Labour’s rural challenge: 16,000 oil heated households call for immediate step-change to decarbonisation plans
The government is facing growing pressure from rural households to rethink its home heating decarbonisation plans and offer more affordable, low carbon solutions.
It follows the government’s Alternative Clean Heating consultation which saw 16,000 oil heated households respond to urge the government to support renewable liquid fuels, alongside its existing decarbonisation plans. The submissions spanned over 400 Westminster constituencies including from Scotland, Wales and Northern Ireland.
Industry trade bodies OFTEC and UKIFDA say the volume of responses through their Future Ready Fuel campaign means the government must accelerate its decisions and not wait until the end of the decade as originally proposed.
The trade associations are calling for the government to support the introduction of renewable liquid fuels, such as Hydrotreated Vegetable Oil (HVO), by Christmas this year.
This will provide a significant step-change in rural decarbonisation.
Policy context
The government’s current approach is for the majority of homes to transition to heat pumps. However, the consultation estimated the upfront cost of switching from oil heating to a heat pump would be c.£17,000. Whilst the Boiler Upgrade Scheme offers a £7,500 grant, this still leaves a significant upfront financial burden.
For many the cost could be even higher as they often required additional upgrades for a heat pump to work effectively. It is also likely that the running costs will exceed the costs of running oil boilers at current electricity prices.
Renewable liquid fuels
OFTEC and UKIFDA have outlined how instead these homes could switch to a 20% blend of kerosene and HVO, which would deliver the equivalent carbon savings of installing 347,000 heat pumps. This also removes the upfront cost and disruption of installing a heat pump as the existing boilers can be used.
Longer term, the government can gradually increase the blend percentage, and it’s possible for boilers to operate using just HVO, which would reduce emissions by nearly 90%. This would require a minor modification to the boiler which is expected to cost less than £500 and could be completed during a routine service.
The liquid fuel heating sector already has an industry of technicians, manufacturers and fuel distributors to support the transition, compared to other new technologies which have a shortage of workers, particularly in off-gas grid areas where demand is lower.
Around 150 oil heated properties made the transition to HVO as part of an industry demonstration project which lasted three years and was a significant success. Wider industry research has shown there is more than enough sustainably sourced fuel to meet the relatively small demand of 1.7 million homes, compared to the requirements for transport.
Rural voters have their say
With the government promising to deliver real change, OFTEC and UKIFDA argue providing policy support for HVO could be a quick win for rural households, whilst helping the government deliver a step-change in meeting its net zero targets.
Specifically, the government could enable this transition by implementing Section 159 of the Energy Act, which it supported in the last parliament, which will lower costs for consumers, and also equalising the duty on these fuels with that of kerosene when they are used for home heating.
Quote from OFTEC and UKIFDA
Paul Rose, CEO of OFTEC, and Ken Cronin, CEO of UKIFDA, said: “The unprecedented scale of this response, with 16,000 households speaking up in such a short window, demonstrates a massive groundswell of support for renewable liquid heating fuels that the government cannot ignore. Thousands of families across the country feel the current heat pump only approach to decarbonisation is leaving them stranded with no choice, unworkable costs and no viable way forward.
“There is an urgent need for a pragmatic shift in policy now, not at the end of the decade. By supporting renewable liquid fuels this year, the government can deliver an immediate reduction in carbon emissions from oil heated homes.
“The government has made clear it wants to listen and make a positive impact. An affordable way to lower emissions from off-gas grid homes is available and our industry is ready to create that step-change. The government now just needs to give it the green light.”
For more information about the Future Ready Fuel campaign visit www.futurereadyfuel.info