The extreme heat currently being experienced across Europe and the devastating fires that are ravaging the Greek islands of Rhodes and Corfu highlight more than ever the harsh reality of climate change. This global challenge certainly requires commitment and collective efforts from governments, industries, and communities, and all of us as individuals can do our bit too.
The UK has pledged to reach ‘net zero’ by 2050, but there's a lot to be done between now and then to achieve this goal. According to the BBC, in 2022 oil accounted for 36.4% of energy usage in the UK, with gas accounting for a further 39.6%, but only around one-fifth of UK energy use was from low-carbon sources.
One crucial step in reaching net zero is the shift from fossil fuels to renewable energy sources. The government has proposed a ban on the installation of new fossil fuel oil boilers from 2026 as part of its Heat and Buildings Strategy, although if you're worried about having to ditch your existing oil boiler, don't be! The ban only applies to new build properties, and at this present time, there are no plans to phase out oil boilers in existing homes. However, it does mean that from 2026, if your oil boiler is condemned and you need to renew it, you will not be able to buy a new replacement oil boiler.
The government is pushing for off-grid homes that currently run on heating oil to install heat pumps. Whilst they can be a good choice for well-insulated new builds, they are costly to install, and to work efficiently, would also require energy efficiency improvements which can pose too many challenges and be too costly a solution for many in rural locations. Dependent on the size and age of a property, it’s said it could cost thousands of pounds, and even up to £30,000 for installation and insulation in large rural properties. Whereas renewable liquid fuels have the potential to enable households currently using heating oil, which has been a popular choice for off-grid homes and businesses over the years, to switch to cleaner and greener fuels, providing a more cost-effective and less disruptive alternative to heat pumps.
In this blog we’re going to take a look at one such renewable liquid fuel, hydrotreated vegetable oil, also known as HVO, what it is, why it’s the ideal greener choice for the future, and what you can do to help make the transition to greener heating fair and affordable for rural households and businesses.
HVO – the renewable solution to home heating oil
HVO is a fossil-free and renewable solution. It is manufactured by a synthesized process with hydrogen using waste products such as cooking oils, soya or rapeseed, or sunflower oil. It has passed the UK Government benchmark as a sustainable fuel. Having no smell, it is just as efficient as heating oil, and is a drop-in alternative. All that’s needed is a simple, cost-effective conversion, so there’s no need to buy an expensive new heating system.
Cleaner and greener
At the moment, sixteen UKIFDA members in the UK have been trialing HVO as an alternative to kerosene heating oil, and the trials have been a significant success. Compared to kerosene, HVO provides an 88% reduction in carbon emissions, making it a much cleaner and greener alternative.
Comparing the cost – HVO Vs kerosene heating oil
We're sure it comes as no surprise that when first introduced, renewable solutions tend to be more expensive than traditional fossil fuels, and HVO is no exception. Research and development costs can contribute to higher prices, as can the lack of government subsidies.
Attracting fuel duty, which is administered by HM Treasury, HVO is not currently eligible for any government support schemes despite it being incentivised for use in transport, whereas heating oil does not attract duty. So the current cost of HVO is significantly higher than heating oil under normal market conditions, and as such it is proving cost prohibitive.
UKIFDA, the UK and Ireland Fuel Distributors Association, along with OFTEC, has launched the Future Ready website to make people aware that there is a realistic alternative to heating oil. Future Ready Fuels is currently discussing with the government the best way to introduce HVO to ensure households throughout the UK are protected from excessive running costs.
The UK government is pushing an Energy Bill through Parliament which will set out how off-grid homes can transition to greener heating in the future. The good news is that a growing number of MPs are supporting the rollout of renewable liquid fuels. Cornish MP, George Eustice, former Secretary of State for Environment, Food and Rural Affairs, presented a Ten Minute Rule Bill to Parliament in January this year in support of the use of renewable liquid fuels for heating off the gas grid. The Bill proposed a reduction in the duty charged on renewable liquid heating fuels such as HVO to cover domestic usage – this Bill was passed and could help lower the cost of HVO to homes and businesses throughout the UK.
In addition, last week two further amendments were proposed by George Eustice, firstly the proposal to create a Renewable Liquid Heating Fuel Obligation (RLFFO) to support the use of renewable liquid fuels, and secondly and a proposal to bring down the level of duty on HVO in line with that of kerosene heating oil.
Make a difference – act now!
A survey conducted by the Future Ready Fuel campaign on behalf of trade associations OFTEC and UKIFDA found that 90% of people living off the gas grid are concerned the government’s green heating proposals are treating them unfairly, with over 95% wanting a greater choice of low carbon heating solutions.
It’s sometimes hard to see how, as individuals, we can make a difference, but now’s the perfect time to make your voice heard and back these two amendments by writing a letter to your local MP in support of George Eustice’s amendments. A template letter can be downloaded from the Future Ready Fuels website and you can find the address of your local MP there too.
We must remember that the renewable energy landscape is constantly evolving, and supportive government policies combined with increased production scales, and advances in technology will make renewable liquid fuels more affordable in future.
We feel its important for customers to have a choice of keeping their oil boilers and transitioning to HVO. As Paul Rose, CEO of OFTEC, and Ken Cronin, CEO of UKIFDA commented ‘Our industry has already demonstrated the renewable liquid fuel HVO works and research shows there is more than enough supply to meet demand. Alongside it’s plans for heat pumps, it’s now time for the government to put in place the policy mechanisms to support a wider rollout of renewable liquid fuels.’
And we're hoping to be offering HVO to you in the very near future. So watch this space!