Industrial Heating Oil (IHO) for heating
IHO is a cost-effective replacement for standard heating gas oil, and ideal for use in all heating applications. By law, it must not be used for power generation, or to power plant and machinery.
Free from fuel levies, IHO can be used as a direct drop-in replacement in boilers, dryers and heaters, without modifications.
IHO offers a number of benefits to users:
- No modifications to equipment required
- Equivalent energy output for reduced cost
- New product without any waste oil component
- Proven reliability and compatibility with heating systems
We are rolling-out IHO across our network, working with our suppliers to make it available from all branches across Ireland and the UK.
Cleaner burning HVO biodiesel for power generation
The move from mineral diesel to HVO biodiesel for use in generators is a huge step forward in environmental protection and provides other valuable benefits:
- HVO (Hydrotreated Vegetable Oil) is a made from 100% renewable raw materials such as vegetable and animal oils, and reduces net CO2 emissions by up to 90% compared with traditional mineral diesel.
- As well as reduced carbon emissions, cleaner-burning HVO fuel reduces emissions of particulates, nitrogen oxides (NOx) and carbon monoxide (CO), improving air quality, extending the lifetime of emission control systems (where fitted), and improving engine performance.
- HVO has a longer shelf life than conventional diesel, which can only be stored for around one year due to chemical degradation. HVO fuel contains fewer unstable compounds and no sulphur, enabling it to be stored for up to 10 years without loss of performance.
- HVO fuel is a direct drop-in replacement for mineral diesel and delivers an immediate and dramatic improvement in environmental performance.
- Due to HVO's cleaner, more stable composition, it reduces maintenance costs on equipment and gives improved reliability for customers.
Switching to the new HVO fuel requires no modifications to equipment or storage and handling systems, so all of the benefits accrue without the need to invest in new infrastructure.
It is a genuine drop-in replacement and delivers an immediate and dramatic improvement in environmental performance.
The transport sector produces around 27% of the UK's carbon emissions, therefore decarbonising transport is a key part of the challenge in meeting the national target of net zero carbon emissions by 2050.
In addition to the direct savings in carbon from using HVO fuel, all deliveries of the biodiesel to SLD branches are carbon offset by SLD's supplier, Crown Oil, adding further to the savings.
At most of our branches, we offer HVO and IHO fuel for the relevant applications, and we are working to complete nationwide coverage in the coming months.
Where HVO / IHO supplies are not currently available, we will continue to offer standard white diesel, ensuring customers are fully supported and that all hire projects can continue with uninterrupted service.
Changes to red diesel permitted usage
From 1 April 2022, government tax changes mean that certain sectors which have been allowed to use tax-rebated red diesel will no longer be permitted to use it.
The aim is to encourage people to move to less polluting fuels, such as HVO biodiesel, and/or reduce consumption of standard diesel.
Who is affected by the changes?
In principle, those involved in the following sectors will no longer be able to use red diesel from 1 April 2022.*
- Waste management
- Highways and road maintenance
- Oil and gas extraction
- Commercial heating
- Airport operations and ports
- Logistics and haulage
- Mining and quarrying
In principle, businesses in sectors not listed which are currently entitled to use red diesel, will continue to be able to use it.*
*The regulations on permitted usage after 1 April 22 are detailed and complex. For precise definitions of usage and how the new rules apply, please refer to the official HMRC Regulation here: https://www.gov.uk/guidance/using-rebated-fuels-in-vehicles-and-machines-excise-notice-75-from-1-april-2022
Those with back-up fuel generators can continue to use red diesel stocks as long as the fuel was purchased before 10th June 2021. Otherwise, they may need a special license from HMRC.
To support customers affected by these changes, earlier this year we introduced HVO biodiesel across our network. Fopr details, see the relevcant section on HVO above.