In the last five years Firebird Heating Solutions, OFTEC members and TAZCH members have been advocating the use of HVO (Hydrotreated Vegetable Oil) in home heating. It’s a simple, easy and seamless way to start to decarbonise the 700,000 homes in rural Ireland using liquid fuel. At Firebird they are advocating a 20% blend of HVO with 80% Kerosene. This is the equivalent of decarbonising 150,000 homes in Ireland overnight! The blend is literally a drop-in replacement for the homeowner and delivers a real reduction in Greenhouse Gas (GHG) emissions.
However, Firebird say that the Government have been slow to act. This is a missed opportunity with the 2030 climate target deadline looming ever closer.
To their credit, the Government have made three financial changes which show that they do have an intention in pursuing renewable liquid fuels as a solution to the climate issue in Ireland, namely they:
1. Reduced the VAT rate for home heating HVO to the same level as Kerosene at 13.5%. This, however, is still not the low rate of 9% that homeowners pay for heating their home on gas or electricity.
2. Have indicated that HVO will be exempt from carbon tax, now and into the future.
3. Massively reduced the excise duty on heating HVO to €0.0325 per litre.
The Government are also now introducing a Renewable Heat Obligation (RHO) scheme. This is a new regulatory scheme that will require suppliers of fossil heating fuels like Kerosene, gas oil, LPG and natural gas, to ensure a growing percentage of the heat energy they supply comes from renewable sources, such as HVO. The Government has approved the general RHO scheme and the drafting of the Renewable Heat Obligation Bill 2025, which provides the legal basis for the scheme. Initial renewable obligation targets set in the draft are modest: ~1.5% in the first year and ~3% in the second year, with the potential for more ambitious increases after a formal review, following the first few years of operation.
This is another small win for the liquid fuel industry. However, Firebird believe that this still lacks ambition. Firebird as part of liquid fuel industry, are ready for a target as high as 20%, today. Hence for the 700,000 homes using liquid fuel today, they could make a sizeable impact on the reductions of Green House Gas emissions.
For further information visit www.firebird.ie
