Liquid Gas UK calls on Treasury to support rural decarbonisation

Friday 28th February 2020

Liquid Gas UK has made submission to the Treasury in advance of the upcoming Budget, calling on UK Government to support rural off-grid homes to decarbonise through proactive measures such as an oil tank scrappage scheme and including LPG Hybrids or bioLPG as a standalone fuel in the future version of the Renewable Heat Incentive (RHI).

Liquid Gas UK has made submission to the Treasury in advance of the upcoming Budget, calling on UK Government to support rural off-grid homes to decarbonise through proactive measures such as an oil tank scrappage scheme and including LPG Hybrids or bioLPG as a standalone fuel in the future version of the Renewable Heat Incentive (RHI).

As a key component of the UK’s energy mix, LPG is a popular choice for heating homes and businesses in areas not connected to the gas grid, predominantly in rural locations. LPG is the lowest carbon conventional fuel source available to homes and businesses off the grid. It emits more than 33% fewer carbon emissions than coal and up to 20% fewer carbon emissions than oil, making LPG a transitional solution in its own right, providing an immediate, expedient and cost-effective energy solution.

The industry is going further to support decarbonisation with the roll out of bioLPG. BioLPG is a versatile, ‘drop-in’ renewable solution for decarbonising off-grid rural homes with the potential to provide up to 90% emissions reduction. The industry’s 2040 Vision provides a pathway to bioLPG by 2040 and outlines how bioLPG, as part of a mixed technology approach, can support the UK Government to achieve the 2050 Net Zero binding target in an affordable and non-obtrusive way.

As part of its submission Liquid Gas UK has called for:

  1. UK Government to adopt an oil tank scrappage scheme to support domestic off-gas grid fuel switches. As despite the ability of consumers to make significant carbon savings through low carbon solutions such as LPG/bioLPG or hybrid heat pumps, it will be difficult to motivate a proportion of householders to move away from heating oil due to owned assets. 
  1. A future RHI to include bioLPG as a standalone fuel and LPG Hybrids to enable immediate carbon savings off the gas grid. The RHI has primarily focused on the roll out of heat pumps, with little success, widening the remit of the scheme and supporting bioLPG as a standalone fuel, and LPG in a Hybrid Heat pump, can motivate off-grid home owners by providing real choice for decarbonised heating.

Sophia Haywood, Director of Public Affairs commented on the submission:

Research shows that taking a mixed technology approach to decarbonising heating off the gas grid will enable the UK to achieve its net zero target in the most cost-effective way. Electrification is not a silver bullet and will not provide appropriate heating for every property, particularly for older, more rural buildings.

“The upcoming budget is an opportunity for UK Government to empower households to make low carbon heating choices. Implementing an oil tank scrappage scheme and widening the remit of a future RHI to give individuals real choice on how they heat their home, whether that be with a heat pump, bioLPG, or even LPG as part of a hybrid heat pump, could go a long way in making immediate carbon emissions savings off the gas grid.”

Read the full submission to the treasury here.

The trade association for the LPG and bioLPG industry in the UK