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Off mains, not off budget
12 January 2015
There are very few investment decisions that will affect a business’ bottom line costs for the next 10 to 20 years. Replacing the boiler is one, so Keith Higginson, commercial marketing manager at Calor Gas takes a look at some of the options available when installing an off-mains gas heating system.
With the rise of energy prices and the need to reduce carbon footprint becoming an increasing concern for many businesses, it pays to consider carefully the fuel sources available – particularly in off-mains gas applications where natural gas is not an option.
An eye on emissions
Research indicates that most specifiers and installers of off-grid fuel solutions believe that LPG is more expensive than heating oil, and, as a result, there is limited awareness of the many benefits of the fuel source.
LPG has the lowest carbon emissions out of all the fossil fuels available to those off the mains-gas grid, emitting 11.7% less CO2 per kWh than oil. It is also cleaner burning than many combustible renewables.
Renewable options
More and more businesses are becoming increasingly aware of the importance of demonstrating a commitment to reducing their impact on the environment and lowering their carbon footprint, not to mention proving a responsible business etiquette.
It is unlikely that 100% of renewable energy solutions will be viable for many installations, so it makes sense to seek a low carbon, reliable fossil fuel as a back-up source. LPG is a suitable partner for renewable sources of energy and acts as a great back-up power source too.
Fuel theft
According to OFTEC, the UK trade body that represents the oil heating and cooking industry, heating oil theft is on the increase due to rising fuel prices and harsh winters. In remote, rural areas, the issue of fuel security is therefore of prime concern, especially when there may be no other source of fuel available at the premises and the business depends on a reliable supply for its heating.
With the issue of fuel theft there also comes the increased likelihood of oil spillages. These do not just carry a financial penalty in terms of the cost of replacing the lost fuel, but the inconvenience of dealing with any oil spill and associated environmental contamination.
OFTEC recommends that companies take out specific insurance to cover these potential issues, with a policy that covers the cost of replacing the lost oil as well as the costs of cleaning up any oil spills on the property. Additionally, it recommends a high enough liability limit to cover the owner should neighbouring land and/or boreholes be affected.
To add to this, the UK Environment Agency claims that on average an oil spill costs a typical business around £30,000 in fines, clean up charges and losses. There have been incidents where fines have exceeded a million pounds, which serves to highlight the serious nature with which an oil spill may be dealt with by the relevant authorities.
In contrast, LPG is virtually impossible to steal, and does not pollute air, soil or water. In the unexpected case of a leak, LPG is heavier than air, meaning it would sink to the ground or rest on the top of water until it evaporates.
Price guarantee
In addition to the environmental benefits that LPG can offer, Calor has also introduced a Lower Price Guarantee*, ensuring that its supply of LPG will be cheaper than an end-user business’ current oil price on a pence per Kilowatt hour basis.
Calor also offers fixed pricing options and, when you consider that global reserves of LPG are plentiful, with predictions that supply will eventually exceed demand, restrained pricing is likely to continue during the decades to come.
*This guarantee applies only to companies entering into an LPG supply agreement with Calor at their registered business premises. Terms and conditions apply: visit www.calor.co.uk/specifiers for full details.