"We also welcome the inclusion of biokerosene within the range of low carbon heating options endorsed for off-gas grid homes in the road map.
"OFTEC believes that if backed by the right policy support, the use of renewable liquid fuels could enable the CCC’s ambition to end the installation of new fossil fuel oil boilers in rural homes by 2028 to be achieved even sooner.
"The rapid deployment of a renewable liquid fuel, namely Hydrotreated Vegetable Oil (HVO), would meet the CCC’s requirements to quickly gain ground on emissions cutting. This near drop-in replacement for heating oil offers a carbon reduction of approximately 91% which is significantly greater than heat pumps can achieve until the electricity grid is more fully decarbonised later in the 2030s.
"Existing oil heated households could switch to an HVO solution at a fraction of the cost of installing other low carbon technologies. Household disruption is also minimal, making this a ‘frictionless’ option that overcomes two of the main barriers to heat decarbonisation that currently exist.
"An HVO solution also allows more resource to be channelled into the energy efficiency improvements the CCC has identified as a priority.
"The CCC estimates the average cost per home to upgrade to target Band C is less than £10,000. However, most oil heated homes will require more extensive upgrades. BEIS research suggests the average cost for Band E homes to achieve this level is £12,300 and for Bands F and G, £18,900. For some these costs will be far, far higher and it should be noted that these figures don’t include the cost of the replacement heating system.
"The overriding challenge for government now is to develop policies that are fair, affordable and effective – a point emphasised by the CCC. For off-gas grid homes this is a critical requirement and HVO must be included among the technologies supported to achieve this transition. OFTEC remains committed to supporting this option and industry is now just waiting for the signal from government to start delivering an HVO solution."