalf of the guests, congratulating his company on its continued success in a difficult economic climate.
The new ship – which will be used for bunkering along the east coast of the UK, from Leithto Harwich – has an overall capacity for 1100 tons of oil in four tanks. The 53-metre-long vessel is equipped with two Blackmer rotary vein pumps, each capable of delivering 238 cubic metres of fuel per hour, and one Blackmer rotary vein pump with a capacity of 63m3 per hour.Maritime tradition
New sales coordinator, Pio Ronan
Carbery Plastics has confirmed the appointment of Pio Ronan as sales coordinator. Pio has a strong background in sales and customer service and will be responsible for assisting in the development of Carbery sales in Munster and Connacht.
Pio said: “I look forward to working closely with customers across Munster and Connacht to grow sales of Carbery products in these areas. Carbery is a well regarded brand across Ireland, with a deserved reputation for the development, manufacture and supply of quality products.”
Sales manager Pat Daly said: “Pio will play an important role in the development of our business, as we launch significant new additions in the Carbery range, including our all-new 1000 litres capacity Superslim Bunded Heating Oil Tank.”
Carbery has also confirmed the appointment of Jill Turner to the position of sales office manager. A long-serving employee of Carbery, Jill is already known to customers across Ireland and the UK. In her new role, Jill will be responsible for coordinating the provision of Head Office support to customers in all product sectors and geographic markets.”
nextgen takes place at Stoneleigh Park in Warwickshire from 10-11 October, and together with ebec, the UK’s largest bioenergy show, and microgen, a show serving small-scale (sub-50kW) power producers, has become the UK’s fastest growing event showcasing a full range of emerging renewable energy technologies.
With the trio of events combined at one location, nextgen makes it easier for visitors to retrieve relevant information and to establish business connections. Installers, engineers and renewable energy producers, will mingle alongside managers in the public sector dealing with energy efficiency, farmers and land owners or supervisors managing food processing and waste.
Besides hosting a major international exhibition, nextgen features a multi-stream conference which will take place in six CPD accredited seminar theatres.
For more information and to register for your free place visit www.ebec.co.uk
Former conquerors of Kilimanjaro, the Crown Oil team are now tackling their latest challenge
Burnley based fuel and lubricants distributor Samuel Cooke has been ‘rescued from the administrator’, after the acquisition of key assets by Crown Oil.
Crown Group managing director, Matt Greensmith, explained, “We will continue to trade under the Samuel Cooke name and we can assure existing customers a flawless continuity of service. The Crown and Cooke businesses have many similarities, both being long established, independent and family owned firms that have built sound reputations based on high and consistent levels of service.”
A handful of Cooke’s former employees have already found employment with Crown Oil who are hopeful that there will be more opportunities as the business is consolidated. Staff at Cooke’s had previously been informed that all jobs would be lost as the company went into administration.
Crown Oil general manager, Mark Andrews, said: “We will offer same day or next day emergency deliveries where required with programmed fuel delivery for larger customers.”
Cooke customers will have access to a wider range of advanced low carbon fuels and speciality lubricants. In line with Crown’s environmental commitment all Samuel Cooke’s delivery mileage by road tankers will now be fully carbon offset.http://www.crownoiluk.com/
Frank Carroll, chairman and owner of Samuel Cooke & Co
Burnley based fuel distributor Samuel Cooke & Co went into administration in late July.
The company’s staff were informed on 23 July that the majority of the 86 jobs had been lost as a result, although 12 were retained to assist the administrators.
Some customer dealings are now being investigated by the police, although no further details are currently available.
Administrator Paul Flint said: “The business suffered an unexpected loss in relation to a specific group of customers that impaired asset value and, as a result, placed the business under a significant cash strain.
“The directors reported this position to the police, and it remains under investigation.”
“Regrettably, despite the best attempts of the directors to recover from the situation, they have been unable to find a solvent solution to allow the businesses to continue to trade.”
A statement on the company’s website read: “Paul Flint and Brian Green were appointed joint administrators of Samuel Cooke & Co Limited on July 23 2012. The company has ceased to trade with immediate effect and the assets of the company are being earmarked for sale.”
Essar Oil UK has entered into new arrangements with Barclays Bank plc to cover the supply of crude oil to its Stanlow refinery.
Under the new arrangements, Barclays will hold the inventories of crude oil and petroleum products at Stanlow and will supply crude to the refinery in line with its requirements.
The new arrangements allow Essar Oil UK to repay its existing working capital revolving credit facility, provided by 13 banks. In addition, they allow Essar Oil UK to cut its costs by reducing its crude oil inventory holdings and also permit greater operational flexibility. The customer relationships and product sale processes will remain with Essar Oil UK. These arrangements with Barclays are for three years and take effect immediately.
Volker Schultz, chief executive officer of Essar Oil UK, said: “This transaction with Barclays is an important landmark step for Stanlow. We have built a strong working relationship with Barclays, allowing us to continue delivering a high level of service to our customers, but in a much more efficient manner. The change is fully in line with our strategy to maximise efficiency, to substantially improve margins and to ensure that the refinery can thrive in all market conditions.”
Essar Energy completed the purchase of Stanlow, the UK’s second largest refinery with a capacity of 296,000 barrels per day, from Shell on July 31, 2011.
Workers at the Coryton oil refinery in Essex gathered with their families at Purfleet on 21 and 22 July, to protest against the closure of the refinery and the subsequent loss of more than 800 jobs.
The site is set to be operated as a storage terminal by Greenergy, Shell UK and Vopak, but angry workers believe the government ignored other potential buyers who would have kept the refinery open.
Unite Union national officer, Linda McCulloch, said: “There are some major questions to answer over the sale of Coryton. We know there were serious bidders to keep the refinery going, but have yet to get satisfactory answers as to why they failed. Our fear is that Vopak, Shell and Greenergy were waiting in the wings and that it was a done deal for some time.”
But the three companies are set to invest “a substantial amount in the site to develop it as a state-of-the-art import terminal”, said energy minister Charles Hendry.
He added: “The construction and operation of the terminal should also create significant economic activity in the region over the next two to three years.”
But workers claim that the sale will cost the local economy around £250m.
Cutting the ribbon to declare the new depot open for business
Pace Fuelcare opened a new depot in Ransomes Business Park, Ipswich, on July 24 to ensure a reliable supply of quality fuel for commercial, agricultural and domestic customers across south east Anglia.
Key figures at Pace Fuelcare’s parent company, GB Oils, including Sam Chambers, chairman, Paul Williams, director, Simon Willis, general manager, and Keith Durrant, regional manager, teamed up with Ipswich MP, Ben Gunner, and Mayor of Ipswich, councillor Mary Blake, to cut the ribbon and officially declare the depot open for business.
Over £2 million has been invested in the state-of-the-art depot, which offers a range of modern facilities to its customers, including the latest tank gauging systems and safety features, as well as a comprehensive choice of quality fuel and lubricants.
It will also support the creation of up to 25 jobs in the area, and a further 30 jobs within the finance, marketing, health and safety, supplies and transport divisions of GB Oils, together with a number of sales vacancies.
Simon Willis said: “The opening of the new depot highlights our commitment to support customers and businesses across the region, both in terms of fuel delivery and through business contracts with local suppliers in the immediate area. Following the closure of the Vopak Terminal two years ago, the new depot will be the only fuel terminal servicing south east Anglia, providing customers with a secure supply and dependable delivery of fuel.”
www.pacefuelcare.co.uk
Steven Reeve, driver (l) and Russell Fairchild, operations director of WP Group
WP Group has announced the acquisition of local fuel distributor Upton Oil Company.
Based in Poole with depots across the south including Ringwood and Dorchester, Upton Oil Company specialises in supplying a local, friendly service to heating oil users, the farming community and commercial customers.
David Fairchild, managing director of WP Group, commented: “This acquisition is beneficial for both parties as it brings together a wealth of experience and knowledge from both sides. I have always respected Upton Oil Company’s customer loyalty and hope to further improve the service they receive by utilising WP Group’s extensive infrastructure across the south coast.”
He added, “The business will continue to trade under the long established Upton Oil Company brand and will service the existing customer base, who will not notice any disruption to normal service.”
www.thewp-group.co.uk
The Federation of Petroleum Suppliers (FPS) is introducing a new Fuel Certification scheme to improve the quality of fuel oil and raise quality standards in the industry.
The new initiative will be responsible for the quarterly testing of kerosene, gas oil and diesel storage tanks for particulate, water content and biological contaminants. The tests will allow the FPS to accurately predict trends in fuel quality and help its members improve quality standards across-the-board.
FPS chief executive Mark Askew said: “Those accredited under the scheme will be able to rectify potential fuel problems early, allowing for quick and inexpensive remediation to take place for any issues found during testing. Moreover, the new scheme will provide mitigation against claims from customers for ‘faulty fuel’, which may be caused by the customer’s storage or buying patterns.”
The member price to join the scheme is £1000 per tank per year, but the first 30 member depots to sign up will receive a discount of £200 per tank for the first year. Non-members wishing to join the scheme will be charged £1500 per tank per year.
http://www.fpsonline.co.uk/
OFTEC has launched a new consultancy service, which has already provided independent reports on oil heating systems at a school, police station and several private residences.
Developed in response to customer demand, and designed to meet individual needs, the flexible service offers on-site assessments to ensure compliance with Building Regulations and industry codes of practice. A detailed, illustrated report is provided with recommendations for any work that is required to make the installation compliant.
In some instances, OFTEC is called upon to provide an impartial assessment as part of a dispute; for example a bad installation by a rogue trader, or where a tenant has caused problems themselves.
OFTEC’s technical director Paul Rose said: “The new service is designed to be flexible and can be tailored to suit the particular requirements of the client. We will also be working closely with Local Authority Building Control (LABC) to provide additional expertise when required.”
OFTEC can also provide advice on major system upgrades such as help with preparing tenders, and evaluating submissions.
http://www.oftec.org/
Mabanaft UK managing director Raphael Hüttmann
Mabanaft has announced that Raphael Hüttmann is to take over as UK managing director. The move forms part of a management restructure to provide increased support for development of the company’s UK business interests.
Raphael, currently a board member and a former financial director of Mabanaft, will be taking over from Mark Rolph. He will be relocating to the UK with his family to take up the position.
Going forward the company will continue to focus on traditional trading in physical petroleum products, focusing on the supply chain and biofuels blending.
Raphael said: “I am delighted to be returning to the United Kingdom to lead Mabanaft and look forward to carrying on the excellent work which has been done to date. My remit will be, in spite of the challenging market conditions, to focus on the supply chain and the market opportunities that are continually presenting themselves to us now and in coming years.”
Mark Rolph has taken up a new position as director of public affairs UK for Mabanaft’s parent company, Marquard & Bahls. He said: “It has been an exciting and fulfilling period over the last four years and I could not have managed this without the dedicated support of my team. I am now looking forward to my new role.”
Mark will also continue as chairman of Downstream Fuel Association, where he works to represent the interests of the independent fuel wholesalers and leading retailers.
www.mabanaft.com
Andrew Owens, chairman of Greenergy
Greenergy has announced the purchase of assets at the former Petroplus facility in Teesside from the joint administrators of Petroplus Refining Teesside Ltd, PwC.
The Seal Sands based terminal, previously operated by Petroplus, ceased commercial operations shortly after the company went into administration earlier this year.
Greenergy has been supplying customers in the region from the nearby Vopak terminal, where it has invested in fuel manufacturing, storage and distribution facilities. Andrew Owens, Greenergy chief executive, commented: “The north east is an important hub in our UK fuel infrastructure platform and an area where we have significant sales volume. We will continue to manufacture fuel and supply our customers from the Vopak facility. Once it has been developed, this new site will be integrated into our existing north east system to give additional product and manufacturing capability.
This strategic infrastructure investment follows Greenergy’s recent acquisition of assets at the Coryton refinery in a joint venture with Vopak and Shell.”
The terminal will remain closed for commercial supply over the next few months while development plans for the site are drawn up in cooperation with the relevant authorities.
The plans will include the construction of a new rail head, making Teesside the hub of Greenergy’s rail distribution network. This will allow efficient movement of fuel between Teesside and other UK locations by rail, rather than road or ship.
The existing 20 staff will be retained, and will assist in the development planning.
DCC Energy UK’s acquisition of several heating and transport fuel distribution businesses, including Butler Fuels, has been provisionally cleared by the Competition Commission (CC).
The case was referred by the Office of Fair Trading (OFT) in April, and the final report is expected to be published by the CC by 18 September 2012.
DCC bought the businesses in September 2011 from Rontec LLP, which had previously bought them from Total Downstream UK in June 2011.
In its findings, the CC has provisionally stated that customers supplied by the various businesses would not be adversely affected by a decrease in competition, as a result of the deal.
Chairman of the DCC/Rontec Inquiry Group and CC deputy chairman, Simon Polito, commented: “Central to our decision has been the effect on customers requiring small-scale deliveries across a number of sites, and whether they would be likely to use a number of different suppliers as an alternative to a single supplier with nationwide coverage. We found that these customers are generally quite sophisticated in their purchasing practices. A number of them already multi-source and are also prepared to switch in response to a price increase, so we decided the impact of the merger on these customers would be small.”
http://www.competition-commission.org.uk/
Cameron Forecourt’s new fuelling site installation and web-based management system is helping Malvern Hills District Council keep tighter control on fuel supplies and achieve greater efficiency.
The council’s transport team is already benefitting from more accurate management information on fuel movements, stock levels and vehicle performance after the turnkey package was installed earlier this year.
The system comprises a new three-compartment above ground tank for diesel, gas oil and Ad Blue; three new pumps in a security cabinet, and Cameron’s Eclipse web-based fuel management system.
Cameron Forecourt also installed aTLS2 tank gauge and environmental monitoring system, together with a bund alarm, spill kits, lighting and electrical system.
Danny Healey, transport and logistics manager, explained: “The old installation presented a risk that we might have a leak at some stage and lose fuel, together with the potential detrimental effect on the environment. The capacity of just 5,000 litres of diesel meant we had a maximum of one week’s supply on site at any one time, which made us vulnerable to any industrial action or other disruption to supplies.”
The new tank has a 15,000 litre diesel capacity and 2,000 each for gas oil and Ad Blue.
Using the system to monitor vehicle performance, adaptations have been made to increase fuel efficiency. Danny explained: “We have made changes which include the introduction of magnetic devices to the fuel supply on the vehicles which we hope will increase efficiency by 10-12 per cent.”
The link to the monitoring system and safety alarm means the council are in a position to act immediately in the event of a leak or spillage.
www.cameron-forecourt.co.uk
Greenergy, which supplies almost one quarter of the UK’s road fuels, reported an 82 per cent rise in profit due to cheaper feedstock and increased sales amid a growing market share.
Profits in the year ended April 2012 climbed to £25.3m versus £13.9m a year earlier, according to an annual report. Sales increased to 10.9 billion litres of fuel from 9.9 billion litres, increasing the company’s UK market share to 23.2 per cent.
Greenergy mainly uses naphtha as feedstock in petrol, which is trading close to the lowest price in almost seven years.
“This year, the price of naphtha fell relative to petrol, making it a cheaper component than at any time in the past five years,” the report said. “The outlook for the next twelve months is for relatively cheap naphtha to continue to support our petrol manufacturing margins.”
Andrew Owens, Greenergy’s CEO, said: “Our petrol manufacturing margins were significantly stronger this period than the previous year due to lower raw material costs.”
Greenergy has agreed to buy the Coryton refinery, with Shell UK and Vopak, and may make an initial public offering if additional capital is required for further opportunities.
Greenergy is number 3 in the Sunday Times Top Track 100 of British private companies with the biggest sales.
An international search for a new fuel marker to help in the fight against diesel fraud has been announced by revenue authorities in the UK and Ireland.
Millions of pounds in revenue are lost each year through fuel laundering – the removal of the chemical markers from low duty diesel to sell it on as road fuel.
Working in partnership, HM Revenue & Customs (HMRC) in the UK and the Revenue Commissioners in Ireland are seeking submissions aimed at finding a replacement for the current fiscal fuel markers.
Andy Wiggins, oils policy team leader at HMRC, said: “Although the UK’s current fuel marker is actually one of the better quality markers in use, we are not complacent and appreciate the need to keep one step ahead of fuel launderers.
“Consequently the search for an even more robust marker capable of foiling 21st Century fuel launderers is essential to ensure that opportunities for fraudsters attempting to exploit fuel supplies are reduced and illicit fuel can be detected.”
Revenue Commissioner Liam Irwin said: “Fuel laundering and trading in illicit fuel represents a significant threat to the Exchequer and hurts legitimate businesses. We are determined to take every action necessary to stamp out this form of criminality.”
The joint invitation to make submissions can be found here
Alex Ward
GB Oils has appointed Alex Ward as London regional manager. The area has been recently established as a new operating region to better serve customers in the capital.
As part of his new role, Alex will be responsible for leading the business in London, including the Pace Fuelcare barges on the River Thames. His primary objective will be to stimulate organic growth and elevate the Pace brand to become the first choice for customers.
Alex has worked for the company for 12 months, previously as regional manager for GB Oils in the South East.
He said: “As well as providing competitive pricing and continuous improvements to services, my main aim is to ensure we continue to deliver exceptional standards of customer service.”
Simon Willis, general manager at GB Oils, added: “We have no doubt that he will be a fantastic addition to the team and will help deliver our ambitious plans for this new region.”
Leading oil equipment manufacturers have urged the government to include bioliquids in the Renewable Heat Incentive (RHI).
In a letter to the right honourable Ed Davey MP, the secretary of state for energy and climate change, the chairman of OFTEC and MD of Riello Burners, Barry Gregory, said excluding bioliquids would encourage existing oil households to “do nothing” to make carbon savings.
The campaign has the backing of a number of oil fired equipment manufacturers including Worcester Bosch, Warmflow, Grant, Watson Fuels, Firebird and Harlequin. The Federation of Petroleum Suppliers (FPS) has also pledged their support.
OFTEC and the FPS have been working with the government since 2008, exploring ways in which a new liquid fuel could help de-carbonise heating. B30K, a new fuel specification with 28% less carbon content than kerosene, was developed as a “drop in” replacement for oil users.
Although B30K was included in the original RHI consultation in February 2010, the fuel has been ignored in recent policy statements.
In the letter Barry Gregory said: “Technologies which are included in the RHI will still be more expensive than conversion to B30K and in many cases cause severe disruption for homeowners.
“We estimate that, if the RHI is granted, bioliquids could be installed in sufficient homes to save two million tonnes of CO2 per annum by 2020.”