“Watson Fuels have been an AF supplier for over 20 years and are making significant changes to our business. In 2022 we delivered 41 million litres of farm fuel to AF Members and also work with AF on tank monitoring, fuel forward fixing, Fuel Cards and deferred payment scheme for harvest.”
What changes have you made?
“The first change made is we’ve strengthened and diversified our supply position. The war in Ukraine had a huge impact with the phase out of Russian fuel input into the UK. That, combined with increased global oil demand from emerging markets, did cause supply constraints in the UK. AF didn’t see it though, because we commit volume as part of our contract with you and guarantee it with supply from one of our main terminals.
“In terms of traditional fossil fuels, we’ve taken on additional supply points and suppliers for our UK customers and also for renewable diesel from 100% renewable sources (such as HVO). Fairly recently there was a very restricted supply chain, but now there are more options available. We’re constantly reviewing and amending our purchase strategy. By that, I’m talking about locations throughout the UK where product is available and how we are then managing that.
“The other area we’re really changing is our overall offering to help customers on their respective decarbonisation journeys. We have done a lot of work globally and in the UK on understanding the term ‘energy transition’, what it actually means and what it will take for customers to reduce their carbon. At the same time we need to make sure that farms and other businesses keep operating and keep their homes warm. In the last few years, we’ve focused on two particular products including renewable diesel, HVO.
“It offers significant environmental benefit in terms of reduction in greenhouse gas emissions. We are working with the Zemo Partnership who offer an assurance scheme, providing proof of sustainability performance and chain of custody certification.
“We’re also focused on carbon offsetting for fuel for our customers. There are two ways: a pay-as-you go model where we invest in carbon projects around the world on behalf of the individual end customer and provide them with a certificate to support that. Or a customer might want to offset a large quantity of carbon so buy a chunk of the offset in one go, usually annually. We do that across commercial and domestic markets.”
What results are you seeing?
“Demand for renewable fuels remains modest, but we do see that changing and are pleased to have more options to offer.
“In 2022 we helped thousands of customers offset their fuel. In the last few months we’ve seen a significant upturn in customers choosing to offset, particularly those parts of supply chains where the end user expects a reduction in carbon. It is farmers’ customers, such as Tesco or Waitrose, that are driving this.
“As a business we have offset our own emissions since 2019. We are looking at the option of renewable fuel for our own use.
“We support companies on their sustainability journey, from developing a carbon reduction plan, looking at reducing energy use, sourcing renewable energy plus offsetting carbon emissions.”
What is next?
“In terms of the current market, further development of renewable fuel will continue. Further afield, we
are looking closely at hydrogen. Our parent company, World Fuel Services, has just bought a controlling interest in a hydrogen production company in the north east of England. They will be bringing on high quality green hydrogen in the next 2 or 3 years.
“We trade locally as Watson Fuels, with local people and local contacts, but the big advantage we have is our parent company. World Fuel Services is incredibly progressive. Our competitors don’t have this to the same extent or the sheer range of products. It is a big plus for us in the marketplace and I think our customers recognise that.”
