Climate change is an issue for governments and businesses alike, with both wrestling with the problem of being competitive whilst being green and sustainable. Energy usage is a major concern as corporations aim to reduce their carbon footprint, and energy costs. This debate is pertinent to the 16% of the
If you’re involved in a farming operation, then you’ll be aware of just how much energy is needed to maintain a living. Whether it’s tractor use, ensuring the needs of livestock are met, or heating any number of crop stores – all are extremely energy-intensive. The predicament can be even more
Serving as the first natural stage in its NIC CNG Connection project, Northern Gas Networks is now experimenting with liquid natural gas powered vans to judge the potential benefits available. Set to build its very own compressed gas fuel stations for its back-to-depot city-based vehicles, Northern Gas Networks is taking
Energy companies are divided over the need for a mid-period review (MPR) within the present eight-year price control for businesses operating both in electrical energy and gasoline transmission, and fuel distribution. Big six provider British Gas and consumer body Citizens Advice are heading up the decision for an MPR for
BDC 319 : Aug 2024
Climate change is an issue for governments and businesses alike, with both wrestling with the problem of being competitive whilst being green and sustainable. Energy usage is a major concern as corporations aim to reduce their carbon footprint, and energy costs. This debate is pertinent to the 16% of the UK not serviced by the main gas grid, which relies on alternative fuels to meet its energy needs. For the majority of off-grid operations, this means a choice between oil, LPG (liquefied petroleum gas) or LNG (liquefied natural gas) for high-volume commercial applications. But what exactly are the differences between these fuels – and what should off-grid users consider when making decisions about their energy supply? Here, business gas supplier, Flogas, take a look at the issue: Oil and climate change With the Committee on Climate Change urging the UK government to legislate as soon as possible to reach net zero emissions by 2050, the pressure is on all industries to adopt greener energy policies. What this means for off-grid businesses in practical terms is moving away from conventional, carbon-heavy fossil fuels. When considering the key features of oil, it’s not hard to see why it’s becoming an outdated off-grid option: •Increased carbon emissions: As a major contributor to climate change, the burning of oil for heating and cooking purposes releases far higher levels of carbon into the atmosphere than more efficient off-grid fuels like LPG. •Cost: Through a combination of factors such as dwindling oil reserves, environmental pressures and strained international relations, the price of oil remains volatile. This makes it difficult for businesses to forecast the cost of fuel and can cast doubts over the future of their supply chain. •Maintenance: Due to its viscous nature, machines that operate on oil often take a large amount of maintenance to ensure they are running at optimum performance. This can also mean messy repairs if anything goes wrong. Looking at LPG and LNG With so many factors now working against businesses that are still using oil, it’s no surprise that many are now looking for an alternative fuel supply. The good news is that there are viable off-grid alternatives that offer compelling economic, environmental and logistical benefits. LPG and LNG are two such fuels. So, what are they, and how do they compare to oil? •Chemical makeup – LPG is a blanket term for two types of natural gas (Propane and Butane) and is a natural by-product of gas and oil extraction (66%) and oil refining (34%). LNG is composed primarily of methane and is created by cooling natural gas to an extremely low temperature (-162°C). •Finance: Businesses can make immediate savings when switching to LPG or LNG through a reduction in energy usage. •Carbon emissions: LPG and LNG have the lowest CO2 emissions of any 0ff-grid fossil fuels: LPG emits 36% fewer than gas oil, 22% fewer than kerosene and 17% fewer than heating oil. It also emits no black carbon (a significant contributor to climate change). •Cleaner air: LPG and LNG are clean, smoke-free burning fuels, that emit fewer pollutant emissions, including NOx, Sox and particulate matter (PM). •Compliant: Because they’re cleaner, LPG and LNG help businesses to meet carbon and pollutant reduction targets set out in the Clean Growth Strategy, ULEZ, Marpol and Medium Combustion Plant Directive. •Efficiency: With a higher calorific value per tonne than other liquid fuels, an LPG and LNG flame can burn hotter, releasing energy quicker. When used in conjunction with the likes of a steam boiler this can produce even greater efficiencies. •Extensive supply: LPG and LNG are in global abundance, so business owners can rest assured that they will have a dependable source of energy when they need it most. Flogas will be significantly increasing the UK’s total LPG storage capability with its new Avonmouth storage facility – the largest of its kind. •Easy Installation: For businesses looking to switch from oil to gas, the process isn’t complicated. Specialist LPG companies can design and install a replacement heating system to meet your business’ needs. From the initial brief process to installation and even the removal of your old oil tank, with the right supplier there’s the option to have everything taken care of with minimal downtime. •Versatility: One of the main attractions of LPG is its versatility. From leisure and hospitality to agriculture and industrial heating, and even fuel for forklift trucks and fleet vehicles, LPG can be used as an energy supply for all manner of industries. A brighter future? As the cleanest, most efficient and effective fuel compared to conventional off-grid fuels like coal, oil and electricity, switching from oil to LPG (or LNG) could help businesses energy savings, ensuring compliance with government energy policies, and cutting down on maintenance time. Sources
If you’re involved in a farming operation, then you’ll be aware of just how much energy is needed to maintain a living. Whether it’s tractor use, ensuring the needs of livestock are met, or heating any number of crop stores – all are extremely energy-intensive. The predicament can be even more critical during the autumn and winter months, when harsh conditions make it more difficult for farmers to harvest, package and distribute produce. Add this to the challenges that come with heating rural, remote and off-grid agricultural locations (traditionally served by inefficient fuels like oil), and a farm’s energy supply can become quite problematic. For farmers looking for a greener, cheaper and more effective off-grid fuel solution that’s reliable even in colder seasons, LPG (liquefied petroleum gas) could be an alternative. LPG has increasingly become a go-to for farmers looking to meet ongoing heating or operational needs without compromising on outputs and the quality of their end product – or becoming dependent on an expensive alternative fuel. Farming and off-grid use Available in gas cylinder and bulk form, LPG provides an alternative to oil and solid fuels for off-grid agricultural use. It can be used for heating or transport in all types of farming processes, and delivers a range of operational and environmental benefits. From dairy processing and poultry rearing right though to maintaining the perfect temperature for crop drying (or even propane enrichment of biomethane in anaerobic digestion plants), farmers have turned to LPG for its cleaner, more cost-effective and easily-controllable capabilities. For farmers looking to understand the benefits of LPG, here is advice on how gas can become an essential part of efficient farming in the winter months: 1. Livestock and energy usage Whether it be barn ventilation, lights, supplying food and water or manure handling, poultry cultivation requires a huge amount of energy. For birds and livestock, a constant heat supply is crucial to their survival – especially during colder seasons. By choosing LPG, farmers and animals can potentially benefit from: – An efficient and cleaner-burning fuel, LPG reduces the risk of contamination within livestock (through feeds and litter) – ensuring that animals are kept as safe as possible. – The moisture produced by LPG heating is the perfect level to promote speedy feathering and weight gain amongst poultry. – Choosing an LPG supplier with a national supply network means deliveries can be made quickly and efficiently, keeping birds warm all-year round. 2. Weighing up the green benefits For farmers looking for greener ways of working, LPG can offer environmental benefits. It’s a lower-carbon alternative to conventional fossil fuels, cutting carbon emissions by approximately 15 % compared to heating oil (and 33% compared to coal). It also doesn’t produce black carbon – which is a major contributor to climate change. As a transport fuel for tractors or other farming machinery, it’s also estimated that LPG (or propane) produces up to 24% fewer greenhouse gas emissions than gasoline, and 11% fewer emissions than diesel engines. Not only that, but the risk to the local environment is also kept to a minimum, as propane is non-toxic – providing a cleaner, greener, and cost-effective fuel solution for all kinds of farming uses. 3. When heating is needed for horticulture Maintaining constant temperatures for commercially grown plants and flowers is crucial to securing profits. When temperatures begin to drop, plants are naturally at greater risk of being damaged by frost, so it’s important to have the right heating system in place. LPG, as opposed to other off-grid options like oil, allows plant growers to benefit from a cleaner burning fuel, ensuring crops remain free from contamination. Depending on the size of the operation, farmers can also choose between an LPG gas bottle (which can easily be handled and lifted) and LPG gas tanks (which can be topped up automatically), meaning an energy system that delivers a constant heat supply for horticulture. 4. Using LPG to dry crops and grains When it comes to drying crops and grains, an LPG system can be a huge commodity to farmers looking to dry their produce quickly. As a highly controllable source of fuel, LPG makes for a more precise drying process, allowing farmers to maintain ideal levels of moisture without over-drying. The result is quicker drying all round, whilst also enabling farmers to preserve the quality of their crops, and ensure that the final product meets market specification. Additionally, with LPG grain drying technology, there’s the potential to recycle heated air, providing an even more efficient way to dry grain, without increasing fuel consumption. Sources https://lpg-apps.org/index.php?mact=LPGApi,cntnt01,application,0&cntnt01application_id=16&cntnt01returnid=17&cntnt01sector_id=2&cntnt01subsector_id=24 https://www.flogas.co.uk/business-lpg-farming#lpg-supply-options-41 Gas for Off-grid Britain’ Report, UKLPG, https://www.uklpg.org/resources/gas-for-off-grid-britain Gas for Off-grid Britain’ Report, UKLPG, https://www.uklpg.org/resources/gas-for-off-grid-britain https://www.smithgas.com/propane-uses-in-agriculture
Serving as the first natural stage in its NIC CNG Connection project, Northern Gas Networks is now experimenting with liquid natural gas powered vans to judge the potential benefits available. Set to build its very own compressed gas fuel stations for its back-to-depot city-based vehicles, Northern Gas Networks is taking the first logical step in the company’s overarching plans to cut its carbon emissions across the board. Testing the initiative through the vehicles, Northern Gas Networks will be monitoring the performance and benefits of the vans, engaging them in a number of different scenarios so as best to judge their potential. The project itself, valued at approximately £1.1m, is being undertaken as a partnership between Northern Gas Networks and Leeds City Council, with Ofgem funding a large proportion (approximately £700,000) of the project, and Northern Gas Networks personally covering the addition costs; effectively, putting its money where its mouth is. Whilst the organisation is already well respected for pushing efficiencies and operating responsibly, Northern Gas Networks has stated that it wishes to play an integral role in experimenting with new and innovative schemes which may form a part of a far more sustainable economy. It is hoped that similar initiatives may be pursued in utilising more sustainable gases for a wide variety of energy applications where testing the gases for use in vehicles is merely the first step – the end goal may even each the goal of powering homes, cities and more. Only time will tell, of course.
Energy companies are divided over the need for a mid-period review (MPR) within the present eight-year price control for businesses operating both in electrical energy and gasoline transmission, and fuel distribution. Big six provider British Gas and consumer body Citizens Advice are heading up the decision for an MPR for all three sectors to establish whether the existing price control is appropriate. That call will take into account whether providers are offering value for money to consumers as well as addressing what has been described as the systemic “outperformance” of network operators according to their required outputs. In its recent submission on the potential MPR to the regulator, Ofgem, British Gas conceded: “We recognise that much has changed since the first round of RIIO price controls were finalised which, in turn, has significantly impacted consumers’ interests”. Charity and consumer lobbyist, Citizen’s Advice reported that the average return on investment for network companies in T1 and GD1 is “well in excess of what appears appropriate for such low-risk investment” – a stonking 9.4%. The charity went on express its support for an MPR and it represents “an opportunity to identify the root causes of outperformance, for both transmission and gas distribution.” It was only last November that Ofgem recommended an MPR, asserting that, over the last 12 months, it had recognised some issues with price control management that an MPR could address. Issues identified included by the body included: network output measures, strategic wider works submissions, and incentive on both consumer and stakeholder sides. Ofgem didn’t, however, establish any points for gas distrbution that required reform. As could be predicted, network operators have welcomed Ofgem’s findings on gas distribution while disagreeing with its support for a transmission-focused MPR, insisting the issues identified could be resolved without a sector-wide review. Trade body the Energy Networks Association (ENA) chipped in, saying the changes resulting from the price control are “within the range of uncertainty anticipated in the design of RIIO-T1 and can be managed through the existing uncertainty mechanism,” adding that an MPR runs the risk of creating two four-year price controls and may “undermine longer term investor confidence.” “Our transmission operator members would urge Ofgem to consider the longer term customer interest when assessing the scope of the RIIO-T1 MPR and not just the short terms benefits within the last four years of this price control,” ENA said. Distribution and transmission operator, SP Energy Networks was the single provider to say it would support Ofgem’s decision if an MPR get the go-ahead. The company did however add that it felt the issues could be resolved more successfully with the employment of specialist firms and bodies. SP Energy networks went on to insist that, “as a matter of fairness”, all companies – not just distribution – ought to reviewed if an MPR does go ahead.
