Government’s green heating plans need to include renewable liquid fuels

Amid the widespread speculation ahead of the Budget regarding a potential VAT cut on gas and electricity bills, our position was clear: if the government acted, it had to be fair and include off-grid homes too.

A new government consultation has been published which recognises the potential role of alternative heating solutions, including renewable liquid fuels, for decarbonising heating in off-gas grid homes and non-domestic buildings.

Trade associations OFTEC and UKIFDA have written to the Prime Minister to outline growing concerns the government is planning to cut VAT on gas and electricity bills in the upcoming Budget but could once again overlook rural homes on oil heating.

Labour MPs have written to the new Minister for Energy Consumers, Martin McCluskey MP, at the Department for Energy Security and Net Zero calling for the government to support a renewable liquid fuel solution for oil heated homes in its upcoming Warm Homes Plan.

If the 1.7m oil heated homes in the UK each claimed the existing £7,500 government subsidy to switch to a heat pump, the total cost to the taxpayer could be billions of pounds. To achieve net zero, Labour’s current policy proposals are for the vast majority of oil heated homes to transition to a heat pump. To support with the upfront cost, a £7,500 grant is available from the government for eligible households through the Boiler Upgrade Scheme.

In the heart of Cornwall, the village of Kehelland is at the forefront of a project to demonstrate why the renewable liquid fuel Hydrotreated Vegetable Oil (HVO) is the ideal solution to decarbonising homes on oil heating.

A groundbreaking demonstration project saw dozens of residents and community buildings switch their home heating from kerosene to HVO, a low carbon alternative which drastically cuts emissions and only requires a minor modification to the boiler. The project not only enabled local residents to play their part in decarbonising, but also provided real word evidence of the effectiveness and practicality of HVO for domestic use.