Delivering clean energy beyond the grid
Duncan Carter, Corporate Affairs Manager
| Calor Gas
The new government has ambitious plans to clean the power grid, but many parts of the economy need alternatives to low carbon electricity
The Labour Party’s manifesto commits the new government to deliver clean power by 2030 delivered by massively increasing generation from both onshore and offshore wind as well as solar.
Decarbonising the grid on this scale and in this time frame is a substantial increase in ambition and many have questioned whether it is achievable, or whether the pace justifies the cost. An increase in generation of this size will also entail significant investment in grid capacity at a strategic and local level to support the electrification of the economy, running into billions of pounds.
While an important step in our decarbonisation journey, a clean electricity grid isn’t a silver bullet for all our low carbon energy needs, particularly for those in rural areas where electricity grid constraints are a major challenge. It would not make economic sense to invest in the scale of local grid upgrades necessary to upgrade everyone’s connection necessary for electric vehicles and heat. Given this reality, alternative low carbon solutions are necessary to support these homes and businesses to decarbonize their heat and energy requirements affordably.
This concept isn’t new. Acknowledging that transport was more challenging to electrify (buses, HGVs, aviation) than other sectors, the last government pursued policies such as the Renewable Transport Fuel Obligation (RTFO) to incentivize the supply of renewable fuels to replace diesel and petrol. It was due to introduce a new Low Carbon Fuels Strategy for transport but ran out of time. A mandate on airlines to use an increasing proportion of sustainable aviation fuel (SAF) is due to be introduced next year.
The new government needs a holistic strategy that includes affordable and practical solutions for the rural homes and businesses that will be difficult to electrify, either because of electricity grid constraints or the building fabric makes electric heat pumps an expensive or impractical option. Many currently rely on liquid fuels and gases such as LPG (Liquefied Petroleum Gas, often known as ‘Calor gas’) or heating oil to meet their heating and hot water needs. This is why Calor and the wider LPG sector are actively pursuing the development of low carbon alternatives to fossil fuels such as bioLPG (which has been on the market since 2018) and renewable dimethyl ether (rDME), an existing fossil molecule but soon to be made from non-recyclable rubbish and other waste feedstocks. Collectively we call them Renewable Liquid Gases (RLGs). These fuels retain the ease of transport, strong safety record and high energy density of existing fossil products, but with carbon savings of up to 90% compared to fossil fuels. They also produce very low levels of NOx, SOx and particulates when compared to wood or heating oil minimizing the impact on local air quality.
Making this transition a reality, our parent company has embarked up an exciting joint venture with Dimeta and KEW Technology to pilot rDME production at the Sustainable Energy Centre in the West Midlands, with a view to developing a commercial plant in the future. To meet projected demand, we will need the right fiscal and policy framework from government; so far we’ve not had the support hydrogen, biomethane and aviation have enjoyed. It’s time for the government to recognize that a wider range of low carbon solutions will be needed to achieve clean energy for all.
The Labour Party manifesto places an emphasis on supporting the development of industrial clusters and clean energy manufacturing supply chains via a National Wealth Fund and a British Jobs Bonus. We welcome the ambition in these policies and hope RLGs will be supported and not overlooked as they could supply energy to important parts of the rural economy: agriculture, leisure and tourism and industry, whose current energy use is difficult to entirely replace with electricity or hydrogen. There is a global market for investment in RLG R&D and production and the UK risks missing out with further delay in developing a favourable investment environment underpinned by greater policy clarity on the role of RLGs.
The incoming government could also take some straightforward measures help the RLG sector develop more quickly. This could include incentivising the off-take of RLGs from the production of SAFs, which would also improve the use of finite UK biomass feedstocks and be consistent with government stated policy aims of only using biomass in sectors where alternatives are limited.
Another example is the opportunity presented by recycling used car tyres to produce fuels. A new plant is in development in Sunderland that, by a process known as pyrolysis, will separate the biogenic element (rubber) of the used tyres to create SAF. The rest of the tyre which is created from crude oil can be used as recycled carbon that in the future should be accepted as a sustainable feedstock under the RTFO. This novel feedstock could also produce RLGs for use in both transport and heating.
In order in stimulate demand for RLG production, the new government can also take forward plans to consult on a future Renewable Liquid Heating Fuel Obligation. This would act like the RTFO in transport and act as an economic mechanism to bring renewable liquid fuels to the market by mandating their purchase by liquid heating fuel suppliers, such as Calor. We would welcome this policy as an important step in our transition to low carbon liquid fuels.
Targeted government support is required so the emergence of a greener, cleaner renewable liquid fuels market - retaining the skills of existing workers – can progress more rapidly and continue to deliver for the sectors that rely on it now and in the future.
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