In the pursuit of a greener, more sustainable future, one thing is clear: we must adapt and innovate while taking into consideration the unique needs of rural communities. is why I have been campaigning over the last few months for the Government to make a provision for renewable liquid fuels such as Hydrotreated Vegetable Oil to be used as an alternative to traditional heating methods, particularly for homes off the gas grid. It's good news that the government has now recognised the potential for renewable fuels like HVO to reduce carbon emissions from homes that are off the gas grid and has introduced an amendment to address this. The government amendment will extend the existing Renewable Transport Fuel Obligation (RTFO) to encompass domestic heating. This means that HVO and other liquid renewable fuels are now viable alternatives for homes off the gas grid, particularly those still relying on older-style kerosene boilers.
This landmark decision was not made in isolation but as a response to the advocacy of numerous MPs, including myself. We recognised the potential pitfalls of imposing a net-zero ban on boilers, aptly described as "a ULEZ for rural communities." Such a ban would not only inflict substantial costs on these communities but would also necessitate a lengthy adjustment period for tangible effects to emerge.
The implementation of Heat Pumps, while a commendable green initiative, could have proven costly and potentially disruptive for homes in rural areas without access to gas grids. Transitioning to renewable fuels through a simple conversion of existing boilers, on the other hand, presents an opportunity to reduce carbon emissions by a remarkable 88 per cent without the need for extensive equipment replacement.
In Cornwall, the ground-breaking pilot project in the village of Kehelland stands as a shining example of what's possible with HVO. Residents, including local chapels, the village school, businesses, and homes, embraced this innovative heating solution. Their feedback was resoundingly positive, with reports of slightly higher heat levels and an impressive 30 per cent reduction in fuel consumption compared to kerosene. The conversion to HVO was both cost-effective and straightforward, requiring only minor adjustments to their existing boilers, a testament to its accessibility and ease of adoption.
The merits of HVO over kerosene extend beyond efficiency; they result in an 88 per cent reduction in carbon emissions. Importantly, this transition does not necessitate significant lifestyle changes or the wholesale replacement of central heating systems. It is a cost-effective, expeditious pathway to achieve our net-zero ambitions, far surpassing alternatives like air source heat pumps.
I introduced the Renewable Liquid Heating Fuel Bill in Parliament to further accelerate this transition. This bill offers compelling incentives to expedite the adoption of renewable liquid fuels, including HVO, in existing boilers. Building upon the success of the Renewable Transport Fuel Obligation, which encourages the use of renewable fuel in the transportation sector, this bill extends the incentive mechanism to cover renewable heating fuels in domestic boilers.
Currently, 1.7 million households in rural communities across the UK rely on conventional kerosene boilers. The government's proposed ban on replacement boilers by 2026, in favour of air-source or ground-source heat pump systems, poses significant challenges. These systems are prohibitively expensive, less effective in older properties, and require extensive capital investments. It would take over a decade to see any meaningful reduction in carbon emissions through this policy.
The government now has a unique opportunity to draw inspiration from the lessons learned in Kehelland and other successful HVO pilot projects. As the Energy Bill returns to Parliament, I will take up the cause of rural residents in Cornwall and across the country, calling for changes that embrace the use of renewable fuels like HVO.
