Hampshire County Council

Buildings Land and Procurement Panel Item

26 June 2007

Bio fuel - Pilot Project

Report by the Director of Property, Business and Regulatory Services

1

Background

1.1

The Panel considered a report at its meeting on 11 July 2006 and requested that further investigation be undertaken into the viability of bio heating oil, particularly;

· The technical issues involved in bio heating oil production and biomass for fuel

· The potential for growing sufficient oil seed rape

· Possible partnership and supply chain arrangements

1.2

The Adult Services Office in Romsey has been identified as a pilot study to consider the viability of converting a conventional oil fired boiler to bio fuel (rape seed oil).

1.3

Previous discussion at the Panel had established the view that on traditional economic analysis this investment could not be justified but that experience from a pilot would better inform longer term thinking on sustainability.

Recommendations

That the Buildings, Land and Procurement Panel advises the Executive Member for Policy and Resources that:

1. Approval be given to the implementation of a pilot study into the use

of Biofuel at the Adult Services office in Romsey.

2. A progress report on the pilot study is presented to the Panel during

winter 2007/2008.

3. Further work is undertaken on the potential to develop a local

supply chain for bio heating oil at a competitive price.

2

Oil Supply

2.1

To date, and in conjunction with SEEDA, only one supplier has been found who could provide oil in the quantity required and to the specification.

RM Farms in Romney Marsh, Kent have been approached and have confirmed they are able to meet the supply requirements.

2.2

The supply and delivery of the oil is via 1000 litre drums and will require the term contractor to pump the oil from the delivery drums into the storage tanks three times per year which will effectively add to the cost of the oil.

2.3

Pumping the oil into the storage tanks from the delivery barrels, although time consuming, is fairly straightforward. Should there be a spillage this will not have any environmental impact as the oil is a natural product and bio degradable.

3

Costs

3.1

To enable the boiler to run on bio heating oil a new burner will be required and the existing oil storage tank will need to be emptied of the mineral heating oil. The cost of the conversion works is estimated to be £8,000, which will be fully funded by SEEDA as part of the trial.

3.2

Currently the cost of bio heating oil is 45 p/litre compared to 30 p/litre for mineral oil. The additional cost of pumping the oil into the storage tank will add approximately 4-5p per litre to the cost.

3.3

Using bio fuel costs will increase the annual running cost by approx £2,000 - £2,500 per annum ( around 50%) which will be met by the County Council.

3.4

Work will be completed in the summer to convert the boiler and the system will be operational from September 2007.

LINK(S) TO CORPORATE STRATEGY

Yes

No

Hampshire safer and more secure for all

√

Maximising well-being

√

Enhancing our quality of place

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This report does not link directly to the Corporate Strategy.