Deal for supply of biopropane shows another potential route for meeting renewable energy targets
Fri 17 October 2014
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SHV Energy, the parent company of Calor Gas, the UK’s largest LPG supplier has announced a deal for the supply of biopropane to its European customers in a commercial deal with Finnish bio-diesel producer NESTÉ Oil. Calor says that biopropane can make a contribution to Britain's 2020 Renewable Energy targets in both transport and heating applications.
The agreement is to supply some 160,000 tons of biopropane over a four-year period. Calor says that it is the first deal of its kind anywhere in the world delivering over 2.2TW of renewable energy.
Biopropane is chemically indistinct from propane and so can be used in any ratio with fossil fuel propane, right up to 100%. This will make it the first “drop-in” renewable transport and heating fuel available in the British market.
Calor says that the scale of deployment in Britain and applications chosen for biopropane will very much depend on the regulatory frameworks in place for heating and transport. Calor says that it will be exploring these frameworks along with commercial opportunities for distribution in both the heating and transport sectors.
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