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Will Red Diesel’s Lower Fuel Duty Rate Be Scrapped?

Chancellor Rishi Sunak is apparently considering scrapping the reduced tax rate on red diesel, a fuel that’s widely used for registered off-road vehicles and machinery, a low-cost fuel that those in the construction and farming industries have come to rely on. It’s called red diesel because a red dye is added to it in order to prevent it from being used in road-going vehicles, although you may also hear it referred to as gas oil, tractor diesel, generator diesel or agricultural diesel.

According to a Financial Times report, seen by Farmers Weekly, Mr Sunak has plans in place to end the 11.1p/litre duty rate and charge the full 57.7p, expected to be announced in the forthcoming Budget.

Sales of red diesel make up around 15 per cent of all diesel sales, costing the Treasury £2.4 billion annually in revenue. Some media reports have suggested that only the construction industry would be affected by a duty rise – and it’s also being suggested that the chancellor will be ending the ten-year freeze on tax hikes for motorists.

If fuel duty is increased for red diesel, this would see average farm prices climb to over 98p/litre – a near-50 per cent hike in fuel costs.

Minette Batters, NFU president, said: “Red diesel is the primary fuel to run the majority of agricultural vehicles, and is absolutely crucial to farm businesses and to maintaining food production. The lower fuel duty on red diesel recognises this fact and, with such uncertainty and rising input costs, it is absolutely essential that the red diesel exemption is maintained.

“Changes to this duty [would] make us immediately uncompetitive with many countries, including EU member states, the US and Canada, which all provide their agricultural sectors with a lower fuel duty on red diesel.”

The next Budget will take place on March 11th, covering the nation’s finances and the government’s proposals for any changes being made to taxation. It will also include forecasts for the economy from the Office for Budget Responsibility.

Some measures, such as any changes to tax on tobacco and alcohol, come into effect on the day itself or soon after – so if red diesel duty changes are introduced, the impact could soon be felt in communities all over the UK.

Andrew Ward, an arable farmer in Lincolnshire, said that if these changes are implemented, his winter wheat and harvest fuel costs would climb from around £44/ha to £83/ha. He questioned whether the government actually wanted a UK agricultural industry, given that they’re already under pressure from climate change and subsidy cuts.

Are you looking for new fuel oil suppliers? Get in touch with us here at Re:Group to hear how we can help.

Why Choose RE:Group?
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Always Hire An Experienced & Genuine Waste Disposal Company

When hiring a waste disposal company, it’s essential that you do due diligence and check their credentials for yourself to make sure that they’re experienced, professional and – above all else – actually genuine.

Why? Because experts have now said that the continued rise in large fly-tipping incidents around England is down to organised criminal gangs, fake companies that hire out buildings to dump waste, with parts of London and Manchester the hardest hit by this illegal waste removal crisis, the BBC reports.

It seems that the illegal dumping of waste by these fake companies has cost local authorities around the country nearly £60 million in costs since 2012.

The BBC Shared Data Unit found that in 2019, councils were hit with a £12.8 million bill to clear over 36,200 large tips – accounting for over a fifth of the total cost of clearing fly-tips. Large-scale fly-tipping, which is defined as lorry load size or bigger, has more than doubled in six years.

The National Farmers’ Union said the situation was spiralling out of control, explaining that criminals are now using tools to break into private land and tip huge quantities of waste, while companies try and rent land or buildings in order to dump waste.

They also seem to be going to great lengths to hide what they’re up to, going so far as to compact the waste into plastic wrapping before taking it to open land and building it into haystack shapes.

Some local authorities are now running their own initiatives to prevent fly-tipping from happening, such as landscaping in such a way as to block access to tipping hotspots. They’re also setting up web pages sharing images of local fly-tippers with the general public.

And it seems that they’re having some success, with two local authorities each issuing a fine of over £50,000 for the offence in 2018-2019.

Here at Re:Group, we provide waste oil and hazardous waste collection services to a range of industries, recovering and processing oil and other waste from businesses all over the UK, including MARPOL and garage waste. We’re also able to assist our customers with the disposal of waste in bulk, drummed and smaller packaged waste.

Our multipurpose transport fleet is fully equipped to comply with current legislation for the safe handling of waste. Our customers are also able to arrange for their own tanker-loads of waste to be accepted at our processing plant for recovery.

All our waste is handled in a safe and responsible manner, and with full regulatory and legislative compliance, and we can offer bespoke contractual service agreements with our long-term customers.

Looking for waste oil collection services right now? Get in touch with us today.

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The Problems With Red Diesel Revealed

You may well have heard of red diesel before, particularly if you’re in the farming or construction industries, as it is widely used in sectors such as these. Quite simply, it’s exactly the same as typical diesel except that a red dye has been added to it so that illegal use can be detected.

Both gas oil (or red diesel) and kerosene are both taxed at a lower rate because they’re not meant to be used in road vehicles. It is, in fact, illegal to use rebated oils such as these in road vehicles unless a licence is obtained from HMRC to settle the difference between the full rate of fuel duty and the rebated rate.

And now, according to Farmers Weekly, some issues with red diesel use are starting to become apparent because people are also now legally required to increase the amount of fuels derived from renewable sources.

Late last year, reports were incoming that fuel filters were being blocked because of the increasing amount of biodiesel being blended with gas oil. This biodiesel is also known as fatty acid methyl ester (FAME), made from some animal fats, as well as fresh and recycled vegetable oils.

Incidents were predominantly confined to East Anglia and Scotland, which suggests that there is something amiss with the fuel itself, instead of sub-par storage – with some saying that this was why there were issues with the fuel quality.

Although tests carried out by the UK Petroleum Industry Association found that all fuels were found to meet current standards, further testing by a leading fuel additive producer indicated that there could be an issue with insoluble particles falling out of fuel blends.

Technical manager with Fuel Additive Science Technology Julia Mansfield explained that the fuels had high contamination levels and particulate counts. Substances like monoglycerides and sterol glucosides can drop out of biodiesel components, which is exacerbated at low temperatures.

With winter certainly not done with us yet by any stretch of the imagination, it’s certainly worth preparing for potential dips in temperature where red diesel is concerned.

This could include looking for fuel alternatives such as Multiburn Max (although this is only for heating purposes and not vehicles). This is a very popular industrial heating oil that offers huge benefits over gas oil, including significant financial savings.

It has similar properties to gas oil with an equivalent energy value, but it’s a lot cheaper and boasts excellent low temperature storage and burning performance. It’s perfect for commercial boilers, furnace start-up and agricultural driers, with companies in a range of manufacturing sectors taking advantage, from distilleries and breweries to food processors. In addition to providing a commercial saving, Multiburn Max offers a reduction in carbon equivalent emissions of more than 3% in comparison to gas oil.

Here at Re:Group, our fuels are created for industrial heat generation and commercial boilers and we retain absolute control over the entire manufacturing process. From storage and blending to analytical expertise and distribution. Get in touch with us today to find out more.

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Finland Revises Waste Disposal Regulations For Ports

Finland has announced that changes will be made to the Act on Environmental Protection in Maritime Transport in order to improve the treatment and reception of waste in the country’s ports, while reducing the amount of marine litter and plastic being discharged into the sea.

Key concepts include advance waste notification, clarification of the adequacy of facilities and the delivery of waste to reception facilities will all be clarified, while provisions on exemptions for ships in scheduled traffic will be harmonised, Euroshore reports.

The separate collection of different waste types will now have to be arranged in ports and ports will have to grant discounts in the future on waste fees to ships that are ensuring that waste is managed in an environmentally friendly way.

Monitoring of the waste situation will also be increased in the future, with a minimum of 15 per cent of all individual ships calling into ports each year due to be inspected.

Discharges of waste at sea still take place, despite developments having been made in international regulation regarding emissions. There are numerous reasons for this, such as inadequate port reception facilities, insufficient enforcement, a lack of incentives to deliver said waste onshore and so on… but these issues are now being addressed.

For example, in Helsinki, the capacity to receive waste is good and foreign cruise ships are also now delivering sewage in-port.

Finland’s Ministry of Transport and Communications is now putting together legislation that will ensure the amendments required by the EU directive on port reception facilities for the delivery of waste from ships. A consultation is now due to be held for the key stakeholders, with a draft government proposal put forward for comments in the spring.

In order to limit and control sea discharge, ports will now have to provide adequate facilities to collect all sorts of waste – and storing waste onboard will only be seen to make sense when ships can transfer it to shore-based facilities.

The review, which took place in 2018, intended to improve the protection of the marine environment and also ensure the efficiency of maritime transport operations in ports.

It has been agreed that ships will have to pay an indirect fee, regardless of waste delivery. This will cover all ship waste (apart from that which has been created from scrubbers and for cargo residues). Extra charges can be imposed if the amount of waste exceeds the maximum dedicated storage capacity of the port in question.

Smaller non-commercial ports that see low or seasonal traffic will not have to put waste reception plans together if their port waste collection comes under the municipal waste handling system.

For help with waste oil collection, get in touch with us today.

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How Are You Handling The IMO 2020 Regulations?

For the last few weeks, those in the shipping industry have been getting to grips with the new global IMO 2020 regulations that came in on January 1st, placing an upper limit on the sulphur content of fuel oil used by ships of 0.5 per cent, down from 3.5 per cent.

This new limit comes under the International Convention for the Prevention of Pollution from ships, a key treaty that falls under the remit of the International Maritime Organization (IMO), the agency responsible for developing and adopting standards for preventing ship pollution, as well as safety, efficiency and maritime security.

The reduced limit will be mandatory for all ships operating outside designated Emission Control Areas, where the limit is 0.10 per cent. The move will see a 77 per cent fall in sulphur oxide emissions, or the annual equivalent of around 8.5 million metric tonnes which will have a positive effect on human health.

It will also help to prevent acid rain from falling, as well as ocean acidification, which will benefit forests, crops and aquatic life.

“For the past three years, IMO Member States, the shipping industry and fuel oil suppliers have been working tirelessly to prepare for this major change in the sulphur content of ships’ fuel oil. I am confident that the benefits will soon be felt and that implementation will be smooth.

“I am very appreciative of all the efforts made by refineries, shipowners, seafarers, industry organizations and others in preparing for this hugely important change – which will have significant positive benefits for human health and the environment.” Kitack Lim, IMO secretary-general, said.

Last month (December), the IMO also announced a new global project to prevent and reduce plastic litter from fisheries and shipping, given that this is now recognised as a major environmental concern.

The GloLitter Partnerships Project intends to help the industry move to a low plastics future, with actions to include the availability and adequacy of port reception facilities, encourage the marking of fishing gear so it can be traced back to its owner if thrown away and raising awareness of the issue among the shipping and fisheries sectors.

As Mr Lim explained a few weeks ago, fish, marine animals and seabirds are all being harmed by plastic litter, which is now a threat to the entire marine ecosystem. The ambition is to move the sector away from this and towards a future where no plastic waste whatsoever makes its way into the sea.

To find out about our waste oil collection services, get in touch with us today.

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Have You Considered Industrial Heating Oil For Your Business?

We’re in the grip of winter now and spring feels some time away. For businesses up and down the country, making sure that the working environment is comfortable for all employees across an entire site is paramount at this time of year – but this often means a serious hike in energy bills, with the heating on all day.

If this is a key concern for you at the moment, you might find it beneficial to look into industrial heating oil as an option, as this can help you reduce your energy costs while keeping all members of staff warm, happy and healthy over the winter.

Heating oil is the term used to refer to a range of different types of fuel made up of different proportions of hydrogen and carbon – and it’s capable of producing the same output for less money than gas oil.

It could certainly be worth thinking about and seeing if it would be feasible for you and your site to make the switch.

Multiburn Max is a particularly popular type of heating oil, delivering all sorts of benefits over gas oil. Not only does it promise serious financial savings but all you have to do is switch from the gas oil that’s already in your tank, without having to carry out any burner adjustments.

It has similar properties to gas oil but is a lot cheaper and also boasts an excellent low temperature storage and burning performance, making it perfect for the likes of commercial boilers, furnace start-up,  agricultural driers and so on.

We’re nearing the end of January now and weather reports are starting to come in that the UK is going to be hit with some snow over the next few weeks, so it’s never been more important to make sure that your heating system is firing on all cylinders and that your employees stay warm over the coming months.

If you’ve just made the switch and are looking for advice on how best to go about keeping your oil safe during winter, have a read of our recent blog post on the subject. Tips include regular tank inspections and the signs of wear and tear to look out for as well signs of leaks such as staining around the joints or dampness.

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Govt Seeking Ways To Cut Industrial Greenhouse Gas Emissions

The government has announced that it is now looking for the best ways to cut industrial greenhouse gas emissions, with the Industrial Energy Transformation Fund (IETF) set to help those businesses with high power use to cut their bills and emissions through investment in efficiency measures.

This will see industrial emissions reduced by approximately two million tonnes between 2028 and 2032, which is the same as taking almost 200,000 cars off our roads each year. The new government consultation is now calling for views on how this fund will work.

Last month (November), the government revealed plans to improve the energy efficiency of commercial sites, with companies benefiting from savings of up to £1 billion a year on energy bills by the year 2030.

In June, the UK became the first major economy to bring in legislation to end its contribution to climate change by 2050. In order to achieve this, industry emissions – which account for approximately a quarter of all emissions in this country – will have to be cut to almost zero. 

Kwasi Kwarteng, business, energy and clean growth minister, said: “The UK is already cutting emissions faster than any other major economy and we’re the first to legislate to end our contribution to climate change entirely.

“Eliminating emissions from industry is key to achieving this, but doing so does not have to mean compromising our business success. That’s why we’re bolstering our investment in clean growth.”

Ministers are now looking to fund proven low-carbon industrial processes, as well as investigating new options to ensure that our industries remain agile in the future.

There are numerous technologies that the IETF could support to see industry become more energy efficient and facilitate the move to net zero. Waste heat recovery could be one way in which this is achieved, providing valuable energy sources and driving down total energy consumption.

Waste heat comes from various sources, whether it’s boiler flue gases, ventilation system extracts, air compressors, refrigeration plants, hot liquid effluents or process plant cooling systems. These sources present opportunities to invest in a cost-effective heat recovery programme.

The refining sector, for example, could replace heat exchangers with more efficient ones, as well as looking into air pre-heat and electricity generation from steam let down. And the iron and steel sector could investigate waste heat recovery and process optimisation (such as bringing in exhaust emissions feedback systems).

Looking for fuel oil companies at the moment? Get in touch with us today.

Posted on by regroup

How To Keep Oil Safe During Winter

Now that winter has us firmly in its grip, companies making use of industrial heating oil on a regular basis need to ensure that their oil tanks are full and leak-free – or it could quickly become quite costly for both you and the environment.

It would be wise to keep an eye on your tanks regularly throughout the year so you can keep on top of any potential problems. Oil Care has a useful page on its website to help you monitor your oil situation, advising businesses to check tanks over at least once a month and each time they place an order to ensure it isn’t damaged or leaking.

When inspecting your tank, look for anything on or around it that could be a sign that you have a leak and that oil isn’t being lost to the environment. Check the base over for cracking or subsidence and ensure that the tank isn’t becoming overgrown with vegetation, as this could mask its true condition.

Make sure the tank has a working contents gauge and have a look at all visible pipework, filters and valves for signs of leaks like dampness or staining around the joints.

On metal tanks, look out for signs of pitting, rust and blistering of paint, as well as oil dampness on welds and seams. If you have a plastic tank, look for bulging or deformation and any whitening, cracking or splits in the material.

Something else to bear in mind is if you suddenly see a spike in your oil usage as this could be a sign that you have a leak. Check the tank and pipework immediately for any leaks and consider investing in a tank monitoring device as this can give you early warning of a quick drop in your oil level.

Remember that if any heating oil is spilled, it can cause very real problems, particularly for both soil and water, polluting rivers, contaminating both ground and drinking water, and even harming wildlife. Because clean-up costs can be astronomical, prevention will always be better than cure so keep regular maintenance of oil tanks at the forefront of your mind.

After an oil delivery, if you find that your tank starts leaking immediately turn off the valves to stop the flow of oil and do what you can to stop the oil from going down drains or soaking into the ground. You should then get in touch with your oil delivery company to arrange for the spills to be cleaned up.

Call your insurance company to alert them to the situation and always make sure that you never buy more oil than you can safely store.

If you’d like any further help or advice, get in touch with us at Re:Group today.

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We’re supporting Hull 6th formers in exciting climb!

We are happy to support our local sixth-form college, Wyke, for their trip to Tanzania next year, when a group of students will climb Mount Kilimanjaro, followed by a two-day safari.

While Kilimanjaro (the world’s tallest free-standing mountain) is relatively easy to ascend as no great technical skills are required, a large percentage of hikers don’t reach the summit often due to the altitude becoming a problem. It’s a very long ascent too, so the right type of training is essential.

RE:Group has sponsored some of their apparel (hoodies, caps and travel bags) and we wish them all the best in their preparation for this exciting event.

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Swans Discovered In Eastbourne Stream Covered In Engine Oil

A pair of swans have been discovered in an East Sussex waterway, highlighting the importance of responsible waste oil collection in the UK.

According to the Eastbourne Herald, the birds were discovered swimming in a stream in Eastbourne covered in engine oil, rescued by volunteers from East Sussex Wildlife Rescue and Ambulance Service (WRAS).

The birds will stay with the charity until it is satisfied that their natural waterproofing has returned in full, at which point they’ll be released back into the wild.

The WRAS is now calling on those dealing with waste engine oil to take care of how they dispose of it, avoiding dumping it down roadside drains where it could find its way into ponds and rivers, resulting in environmental damage.

Commenting on the incident in question, lead casualty manager with the WRAS Katie Nunn-Nash said: “We think the black sludgy oil is some form of waste oil. Luckily, it has proven to be fairly easy to clean off using washing-up liquid and we don’t think they had been covered for very long.”

A second WRAS representative made further comments, urging businesses and others to get in touch with their local authority if they do want to dispose of waste oil in order to find a list of places that accept it.

 

How Re:Group can help

The team here at Re:Group provide oil and hazardous waste collection services to industry, assisting our customers in the disposal of waste in bulk, drummed and smaller packaged waste.

We’re able to collect bulk waste and can remove quantities from as little as 20 litres up to 30,000 litres in a single collection, with a full equipped multipurpose transport fleet that complies with legislation relating to the safe handling of waste.

We can also arrange for our customers to bring their own tanker loads of waste to our processing plant for recovery, although all waste must meet our acceptance criteria.

Re:Group works with a wide range of businesses in various sectors, including garages, engineering and agricultural businesses, and any other organisations that generate hazardous liquid and solid waste.

We also have a 20-year track record in the Humber ports and other similar locations around the UK in order to handle MARPOL waste efficiently and effectively, so as to eliminate the chances of environmental damage.

We have a fully licensed waste processing facility in Hull and a MARPOL reception facility in Grimsby, covering the south bank ports of the Humber. If you’d like to find out any more about the services we provide, get in touch with us today.