We finally have a new Prime Minister, and although he was rather vague on what he would actually do to address the soaring costs of energy, it is the matter that most concerns every UK household at the moment. 

So, Rishi, here is my question to you, what measures are you and the government going to implement to help people struggling to pay their energy bills?

Somewhere in the last PM’s inbox is an OFTEC report about approving Hydrotreated Vegetable Oil (HVO), a ‘drop-in’ fuel alternative for domestic oil boilers. You’ll probably also discover a few letters from me on the virtues of HVO. 

Now, I never received a reply from Boris and a decision on HVO is still awaited, so, as one of your priorities, could you please make a decision on HVO, and approve it for UK domestic use, ASAP? It will be a quick, easy win, that will help well over one million off-grid homes tackle the energy crisis in an affordable, low carbon, and sustainable way.

What you need to know

HVO is a sustainable fuel that reduces emissions, and is high performing; it is a clear and obvious alternative to kerosene. Even better for homeowners, HVO is a ‘drop-in’ fuel, so they do not need to rip out all of their existing heating system, boiler, pipes, and radiators. When we are all feeling the pinch of increasing energy prices, every bit of help really matters. 

It will also be great news for oil installers, as it means all of their years of training and invaluable experience will not be lost in the rush to be low carbon. 

As an oil boiler manufacturer, my boilers have been HVO-ready for a long time now, so everything’s in place for HVO, apart from the green light from government.

HVO is not a product of fossil fuels, therefore its price should be a lot more stable with it not being linked to the price of crude oil and political instability. 

As HVO, like kerosene, would be bought in bulk and stored in a tank in a householder’s garden. Each home has the freedom to choose their supplier for each delivery, so they don’t need to be tied into contracts and instead can be certain of the price for their energy. 

Duty

Should HVO be approved, there is a fundamental issue that needs to be addressed – the amount of duty added to HVO. 

Although HVO is produced from 100% sustainable resources, is low carbon, and reduces emissions, it is still being taxed as diesel, due to the way it’s distilled, and that attracts a 57.95ppl duty as a result. It all dates back to the 1979 Hydrocarbon Oil Duties Act, when there was no alternative to fossil fuels, so your government really needs to reconsider this stance and apply a better suited duty to HVO, as the current classification is not fit for purpose. 

With energy prices rocketing, the switch to HVO should be as swift as possible, resulting in an increased number of homes using a sustainable fuel, and without burdening homeowners’ pockets.

Making the UK self sufficient

The war in Ukraine has really highlighted how vulnerable the UK is to outside influences. We don’t want more oil rigs in the North Sea, as fossil fuels are not the answer to the crisis. 

Our farmers can grow the raw materials for HVO, but at the moment we have no refinery plants to turn it into HVO fuel. Europe has raced ahead of us in this regard, so, Prime Minister, let’s really take back control and let’s encourage and support HVO refineries in the UK. 

Not only will it make the UK self-sufficient in HVO, it should also help to further reduce the price of the fuel for customers.

While we may all be experiencing unprecedented increases in the cost of living, HVO, once the duty and places of production have been sorted out, promises to be a very cost-effective and sustainable, low carbon heating fuel for all.