The countdown is on - 6 months to go until the changes to red diesel legislation

By Mark Griffiths, Head of Business Development

November marks 6 months until the change in red diesel legislation. Before April 2022 businesses face several challenges. As a registered dealer in controlled oils (RDCO) we are well placed to advise on the best way forward.

The economical replacement of existing reserves with alternative fuel options is coupled with the pressure to perform the switch while maintaining 24/7 customer service.  

But the change in red diesel legislation isn’t a stand-alone event. It is part of a much bigger picture as it is one of the first deadlines in the decarbonisation plan by the Government to ensure the UK achieves Net-Zero by 2050.

What do you need to do now to ensure your operation is compliant come April 2022?

Responsibility and sustainability

The change to red diesel legislation is a first step on the journey towards decarbonisation and ultimately the 2050 Net-Zero goal.

Responsible and sustainable companies such as Royal Mail are taking action to ensure they play their part in the collective goal by changing their entire fleet to EV.

We are supporting companies beginning their journey to Net-Zero with energy and fleet audits to understand the impact of changing from white diesel to a “cleaner” alternative.

Through improved data capture and operating practices combined with investment in new and emerging technologies, a business can significantly reduce its energy consumption and carbon emissions.

Stock usage

According to the latest guidance you must not purchase red diesel or put any more into vehicles, machines or appliances after the rules change on 1st April 2022. 

Given that organisations aren’t permitted to stockpile red diesel you need to calculate your stock usage and manage down your supplies and rundown period.

We can help you with these calculations to manage down your supplies so that they are not left with surplus rebated fuel in their storage tanks on 1 April 2022.

Prioritise upgrade

If you have high sulphur content fuel or poor-quality fuel, this will begin to lose value and you may even be charged for collection. We can test the quality of your fuel in our dedicated lab to help you to prioritise running down low-quality stocks first.

Fuel uplift

You then need to uplift any remaining fuel and flush the lines to allow for cleaning and inspection of the tank.

Tank inspection and clean

If you are changing to fully duty-paid diesel or biofuels, you may need to reassign your storage tanks.

These will need to be flushed out to remove all traces of fuel markers. You should keep receipts as a record of this having being done. There may be increased demand for these services so you should consider arranging this well in advance of April.   

It is also important not to contaminate new high value fuel by putting it into a contaminated tank.

We would advise you take this opportunity to check your tanks integrity and clean it before adding your onward fuel. This can be done via a man-entry tank inspection and clean, or by using our AdlerView™ non-man entry tank cleaning and inspection device. At this stage we will suggest possible tank re-lining to extend the life of your asset if required.

Fuel polishing

If your remaining fuel is heavily contaminated, we can polish it to increase its efficiency and reduce contamination to onward fuel.

Additional security

Due to the higher value nature of the assets following the switch, there could be a higher risk of theft and attempted theft. 

We can help you set up remote monitoring systems to manage your new higher value assets as well as security measures such as CCTV.

Theft can also inadvertently cause a spill of product which can incur potential remediation, regulatory, legal and reputational costs as well as potential downtime to your operation.

Talk to us about our cost effective response contracts to ensure you are protected in an event outside your control.

Alternative usage

Alongside fuel for back-up power generation, distribution organisations with bulk storage tanks for vehicles fitted with ancillary equipment, such as retail distribution HGVs refrigeration and freezer units, and coach heating units, are impacted by the change.

The same preparation process will be required for these applications.

Ensure compliance for April 2022 and beyond

Your approach to red diesel replenishment could shape your infrastructure’s resilience, reliability, and performance for the long term as well as positioning you as a leading organisation in the race to Net-Zero.

We are your first-choice environmental partner to ensure compliance and the integrity of your assets for April 2022 and beyond.

 

 

Keep your business compliant, safe and avoid costly downtime

Find out how Adler & Allan can identify and mitigate risk to protect your reputation, your staff and your environment