We are working closely with industry partners and trade associations to bring a renewable liquid fuel to market that supports the UK’s journey to net zero.
Our aim is to offer a simple, affordable drop‑in replacement for heating oil. One that keeps the same reliable performance you’re used to, without the high upfront costs associated with other low‑carbon technologies. This is especially important for older and rural homes, where alternatives can be expensive or difficult to install.
Together with OFTEC, we have created the Future Ready Fuel website to help households learn more about renewable liquid fuels and understand that a practical, low‑carbon alternative to heating oil is already available. Across the UK and the Republic of Ireland, we are also running a major field trial to demonstrate how renewable liquid heating fuels work in real homes.
The fuel used in the trial is Hydrotreated Vegetable Oil (HVO), a renewable fuel derived from certified waste materials. The Building Research Establishment (BRE) has established, on a CO2e per kWh basis, a near 90% reduction in carbon emissions compared to traditional heating oil.
You can find more information about renewable liquid fuels, including how to plan a low‑carbon future for your home and stay updated on our latest government policy work, on the Future Ready Fuel website.
The challenge for the liquid fuels industry is to find an alternative low-carbon fuel to replace heating oil – and this is an ambition the UK and Ireland Fuel Distributors Association (UKIFDA) is committed to.
Our industry is currently engaged in research and trials are being undertaken across the UK that are seeking to find ways to make a long-term transition to renewable liquid fuel from heating oil.
So, what are the options available to homeowners currently using heating oil, in order to help them achieve a decarbonised future?
Alternatives To Heating Oil
At the moment, there are a range of heating options available to homeowners living off the mains gas grid.
The options include liquid fuel heating (heating oil), liquid petroleum gas (LPG), wood burning stoves, electric heaters and various renewable heating systems from heat pumps through to solar power.
Finding a heating system that combines cost efficiency with energy efficiency and convenience is key for many homeowners. Deciding what to do for the best can be tricky – hopefully our guide to the available fuel options, below, will help.
Liquid Fuel
1.7 million homes across the UK and Ireland are heated using liquid fuel. It is a popular choice because it is versatile – it can be used for heating as well as cooking – and is both easy to use and convenient.
Modern liquid fuel-fired condensing boilers have efficiency ratings of over 90%, on a par with gas boilers. When combined with the fact it is one of the cheapest fuels available, and it is easy to shop around meaning you can buy liquid fuel when prices are low, you can understand why so many homeowners choose this option.
Nowadays, heating controls give you flexibility when it comes to heating and you can choose when your home is warmed and on what basis. You’re also in control when it comes to stocking up as you decide when to fill your tank and which supplier to use.
LPG
Liquid petroleum gas (LPG) works in a similar way to mains gas and is usually stored in a tank in your garden. However, unlike with liquid fuel, this tank is normally owned by the company supplying the gas – which can make installation cheaper but means there is an ongoing annual rental charge to pay on top of the fuel costs.
The rented fuel tank also makes it tricky to change your fuel supplier as you’re often tied into a long contract. This means it is harder to shop around and buy when the market is good.
According to Sutherland Tables, an independent provider of comparative home heating costs for the most common fuels in the UK and Republic of Ireland, it is one of the most expensive fuels available, although carbon emissions are slightly lower than oil and it does come with a similar level of convenience as liquid fuel.
Night Storage Heaters
These heaters are inexpensive and easy to install. However, when compared to liquid fuel, they are costly to run and only provide a limited amount of control to the homeowner as most of the heat is emitted during the daytime and reduces at night time.
Solid Fuel
Open fires and wood burners are a good way to boost an existing heating system – and a real fire is a lovely addition to every home but domestic coal and certain types of wood are to be banned from sale from 2021 in a bid to cut air pollution.
The Environment Secretary said the move was necessary as wood-burning stoves and open fires were now considered “the most harmful pollutant” affecting people in this country.
Heat Pumps
Often considered a renewable heating option, heat pumps do need electricity to run on which is currently generated mainly from fossil fuels. This is important to keep in mind if you’re looking for a fully renewable heating option for your home.
Heat pumps extract heat from the air or ground and use this heat to warm radiators, underfloor heating systems and hot water in your house. The pumps provide the flexibility of being used to cool your home during hot weather.
As heat pumps are most efficient when producing heat at lower temperatures than conventional boilers, more radiators are often needed or improved building insulation is required when installed in place of a liquid fuel or gas heating system – which adds to the installation costs.
No cheaper to run than gas or liquid fuel boilers, heat pumps are best suited to homes that already have plenty of or larger radiators to keep installation costs lower.
Biomass Heating
Biomass boilers run on specifically treated pellets and are often fitted as a replacement to a gas or liquid fuel-fired boiler.
Suited to larger homes given the bigger size of biomass boilers compared to standard gas or liquid fuel boilers, you also need to install an automatic fuel feed for your biomass boiler or be prepared to do the refuelling yourself.
Solar Thermal
Solar panels are usually placed on a south-facing roof and use the heat from the sun to warm water in the home. Whilst in Britain there isn’t the levels of sunshine required for the panels to heat the entire home, solar panels are great for heating water and for cutting the running costs and carbon emissions of a property – in the summer, solar panels can mean the main heating system isn’t needed at all.
You can learn more about the trials we are undertaking and information on renewable liquid fuels by visiting https://www.futurereadyfuel.info/
Renewable liquid fuels have the potential to enable homeowners currently using heating oil to switch to a more environmentally friendly fuel with lower carbon emissions – and all with minimal disruption and cost too.
Costly and disruptive solutions like retrofitting heat pumps or similar technologies pose too many challenges for those living in off-grid homes, often in rural locations and in poorly insulated houses. Instead, changing the fuel offers a more realistic solution in the long-term as it enables homeowners to keep their existing oil heating systems but cut emissions by switching to a low-carbon liquid fuel like liquid biofuel.
The good news is that while the research and development into renewable liquid fuels is ongoing, there are small steps you can take to reduce your home’s carbon emissions and energy bills today, in preparation to changing over to biofuel at a later date.
Today, you could cut your home’s carbon emissions and boost its energy efficiency by:
To learn more about why renewable liquid fuels are needed visit our Future Ready Fuel Website here
Stand Up For Your Home Heating is the current UKIFDA consumer campaign, launched in January 2026, to help households take part in the Government’s Alternative Clean Heating Solutions Consultation.
The campaign is helping off‑grid households make their voices heard in the Government’s consultation on future heating policy. Many rural homes face high costs or practical challenges when switching to certain low‑carbon technologies. The Stand Up For Your Home Heating campaign highlights why renewable liquid fuels, such as HVO, must be made available as a realistic, convenient, lower‑carbon alternative to traditional heating oil.
Through the Future Ready Fuel website, you can learn more about renewable liquid fuels, understand what the consultation means for your home and submit your views directly to the Government. The campaign ensures rural households are informed, supported and able to speak up for practical, low‑carbon heating choices that genuinely work for rural communities. The deadline for submissions is 10th February 2026.
After the deadline, we will continue to share updates on the consultation and the next steps for renewable liquid fuels.
