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Industry reacts to Government's Clean Growth Strategy

The Government’s Department for Business, Energy and Industrial Strategy (BEIS) has published its new Clean Growth Strategy document, outlining its proposed approach to building a lower carbon future for the UK.

Lee Gannon, managing director at Flogas

Lee Gannon, managing director at leading liquefied petroleum gas (LPG) supplier Flogas Britain Ltd, has welcomed the report, hailing its recommendations on de-carbonising heat in off-grid homes and businesses as ‘exciting news’ for the LPG industry.

Mr Gannon stated: “The Government has made clear its intention to reduce carbon emissions for off-grid UK homes and businesses. This includes a pledge to tackle the challenges faced by businesses using oil boilers in particular, and a motion to phase out the installation of high-carbon forms of fossil fuel heating in businesses throughout the 2020s, starting with new builds.

“At Flogas, we fully support these recommendations, and would like to congratulate ministers for taking such a proactive stance in this area.

“As a leading supplier of LPG in the UK, we see this as exciting news for the industry. LPG is the lowest carbon conventional off-grid fuel available today, and we’re adamant that it has a crucial role to play in turning the Clean Growth Strategy’s vision into a reality. Put simply, LPG is a cleaner, cost-effective alternative to the likes of coal and oil, emitting 35 per cent less carbon than coal, and 12 per cent less than oil.

“Logistically speaking, it is also a readily available, accessible solution to the country’s rural energy needs. Our robust LPG network means there is a dependable, convenient supply nationwide, and the innovative systems we develop for home owners, housing developers and businesses will allow for quick and hassle-free roll-out on a national scale.

“Thousands of buildings up and down the country have already made the switch from oil to LPG, and this trend is only set to continue as more and more off-grid householders and business owners come to recognise the fuel’s compelling financial and environmental credentials.

“As a result, we expect to see demand for LPG steadily growing in the coming months and years, and as an experienced supplier with more than 30 years in the business, we are fully poised to respond.

“We also look forward to working alongside policymakers and wider industry stakeholders to make the Clean Growth Strategy the success that it deserves to be. Our message is loud and clear: LPG is a truly versatile fuel with enormous potential to deliver significant, widespread carbon and cost savings, and we're committed to ensuring this potential is properly fulfilled.”

OFTEC, the trade association for the UK oil heating industry, has also commented.

The organisation's chief executive, Paul Rose, stated: “OFTEC welcomes publication of the Government’s Clean Growth Strategy and supports the Government’s efforts to improve energy efficiency and reduce carbon emissions from UK homes.

“Consumers need practical, affordable measures which tackle both these urgent issues simultaneously. This approach is the only way real change will be achieved and is in line with OFTEC’s own vision for the future of off-grid heating.

“We believe our two-stage solution, that we published in June, is the most cost-effective way to deliver significant carbon reduction and energy efficiency gains for the UK’s 1.5 million oil heated homes. Our approach would see a boiler replacement programme in the short term (2018-2022), followed by the introduction of a low carbon liquid fuel as a direct replacement for kerosene.

“This time scale ties in with the Government’s ambition to ‘phase out the installation of high carbon fossil fuel heating in new and existing off gas grid residential buildings during the 2020s’.” 

“OFTEC also supports the overall aims of Boiler Plus to improve boiler standards and controls. This same key ambition is behind our recommendation for a boiler replacement programme and we are confident that through technical developments, that are already well advanced, our industry can meet the boiler efficiency standards required to make this a viable option for off-grid homes.”

“BEIS’ recognition that ‘clean fuels such as hydrogen and bioenergy could be used for transport, industry and to heat our homes’ is encouraging, alongside the government’s £40 million investment in the development of advanced fuels for HGV and aviation, which would also provide a viable replacement for kerosene.

“OFTEC’s ambition to bring to market a low carbon liquid fuel for domestic heating will build on this crucial work and, by achieving future economies of scale, we are confident that a cost-effective low carbon liquid fuel could be successful.

“We would like to see the important role low carbon liquid fuels could play in the future of domestic heat recognised, alongside bio gas (bio methane), in forthcoming revisions to the Renewable Heat Incentive (RHI).

“It is vital that off-gas grid homes do not continue to be marginalised by heat policy and are offered a range of competitive and cost-effective options, similar to those on the gas grid. 

“Carbon reduction and energy efficiency will continue to lie at the heart of OFTEC’s work. Doing nothing is not an option and all realistic, cost-effective measures to achieve this must now be considered.”

 

13 October 2017

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