Fuel for thought...
We believe the liquid fuel industry has a vital role to play in helping the Island reach the right decisions for off-grid energy solutions.
We recognise the work of the Government of Jersey to meet carbon reduction targets, but a renewable liquid fuel such as Hydrotreated Vegetable Oil (HVO) can be part of a phased solution for both transport and heat.
Any solution either towards carbon neutrality or net zero within any timescale in order to be successful has to have the following traits:
- Provide the consumer with choice
- Be the lowest cost available
- Be the least disruptive as possible
- Be fair for everyone
Providing Choice
Providing customers with choice is essential to moving forward with climate change. Imposed solutions rarely work.
The Oxera (2020) report for the Jersey Government found that six policy measures would be expected to make the biggest impact in terms of reducing carbon emissions in the heating and road transport sectors.
However, the report failed to look at renewable liquid fuels as potential options to replace oil central heating.
Lowest Cost Available
Finding the right solution at the right cost for each home is key.
65% of rural properties in the UK are currently running at the least Energy Efficiency Rating (between E-G).
These homes would need to undergo significant and expensive upgrades to make them suitable for efficient heat pump use. This could cost customers between £12,000 to £18,000* per property. This is on top of the cost to install a heat pump or biomass boiler.
The cost of conversion for many systems to a renewable fuel such as HVO would be as little as £500. Saving the homeowner at least £11,000.
*MCS Average costs of certified installations data 2019.
Least disruption Possible
We understand that not all homes currently heated by oil will be able to be converted to other solutions.
It is predicted that around 900,000 of UK customers will require some form of renewable home heating fuel by 2050 to help meet the UK’s net zero commitment.
These homes tend to be rural and therefore difficult to reach for grid purposes and/or of an age and construction that make retrofitting for heat pump compliance difficult technically or economically.
Renewable liquid fuels like HVO offer a drop-in replacement for kerosene in oil-heated homes.
FAIR for everyone
We are excited about the prospects of decarbonising the off-grid housing stock in Jersey who use heating oil.
We are asking Government for the following help:
- Ensure renewable heating fuels are zero rated for all tax purposes to stimulate uptake.
- Introduce a short-lived incentive scheme to stimulate the early adoption of the fuel and therefore supply.
- Include renewable heating fuels in current government schemes.
- To actively promote all decarbonisation solutions in a technology neutral way that reflects the individual nature of people’s homes and choices.
We believe the liquid fuel distribution industry has a vital role to play in helping the Jersey government reach the right decisions on the best way forward for off grid energy solutions.
Finding the right solution at the right cost with the least amount of disruption for each home is key and we are under no illusion that some homes currently heated by oil will be able to be converted to other solutions.
However, the simple cost of conversion for many systems to a renewable fuel such as HVO will be approx. £500
The current cost of renewable liquid fuels is much higher than traditional heating oil and while the cost of conversion is much smaller than other solutions we see this as a potential barrier for our customers. We need to stimulate the supply of the fuel in order to reduce the cost.
We want to work with the Government to actively promote the introduction of a renewable liquid fuel to many hard to treat homes currently heated by oil. This could be achievable in a timescale which would exceed expectations, create jobs and allow home heating oil customers to decarbonise at limited cost and disruption.
Organisations, businesses, charities and parishes in Jersey have been offered the opportunity to share their views on potential climate change policies, and how these policies could affect them and their members. To view our submission, please click on the button below.