News From OilFiredUp
Industry Calls For Bio Heating Oil Subsidies
29th August 2011
OFTEC has joined forces with the Federation of Petroleum Suppliers (FPS) and ICOM Energy Association, to urge Climate Change Minister Greg Barker MP, to incentivise UK heating oil consumers to make the switch to bio heating oil.
In a letter sent recently to Mr Barker, the three organisations have argued that substituting 30% of the kerosene used in heating oil, for more environmentally friendly bioliquid, would reduce carbon emissions by 28%, saving up to 2 million tonnes of CO2 per annum saved by 2020.
To incentivise this switch, OFTEC, the FPS and ICOM is calling for the Government to include bioliquid, manufactured from waste cooking oil, in the Renewable Heat Incentive (RHI) and implement a minimum 8p per kw hour subsidy. If included in the RHI, it is claimed that 90% of existing oil customers could transfer to use it by 2020, helping the Government reach its targets for reducing carbon emissions.
If HM Government fails to subsidise bio-liquid fuels, it is estimated that many heating oil users will continue to produce CO2 from their old oil boilers instead of switching, to what is claimed to be a more environmentally friendly fuel. It is argued that alternative technologies such as heat pumps or biomass boilers will not be suited to many existing rural properties, and that their installation cost will be beyond the budget of most households, even with government subsidies.
The appeal to Greg Barker comes after OFTEC finally agreed to publish the fuel specification for B30K Bioheating Oil, eight months after the fuel was nominally launched at last year's Oil & Renewable Heating Show at the Ricoh Arena, Coventry.