What Is a Bunded Oil Tank and How Does It Work?

When it comes to storing heating oil safely, understanding the type of tank you use is essential. Whether for domestic heating systems or commercial fuel storage, bunded oil tanks are widely recommended throughout the UK for their ability to reduce environmental risk and improve regulatory compliance.

Unlike traditional single-skin tanks, bunded oil tanks are designed with a built-in safety layer that helps prevent leaks from contaminating surrounding soil or water sources. This makes them a preferred option for both homeowners and businesses that rely on heating oil for off-grid energy systems.

In this guide, we’ll explain what a bunded oil tank is, how it works, and why it’s commonly used for compliant oil storage across the UK.

What Is a Bunded Oil Tank?

A bunded oil tank features a double-layer construction consisting of:

• An inner tank that stores the heating oil

• An outer protective bund that surrounds the inner tank

This outer layer acts as a secondary containment system. If the inner tank develops a leak or is accidentally overfilled, the outer bund is designed to contain the oil and prevent it from escaping into the surrounding environment.

This containment feature helps protect:

• Groundwater

• Drainage systems

• Agricultural land

• Nearby watercourses

You can learn more about oil storage tank types and applications here:
https://www.jdpipes.co.uk/knowledge/storage-tanks/basic-guide-to-oil-storage-tanks.html

How Do Bunded Oil Tanks Work?

The function of a bunded oil tank is simple but effective.

When fuel is delivered, heating oil is stored within the primary inner tank. The outer bund remains empty under normal conditions and is only used if the inner tank leaks or overfills.

In the event of a structural fault or accidental spill, the bund captures any escaped oil, reducing the risk of environmental contamination and allowing time for corrective action.

Further information on bunded oil tank construction can be found here:
https://quicktanks.co.uk/what-is-a-bunded-oil-storage-tank/?srsltid=AfmBOorOhITE3d6OtkmoUy13AFkvqZ4VakqdmULSbLJPa5lX2PQgbb5O

Why Are Bunded Oil Tanks Recommended in the UK?

Oil storage regulations in the UK are designed to minimise the environmental impact of fuel leaks or overfills. Heating oil can contaminate soil, drainage systems, and groundwater if not stored correctly, potentially leading to costly clean-up operations.

Bunded tanks are commonly recommended because they:

• Provide built-in spill containment

• Reduce the likelihood of environmental contamination

• Support compliance with UK oil storage guidance

• Offer additional protection in exposed or high-risk areas

For both domestic and commercial installations, using a bunded oil tank may help reduce the risk of regulatory penalties associated with fuel spills.

Domestic vs Commercial Oil Storage

Bunded oil tanks are suitable for a wide range of installations including:

• Residential heating systems

• Agricultural fuel storage

• Commercial premises

• Industrial facilities

Domestic properties typically use bunded tanks to store kerosene for home heating systems, particularly in off-grid areas without access to mains gas.

Commercial sites may require larger-capacity bunded tanks to store diesel or other fuels for operational use, where environmental protection measures are especially important.

Installation and Siting Considerations

Installing a bunded oil tank involves more than simply choosing a suitable capacity.

Important siting considerations may include:

• Positioning the tank on a flat, stable base

• Maintaining safe distances from buildings or boundaries

• Avoiding installation near drains or watercourses

• Ensuring access for fuel deliveries and maintenance

Failure to follow recommended installation practices may affect both safety and insurance cover in the event of a leak.

Working with a qualified supplier or service provider can help ensure that your oil storage system meets current safety standards.

To find out more about how OTP Energy can support your oil tank installation, maintenance, and servicing requirements, explore our full range of services.

Long-Term Benefits of Bunded Oil Storage

In addition to improving safety and compliance, bunded oil tanks may also help provide long-term operational benefits such as:

• Reduced risk of fuel loss

• Lower environmental liability

• Improved durability in outdoor environments

• Greater peace of mind for property owners

Investing in the correct storage solution can help prevent avoidable issues while supporting responsible fuel management over time.

Final Thoughts

Bunded oil tanks provide a practical and compliant solution for storing heating oil safely across domestic and commercial environments. Their double-layer design helps reduce environmental risk while supporting adherence to UK oil storage regulations.

If you’re looking to install or maintain a bunded oil tank as part of your heating system, visit our website to learn more.

Our team can help you choose a safe and suitable oil storage solution for your property.