We have always been good at pioneering new ideas and new technology in this part of Cornwall and the village of Kehelland has been the latest with a fascinating pilot project demonstrating how it is possible to use a renewable liquid fuel called hydro-treated vegetable oil (or HVO) in place of kerosene in conventional boilers. I met residents taking part in the pilot shortly before Christmas and it was clear that they were really on to something. I have also previously seen this used at Gwinear School where it was also a success.
The properties taking part include the local chapel, the village school, businesses, and many homes. Residents reported that the heat level was slightly higher but that they used roughly 30 percent less fuel for the same outcome as they previously used for kerosene. In all cases, the switch to HVO was achieved with a minor adaption to their existing boiler for the cost of a couple of hundred pounds.
Using HVO over kerosene leads to an 88 per cent reduction in carbon emissions but it is easy to achieve and doesn't require huge changes to the way people live or the wholesale scrapping of entire central heating systems. It is a low-cost and faster way to make progress towards our net zero ambitions than the alternatives like air source heat pumps. Since it is an idea that is being pioneered down here in Cornwall and residents spoke so highly in favour of it, I decided to introduce a new Bill in Parliament to incentivise a faster uptake of this new breakthrough which took place this week.
The Renewable Liquid Heating Fuel Bill would create powerful incentives to drive a rapid transfer to the use of HVO or other liquid fuels in existing boilers. It would lead to a sharp, near-term reduction in carbon emissions for a fraction of the cost. There is already an incentive scheme for HVO contained in the Renewable Transport Fuel Obligation which requires major fuel manufacturers or importers to purchase a proportion of their fuel from renewable sources. This creates an effective subsidy in favour of renewable fuel and the scheme has been a success. My Renewable Liquid Heating Fuel Bill simply extends the incentive mechanism to cover renewable heating fuels used in domestic boilers.
There are currently 1.7 million households in rural communities in the UK using conventional kerosene boilers. Under current Government proposals, all "off gas grid" homes in rural communities will be banned from purchasing replacement boilers from 2026 and expected to have an air source or ground source heat pump system instead. Such systems cost at least three times as much as conventional boilers and they are inappropriate and less effective in many older properties. The capital costs involved in such a change are a huge barrier to large-scale adoption and it will take over a decade to see any meaningful change in carbon emissions from such a policy.
The government has a chance to embrace the lessons learned here at Kehelland through its forthcoming Energy Bill currently passing through parliament and I will be highlighting lessons learned from the village of Kehelland to get this policy adopted.
