Written evidence submitted by Liquid Gas UK (DHH0119)

 

About Us

 

Liquid Gas UK is the trade association for the Liquefied Petroleum Gas (LPG) and biopropane (bioLPG) industry in the UK, representing companies who are LPG producers, distributors, equipment and service providers, and vehicle convertors. It is dedicated to the safe and effective development of LPG. Member companies cover 99% of the total LPG distributed in the UK. In our submission, we outline the significant role LPG and bioLPG can play in the current, and future, decarbonisation of heat in homes.

 

An introduction to LPG and bioLPG

 

 

 

 

Executive Summary

 

 

 

 

 

Question 1:  What has been the impact of past and current policies for low carbon heat, and what lessons can be learnt, including examples from devolved administrations and international comparators?

 

 

 

 

 

 

 

Question 2: What key policies, priorities and timelines should be included in the Government’s forthcoming ‘Buildings and Heat Strategy’ to ensure that the UK is on track to deliver Net Zero? What are the most urgent decisions and actions that need to be taken over the course of this Parliament (by 2024)?

 

 

 

Agreement that the phase out of high carbon fuels should block fuels that can support a transition to Net Zero

 

 

 

 

I am very concerned about the question of how we move from largely fossil-driven heating in people's homes. There are those who are purists and say you have to move from where you are to a totally non- fossil fuel answer. I am very much an incrementalist on this. I do not believe you can do that.” [10]

 

Recognition of a basket of low carbon heating options and extending public funding support to these

 

 

 

Question 3: Which technologies are the most viable to deliver the decarbonisation of heating, and what would be the most appropriate mix of technologies across the UK?

 

 

 

 

 

“Hybrid heat pumps can be installed alongside existing heating systems, with these secondary fuels later transitioning to low carbon sources. For hybrid heat pumps on the gas grid, peaking gas use can be transitioned to hydrogen, whilst off the gas grid, biofuels can be used (assumed to be bio LPG for the purposes of our modelling).” [13]

 

 

Question 4: What are the barriers to scaling up low carbon heating technologies? What is needed to overcome these barriers?

 

 

 

 

 

Question 5: How can the costs of decarbonising heat be distributed fairly across consumers, taxpayers, business and government, taking account of the fuel poor and communities affected by the transition? What is the impact of the existing distribution of environmental levies across electricity, gas and fuel bills on drivers for switching to low carbon heating, and should this distribution be reviewed?

 

 

 

 

Question 6: What incentives and regulatory measures should be employed to encourage and ensure households take up low carbon heat, and how will these need to vary for different household types?

 

 

Oil Tank Scrappage Scheme

 

 

 

 

Expand support under Clean Heat Grant

 

 

 

 

 

 

 

December 2020

7

 


[1] UKLPG, Response to A Future Framework for Heat in Buildings (June 2018)

[2] WLPGA, ‘BioLPG: The Renewable Future’ (2018), Page 52

[3] Committee on Climate Change, Net Zero – Technical Report (2019)

[4] Ecuity Consulting & Liquid Gas UK, A Practical Approach: Analysis of Off-Grid Heat Decarbonisation Pathways (2019),

[5] https://www.gov.uk/government/statistics/rhi-monthly-deployment-data-may-2020

[6] Calor Gas, YouGov Results (6th – 9th December 2019)

[7] Ecuity Consulting & Liquid Gas UK, A Practical Approach: Analysis of Off-Grid Heat Decarbonisation Pathways (2019), p10.

[8] English Housing Stock Survey, Table DA7101 (SST7.1): Energy performance1 - dwellings, 2017 < https://www.gov.uk/government/statistical-data-sets/energy-inefficient-dwellings>

[9] English Housing Stock Survey, Table DA7104:  Energy performance1 - heating and insulation characteristics of dwellings, 2017 < https://www.gov.uk/government/statistical-data-sets/energy-inefficient-dwellings>

[10] Lord Deben speaking at the BEIS Select Committee, 2nd July 2020 <https://committees.parliament.uk/oralevidence/635/html/>

[11] WLPGA, ‘BioLPG: The Renewable Future’ (2018), Page 52

[12] Savills Data

[13] Committee on Climate Change, Net Zero Technical Report (May 2019), p72

[14] Ecuity Consulting and Liquid Gas UK, The Role of LPG and bioLPG in Large, Rural Off-Grid Homes, November 2020

[15] Opportunities to Decarbonise the Non-Domestic Off-Grid Sector with LPG and bioLPG

[16] Research by Vivid Economics et.al shows that the unit cost of network reinforcement for high voltage lines is ~£38,000/km for overhead lines but ~£118,000/km for underground lines. This cost differential increases to ~5 times when looking at reinforcement to extra high voltage network lines (£91,000/km and £453,000/km respectively).

[17] Compared to pure electrification through heat pumps.

[18] 2040 Vision

[19] Freedom Project study on the use of an LPG hybrid heat pump in Northern Ireland, 26 February to 1 March 2018