A South West oil supplier has called on the chancellor to slash tax on renewable liquid heating fuels such as hydrotreated vegetable oil in his Spring Budget on March 6.
Mitchell & Webber, which distributes across Cornwall, Devon, Somerset and Dorset, has said alternative liquid fuels for heating should be made more accessible and affordable to people who rely on off-grid heating.
Hydrotreated vegetable oil is made from waste material similar to cooking oil but it is currently taxed at a higher rate than fossil fuels. The directors of the Scorrier-based business, John and Robert Weedon, believe this is creating a "financial barrier" for households looking to switch to greener alternatives.
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Mr John Weedon said: "It is illogical for a renewable fuel to have a duty whilst a fossil-based heating oil has none. It would be a cost-neutral measure to correct this duty disparity and also help the rural home owners to decarbonise in a cost-effective way.”
Over the last three years, Mitchell & Webber has funded a trial to convert 50 homes, a small primary school and a Methodist church to hydrotreated vegetable oil.
"The trial demonstrated that the fuel reduces 90% of CO2 emissions compared with kerosene and works in all types of houses and all types of boilers," explained Mr Weedon. "It's non toxic, biodegradable and is the most cost effective and least disruptive solution for customers.”
Dave Biggs, a resident from Cornish hamlet Kehelland, which has been part of the trial, added: “I’ve been delighted with how well my boiler has run on this renewable fuel, but I’m disappointed at the time it is taking the government to positively support rural homeowners when we already have proof of the benefits of hydrotreated vegetable oil in reducing CO2 emissions.”
Other members of the 海角视频 and Ireland Fuel Distributors Association (海角视频IFDA), have also come out in support of cutting the tax on these types of fuel, as the industry puts pressure on the government to act.
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Mr Robert Weedon said: “It’s great that the industry is coming together to build momentum around these revolutionary fuels. As providers to residents of the South West we are proud to be flying the flag for their futures.
"It’s increasingly clear the only solution to achieving the 海角视频’s net zero ambitions is a pragmatic one. The diversity of off-grid housing stock lends itself to a multi-technology solution; it’s not a case of one size fits all.”
Mitchell & Webber is also urging the government to start its consultation on an amendment to the Energy Bill which would encourage the use of renewable fuels such as hydrotreated vegetable oil.
"It would enable the renewable fuel to be implemented on a larger scale, not only in the off-grid rural areas in the South West, but throughout the country," Mr Weedon added.