Agenda item

Report attached.

Members considered a report of Councillor Steven Smithson, Portfolio Holder for Environmental Services, on the proposed use of an alternate fuel for the Council’s vehicle fleet.

Councillor Smithson outlined the recommendations in the report.  He reminded Members of the Council’s declaration of a climate emergency and highlighted the fleet’s annual diesel usage and the case for switching to Hydro Treated Vegetable Oil (HVO).  The alternate fuel would be 22% more expensive than diesel, but this had been budgeted for.

The Leader noted that green options were not always cheaper but were the right thing to do for the planet and the Borough.  The measures complemented work already undertaken to install solar panels on Council buildings and plans to switch to electric vans.

Councillor Dad welcomed the report and confirmed the Labour Group’s shared vision and support for this initiative.  Councillor Peter Britcliffe, Deputy Leader of the Conservative Group, welcomed the proposal and acknowledged that green measures might not be the cheapest option.  However, given the bleak picture painted this week in the latest report released from the Intergovernmental Panel on Climate Change (IPCC) who advised the UN, action was required as soon as possible.

Approval of the report was not deemed a key decision.

Reasons for Decision

In September 2019 the Council had declared a climate change emergency and committed to reducing carbon emissions to net zero by 2030.

A recent assessment of the Council’s total CO2 emissions had calculated that the Council was responsible for the production of approximately 2,700 tons of CO2 per annum during the implementation of its duties.

Currently all vehicles in the Council’s vehicle fleet were run on diesel fuel and the Council used approximately 180,000 litres of diesel each year.  The Council had 54 vehicles which produced approximately 500 tons of CO2 per annum via exhaust emissions.  This equated to approximately 19% of the Council’s total CO2 emissions.

One way of reducing CO2 emissions produced by the Council’s fleet was by using HVO instead of diesel to fuel the vehicles.  HVO was a renewable diesel substitute which was chemically very similar to regular diesel.  However, as a result of the manufacturing process, it reduced net CO2 emissions by up to 90% (which would equate to a reduction of 450 tons in relation to the Councils fleet), as well as significantly reducing NOx and particulate matter from the diesel fleet.

HVO was a second generation biofuel and as such was a ‘drop in’ fuel meaning that no adaptations to the operational fuel infrastructure, vehicle or vehicle maintenance were necessary.  Other local authorities in Lancashire and across the UK were using HVO and had reported no operational issues or additional vehicle maintenance required when using HVO.

As the use of HVO would lead to a reduction in NOx and particulate matter from vehicles emissions (in addition to reducing net CO2 emissions) it was anticipated that another benefit of using HVO would be improved air quality in the Borough.

HVO was more expensive than diesel (currently 22% more expensive) and as such it would cost more to run the Council’s fleet on HVO rather than diesel.  The Council spent approximately £250,000 per annum purchasing diesel fuel, so an additional £55,000 would be required to change to HVO fuel.  The additional revenue costs had been included within the Council’s budget setting process as it was considered that the environmental benefits outweighed the additional cost.

Alternative Options considered and Reasons for Rejection

Cabinet could choose to continue using diesel as fuel for its vehicle fleet however given the Council’s commitment to reach net zero by 2030 it was important that some tangible action be taken.  Using HVO would contribute to a reduction the Council’s net CO2 emissions of approximately 450 tons per annum.

Consideration was given to replacing diesel vehicles with electric vehicles (EV) however this was not recommended.  The main reason was that the ten biggest polluting vehicles in the fleet (refuse collection vehicles or RCVs) could not be swapped to electric vehicles.  This was due to the power and drive configuration needed by RCVs to tip waste at Whinney Hill landfill site.  Once Lancashire County Council provided a waste transfer station for East Lancashire Authorities, the use of EV could be considered more seriously as the waste transfer station would have a tarmac or concrete base upon which EV could operate effectively.  The current costs associated with purchasing EV were significantly higher (in some cases double the cost) than purchasing diesel vehicles, in addition to the cost of installing the EV charging infrastructure needed.  It was hoped as EV become more commonplace relative costs associated with purchasing EV would be more comparable with diesel vehicles.

Resolved                                 (1)   That Cabinet notes the recommendation of the Net Zero Working Group.

(2)   That Cabinet agrees the Council’s vehicle fleet can use Hydro Treated Vegetable Oil (HVO) as a diesel replacement.