Commenting, George Webb, chief executive of Liquid Gas UK, said: “This budget presents the new Government with a real opportunity to show it is serious about achieving both net-zero and economic growth.

“Industry stands ready to invest millions more in the UK and to support the decarbonisation of rural and hard-to-treat homes and businesses. But, in order to do so, we need Government to level the playing field and show its commitment to this crucial sector”.

As part of its submission to the Chancellor, Liquid Gas UK has called for the greater parity between hybrid-heat pump systems and heat pumps by ensuring theinclusion of hybrid heat pumps in schemes such as the Boiler Upgrade Scheme, Clean Heat Market Mechanism and Homes Upgrade Grant. As part of its inquiry into decarbonising home heating, the Public Accounts Committee found that progress to install 600,000 heat pumps per year by 2028 has not yet met the ambition of the target. Including hybrid-heat pumps within these schemes will help to create further market demand for such systems.

Liquid Gas UK have also called on Government to list Renewable Liquid Gases as sustainable in the upcoming UK green taxonomy in order help to mobilise capital towards the green economy, encourage investment, provide new, green jobs and grow the economy. They argue that whilst the Renewable Liquid Gas industry will have invested over £600m in the development of RLGs by 2025, the UK risks missing out on further investment if it does not mirror similar policy moves already underway in Europe and North America.

Liquid Gas UK also used its response to highlight the availability of feedstocks for the production of RLGs, referencing research by Energy Consultancy Gemserv, which found that with the right policy framework in place to encourage the off-take, there could be up to 200,000 tonnes of bioLPG produced per annum as a co-product of SAF, enough to meet 55% of the total bioLPG demand in the UK. With different sectors competing for a limited supply of feedstocks in their efforts to decarbonise, combining SAF and bioLPG production provides an opportunity to decarbonise two sectors with one feedstock.

Renewable Liquid Gases (RLGs) such as bioLPG and rDME are drop in solutions, meaning they work in existing boilers and infrastructure, making it easy for consumers to make the switch. They emit up to 90% and 85% fewer carbon emissions respectively than their fossil fuel counterparts, and bioLPG emits up to 92% fewer carbon emissions than heating oil.