Marine Energy: an industrial growth opportunity

The Government will shortly publish its review of ROCs banding for renewables and the Energy & Climate Change Select Committee will be turning their attention to marine energy when Parliament returns.  Dr Andrew Tyler, who was recently appointed Chief Executive of tidal technology company, Marine Current Turbines, gives his perspective on the main steps that need to be taken to industrialise marine energy in this country.

As a country with one of the largest marine energy resources in the world, the UK has the very real potential to be a global leader in this emerging part of the renewables sector. The DECC roadmap believes that the UK can deliver 300MW by 2020. Currently the UK’s position at the front is a fragile one and the next two to three years will be crucial to secure this advantage.  Furthermore, there is a huge potential for export, which carries with it enormous benefits for UK manufacturing.

The future of the industry will need funding of a different magnitude to which it has received thus far if it is to secure the transition from developmental to commercial scale deployment. This will require public funding and the right policy framework to simultaneously attract the very necessary private investment. This must happen within the next three years if the industry is to succeed.

MCT developed and installed the world’s first commercial-scale tidal current turbine, SeaGen, in Northern Ireland’s Strangford Lough thanks to government grant support in tandem with private investment. Since 2008, the 1.2MW SeaGen has been harnessing the predictable and regular tides to generate electricity into the local grid. As a demonstration plant, MCT has been able to learn from SeaGen’s operation, make improvements and develop the technology to the point where it is now ready to be deployed on a much wider and commercial scale.

Whilst MCT has already completed the development stage and has a tidal product ready for commercial deployment, we are the only company to have reached this next stage. Presently, there are a number of technologies that are entering their development phase and if marine projects are to be deployed on a commercial basis, investors need a clear signal that they will see a return on their investments and 5 ROCs would deliver this.

All new technologies are expensive and require public support initially until they are able to commercialise when economies of scale will mean that they can become profitable without subsidies.  All conventional forms of energy generation relied on government support during their developmental stages; indeed the nuclear industry still requires this support.  For marine, there is solid evidence to confirm that costs will become competitive once a few large scale projects have been successfully rolled out.

MCT has plans to roll out two commercial scale tidal arrays in UK waters over the coming years, provided we see the right level of investment.  We believe that the initial ROC costs will remain relatively very small in the context of the UK renewable energy market but that the ROC benefits will ultimately be very high if they can kick off a major new industry – one that enables marine to deliver a meaningful and low-carbon part of the UK’s energy mix, generate new jobs and export opportunities for British firms.

Marine Current Turbines (www.marineturbines.com) is based in Bristol. Its main shareholders include Carbon Trust Investments, EDF Energy, ESB International and Siemens Energy.  MCT is developing, in partnership with RWE npower renewables, the 10MW Skerries tidal project off Anglesey, an 8MW tidal farm in Kyle Rhea (Scotland’s Isle of Skye) and is working with Minas Basin Pulp & Power to deploy a single SeaGen tidal system in Canada’s Bay of Fundy.   In addition, MCT has an approval for a lease from The Crown Estate to deploy a 100MW tidal farm off the Orkney Islands.

For further information, please contact Andrew Tyler via andrew.tyler@marineturbines.com or Taylor Keogh.

Smart Metering: it’s not too late to take a different approach

Whilst the benefits of smart metering are obvious, there are still widespread concerns about the cost and timescale for the roll-out across the UK.  In this article, Hans Kristiansen, Chief Executive of smart meter firm Orsis (UK) Ltd (www.orsis.co.uk) is urging the UK Government to adopt a far simpler and less costly approach.

The impending smart meter rollout programme is not in any way simple. In fact it's the opposite. It looks like being highly complex. And complex things tend to follow one rule of management, "if things can go wrong, they usually will".

The current specification is far too complicated and over-specified. And the speed at which technology advances means that much of the technology involved will have to be updated regularly (or put another way, will quickly become obsolete).

Over-specified products cost more and break down more often. Every household in the UK already has an abundance of domestic appliances, from TVs to washing machines, that are overly complex and therefore need expensive maintenance and repairs. Hand on heart, have you ever used all 30 programs on your washing machine?

The UK's track record in implementing large-scale IT projects will not fill householders with confidence either - the NHS National Programme for IT is a £12.7 billion project that is already four years behind schedule. But the smart meter project is too important to our long-term energy security to let it fail.

The operation of the home area network is a largely unknown area too. And contradictory statements have already been made about what it will and what it won't be able to deliver - including the ability to manage individual appliances remotely.

This truly is a leap into the dark that introduces an unnecessarily high level of risk. Surely an existing, tried and trusted solution would be more appropriate?

Smart metering alone will not improve the change of supplier process. There are currently 38 steps in the process, and the provision of an actual read will not resolve all of these issues. In fact, the consumer transfer programme (CTP) completed by the Energy Retail Association in 2005 revealed that it was possible to have a much improved change of supplier process without an actual read.

The CTP also recognised that the single biggest cause of failure in the change of supplier process was data quality. Recommendations were made to improve this, but they have never been implemented. Simply changing the meter and providing an actual read will not resolve all of the problems. There are many stages in the process that must be examined before the change of supplier experience improves for the consumer.

Experience in other countries is already indicating that a rollout of smart metering is far from simple and that consumers will resist change unless they understand it.  In the Netherlands, 20% of consumers refused to have a smart meter which has led to the establishment of a “switched off” smart meter, where the functionality exists but is not used!  We are far from sure that all consumers in the UK understand what smart metering means to them, how to use it effectively, and we’re almost certain they don’t know what it’s going to cost them in addition to already rising fuel costs.

Orsis has additional concerns on the feasibility of rolling out this many meters in only 5 years.  The initial rollout was to take 10 years, but due to huge delays in decision making, this has been squeezed to half that.  There simply isn’t the workforce available to install this many meters in that short a period of time, and that shortage can mean one of two things – poor quality of service or rising costs.  In Sweden, some 70% of installations occurred in the final 18 months of the programme; if that happens here, then the deadline of 2019 looks even more “aspirational” rather than achievable.  And DECC have already suggested that this deadline be brought forward to the early part of 2019!

Much of the benefits of smart metering to the consumer are said to be in reduced energy consumption as a result of having an In Home Display device to inform them how much, and when, they use their energy.  The success of these devices in producing significant and lasting changes to a consumers’ energy usage is still unproven.  I am genuinely concerned that once the “novelty factor” of these devices wears off, or the batteries need replacing, consumers will consign them to a kitchen drawer never to be seen again.  The lasting reduction in their energy bills will simply not happen.

Orsis is the UK division of China’s Revenco Enterprises which has extensive experience of metering. It is shortly to roll out smart meters to more than 27 million households in Guangdong. That is equivalent to installing over half of the 53 million smart meters in the UK's programme. Despite the enormous strides that the Chinese have made in developing their country, the Chinese revere simplicity. Throughout their long history, they have understood that simple things cost less and usually work first time. They work for longer and when they go wrong, they can be quickly put right. Let's take a leaf out of their book and make smart meters simple.

For further information, please contact Hans at hansk@orsis.co.uk or Mike Harrison at Taylor Keogh.

Gas security – UK manufacturing urges action

The UK Government must set a timetable for new gas storage capacity to commit to construction and ensure the country can maintain its energy security during gas supply shocks and volatility associated with intermittent wind power generation.  This is the main conclusion from an independent survey of some of the UK’s largest users of gas, commissioned by a cross-section of interested parties involved in the UK gas industry, including EEF The Manufacturers’ Organisation, the Energy Intensive Users Group and the Chemical Industries Association.

The majority of the companies surveyed, representing 12.5% of UK manufacturing industry’s annual gas demand and including INEOS, Tata Steel, Outokumpu and GrowHow, also said that the UK Government should establish an enhanced storage Public Service Obligation, which requires utilities to hold in store a set proportion of their gas sales and is common throughout mainland Europe.

The survey also indicated that companies do not believe that OFGEM’s new gas balancing plan, designed to deliver more gas storage, will work.  On the contrary, it may result in intensive process manufacturing companies prioritising mainland Europe over the UK for future investment because companies require a high security of gas supplies. The Government’s current plans still envisage the possibility of future gas supply interruption, accompanied by uncertain levels of compensation. 

Steve Radley, Director of Policy at EEF The Manufacturers’ Organisation, said: “This survey highlights the importance industrial gas users place on the physical security of energy supplies and the role that storage plays in delivering it. Manufacturers see compensation as a last resort and not as a solution to the growing gas security challenge. So the survey is a challenge to both the government and the regulator to address the barriers which are holding back investment in this crucial area.”

Laura Cohen, Chief Executive of the British Ceramic Confederation and a member of the Energy Intensive Users Group said: “The ceramic industry, and indeed other sectors of the British economy, relies upon secure and affordable energy supplies.  Whilst our members are constantly seeking ways to improve the energy efficiency of their operations, interruptions to gas supplies are financially catastrophic to their business. 

“OFGEM’s current proposals to amend the gas market framework and indeed the Government’s own statements about more pipeline and LNG import capacity do not give our members sufficient assurances about their long-tem energy security.  More physical storage capacity needs to start being built in the UK market within the next two years and there needs to be a requirement for gas suppliers to have sufficient contingency reserves. This contributes to more stable prices and a more stable environment for UK manufacturing.”

Jeremy Nicholson, Director of the Energy Intensive Users Group said: “This survey highlights the importance industrial gas users place on the physical security of their energy supplies and shows how critical a factor storage would be in supporting availability of gas in a distress situation.  It is vital that the government and OFGEM take the opportunity to address the barriers which are holding back investment in this crucial area.  Inadequate regulatory oversight failed in the case of the financial sector and we are determined this is not allowed to happen with the country’s critical energy supplies.”

The UK Gas Security survey was undertaken by the research company ComRes Ltd, between June and August 2011, in collaboration with Taylor Keogh.  The survey report was also supported by the British Ceramic Confederation, the British Glass Manufacturers Confederation, the Food & Drink Federation and the Confederation of Paper Industries. 

For a copy of the survey, please contact Paul Taylor at Taylor Keogh.

Infrastructure planning: success is in the preparation

As project developers grapple with the regime of the Infrastructure Planning Commission and questions are asked of the Government’s planning reforms, Howard Bassford and Benjamin Dove-Seymour of DLA Piper UK LLP's national planning team, offer their thoughts on planning success for Nationally Significant Infrastructure Projects.

The Planning Act 2008 (PA 2008) provides promoters of major infrastructure projects with a one-stop consents shop for Nationally Significant Infrastructure Projects (NSIPs). In many ways the PA 2008 adopts better aspects of other consenting regimes: promoters can draw on past experience and existing best-practice, but they also need to adopt and understand a new and different approach.

Even though the Planning Bill will merge the IPC into the Planning Inspectorate, there are still some valuable lessons to be learned about the process, which is likely to survive the change more-or-less intact.

Sea change or all at sea?
It is old news now that the PA 2008 was introduced by the last government to try to address some of the inefficiencies perceived as being inherent in the existing (at the time) planning system. The Heathrow Terminal 5 inquiry was just one in a string of examples that showed up how unfit the system was for dealing with nationally important infrastructure projects.

Feelings about the PA 2008 system are mixed. Part of that is, no doubt, due it being new. And part of it is probably because of the uncertainty that surrounded the new system when the Conservative party was adamant that it would be abolished. In fact, the Planning Bill will not simply ditch the PA 2008. While it remains to be seen what the Government will do with the detail of changes - which will be left to statutory instruments - most expectations are that this seems more of a window-dressing exercise. The Government has already adopted several National Policy Statements as required under the PA 2008 and parliamentary time - and industry-appetite - for a whole new system is distinctly limited. And put into the context of the Government's drive to replace the existing system of guidance with the National Planning Policy Framework, it looks like the NSIP system is here to stay.

One of the chief complaints about the new system is that it is not necessarily quicker or cheaper. This might derive from the fact that the PA 2008 puts such a great emphasis on pre-application activities. However, the PA 2008 was never meant to make life easy; it is still focussed on making the right decisions. Looking back to the Heathrow Terminal 5 example, it is best to see the PA 2008 as trying to put the lid on long, expensive, and uncertain planning inquiries. Our experience of the first examination process is that the Commissioners wanted to do just that. The key, therefore, is in preparation.

Front Loading
Front-loading is a project-management buzz word that is probably used too often. However, it is one of the defining principles embodied in the IPC process and possibly represents the biggest change to the myriad of previous consenting regimes.

The emphasis in the Planning Act 2008 (PA 2008) is on refining a project before an application is made - in particular through consultation - so that the examination process is as smooth and efficient as possible. There are plenty of examples of applications under former regimes which were simply not ready for the rigours of an inquiry process - the IPC is firmly against this. In addition, many projects were assembled for an application in a consultation vaccum - stakeholders had very limited idea about proposals. Previously, there was limited expectation that differences of opinion, or changes to design, would need to be ironed out before an application was made. After all, there would be a chance to give evidence and cross-examine. That is not to say that promoters ignored consultation - such an assertion would not be fair. Many projects have over the past few years had a smooth ride principally because of the proactive and responsible approach that promoters have taken to getting stakeholders on board, if not on side.

The key difference under the IPC is that extensive consultation is no longer a matter of choice, it is a statutory requirement. Arguably, the PA 2008 and the various regulations and guidance probably do no more than codify existing best-practice. However, there are two risks in failing to understand the importance of the change: one is that an application is not accepted because of inadequate consultation. This has already happened to one project and it turned out to be a costly mistake - in terms of programme and money. And secondly, inadequate consultation will create an Achilles heel that can dog an application throughout the process, inviting unhelpful comments from those opposed to a scheme who feel that consultation has been inadequate.

It is not just a question of getting consultation right: the application must be right too. Applicants cannot rely on being able to change things once an application has been made. Indeed, the IPC has stated its view that it has no express power to accept alterations to a scheme. Further, applicants should not anticipate that their opportunity to justify their case - and undo that of their opponents - will arise with an opportunity for examination in chief and cross examination. This means that application documents must set out a case in full and objections must be full as well.

Sir Michael Pitt, now chairman of the Planning Inspectorate, has emphasised the need to "lawyer" application documents. Rather than simply promoting the work of planning lawyers, what is being driven at is that an applicant should treat its application documents as its case for the Project. The application is not merely the start of the process. It is the fruition of consultation and the basis of the examination process. Applicants should not take risks: an application needs to be as watertight as possible by making sure that it is robust and of good quality. There is no benefit and greatly enhanced risk in leaving things to chance.

Role reversal
It is worth understanding that the IPC sees the pre-application process as being driven by the applicant. It is the applicant's responsibility to comply with the requirements in the Planning Act and related guidance. Although the IPC will give advice on request, it is rarely definitive: the IPC believes that it is up to applicants to get things right.

Once an application is accepted by the IPC, the emphasis changes with the examination process being driven by the IPC. Compared to a traditional planning inquiry, the IPC adopts much more control than a planning inspector. For example, the written representation process is focussed around responding to the IPC's written questions. Similarly, the IPC will only hold hearings on areas where it considers that oral submissions will help it and even then it will identify the topics to be discussed. It will also decide when cross-examination would be helpful. Otherwise, it will rely on application documents and written representations.

This leads to a much more focussed examination process but also one that is, really, out of the applicants hands: the opportunity to influence and dominate the examination process through examination in chief and cross examination has largely gone. In a similar way, there is almost no scope to introduce new information, except where this is requested or can be done through the written representation process.  As a result, much of the standard practice from traditional planning inquiries does not apply to IPC examinations.

In particular, the often sedate approach to preparing proofs of evidence and enjoying - or enduring - planning inquiries is a thing of the past when it comes to NSIPs. The standard examination period is 6 months. For promoters and their consultant teams this means pretty much six months of non-stop preparation of written representations (both answering written questions and responses to third parties) and a series of issue specific hearings. The need to commit resources and the time required should not be underestimated: it is a very intensive period.

Approached in the right way, there is much to commend the system for approving NSIPs. There are also a number of things not to take for granted. Doubtless over time a body of NSIP experience will develop among. Let's hope that Government lets this happen before changing it all again.

Howard Bassford is a partner and Benjamin Dove-Seymour is an associate in DLA Piper's national planning team (www.dlapiper.com). The team's recent projects include a resource recovery facility for Covanta Energy in Bedfordshire (the first NSIP to go through an examination under the PA 2008), the Mersey Gateway Project  (a new tolled road bridge across the River Mersey), a major expansion of the Port of Felixstowe and a new post-panamax container terminal at Bathside Bay, Harwich for Hutchison Ports (UK) Limited. The team is also promoting further NSIPs, one in collaboration with Taylor Keogh.

Planning approval for Air Products

Air Products has secured planning permission for its Tees Valley Renewable Energy Facility.  The 49MW advanced gasification energy from waste scheme, located near Billingham on Teesside will convert pre-processed household and commercial waste currently going to landfill into baseload, renewable power for up to 50,000 homes in the North East.   It is Air Products’ first advanced gasification energy scheme to be developed in the UK and on the back of this success, the company intends to develop more advanced gasification projects in the UK.

The project was first announced in July 2010 and subject to the financing of the project and securing environmental permitting consent from the Environment Agency, work on site should start in the first half of 2012, with commercial operations starting in 2014.

Taylor Keogh managed the community and stakeholder consultation programme on behalf of Air Products (www.airproducts.co.uk/teesvalley)

IndiGo: affordable solar power for the developing world

Cambridge clean-tech company, Eight19, has launched IndiGo, a revolutionary pay-as-you-go, personal solar electricity system for the developing world.  By combining solar and mobile phone technology, the IndiGo solar electricity system is inexpensive to buy and allows users to light their homes and charge mobile phones as a service, paid for using scratchcards.  IndiGo consists of a low-cost solar panel, a battery unit with inbuilt mobile phone charger and a high efficiency LED lamp. Users put credit on their IndiGo device using a scratchcard, which is validated over SMS using a standard mobile phone

Customer trials are now underway in Kenya and will be extended to Zambia, Malawi and the Indian sub-continent over the next 3 months. The commercial roll-out of IndiGo will start early next year.

Steve Andrews, CEO of the Solar Aid charity said: “Solar energy offers huge economic, health and social benefits to the world’s poorest people; for lighting and mobile phone charging. Eight19’s technology opens up these benefits to many more people. This is a major breakthrough.”

“We are very encouraged by this new way of delivering energy to off-grid applications in emerging markets” said Simon Bransfield-Garth, CEO of Eight19. ‘Indigo enables a new generation of solar power products that are affordable, providing customers with access, often for the first time, to clean low cost energy that eliminates the health risks and carbon emissions of kerosene.”

For further information, please visit www.eight19.com or contact Bethan Halls at Taylor Keogh.

ALSTOM makes first-ever investment in wave energy

Alstom, a global leader in power generation, power transmission and rail infrastructure has invested in Taylor Keogh client, AWS Ocean Energy Ltd, one of the country’s leading wave energy companies. Alstom has acquired a 40% equity stake in AWS, enabling it to expand its operations and accelerate the development of its wave power technology. 

AWS’s lead product is the AWS-III, a multi-MW offshore wave energy generator evolved from the award-winning Archimedes Waveswing ™ technology, first deployed and tested in Portugal in 2004.  A 1/9th scale prototype of the AWS-III was trialled in 2010 in Scotland’s Loch Ness and the company plans to deploy and test a full size single cell of the AWS-III multi-cell prototype next year and aiming to deploy their first AWS-III in 2013/14 and a 10MW wave farm by 2016. (www.awsocean.com).

Marine Current Turbines kicks off first tidal array for Wales

Marine Current Turbines Ltd (MCT) has today submitted a consent application to install a 10MW array of tidal stream turbines off the North West coast of Anglesey in 2015. The array, consisting of seven twin rotor turbines arranged across an area of 0.56km², will harness the power of the tidal waters, generating enough power for over 10,000 homes on the island. It will be the first tidal array to be deployed in Wales.

This tidal farm, using the fast moving and predictable flow of the tides, will use MCT’s proven and award-winning tidal energy technology (known as SeaGen and which works in principle like an underwater windmill) to generate enough power to supply electricity to up to 10,000 homes. The array will be situated between the Skerries islands and Carmel Head, about 1km off the Anglesey coast. SeaGen is a proven technology, the first 1.2MW unit having been successfully operated in Strangford Narrows, Northern Ireland since 2008, and it is officially accredited by OFGEM as the UK’s first and only tidal current power plant.

If the planning consent is granted to SeaGeneration Wales Ltd, the MCT / RWE npower renewables project company, it will be the first tidal array in Wales demonstrating the commercial viability of this technology. This project will help to demonstrate that the deployment of tidal generation can be recognised as a viable means of securing renewable generation, lower carbon emissions whilst simultaneously creating a new industry and many jobs.

The project will cost approximately £70 million to develop and, where possible, local businesses will be contracted for the assembly, installation, operation and maintenance of the tidal array. It will generate jobs that use skills ranging from advanced blacksmithing through to sophisticated control systems management. The project will also stimulate the supply chain to support the emerging marine renewable energy sector in the UK and Wales.

Martin Wright, CEO and founder of MCT said: “Tidal power is a predictable and reliable source of renewable energy and our technology can play an important part in helping Wales realise its renewable energy targets as set out in the Welsh Assembly Government (WAG) Energy Policy statement. It aims to capture 10% of the tidal stream and wave energy off the Welsh coast by 2025, making Wales a UK low carbon economic area for tidal energy. The proposed project would represent a significant step in meeting both of these targets and furthermore, will see the creation of many new green jobs.”

MCT has undertaken a series of environmental and technical studies and consulted a range of local residents as well as local and national organisations, including: RSBP, Centre for Environment, Fisheries & Aquaculture Sciences, the Countryside Council for Wales and the Maritime & Coastguard Agency in order to consider the impact of the project over its operational lifespan, about 25 years.

Joseph Kidd, MCT’s Development Manager for the project, said: “Engagement with local interests is an important part of our work, particularly local marine recreation groups and so far the response to our plans has been generally positive. Our experience of working in Northern Ireland’s Strangford Lough has been hugely valuable in taking forward our plans for Anglesey.”

RWE Npower Renewables’ Project Manager, Paul Catterall said: “RWE npower renewables are delighted to have been involved in the development of this project, which exemplifies one of the most promising of the emerging renewable energy technologies. Tidal energy has the potential to play a significant role in our future renewables portfolio. SeaGen represents the end result of many years of hard work, perseverance and human ingenuity, and we are privileged to be working with MCT, global leaders in tidal generation.”

Client News-Eight19 Appoints First CEO

CAMBRIDGE, UK - Eight19 (www.eight19.com) the developer of Printed Plastic Solar Cells based on Organic Photovoltaic (OPV) technology, today announces the appointment of Dr Simon Bransfield-Garth as Chief Executive.

Dr Bransfield-Garth’s appointment follows the investment of £4.5M ($7.4M) by the Carbon Trust and French chemical company Rhodia SA in September 2010 to commercialise Organic Photovoltaic technology originally developed at Cambridge University’s Cavendish Laboratory, a world leader in plastic electronics technology.

Eight19 is developing a new generation of low-cost, flexible plastic solar cells that have the potential to dramatically reduce the manufacturing cost, increase the throughput of solar technology and help address the growing need for renewable power. Using room temperature printing processes instead of traditional high temperature manufacturing, the cells, which are considerably cheaper and faster to manufacture than 1st and 2nd generation, are predicted to open up new high-growth volume markets. The market for organic solar cells has the potential to reach $500 million by 2015 and to grow four fold to $2 billion by 2020 (Nanomarkets, 2009) and could save up to 900 million tonnes of CO2 by 2050 – some 1.5 times the UK’s current annual emissions.

Plastic solar cells benefit from being based on abundant materials and can be readily crafted into different shapes and colours to meet market requirements, for example for off-grid applications in emerging economies, such as solar powered lighting, or high volume industrial products.

Commenting on the appointment, Tom Brown, Chairman of Eight19 said: “We are delighted that Simon is joining the company as CEO. He brings with him to Eight19 over 25 years global experience in building rapid growth, technology based businesses, so he is well placed to drive us forward towards mass production”.

Simon Bransfield-Garth commented: “I am tremendously excited and privileged to have taken the helm at Eight19. The solar power market is in a period of explosive growth and Eight19, with technology backing from Cambridge University and exceptional team of engineers and scientists is poised to play a significant role”.

--ENDS--

Notes to Editors

Simon Bransfield-Garth

Simon’s career spans twenty five years in high growth, early stage technology sectors, including semiconductor, automotive electronics and mobile phones business. He founded Myriad Solutions Ltd which was sold in 1996 and spent 7 years at Symbian, the phone OS maker, where he was a member of the Leadership Team and VP Global Marketing.

Simon was previously a Fellow at Cambridge University where he also gained his BA and Ph.D in Engineering.

Eight19 Ltd.

Eight19 is located in Cambridge, England and retains close links with the Cavendish Laboratory of Cambridge University.

Based on work pioneered by the internationally renowned team at Cambridge University, the company focuses on high speed, room temperature manufacturing techniques to create lightweight, non-toxic, flexible solar films. The resulting modules are aimed at new mass markets for solar power generation, from off-grid applications in emerging economies to high volume industrial products.

Eight19 is headquartered in Cambridge, England and investors include the Carbon Trust, Rhodia SA, TTP Ltd and the University of Cambridge.

Scotland’s first tidal farm by 2013

Marine Current Turbines, a client of Taylor Keogh since 2005, is moving forward with plans to deploy Scotland’s first tidal energy farm, in Kyle Rhea, a strait of water between the Isle of Skye and the Scottish mainland.  The project will have the capacity to generate electricity for up to 4,000 homes and will give a multi-million pound boost to the Highlands & Islands economy as local businesses seize the opportunity to participate in the tidal farm’s installation, operation and maintenance.

The development of the project is subject to securing a lease agreement from The Crown Estate, securing planning approval from Marine Scotland and raising the finance for the project, estimated to be £35million.  A planning application will be made towards the end of this year.

MCT will shortly submit a planning application to the Welsh Assembly Government for a seven turbine tidal farm in waters off Anglesey and work is progressing in Canada to deploy a single tidal turbine in Nova Scotia’s Bay of Fundy.

The company will be exhibiting at All-Energy Renewables Exhibition & Conference in Aberdeen on May18/19th.

Last year, the company announced that it would partner ESB International in taking forward plans to develop a tidal energy farm of up to 100MW off the Antrim coast, and secured approval for a lease from The Crown Estate to deploy a 99MW tidal farm in waters off the Orkney Islands The company plans to have its first phase of SeaGen tidal turbines deployed there during 2017 with the whole scheme operational by 2020.

To view a film about MCT and its SeaGen tidal technology, please visit http://www.youtube.com/watch?v=9_0dJlw9AsI .  The company's website is www.marineturbines.com

Green Growth in the UK- EIC's Executive Director gives his views

Jonny Mulligan, Executive Director of the Environmental Industries Commission writes about green growth in the UK economy.  Jonny has recently joined the EIC (www.eic-uk.co.uk) and in February gave oral evidence to the Commons Environmental Audit Committee about the proposed Green Investment Bank.


Economic growth and the Environment: it’s not either/or.

In 2009, George Osborne highlighted the need to “bring to an end the stale argument that we have to choose between economic growth and the environment.”

He was right. But in order to achieve this, we now need joined-up thinking and a united voice. Green growth depends on a partnership effort between government and industry, ensuring that all their departments work together in a common cause for the greater good.  It is important that the chancellor remembers this as he prepares for his 2011 budget.

We urgently need a fully integrated environmental policy-making framework that pulls together innovative finance and pollution taxation, job creation and R&D, where the over-arching objective is significant behavioural change.

Data is now emerging that indicates that environmental climate change policies are working.

Lord Adair Turner, Chairman of the Committee on Climate Change, has also noted how the economic downturn is already playing its part. “This [the downturn] is obviously good for the environment but also gives us a false sense of achievement if this is not backed up by real policy change and action by Government”.

I agree with Lord Turner. I believe government must continue to put in place progressive new policies and regulations which protect and improve the environment. We need grown-up policies and realistic regulations designed to encourage and reward innovation.

We need to build greater trust between government and industry. Government should allow industry to improve its environmental stewardship and resource-efficiency in peace. If this trust is abused, government should act quickly and decisively in imposing penalties in order to drive change.

Execution of such a strategy will inevitably induce positive changes in production and in society’s behaviour. To stimulate change in industrial practices, we must honour the principle that the ‘polluter must pay’. Experience has shown that, without regulation, short-term profit enjoys a higher priority than the future of the planet!

The success of the 1996 landfill tax, the EU:ETS and the London Low Emissions Zone are all examples of how regulation does bring positive change. Policymakers need to clearly learn and understand the integration of economic and environmental policy. They need to dust down their copies of 'Blueprint for a Green Economy (1989)’, also known as "The Pearce Report" and apply it to the challenges that we face today.

Government and policymakers must encourage industry to focus on the minimal use of natural resources, including fossil fuel, and to invest in the R&D that will make business ‘greener’. If business refuses to take action then they must simply be regulated.

Knowledge and skills developed from recent experiences must be captured and passed on to new generations of employees.

The highest quality leadership, both individual and corporate, capable must be identified and incentivised to drive the ‘new green economy’ forward, supported by strategic investment and responsible risk-taking.

Policy Priorities

The top strategic priority for government and industry must be to put in a place a strong and transparent regulatory framework, designed to support the development of a world-leading environmental policy. This will drive change in our industrial practices and build  the confidence necessary to attract fresh investment in the sector.

The second practical priority must be to enforce the legislation which is already on the statute books, using the existing Environmental Agency and Local Authorities.

The third major issue on our wish-list must be this: For the Government itself to use its unique opportunity to lead by example.

The Government is the UK’s largest landlord and holds the biggest institutional property portfolio in the UK – just think of the schools, of schools and hospitals for start. As a result, it is also currently the biggest carbon emitter and is the single most guilty perpetrator of resource-mismanagement and waste.

If the Government genuinely wants change then it must to lead from the front.

Talk is cheap. Actions must match words. Ministerial speeches must be accountable, not just for effect.

It can start doing this immediately by ensuring that:
•             all government departments, local authorities and government funded organisations operate in ‘green energy efficient’ buildings
•             manage their upstream and downstream waste and resources
•             implement full sustainable procurement programmes across its operational and supply chains.

The Government must take these steps now. Only by doing so can it maintain its credibility on the international stage and punch way above its weight in global climate change negotiations.  It is only by doing this that this government will be the ‘greenest government ever'.

Petrofac takes stake in Gateway Gas Storage

Petrofac, the international oil & gas facilities service provider, has acquired a 20% interest in Gateway, a client of Taylor Keogh since 2005. Petrofac has joined Gateway as the technical project operator and will be jointly responsible for developing the project ahead of a Final Investment Decision later this year. The front end engineering and design phase of the project has been completed and the focus is now turning towards finalising the consortium of storage capacity holders and investors. Gateway Storage is targeting 2016 for the commencement of storage services to the UK energy market.

When built, Gateway Storage will be one of the UK’s largest salt cavern storage facilities and will add nearly 30% to the current gas storage capacity in the UK market, sufficient to meet five days of Britain’s average gas demand. 

Investment in new storage capacity as a means to bolster the UK’s long-term energy security has been a recurring issue within Parliament for some time. The Government’s Energy Bill, currently proceeding through Parliament, proposes to give additional powers to OFGEM to ensure that this capacity enters the market, but a number of politicians in both Houses have expressed the view that an enhanced Public Service Obligation on gas suppliers would be a better way to incentivise the investment that needs to be made if Gateway and other storage projects are to be built in good time.

For additional information on Gateway, please visit www.gatewaystorage.co.uk

UK Electricity Market Reform: an independent viewpoint

The formal consultation on the Government’s Electricity Market Reforms is now closed. The proposals, which seek to encourage investment in low-carbon generation, have attracted much comment and indeed criticism from a number of quarters, in and outside the energy industry

Carlton Power has been involved in the UK power generation market for more than 15 years and has been involved in the construction of more than 1800MW of installed generation capacity and 2380MW of consented plant in the UK. The company originated the 890MW Langage gas-fired power station in Devon, which is now owned and operated by Centrica, and is partnering Ireland’s ESB International on the Carrington 2 CCGT near Manchester.

Mike Benson (pictured) a director of Carlton Power, gives his view on the EMR and the steps that he wishes to see in the UK energy market:

What would be your ideal energy mix for the UK?

I think we need a robust mix of competitive technologies, including renewables, new nuclear and of course Gas CCGT. We all recognize the need to move towards a lower carbon industry, which is why gas is replacing much of the retiring coal powered generation. Gas remains an attractive option for many reasons, it has the fastest lead time, is a large scale generator, it is economically viable and new CCGT plants lower the UK carbon profile.

What issues do you think the EMR should address?

The EMR is primarily addressing issues such as new nuclear, renewable subsidies and getting an energy market in these areas that is attractive for investors. But we believe that another priority has to be creating a more competitive market, one that is open and transparent. If those issues aren’t addressed, then consumers and taxpayers will be paying more than necessary in the coming years and the UK will struggle to produce the new generating capacity that everyone agrees is required.

If the EMR could fix one issue, what should it be?

New capacity and renewable deployment are necessary, but the most important change should be market liquidity. At the moment, the UK is geared towards the ‘Big Six’, and that needs to change, the wholesale markets needs to be reformed.

What benefits would greater competition bring to consumers?

There has been a 43% rise in energy bills for consumers in the period 2008 – 2011, which represents a huge increase and has led to two investigations by Ofgem. Much of the problem comes from the fact that the current wholesale market lacks transparency about their pricing and transactions. Introducing further competition throughout the market would create competitive pricing for consumers and industry and encourage new investors to enter the market.

How would you bring more competition into the energy markets?

By re-introducing self-supply license conditions. An SSLC would ensure greater competition between retail and generation which would free up all areas of the energy market. This would guarantee the ‘Big 6’ could not just rely on their own generation and would create a wholesale market with greater liquidity, ensuring investors could enter more readily, would be better monitored and we would have proper competition. Emissions would also reduce as genuine competition favours more efficient plants.

For a copy of Carlton Power's EMR submission, please contact Taylor Keogh Communications. 

Energy from waste on Teesside

Air Products has submitted plans to build a 49MW energy from waste plant on Teesside. The proposed scheme, which requires approval from Stockton Council and an environmental permitting consent from the Environment Agency, will use advanced gasification technology to convert pre-processed waste to baseload power.

The proposed Tees Valley Renewable Energy Facility was announced last summer, and subject to planning approval and financing, the Air Products facility is targeted to enter commercial operation in 2014.

Taylor Keogh’s work has included stakeholder and community consultation (including public exhibitions), press relations and website/literature development. www.airproducts.co.uk/teesvalley

The work of the Energy Select Committee

Whilst all select committees earn the moniker ‘influential’ in the media, the reputation of the House of Commons Energy and Climate Change Committee reputation is gaining within Westminster, as it investigates a host of issues, whilst keeping ministers and officials on their toes. They have been quizzed regularly by the Committee, chaired by Tim Yeo, most recently on March 15th with regard to the EMR.

The Committee has been active in their publications, having released reports on emissions performance, national policy statements, as well as deepwater drilling in response to the Gulf of Mexico oil spill, a report that included a probing session with former BP CEO Tony Hayward.

Under Tim Yeo’s chairmanship, the Committee has real momentum and with a new batch of MPs, it combines a wide variety of interests and experience. Yeo and his Vice-chair Dr Alan Whitehead are both experienced and deeply knowledgeable of the energy sector, as well as being very pro-renewable, a category the former DEFRA and DTI minister Barry Gardiner also falls within.

The sole Liberal Democrat representative is Sir Robert Smith. Labour MPs Albert Owen and John Robertson share interests in nuclear, with the latter being Chair of the Party Group for Nuclear, although both have been strong advocates of renewables.

The rest of the committee is made up from newly elected Conservatives, all of whom have already impressed in the committee. Security of the UK’s energy supply is a constant thread running through the questioning from Dan Byles, Dr Phillip Lee, Christopher Pincher and Laura Sandys.

With Committee reports on the Electricity Market Reform, energy security and shale gas due to be released, and with a wide ranging Energy Bill expected later this year, the Committee certainly has the opportunity to be genuinely considered influential in 2011.

Taylor Keogh strengthens team

Bethan Halls (pictured) joined Taylor Keogh in January to strengthen our media and stakeholder relations work for our clients. Bethan has worked in PR consultancy for the past five years, working on energy and climate change issues, and before that she worked in Parliament.

We have also added to our associate consultant team whom we call upon for specific assignments. Helena Douglas became an associate of Taylor Keogh at the start of the year. Much of her career was at The Economist and now as a freelance writer, Helena work includes researching and writing business case studies, articles and website copywriting. Her primary interests are in sustainable energy and green technology. For details of our other senior-level associates, please visit www.taylorkeogh.com.

In Scotland, Taylor Keogh has an alliance with Budge PR (www.budgepr.com) and in Northern Ireland the company is working with Resolute Public Affairs (www.resolutepa.com).