What Are the Different Types of Heating Oil?

Heating oil is a crucial energy source for homes and businesses, especially in colder climates and rural areas where alternative heating systems are limited. However, not all heating oils are the same. There are several types, each with its own chemical properties, uses, benefits, and environmental implications. Understanding the differences can help you make an informed decision based on your specific heating needs and sustainability goals.

In this article, we explore the different types of heating oil, their characteristics, and what you need to consider when choosing the right one for your heating system.

1. Kerosene (Paraffin Oil)

Overview: Kerosene is one of the most widely used types of heating oil, especially in the UK. It is a refined oil that burns cleanly and is suitable for both domestic and industrial heating systems.

Key Features:

• Low sulphur content
• Clean and efficient burning
• Ideal for indoor boilers and range cookers
• Available as standard kerosene or premium kerosene (enhanced with additives)

Pros:

• Reduced soot and carbon build-up
• Lower maintenance costs for heating systems
• Suitable for most modern condensing boilers

Best For: Homes with indoor heating systems or Aga-style cookers that require a clean-burning fuel.

2. Gas Oil (Red Diesel)

Overview: Gas oil, also known as red diesel, is a heavier and less refined type of heating oil. It is dyed red to indicate it is for off-road or heating use only and not suitable for standard road vehicles.

Key Features:

• Higher sulphur content than kerosene (unless using low-sulphur red diesel)
• Lower cost than road diesel
• Suitable for commercial boilers, generators, and agricultural equipment

Pros:

• Cost-effective for industrial and commercial applications
• Available in bulk for large-scale users
• Can power both heating systems and non-road machinery

Best For: Farms, construction sites, and businesses that require dual-use fuel for heating and machinery.

3. Premium Kerosene (Additive-Enhanced Heating Oil)

Overview: Premium kerosene is standard kerosene treated with special additives to improve performance, efficiency, and system cleanliness.

Key Features:

• Enhanced fuel stability
• Cleaner burn and reduced odour
• Improved system efficiency

Pros:

• Lower carbon emissions
• Reduced sludge and condensation build-up in tanks
• Extended boiler life

Best For: Homeowners who want to reduce boiler maintenance, cut emissions, and improve energy efficiency.

4. Bio Heating Oil (Biofuel or Bio-Kerosene)

Overview: Bio heating oil is a renewable alternative derived from plant-based oils or animal fats. It is gaining traction as a sustainable option to reduce carbon emissions.

Key Features:

• Often blended with traditional kerosene (e.g., B20 means 20% biofuel, 80% kerosene)
• Lower environmental impact
• Still relatively new to the domestic market

Pros:

• Reduces dependence on fossil fuels
• Lower CO₂ emissions
• Can often be used with minimal system changes

Best For: Eco-conscious homeowners and businesses committed to reducing their carbon footprint.

5. Hydrotreated Vegetable Oil (HVO)

Overview: HVO is a high-performance biofuel made through the hydrotreatment of vegetable oils and waste fats. It’s a drop-in replacement for kerosene and diesel in many systems.

Key Features:

• Up to 90% reduction in greenhouse gas emissions
• Exceptional storage stability
• Suitable for a wide range of heating systems

Pros:

• Long shelf life without degradation
• No odour and cleaner combustion
• Excellent cold-weather performance

Best For: Sustainable heating where infrastructure allows; ideal for future-ready homes and commercial settings.

6. Industrial Heating Oil (IHO)

Overview: IHO is used primarily in large-scale industrial settings where cost-efficiency is a higher priority than emission standards.

Key Features:

• Similar in performance to red diesel but typically not taxed for road use
• Used in large heating systems, kilns, and furnaces
• Often includes additives to optimise burning

Pros:

• Low-cost option for bulk energy needs
• Flexible application across industries

Best For: Factories, manufacturing plants, and large commercial buildings.

How to Choose the Right Type of Heating Oil

When selecting a heating oil, consider the following:

• System Compatibility: Not all heating systems are designed for every type of oil. Always check with your manufacturer or supplier.
• Environmental Impact: Biofuels and HVO offer greener alternatives with reduced emissions.
• Cost: Standard kerosene and gas oil are generally more affordable but come with higher carbon footprints.
• Usage Patterns: Consider how often and for what purposes you use heating oil (e.g., domestic heating vs industrial use).
• Storage Requirements: Some oils, like kerosene and HVO, have better stability and storage life than others.

Summary

Choosing the right type of heating oil depends on your priorities—whether that's budget, efficiency, or sustainability. As more eco-conscious options become available, it's worth reviewing your heating system and fuel supply regularly to make the best choice.