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INDUSTRY INSIGHT


Why the Government can no longer ignore the off-grid heating sector


The results of the government’s request for submissions to their Alternative Clean Heating consultation are in, with rural households, technicians and fuel distributors having their say. Malcolm Farrow, director of marketing and external affairs at OFTEC says despite the consultation running for less than three months, which included the holiday period, there was overwhelming engagement


T


he 16,000 responses in support of renewable liquid fuels spanned over 400 Westminster constituencies, including Scotland, Wales and


Northern Ireland. These aren’t just numbers. These are home owners and businesses who are growing increasingly frustrated with the government’s lack of realism over how the off-gas grid sector should decarbonise. As an industry, we have long advocated for a


pragmatic path to Net Zero that recognises the diversity of the UK’s housing stock. The sheer volume of these responses proves we are not alone in this. Electrification absolutely has a central role to play and, whilst this consultation was a step in the right direction, the government is being slow to accept that many rural households will face huge cost and disruption with this approach. They need alternative solutions. Following recent political challenges for the


government, they promised to deliver real change. Providing policy support for renewable liquid fuels could be a significant quick win for rural voters, while helping the government meet its Net Zero targets. We can’t afford any further delay. The government must act now, rather than wait until the end of the decade as the consultation set out.


Cost remains the major roadblock for rural decarbonisation


Heat pumps have an important role to play and many OFTEC technicians are actively training to install this technology through our schemes. However, we also recognise that for many homes this solution may not be practical. The consultation document itself said that the cost of an oil heated home switching to a heat pump was estimated at £17,000. For many off-grid households, the reality is even


more expensive. Older rural properties present complex challenges and often require additional energy efficiency upgrades for a heat pump to operate effectively. Even with the £7,500 grant from the Boiler Upgrade Scheme, a significant financial gap remains. The long-awaited Warm Homes Plan was recently published but didn’t appear to acknowledge or address these off-gas grid issues. That’s why 16,000 people responded to the consultation to call for alternative solutions.


Renewable liquid fuels are waiting for the green light The liquid fuel heating industry has proven that a


more affordable, practical, low carbon alternative is ready to go. A three-year industry demonstration project involving 150 oil heated properties saw them successfully transition onto Hydrotreated Vegetable Oil (HVO). The industry has also undertaken substantial research, using independent third party experts, which show there is more than enough sustainably sourced fuel available for the UK’s 1.7 million oil heated homes. If we introduced a blended fuel of kerosene and


HVO, this would be a simple drop in replacement. In terms of carbon savings, if all oil heated homes adopted the fuel this would be the equivalent of installing 347,000 heat pumps. The government has rowed back on its plans to ban the installation of fossil fuel boilers from 2035, so the current alternative is these homes continue to use kerosene if they can’t afford a heat pump. Longer term, the government can gradually


increase the blend which would reduce emissions from an oil heated home significantly. Higher blends


Left: Malcolm Farrow, director of marketing and external affairs at OFTEC


would only require a minor modification to the existing boiler, which is expected to cost less than £500 and can be completed during a routine service. This removes the massive upfront costs and major disruption associated with other technologies. The use of 100% renewable liquid fuels for heating is also technically possible and was thoroughly tested during the demonstration project.


HVO by Christmas


Following the overwhelming response to the consultation, we are calling for the government to back renewable liquid fuels by Christmas 2026. Specifically, we are asking the government to: ¡ Implement Section 159 of the Energy Act which will enable a market mechanism for renewable liquid fuels, driving down costs for consumers ¡ Equalise duty on renewable fuels when used for home heating with the duty on kerosene One of the greatest advantages of a renewable liquid fuel solution is that the infrastructure is already in place. Unlike newer technologies that face a chronic shortage of qualified installers, particularly in remote, off-gas grid areas, the liquid fuel heating sector already has a robust network of skilled technicians, manufacturers and distributors ready to support the transition today. Industry is ready, the public has spoken, and the technology is proven. The government now just needs to give it the green light.


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