Industry ‘ready for renewable liquid fuels’, says OFTEC

The liquid renewable fuel heating industry is ready and waiting for the nationwide roll-out of a low-carbon solution for off-grid properties as the new government implements post-election policy mechanisms.

This was the message of the annual OFTEC conference, held in Tewkesbury on June 5, 2024, during the election campaign. Delegates from the liquid fuel heating industry attended to discuss the next steps to decarbonize the off-grid sector.

OFTEC Chair Martin Cooke opened the conference by commending industry collaboration to successfully demonstrate the viability of Hydrotreated Vegetable Oil (HVO) as a practical and affordable low carbon solution for off-grid homes and businesses.

This follows a successful year in which the Government committed to publishing a consultation on a renewable liquid heating fuel obligation and growing support among consumers and rural MPs for the fuel to help deliver the UK’s net zero emissions ambitions.

The first speaker at the event was Paul Rose, CEO of OFTEC, who emphasized that all technical and logistical aspects of HVO implementation had been demonstrated, with the only remaining barrier being political support from the government.

He highlighted the ongoing ambition to provide this fuel to every oil-heated home in the UK, as well as current research and consideration into whether a mixture of kerosene and HVO could be introduced as a first step forward in accelerating the widespread adoption of the technology.

Ken Cronin, UKIDA Chief Executive, then spoke about the availability of HVO and related government policy on kerosene-based fuel for the aviation sector.

He also outlined the continued engagement of UKIFDA and OFTEC ahead of the election, with industry associations calling for a commitment from the next Government to publish the RLHFO consultation as a priority once in office.

OFTEC and UKIFDA are also calling on the next government to correct existing tax inequalities. Currently, the use of renewable liquid fuels for home heating is taxed, but fossil fuels are not. The Conservatives and Labor are called on to commit to equalizing tax duties on renewable liquid fuels to remove this potential barrier to their use.

The next speaker at the conference was David Blevings, OFTEC Manager for Ireland, who outlined the broad policy similarities between the Republic of Ireland and Northern Ireland and the proactive commitment of both governments to appropriate heat strategies.

Malcolm Farrow, director of public affairs at OFTEC, then shared findings from a recent survey of diesel-heated households, in which 85% of respondents said that decarbonization policies of the government and opposition parties will have an impact on how they vote at the ballot boxes.

Wrapping up the conference, John Weedon from fuel distributor Mitchell & Webber shared exclusive information about the village of Kehelland in Cornwall, where dozens of farms have been using HVO for two years.

Community residents recently met with representatives from the Energy Security and Net Zero Commission, who visited the village to see first-hand the impact HVO has on reducing emissions in buildings that could not switch to a heat pump.

Paul Rose, CEO of OFTEC, commented: “This general election marks a significant turning point for millions of households living off the gas network. Whichever party forms the next government will need to deliver practical and affordable low-carbon heating solutions if it is serious about decarbonization in the current economic climate.

“Our industry is unique in that we not only have a tried and tested technology solution, but also the infrastructure and skilled workforce to deliver it at scale and quickly. We just need the next government to give us the green light.

“We see great enthusiasm from consumers who want to do their part to reduce emissions by switching to renewable liquid fuel. The government kicks the can down the road. “So we continue to explore options, including pre-mixing kerosene and HVO, so we can get this fuel into more facilities even faster.”