Malcolm Farrow, Director of Marketing and External Affairs at OFTEC provides his thoughts on the government’s approach to rural decarbonisation and the recent Alternative Clean Heating consultation.
The government’s current approach to decarbonising rural communities is very similar to a train speeding down the tracks. It has one destination which is electrification. There have been multiple stops along the way from the Clean Growth Strategy in 2017, the Heat and Buildings Strategy in 2021 and now the Warm Homes Plan in 2026.
During this time, new governments and ministers have got on and off the train, but it’s still heading in the same policy direction. But now, through the recent Alternative Clean Heating consultation, thousands of people are demanding to be let on board, calling on the government to avoid further delays by diverting course and heading towards a new destination.
A clear signal
The sheer volume of engagement with the government’s recent Alternative Clean Heating consultation represents a significant turning point for the off-gas grid sector. Despite a limited window for submissions that coincided with the busy holiday period, the response was unprecedented. Over 16,000 people, from households, heating technicians to fuel distributors, submitted evidence in support of renewable liquid heating fuels.
These voices spread the length and breadth of the UK, representing constituencies across more than 400 Westminster seats, as well as spanning Scotland, Wales, and Northern Ireland. This level of participation is a loud and clear message to policymakers that rural communities are no longer willing to be left behind on the decarbonisation journey. There is a frustration regarding the lack of clarity and fairness in the current approach.
The affordability gap
While electrification is a central part of the UK’s transition to cleaner heating, it is becoming increasingly clear that alternative solutions are needed for harder to treat homes. The economic and political landscape has changed significantly in the past 10 years when this approach was originally conceived. However, the policy has not fully evolved to reflect this.
More recently, the government has started taking initial steps in recognising a new approach is needed with this latest consultation. The document itself highlights the problem and states that the cost of switching an oil heated home to a heat pump is approximately £17,000.
In reality, for many older properties, this figure often rises when factoring in the necessary energy efficiency upgrades for a heat pump to work effectively. Even with the current £7,500 Boiler Upgrade Scheme grant, the remaining financial gap is a huge barrier.
Renewable liquid fuels
As an industry, we have already demonstrated that a more affordable, less disruptive way forward is available. A successful three-year industry project involving 150 properties across the UK has proven that Hydrotreated Vegetable Oil (HVO) is a viable solution. Independent research has shown there is more than enough sustainably sourced HVO available to meet the needs of the UK’s 1.7 million oil-heated homes.
HVO by Christmas
It’s a bit early to be talking about Christmas but, following the overwhelming response to the latest consultation, we are calling on the government to deliver policy support for renewable liquid fuels by the end of the year. This is an opportunity for the government to deliver a quick win for rural voters and show that it is listening to rural communities.
Specifically, our ‘HVO by Christmas’ campaign is calling for three key policy shifts:
– The implementation of Section 159 of the Energy Act: This will enable a market mechanism for renewable liquid fuels to drive down costs for the consumer.
– Duty equalisation: The duty on renewable heating fuels needs to be equalised with the current duty on kerosene, ensuring a level playing field for those wanting to switch
– A multi-technology approach: The government must move away from a technology-exclusive approach with electrification and embrace the role that renewable liquid heating fuels can play off the gas grid.
The liquid fuel sector already has an established network of skilled technicians, manufacturers, and distributors who are ready to support this transition today.
Image: OFTEC
