Appearing alongside Paddy Larkin (CEO at Mutual Energy), John Boyce (Wind Development Director at Renewable Energy Systems) and Mark Fitch (Corporate Development Director at Transmission Investment), OFTEC made the case for diversifying Northern Ireland’s energy supply in order to meet decarbonisation targets.
As part of OFTEC’s evidence, the committee heard how it is our belief that the much-needed solution to reduce demand on electricity production can be found in renewable liquid fuels – specifically hydrotreated vegetable oil (HVO).
Replacing kerosene heating oil with a renewable liquid fuel will ensure that off-grid households across Northern Ireland can decarbonise in an easy, affordable and non-disruptive way.
While great progress is being made in decarbonising our electricity systems, we simply do not have the capacity to transition en masse from liquid heating systems to electrically heated homes in Northern Ireland.
Currently, 526,000 homes in Northern Ireland use liquid fuel to heat their homes.
The Committee heard that we are talking about decades and substantial investment to get both the distribution system, and our housing stock, in a position for electricity to sustainably support our heating needs.
While heat pumps may be the answer for some, for a lot of homeowners they are simply financially unviable.
At present, the average cost to the consumer of installing a heat pump and retrofitting a house is around £24,000. OFTEC believes most, if not all, of Northern Ireland’s rural housing stock can be categorised as complex to decarbonise.
David advised the Committee that there is no panacea for decarbonisation.
Putting all your eggs in one basket is not a sensible option, we need to use all low carbon and no carbon technologies to meet our net-zero targets and the liquid fuel sector is ready to play its part.
As part of the Energy Act 2023, Government has committed to consult on a RLFHO and industry is ready to play its role in delivering a blended heating fuel, similar to the blend already found in transport fuels.
From April 1, 2025, this could start at an agreed level and increase over a defined period as supplies increase.
David told the committee that if a 20% blend was introduced as part of the UK’s RLFHO, it would see the UK meet its carbon four and five budgets, as the roll out could start immediately and would instantly impact all oil-heated homes.
Decarbonisation can only be achieved with consent, and it is crucial that consumers understand policy plans, view them as fair and feel their views have been listened to.
The science shows there is more than enough feedstock to supply the UK and Ireland’s heating requirements using HVO.
We already have HVO production in Ellesmere Port and Philips 66 is co-processing at its Humber refinery. In Northern Ireland, two companies are talking to Invest NI about producing it locally in Derry/Londonderry.
Through the use of HVO, there is real potential for an affordable solution to the decarbonisation conundrum to be presented to the consumer.
It will cost the government nothing to introduce a RLFHO akin to the Renewable Transport Fuel Order (RTFO) and OFTEC understands that if it is agreed, the industry stands ready to deliver it on behalf of the Government.
We already have the equipment, support and a workforce capable of applying HVO conversion at scale and maintaining distribution of the fuel through existing channels across the UK including Northern Ireland.
The obligation would provide a route by which fuels, such as HVO, can be supplied at an affordable cost to oil heating customers.
It will provide a pragmatic pathway that yields immediate carbon savings, market certainty and least disruption.
OFTEC is delighted with how our evidence was received by the committee and will continue to lobby to ensure biofuels are included in Northern Ireland’s decarbonisation pathway.
For more information:
David Blevings, OFTEC Ireland Manager on T: +44 (0)28 9186 2916
Sean McBride, Ireland Representative on T: +44 (0)7540 502 304 (NI) or +353 (0)87 241 7041 (RoI)
