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Oil vs. gas: which should you choose for your business?
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As the threat of climate change continues to gather pace, one of the burning questions of our time remains: ‘how can we create a greener, more sustainable future that still allows businesses to thrive?’ Here, Flogas, examine the debate currently gaining traction. 

Central to solving this challenge is energy usage, and the fuel we depend on in our daily lives and commercial operations. As such, businesses across the UK are now looking at ways to become more fuel-efficient – not only to help lower their carbon emissions, but also to bring down energy bills and save money in the long run.

Nowhere is this debate more prominent than in the 16% of the UK not serviced by the main gas grid, which relies on alternative fuels to meet its energy needs. For the majority of off-grid operations, this means a choice between oil, LPG (liquefied petroleum gas) or LNG (liquefied natural gas) for high-volume commercial applications. But what exactly are the differences between these fuels – and what should off-grid users consider when making decisions about their energy supply?

Oil: an outdated energy supply 

With the Committee on Climate Change urging the UK government to legislate as soon as possible to reach net zero emissions by 2050, the pressure is on all industries to adopt greener energy policies. What this means for off-grid businesses in practical terms is moving away from conventional, carbon-heavy fossil fuels. When considering the key features of oil, it’s not hard to see why it’s becoming an outdated off-grid option:

•Increased carbon emissions: As a major contributor to climate change, the burning of oil for heating and cooking purposes releases far higher levels of carbon into the atmosphere than more efficient off-grid fuels like LPG.

•Cost: Through a combination of factors such as dwindling oil reserves, environmental pressures and strained international relations, the price of oil remains volatile. This makes it difficult for businesses to forecast the cost of fuel and can cast doubts over the future of their supply chain.

•Maintenance: Due to its viscous nature, machines that operate on oil often take a large amount of maintenance to ensure they are running at optimum performance. This can also mean messy repairs if anything goes wrong.

The rise of LPG & LNG

With so many factors now working against businesses that are still using oil, it’s no surprise that many are now looking for an alternative fuel supply. The good news is that there are viable off-grid alternatives that offer compelling economic, environmental and logistical benefits. LPG and LNG are two such fuels. So, what are they, and how do they compare to oil?

•Chemical makeup – LPG is a blanket term for two types of natural gas (Propane and Butane) and is a natural by-product of gas and oil extraction (66%) and oil refining (34%). LNG is composed primarily of methane and is created by cooling natural gas to an extremely low temperature (-162°C). 

•Finance: Businesses can make immediate savings when switching to LPG or LNG through a reduction in energy usage.

•Carbon emissions: LPG and LNG have the lowest CO2 emissions of any 0ff-grid fossil fuels: LPG emits 36% fewer than gas oil, 22% fewer than kerosene and 17% fewer than heating oil. It also emits no black carbon (a significant contributor to climate change). 

•Cleaner air: LPG and LNG are clean, smoke-free burning fuels, that emit fewer pollutant emissions, including NOx, Sox and particulate matter (PM).

•Compliant: Because they’re cleaner, LPG and LNG help businesses to meet carbon and pollutant reduction targets set out in the Clean Growth Strategy, ULEZ, Marpol and Medium Combustion Plant Directive.

•Efficiency: With a higher calorific value per tonne than other liquid fuels, an LPG and LNG flame can burn hotter, releasing energy quicker. When used in conjunction with the likes of a steam boiler this can produce even greater efficiencies. 

•Extensive supply: LPG and LNG are in global abundance, so business owners can rest assured that they will have a dependable source of energy when they need it most. Flogas will be significantly increasing the UK’s total LPG storage capability with its new Avonmouth storage facility – the largest of its kind. 

•Easy Installation: Working alongside an expert team, switching from oil to gas couldn’t be easier. Specialist LPG companies can design and install a replacement heating system to meet your business’ needs. From the initial brief process to installation and even the removal of your old oil tank, with the right supplier there’s the option to have everything taken care of with minimal downtime. 

•Versatility: One of the main attractions of LPG is its versatility. From leisure and hospitality to agriculture and industrial heating, and even fuel for forklift trucks and fleet vehicles, LPG can be used as an energy supply for all manner of industries. 

Creating a greener future

As the cleanest, most efficient and effective fuel compared to conventional off-grid fuels like coal, oil and electricity, switching from oil to LPG (or LNG) could help businesses energy savings, ensuring compliance with government energy policies, and cutting down on maintenance time.

Image by Magnascan from Pixabay

GUEST BLOG: Clamping down on your business’ energy costs in 2018
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By Flogas

Energy bills are becoming a bigger focus for businesses around Britain — with the average organisation spending around £4,000. Becoming energy aware (and energy smart) can not only help businesses boost their bottom line, it can also dramatically reduce their carbon footprint – making for a more profitable, greener company all round.

The cost businesses are facing

Cost has changed over time, which has led to this newly found focus on energy supply. For most SMEs, gas and electricity charges now make up a considerable chunk of their monthly outgoings – taking a hefty portion of their profits. The majority of UK businesses are using between 15,000 and 25,000 kWh of power per year, but annual consumption figures for large business and industry can reach in excess of 250,000 kWh.

How will this impact the final bill? The latest data shows that businesses in the UK are spending an average of £3,061 on their annual electricity bills, and an additional £856 a year on gas. Small businesses in particular fare slightly better – but with the average electricity bill for an SME reaching £2,958 (and that’s before putting business mains gas into the equation), it’s still a considerable outlay.

A plan for cost reduction

Many industries will benefit from the right energy supplier and there are plenty ways to create a plan.

  1. Becoming more aware of your energy use

Before you make any core decisions around your energy plan, you must assess how much you actually use and how much it is currently costing you. The average unit prices in the UK are currently 14.36p per kWh for electricity and 4.25p per kWh for gas, with standing charges on top of this. Finding out your business’s annual usage figures – and knowing when your contract is due to come to an end – means you’re well equipped to accurately compare your current supplier’s prices with others on the market.

  1. Look at a range of energy suppliers

Research into other energy suppliers too. Ahead of your contract ending, it’s worth finding out how much switching could save you. And, whether you use a broker, online search or go direct, make sure you don’t limit yourself to the Big Six. Switching to a smaller business energy supplier could mean significantly lower bills, and benefits like better customer service.

  1. Analyse your current contract agreement

There’s plenty of energy suppliers willing to give you a better deal, so make sure you look at your current one before any renewals. For example, an extended fixed-term contract could help protect you against future price rises, giving some valuable peace of mind and making budgeting easier. Or there might be an additional discount on offer if you opt for a Direct Debit payment plan.

  1. Get a smart meter

Talk to your supplier about fitting a smart meter. That way you’ll know exactly how much your business energy supply is costing you day-to-day – and because you only pay for what you use, there’s no need for estimated billing or meter readings. As well as saving on monthly charges, it can also help you wise up to your company energy use and make better decisions on where you might be able to curb your consumption. Energy management software can also help provide useful insight for larger businesses.

  1. Find out where your energy is being used

There’s always room for improvement when it comes to your business’ energy use. It could be as simple as making sure computers are switched off outside of office hours, or putting your lights on a timer, but encouraging employees to find more efficient ways of working is a great place to start. Some companies even introduce incentive schemes to help foster better habits, offering staff tangible rewards for greener behaviour.

  1. Save

Always think of the bigger picture when it comes to energy consumption and try investing in equipment that understands the importance of efficient energy use.  While this approach might come with a heftier price tag in the first instance, any piece of kit that helps save energy on your everyday operations will pay for itself and more in the long run.

*Statistics from BusinessEnergy.com and article brought to you by gas mains supplier, Flogas.