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LPG's role in today's energy landscape
22 September 2014
Rob Shuttleworth, chief executive of UKLPG, the trade association for the liquefied petroleum gas industry, explains that when it comes to industrial environments, which could be in rural or off-grid locations, LP Gas offers a convenient, versatile, low carbon and easy-to-install energy source, which can also complement existing renewable infrastructure.
With the energy landscape changing so rapidly, industrial organisations could be forgiven for feeling bombarded with messages about the most effective power solution. However, while the role for renewables is certainly growing, they are not necessarily the right or only solution for every circumstance.
An important part of the UK's energy mix, LP Gas will play a potentially pivotal role in the transition towards a more secure, sustainable and competitive energy model. The clean, low carbon fuel has a proven track record in heat, energy and even transport applications in the commercial and industrial sectors. Its combustion emits 33% less carbon-dioxide than coal and 15% less than heating oil. Thanks to its high output, LP Gas is one of Europe’s most well-established fuels, and is proven to work well with new heating technology such as air source heat pumps.
The lowest carbon fuel available in non-mains gas areas, LP Gas has been used within commercial applications for the past 40 years. It is a particularly attractive option for larger organisations that have to report on their carbon emissions. One large packaging manufacturing site reduced its carbon footprint by 29%, just by switching from oil to LP Gas.
LP Gas can be installed quickly and easily in commercial properties and the results can be seen almost instantly. This particular packaging company was delighted with the results of the project and is seeing a return on investment already. In just two months, fuel costs have been reduced by 42,000, an annualised reduction in fuel costs of 15 -20%.
The fact that LP Gas can be integrated with low-carbon and renewable technologies makes it an increasingly attractive option for commercial and industrial sites looking to balance the need to reduce carbon emissions and costs with the requirement to ensure continuity of supply, sometimes 24/7.
This is especially the case given that the UK has to meet stringent carbon reduction targets over the next few decades, with LP Gas set to play a key role in achieving those ambitions. The combination of the highly efficient heating technologies being rolled out to commercial markets for both space and process heating, coupled with the fact that LP Gas, as a by-product of the gas industry, is widely available, extremely reliable and becoming increasingly price competitive, makes it particularly advantageous.
The knowledge that LP Gas will be in plentiful supply for many years to come, adds supply security for any commercial building energy managers. Because of these characteristics, and the other benefits that it can offer, LP Gas is fast becoming a fuel of choice for commercial and industrial sites large and small.
This is especially the case given that carbon emissions have become increasingly expensive since the introduction of the Carbon Reduction Commitment for larger businesses and the Climate Change Levy (CCL), which is charged on all commercial sites. However, it is also worth noting that the CCL is not payable on LP Gas installations smaller than 4000 litres.
We are seeing many commercial businesses looking to take advantage of the low carbon properties of LP Gas to help them meet their targets. LP Gas has a low carbon to hydrogen ratio, which means that it will generate lower amounts of CO2, while producing the same amount of heat as alternative options. As energy efficiency continues to be a hot topic, there is no doubt that many more businesses will realise the benefits that LP Gas can offer across a wide range of commercial applications.
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