10/06/2022
Generally, the structure of the Industrial Carbon Capture Business Model (ICCBM) does create an investable proposition.
Some elements of the ICCBM could be improved in order to further incentivise investment.
10/06/2022
We agree that the proposed Availability Payment component of the DPA Contract incentivises efficient decarbonisation.
CCUS Dispatchable Power Agreement Business Model06/05/2022
UKPIA broadly agrees with the proposed evaluation criteria for the first 2022 allocation round. We do have some concerns that economic benefits are scored equally to cost considerations, as the economic benefits are often outside the control of the project once it is delivered.
UKPIA Response Market Engagement On Electrolytic Allocation Consultation03/04/2022
UKPIA’s view is that all suitable Low Carbon Fuels (LCFs) should be considered as available options in the energy transition, not just renewable fuels. Fuels such as RFNBOs, RCFs, liquid and gaseous fuels associated with Carbon Capture, Utilisation and Storage (CCUS) offer significant opportunities for decarbonisation.
UKPIA Low Carbon Fuels Strategy Call For Ideas21/04/2022
The focus on 2050 provides industry with a long-term pathway when considering investment. However sourcing Biomass for SAF will be in competition from other industry sectors including renewable diesel. An update focusing on the next 5 – 10 years would assist industry in focusing on the immediate targets and allow it to plan accordingly.
UKPIA Jet Zero Further Technical Consultation20/03/2022
UKPIA believes that an exemption for digital service provider small and micro- businesses should be modified to enable a small number of critical providers to be brought under scope of NIS Regulations. This is because of the digital interconnectivity of the value chains of the businesses involved in the Downstream Oil Sector. However, once the system is implemented and reached a mature state it may then be worth considering a widening of the scope to include more entities. This would strengthen the UK’s Cyber resilience.
11/03/2022
UKPIA and our members encourage the Scottish Government to continue prescribing the appropriate de-capitalisation rate for the 2023 revaluation. The prescribed rates are well established in practice. Since the prescription has been set by Government since the 1990 Revaluation, there is now little debate to the appropriate rate to be adopted for the Non-Domestic properties valued using the contractor’s method.
14/03/2022
As outlined in the BEIS Hydrogen Strategy, low carbon hydrogen (LCH) has an essential role to play in delivering a Net Zero UK1. Whilst hydrogen is already used in many industrial processes as either a feedstock or energy vector, it is normally produced at the same site it is consumed at, with said site likely to be regulated for Greenhouse Gas (GHG) emissions by the UK Emissions Trading Scheme (ETS), but no sustainability requirement associated with the hydrogen itself.
30/01/2022
Aqueous Film Forming Foams (AFFFs) are the predominant firefighting foams used in the UK Refineries and Terminals. Perfluorooctanoic acid (PFOA) and related substances have been used in the formulation of many of these foams.
Many if not all Major Accident Hazard sites have significant stocks of AFFF as part of their inventories for emergency planning measures as this is required under Seveso III and implemented as Control of Major Accident Hazards [COMAH].
UKPIA and our members are keen to help the UK Government to meet the commitment to phase out the use of PFOAs.
20/03/2022
UKPIA believes that a regulatory framework associated with cyber professional standards is the only way to ensure consistency across the sector. However, the focus should be on standard setting, continuous development and flexibility rather than prescriptive rules.
UKPIA Response To Embedding Standards And Pathways Across The Cyber Profession By 2025 Response
22/02/2022
The proposed system of penalties is overly complex and penal. The proposed penalty placed upon failure to notify of changes of 2% of RV could be material for some ratepayers. An initial cap of £500 should be introduced before a warning letter is received.
UKPIA Technical Consultation Response21/01/22
A broad range of approaches will be required in order to meet future transport needs and connectivity while achieving the lowest possible Greenhouse Gas (GHG) emissions. A joined-up approach to Government fuel policy is therefore required to meet future transport requirements, taking account of the needs and technologies suitable for each transport mode.
UKPIA Response To Fuelling The Future15/12/21
Non Domestic Rates Business Rates Response10/12/21
Review Of Basic Principles Committee Practice3/12/2021
The principle of a right to request flexible working from day 1 is not supported. Due to the operational nature of the downstream sector, flexible working cannot be offered to all employees regardless of their time working at the company.
Flexible Working The Default15/12/2021
UKPIA’s view continues to be that if set fairly, subject to consultation and within the context of existing case law, then continued prescription of decapitalisation rates is the preferred option.
Setting Decapitalisation Rates For Northern Ireland25/10/2021
The low carbon hydrogen standard (LCHS) should not include end-use in scope and must also be applied to hydrogen imported to the UK to ensure a level playing field for producers for the UK market.
Low Carbon Hydrogen Standard25/10/2021
Whilst support in the FEED and pre-FEED stages may mean multi-year time frames for the fund’s benefits to be realised, supporting these stages is likely to enable more innovative projects to be designed and assessed.
Net-Zero Hydrogen Fund27/09/2021
UKPIA agrees with the need to have a resilient UK and believes that the principles outlined are appropriate for a vision of the National Resilience Strategy (NRS). However, the Strategy should not dismiss or underestimate the current resilience of the UK.
National Resilience Strategy Call For Evidence25/10/2021
As such an integral part of the refining process, the downstream sector has decades of experience in producing and handling hydrogen and is already beginning to utilise this expertise for the deployment of LCH.
Hydrogen Business Model19/09/2021
UKPIA agrees that a dedicated Sustainable Aviation Fuel (SAF) mandate is the most appropriate domestic policy mechanism to support the deployment of SAF in the UK and welcomes the opportunity to respond to the DfT’s consultation on a SAF mandate. The downstream sector looks forward to working closely with government and broader industry to decarbonise aviation.
UKPIA SAF Mandate Response22/09/2021
UKPIA does not have a specific view on what threshold new cars and vans should be required to meet from 2030. However, any chosen metric should be carefully considered on a lifecycle GHG basis and provide a suitable framework to encourage the reduction of lifecycle GHG emissions – not just tailpipe emissions.
New Road Vehicle CO2 Emission24/08/2021
UKPIA agrees with the overall objectives of the consultation paper in terms of reducing the revaluation frequency to 3 years and providing greater transparency for ratepayers. We understand that to achieve these objectives that other changes are necessary, some of which place greater onus upon the ratepayer.
HMT Revaluation Cycle3/09/2021
In UKPIA’s Future of Mobility in the UK report, the range of technology options available to heavy goods vehicles (HGVs) is technically assessed, with low carbon fuels, hydrogen, and battery electrification each having a role in this difficult to decarbonise sector.
UKPIA HGV Phase Out Consultation Response15/06/2021
UKPIA believes biomass has an essential role to play in the decarbonisation of the UK economy and delivering Net Zero by 2050. Biomass represents the most technology ready alternative to crude oil in the production of both low carbon energy vectors (such as renewable fuels) and non-energy products (such as petrochemical feedstocks).
The Role of Biomass in Achieving Net Zero09/08/2021
UKPIA welcomes the opportunity to respond to the consultation on Review of the schemes to compensate energy intensive industries for indirect emissions costs in electricity prices. The majority of UK industries face higher electricity costs than most countries in the EU-27, leading to competitive distortions and increased risk of carbon leakage.
Review of the schemes16/06/2021
If set fairly, subject to consultation and within the context of existing case law, then continued prescription of decapitalisation rates is the preferred option. This can help avoid expensive litigation and assist predictability and accuracy in budgeting and forecasting which are important particularly when making location and investment decisions within our industry.
Decapitalisation Rates Wales 202112/07/2021
The powers in the DSOR Bill are in some cases too broad and, at worst, have the potential to negatively influence industry decisions to invest in the UK – this applies both to investments to maintain supplies today, but may also influence decisions for decarbonisation related investment.
Downstream Oil Resilience Bill Response23/04/2021
UKPIA supports an increase to the Renewable Transport Fuels Obligation (RTFO) main obligation by 1.5% from 1st January 2022 and believes that more ambitious increases in deployment of low carbon fuels are possible in the near term.
RTFO Next Steps05/05/2021
UKPIA has concerns regarding the increasingly complex and multiple legislative instruments covering carbon emissions and energy use, each with their own monitoring reporting and verification requirements, which are a growing and increasingly duplicative reporting burden on companies.
Mandatory Climate Reporting23/04/2021
The ETS Free Allocation Review should be broader in scope. Complementary measures such as carbon border adjustment mechanisms (CBAMs) should be considered alongside the review of free allowance allocation, since nether mechanism by itself is likely to provide the level of protection required at higher carbon prices.
ETS Free Allocation Review20/04/2021
For the refining and downstream oil sector, hydrogen has an important role to play in replacing refinery fuel gas (RFG) as a source of energy in the refineries themselves, but also to meet other demand from transport and industrial commercial and domestic heating.
Hydrogen Economy Response10/03/2021
Given the magnitude of the Net-Zero challenge, it is important that all of the CCUS cluster projects are progressed as soon as possible. In reality, the projects will proceed at different rates depending on many factors including the complexity involved, availability of project finance and timescales for planning and regulatory approvals.
CCUS Cluster Sequencing09/04/2021
By reinventing itself, using its extensive resources to decarbonise its activities and products, the sector has an important role also in future supply of new energy carriers and technologies such as hydrogen, energy storage and carbon capture, utilisation and storage.
Hydrogen In Wales06/01/2021
UKPIA member companies own and operate a number of sites designated as Critical National Infrastructure and a high proportion of their downstream assets will likely be captured under the requirements of the National Security and Investment Bill.
National Security and Investment26/02/2021
Using its extensive resources to decarbonise its activities and products, the sector has an important role also in future supply of new energy carriers and technologies such as hydrogen, energy storage and CCUS as well as to greenhouse gas removals (GGR) where companies such as bp, ExxonMobil and Shell are already investing in nature-based solutions.
Greenhouse Gas Removals31/08/2020
Transport is now the highest in-use emissions producing sector in the UK. Whilst efficiency improvements in internal combustion engine (ICE) technologies have improved average per-vehicle emissions, overall miles travelled have increased. Evidently, transport has proven a stubborn sector to decarbonise in the UK.
Transport Decarbonisation Plan31/07/2020
UKPIA is supportive of the role of electrification in decarbonising UK transport – one technology of many – and calls for close government-industry partnership, and regular and frank assessment of available technologies to ensure up-to-date, evidenced policy making. UKPIA will continue to work with government on the challenge of reaching net zero.
Ending the sale of new petrol and diesel vehicles8/10/2020
With three distinct yet interlinked challenges in the form of: recovery from the pandemic; adjusting to changes following Brexit; and meeting Net-Zero, UK Government’s actions need to ensure that they can provide both certainty and security to businesses now, while not being in conflict with the long-term goal to make the UK economy net-zero by 2050.
Super Inquiry - COVID 1910/06/2020
The petroleum industry is supporting the national effort to combat coronavirus. Demand for Fuel in the UK has reduced overall causing major issues for the sector. The downstream oil industry has been affected significantly by coronavirus but in working with regulators, has kept the country moving through the ready supply of liquid fuels.
Impact of Covid 19 - BEIS Committee29/09/2020
The UK refining sector has previously strongly supported continued membership of the EU Emissions Trading System (EU ETS) until at least the end of Phase III in December 2020, and its subsequent replacement by a linked UK ETS.
Carbon Emissions Tax11/08/2020
UKPIA is supportive of an increase to the buy-out price of the RTFO effective from 1st January 2021 in light of the ending of the motor fuels GHG emissions reduction target on 31st December 2020.
RTFO Buy Out03/05/2020
The UKPIA membership are supportive of the mandated introduction of E10 in the UK and welcome an enhanced route for the adoption of low carbon fuels. Of course, as with any modification to the UK fungible fuel mix, there are practical considerations to consider. However, UKPIA is confident that, done properly, E10 can be introduced in the UK with minimal impact on the consumer.
Introducing E10 Petrol: Consultation05/03/2020
UKPIA and its members are - in principle - in favour of most of Government’s objectives of this consultation. Simplifying and making more consistent arrangements for tariffs & removing nuisance tariffs are worthy objectives. The downstream oil sector is a commodity market of fungible, highly tradeable, products which despite high trade volumes tends to be traded with low margins.
UK Global Tariff