1. Clean Growth Strategy Update
Council Regional Representative & Guy Pulham
Presentation to Members at Regional Meetings in Autumn 2018

2. Thank you to those who inputted or commented on our submission
Introduction
FPS submission was sent on June 11th
Available on the website in the Members Area
BEIS subsequently presented at OFTEC Conference and at TSA lunch
No oil in new homes and the last fossil boiler install in existing in 2035
Says RHI a success with 300,000 homes now on bio-methane
35% CO2 in 2018 from heating – only1.8% of total greenhouse gases emissions from oil heating
Doesn’t see a new RHI post 2021 or certainly one with a large budget
Government are talking to banks about third party investor schemes
135 responses to CGS
50% from TAs/Industry
Aim to get some sort of summary to ministers before summer break (July) – MP feedback says unlikely
Still looking for Claire Perry statement in the house in Autumn
Second consultation early 2019 when BEIS aim to go out with either one or a few options for the future and invite comment
Bio fuel (or carbon neutral fuel) was at least on his slide - different to before we got involved
Some benefits (easy switch for consumers/supply chain) but still unsure on cost and supply avails
He sees any limited avails going to Aviation as that industry has fewer decarbonised options (see next slide)
Thank you to those who inputted or commented on our submission

3. Data c/o German Institute for Heating and Oil Technology (IWO)
Limited carbon neutral fuels likely to go to Aviation first?

4. Conversations with Flare, DOIF TA and OFTEC
Current Situation
OFTEC
OFTEC/FPS steering group set up with board/council members
Looking at how we can get better aligned data and more research
Third Industry Contact Group Meeting set for Oct 25th in London
Sharing data from HHIC and Eurofuels meetings
DOIF TA (new group) mapping out supply chain and what industry groups exist and how they interact
FPS firmly believe that decarbonisation will happen
Portland Fuels backed this view at a recent Flare meeting
How do we get this message to members
Change of government may change timing but not Paris agreement
We will keep talking to BEIS – including one on ones.
Clean Energy Consultancy data shows there is room for FAME price increase
Conversations with Flare, DOIF TA and OFTEC

5. Data c/o Clean Energy Consultancy
Comparisons of current costs

6. Get involved and be aware
FPS position 1
Our internal stance
Agree industry data with OFTEC (steering team meeting recently)
Potentially support (financially) any research studies agreed with OFTEC
Proactively get involved with DOIF TA to ensure full supply chain are engaged
Use ECFD to update e-fuels knowledge and to get some product to test
Continue to push the messages to members and consumers (when required)
Share data and resource from industry forums and meetings (e.g. HHIC and Certas)
Push the regulation date back to give time for that innovation/investment
Create opportunities for members to future proof their businesses
Get involved and be aware

7. Have also pushed upwards to Claire Perry – Minister for Energy
FPS position 2
Our stance with BEIS
Support the idea of decarbonisation but not to ‘the detriment of consumer choice or cost’
NOTE: any FAME introduction will increase prices short term but need some short term wins to stay in the game
Push supply chain (e.g. UKPIA/TSA) to educate BEIS on kerosene/aviation chains and how FAME is easily brought into the model
Create a suite of questions for BEIS for clarity e.g. what is high carbon; is the drive carbon input or output; clarity on ECO3, carbon funds etc
Be proactive and create a pathway as a starting point with BEIS and agree with OFTEC/ DOIF TA
Need to create a future that people can see in order for the necessary investment to happen in e-fuels
Have also pushed upwards to Claire Perry – Minister for Energy

8. Working with OFTEC on agreed pathway and external research
Pathway to 2050
Govt has to set emission milestones and/or regulation to get supply chain and consumer buy in
Each bullet provides associated emission savings from the 1.8% of greenhouse gases caused by oil heating.
Boiler replacement scheme – 400,000 zombie boilers
Limited but is actually under ECO3
Smart metering and smart controls (zonal heating) rollout
Change kero standard to allow 7% (or above) FAME to match SFGO
Then 3 concurrent strands
Development of e-fuel and availability
Development & implementation of hybrid systems
Gradual increase in non mineral content of kerosene
could be FAME – could be other non mineral products
Working with OFTEC on agreed pathway and external research