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MB Energy

Industrial Heating Oil (IHO)

Industrial Heating Oil (IHO) is a cost-effective alternative to white diesel, specifically developed for commercial and industrial heating systems. It delivers the same heating performance as diesel while offering a lower overall fuel cost.  

With MB Energy, Industrial Heating Oil supply is structured around your operational needs. From bulk delivery to consistent product quality, supply is aligned with your heating demand and site requirements.

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IHO Industrial Heating Oil

Energy to move

What is Industrial Heating Oil (IHO)?

Industrial Heating Oil (IHO) is a liquid fuel designed specifically for use in commercial and industrial heating applications such as boilers, dryers, and heaters. It is formulated as an alternative to white diesel, maintaining equivalent heating performance while reducing fuel costs.  

From a classification perspective, IHO is a heating fuel compliant with BS 2869:2017 Class D, making it suitable for non-road heating use. It is not intended for use in engines, vehicles, or mobile machinery and is strictly restricted to heating applications.  

Functionally, IHO operates as a drop-in replacement for traditional Gas Oil (Red Diesel) previously used in heating systems. Following regulatory changes in April 2022, its use has become the standard for commercial heating where Gas Oil was previously applied. 

In practical terms, IHO enables businesses to maintain existing heating infrastructure without modification, while adapting to updated regulatory requirements and managing fuel costs more effectively.

Typical Applications

Industrial Heating Oil is used across a wide range of commercial and industrial heat generation processes.

Commercial Boilers

Used for space heating and hot water generation in large buildings such as hospitals, offices, and educational institutions. Provides consistent thermal output for continuous operation.

Industrial Dryers

Supports drying processes in manufacturing and agricultural environments where stable heat input is required over extended periods.

Furnaces and Heaters

Applied in industrial heating systems requiring controlled combustion and reliable energy density.

Agricultural Heating

Used in agricultural enterprises for crop drying, livestock housing heating, and other temperature-controlled processes.

Technical Specifications

Industrial Heating Oil is defined by recognised fuel standards and measurable combustion characteristics. It is positioned as a heating fuel alternative to diesel, with similar performance but different regulatory and compositional properties.

Standards and Approvals

Industrial Heating Oil is fully compliant with BS 2869:2017 Class D, the UK standard for heating fuels. This confirms its suitability for commercial heating systems and ensures compatibility with existing heating infrastructure.

Emissions Classification

IHO is comparable to diesel in combustion behaviour, with additives designed to improve combustion efficiency. It is not classified as a low-emission or alternative fuel, but is optimised for stable heating performance.  

Chemical Composition

Industrial Heating Oil is similar in base composition to diesel but is FAME-free, reducing the risk of water absorption and microbial contamination. This improves storage stability and operational reliability.

Ignition Quality (Cetane Number)

The fuel includes combustion-enhancing additives, supporting reliable ignition and efficient heat generation in commercial heating systems.  

Cold Flow Properties

IHO is supplied as a winter-grade fuel year-round, reducing the risk of waxing and maintaining flow performance in lower temperatures. 

Storage Stability

With a shelf life of 18–24 months, IHO supports bulk purchasing and long-term storage. The absence of FAME contributes to reduced degradation and improved storage performance compared to biodiesel blends. 

Product Benefits

Reduced Cost

Industrial Heating Oil provides the same heating performance as diesel at a lower cost, supporting more efficient fuel budgeting for commercial operations.

Drop-in Replacement

It can be used directly in systems previously running on Gas Oil, without requiring equipment modifications or system adjustments.

Prolonged Shelf Life

With storage stability of up to 24 months, IHO enables bulk purchasing strategies and reduces the need for frequent deliveries.

Wide Application Range

Suitable for boilers, dryers, furnaces, and heaters across commercial, industrial, and agricultural environments.

FAME-Free Composition

Reduces the risk of contamination caused by water absorption and microbial growth, supporting more stable fuel quality during storage.

Year-Round Winter Grade

Maintains consistent performance in colder conditions without seasonal fuel switching.

Supply & Delivery

Industrial Heating Oil is delivered by tanker and stored in on-site tanks, either above or below ground.  

MB Energy supports bulk supply for commercial and industrial customers, enabling:  
- Planned delivery schedules aligned with consumption  
- Bulk storage strategies based on operational demand  
- Reliable supply continuity across sectors  

Storage infrastructure and tank condition remain important factors for safe and efficient use.

Product Variants

Industrial Heating Oil is available in different formulations depending on supplier blends and operational requirements.

While the base functionality remains consistent, variants may differ in additive packages, branding, and formulation focus. These differences can influence combustion behaviour, storage characteristics, and supplier-specific performance features.

Ultra 35

A commonly referenced IHO variant designed for commercial heating applications. 
Used in standard heating systems where stable combustion and consistent performance are required.  

Furnaceflame™

A branded heating oil variant formulated for industrial and commercial heating systems. Positioned for applications requiring reliable ignition and combustion stability.  

Process

MB Energy TKW in der Natur_Heizöl

How It Works

Industrial Heating Oil is delivered in bulk to your site and stored in dedicated tanks. From there, it is supplied directly to heating systems such as boilers or dryers.  

The fuel is combusted to generate heat, supporting space heating or process heating depending on the application.  

Regular maintenance of burners and filters helps maintain efficiency and ensures consistent performance over time. 

FAQ

Why must I use Industrial Heating Oil instead of Gas Oil?

As of 1 April 2022, the use of Gas Oil (Red Diesel) was restricted for several applications, including commercial heating. Businesses that previously relied on Gas Oil for heating must now use an alternative such as Industrial Heating Oil. This change reflects updated regulatory requirements affecting fuel usage across sectors.

What are the benefits of using Industrial Heating Oil?

Industrial Heating Oil offers a combination of cost efficiency and reliable heating performance. It is designed to provide consistent heat output for large commercial and industrial spaces, while also enabling lower fuel costs compared to diesel. This makes it suitable for organisations managing ongoing heating demand. 

What is the difference between road diesel and Industrial Heating Oil?

Both fuels share a similar base, but differ in taxation, additives, and permitted use. Industrial Heating Oil contains a dye indicating it is not for road use and includes additives tailored for heating performance. It is not permitted for use in vehicles or engine-powered machinery.

What is the difference between Kerosene and Industrial Heating Oil?

Kerosene is typically used for domestic heating, while Industrial Heating Oil is designed for larger commercial and industrial systems. They differ in viscosity, flash point, and application scale, with IHO suited to higher-demand heating environments.

What are the key properties of Industrial Heating Oil?

Industrial Heating Oil is characterised by high energy density, low viscosity, and low sulphur content. It is similar to diesel but includes additives to support combustion efficiency and operational performance in heating systems.

How is Industrial Heating Oil delivered and stored?

It is typically delivered by tanker and stored in on-site tanks. These can be installed above or below ground. Proper tank maintenance and storage conditions are important to ensure safe handling and consistent fuel quality over time.

How can I optimise heating efficiency when using IHO?

Regular maintenance of heating systems is essential. This includes cleaning burners, checking filters, and ensuring equipment operates at the correct settings. Maintaining consistent operating temperatures and using efficient equipment can also help reduce fuel consumption.