Industrial Heating Oil (IHO) for Heating
Industrial Heating Oil (IHO) serves as an economically sound alternative to conventional heating gas oil, exceptionally well-suited for a broad spectrum of heating applications. It is important to note that, in accordance with regulations, IHO is not intended for power generation or for operating plant and machinery.
Distinguished by its exemption from fuel levies, IHO can seamlessly replace existing heating fuels such as gas oil in boilers, dryers, and heaters without necessitating any equipment adjustments.
The advantages of utilising IHO encompass:
- Non-disruptive Integration: IHO requires no alterations to equipment.
- Comparable Energy Output, Reduced Costs: IHO delivers equivalent energy output at a lowered expense.
- Minimal Environmental Impact: IHO is a new product devoid of any waste oil components.
- Proven Reliability and System Compatibility: IHO has demonstrated its dependability and compatibility with various heating systems.
- Our commitment to IHO extends across our network, collaborating closely with suppliers to ensure its availability at all our branches throughout the UK.
Advantages of Transitioning to Cleaner-Burning HVO Biodiesel for Power Generation
Transitioning from mineral diesel to HVO biodiesel for generator use signifies a significant stride towards environmental preservation and introduces a range of valuable advantages:
- HVO (Hydrotreated Vegetable Oil) is derived entirely from 100% renewable sources like vegetable and animal oils, effectively reducing net CO2 emissions by up to 90% when compared to traditional mineral diesel.
- Beyond diminished carbon emissions, the use of cleaner-burning HVO fuel contributes to lowered particulate emissions, nitrogen oxides (NOx), and carbon monoxide (CO), thereby ameliorating air quality, extending the life expectancy of emission control systems (where applicable), and enhancing engine efficiency.
- HVO exhibits an extended shelf life compared to conventional diesel, which succumbs to chemical degradation within approximately one year. The absence of unstable compounds and sulphur in HVO fuel allows it to be stored for up to a decade without compromising performance.
- Directly substitutable for mineral diesel, HVO fuel facilitates an immediate and substantial enhancement in environmental performance.
- Thanks to its cleaner and more stable composition, HVO fuel leads to reduced equipment maintenance costs and greater reliability for end-users.
Switching to the new HVO fuel necessitates no alterations to equipment, storage, or handling systems, ensuring the realisation of benefits without the need for additional infrastructure investment.
This transition offers an authentic drop-in replacement, instantly propelling a remarkable advancement in environmental sustainability.
Given that the transportation sector contributes around 27% of the UK's carbon emissions, decarbonising transport constitutes a pivotal component of achieving the national target of net-zero carbon emissions by 2050.
In tandem with the direct carbon savings derived from HVO fuel adoption, all biodiesel deliveries to SLD branches are carbon-neutralised by SLD suppliers, thus further augmenting the overall savings.
Alternative Fuels and Nationwide Coverage
Across the majority of our branches, we provide HVO and IHO fuel options tailored to specific applications, with a focus on achieving comprehensive nationwide availability in the near future.
In instances where HVO / IHO supplies are not yet accessible, our commitment to unwavering customer support remains steadfast. We will continue to offer conventional white diesel, guaranteeing seamless assistance to customers and uninterrupted service for all ongoing hire projects.
Revised Usage Guidelines for Red Diesel
Commencing April 1, 2022, revisions in government tax policy will result in the cessation of red diesel usage for specific sectors that were previously eligible for tax-rebated privileges. The objective of these changes is to foster adoption of cleaner alternatives like HVO biodiesel and promote a reduction in standard diesel consumption.
Sectors Impacted by the Changes:
Starting April 1, 2022, entities within the following sectors will generally no longer be authorised to utilise red diesel:
- Construction
- Waste management
- Highways and road maintenance
- Oil and gas extraction
- Commercial heating
- Airport operations and ports
- Manufacturing
- Logistics and haulage
- Leisure
- Mining and quarrying
However, businesses operating in sectors not mentioned above that presently have entitlement to employ red diesel will generally maintain this authorisation.
*Please note that the regulations governing permissible usage after April 1, 2022, are intricate and detailed. For precise delineation of usage scenarios and application of the new guidelines, kindly refer to the official HMRC Regulation available HERE.
For entities with backup fuel generators, the use of existing red diesel reserves purchased prior to June 10, 2021, is permissible. Alternatively, a special license from HMRC may be required if fuel stocks were acquired after this date.
In light of these developments, and to support impacted customers, we introduced HVO biodiesel into our network earlier this year. Further information can be found in the relevant HVO section above.
