Currently, 526,000 homes in the region use liquid fuels for heating and, while the UK Government’s current ambition is to transition most homes from fossil fuel boilers to heat pumps, in Northern Ireland this will not be feasible anytime soon.
Why do we say this? Well, for several reasons. At a recent meeting of the Northern Ireland Affairs Select Committee at Westminster, we heard from representatives of the electrical sector that it could take ‘decades’ to upgrade the infrastructure.
Furthermore, government acknowledges that to provide the ‘Green Power’ for the increasing adoption of electric vehicles, and to start to decarbonise the heating for homes and places of work, Northern Ireland needs to double its renewable generating capacity in the next ten years.
A huge challenge
With existing budgetary pressures across all departments this is a huge challenge for our Assembly.
While policymakers’ attention is rightly focused on transitioning household heating to low carbon fuel sources, OFTEC’s focus is on reminding them of the necessity to ensure the right technology is installed in the right homes to avoid the risk of unintended consequences.
We did that at the NI Affairs Committee and told the MPs present that if a 20% HVO/kerosene blend was introduced as part of the UK’s RLFHO, it would see the UK meet its carbon budgets four and five (for heating), as the roll out could start immediately and would instantly impact all oil heated homes.
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.
A switch to a blended heating product would cost little (minor adaptations to burner and a biofuel compatible fuel line) if – and it is a big if – government introduced a renewable liquid heating fuel obligation (RLHFO), like the renewable transport fuel order (RTFO) for transport.
We have already had some success in this area when George Eustice MP managed to get an amendment to the Energy Act last year.
As set out in Section 159 of the Energy Act 2023, the Government must undertake a consultation on implementing a Renewable Liquid Heating Fuel Obligation (RLHFO).
This needs to be done before the end of the current political term. An identical obligation has successfully incentivised renewable liquid fuels in transport since 2008, and RLFs supplied under the RTFO currently contribute a third of the savings required for the UK’s transport carbon budget.
This mechanism is well understood by industry, and the supporting legislation is already written. All that is left is for the Government to push the button on the consultation and get the process moving.
Decarbonisation can only be achieved with consent, and it is crucial consumers understand policy plans, view them as fair and feel their views have been listened to.
A holistic approach
A holistic approach to any future heat policy or energy strategy is required. OFTEC believes most of Northern Ireland’s rural housing stock can be categorised as complex to decarbonise.
A key ally we need to win over to support the inclusion of sustainable biofuels in the forthcoming energy strategy is the NI Housing Executive. Not only is it a management agency for around 90,000 social houses, it is also the local Home Energy Conservation Authority (HECA), so its views on energy transition would be respected by the NI Government.
To that end, we met with their sustainability manager and suggested that renewable liquid fuels, specifically Hydrotreated Vegetable Oil (HVO), could provide a practical, low carbon solution to the Executive’s off-grid homes in an easy, affordable, and non- disruptive way.
NIHE trial
After a positive discussion, in which they raised issues such as supply and affordability, the NIHE has agreed to trial 30 boilers using HVO in their next phase of renewable testing.
This is very positive news. It offers an invaluable opportunity for our sector to demonstrate the adaptability of liquid fuel boilers and reliability of its products in real-world settings.
We continue to lobby our local politicians and most get that their constituents will struggle to fund even part of the c.£24k cost to move to a heat pump (with thermal upgrades required to their properties).
The good news is that the Economy Minister, Conor Murphy has followed up to our written question on the inclusion of sustainable biofuels in the future energy policy with a positive response.
The Minister said: “A key principle of the Strategy is to replace fossil fuels with renewable energy, ultimately ending the importing of fossil fuels, and utilising renewable sources such as liquid biofuels like HVO is integral to this shift.”
This is the Minster who will ultimately sign off on a new energy strategy for Northern Ireland. For us, the future looks bright, the future looks to include sustainable biofuels for heat in Northern Ireland.
Image credit: David Blevings
