News
A compelling solution for off-grid homes
NEW RESEARCH THAT SUPPORTS LIQUID BIOFUELS AS A LOW COST, HIGHEST IMPACT CARBON REDUCTION SOLUTION FOR
OIL-HEATED HOMES WAS UNVEILED AT OFTEC’S ANNUAL CONFERENCE WHERE INDUSTRY LEADERS GATHERED TO HEAR THE
OUTCOMES OF IN PERPETUUM’S SIX-MONTH STUDY
T
he study findings were presented at the conference by Jason Woods, (pictured below) founding partner of energy consultancy group In
Perpetuum Partners who conducted the research.
Using a detailed analysis of oil-heated housing stock in England to help inform extensive modelling, the report compares biofuels with
other low carbon heating options available today. The research findings revealed that biofuels, both a 100% pure biofuel and a 30% blend of FAME
and kerosene, provide the best carbon reducing routes for the least financial outlay.
The housing stock research highlighted how oil-heated properties tend to be older, detached and often poorly insulated. This means there is
considerable scope to reduce heat demand from these homes by carrying out fabric improvements.
Modelling showed that making ‘reasonable’ upgrades, such as installing double glazing, cavity wall and loft insulation, would reduce heat
demand by 15% at an average cost of approx. £6,350 – £9,150 per home. ‘Deep’ improvements i.e. floor and solid wall insulation would cost
more, on average approx. £10,100 – £14,350 but reduce heat demand by a substantial 42.5%.
Following analysis of the cost of fabric improvements, how many homes could be upgraded, and the operating and capital cost of
each low carbon heating option currently available, the research ranked all solutions by Carbon Saving Cost (£/t) – a metric measuring both
decarbonisation and cost to the end consumer.
The results show that a 100% biofuel offers the lowest cost and highest impact solution compared to all other options, costing an average
£166 per tonne of carbon saved (£/t). This is followed by 30% blend of biofuel and kerosene at £204/ t.
Playing a pivotal role with the most cost-effective solution
“This year’s conference couldn’t be more timely,” said OFTEC CEO Paul Rose.
“Just last week, the UK became the first major nation to commit to net zero greenhouse gas emissions by 2050, replacing the original target of
an 80% reduction on 1990 levels. The result is we must all now push harder to meet this new, tougher goal.
“The liquid fuel heating industry has the potential to play a pivotal role in decarbonising rural homes,” added Paul.
“These research findings show that biofuels offer the most cost-effective solution for this hard-to-treat sector. Government and all sector players
must now get behind biofuels and make this option a reality to secure a sustainable future for off-grid consumers and industry alike.
“With so many rural properties currently ‘leaking’ heat, stemming this energy loss must be an essential step in any decarbonisation strategy,
where financially and practically possible. There is no way around the fact that this is going to be a vast and costly exercise so government support
will be vital to encourage consumer action.
“This is particularly true for those on lower incomes and given the higher rates of fuel poverty in rural areas, we must all ensure the transition to
low carbon heat is fair, practical and as affordable as possible.”
“Now we are in no doubt that biofuels provide the future path for oil heating, the next step will be to develop ‘pathway options’ for government,
detailing how and when industry will develop and roll out low carbon liquid fuels. Field trials will also begin to confirm the performance of biofuels and
we will further step up our communication with government and stakeholders to secure recognition and support for this compelling solution.”
4 Fuel Oil News | July 2019