Industry News-North East Named UK's First Specialist Region For Low Carbon Vehicles

Prime Minister Gordon Brown and Business Secretary Lord Mandelson today welcomed Nissan’s intention to invest more than £200m over the next five years in a new battery factory in Sunderland.

The rechargeable lithium-ion battery plant, Nissan’s European Centre of Excellence for Battery Manufacturing, comes as the Prime Minister announced the region would become the UK’s first Low Carbon Economic Area specialising in ultra-low carbon vehicles.

The battery investment makes Nissan Sunderland a good contender for manufacture of the group’s new “greener” electric vehicles.

Prime Minister Gordon Brown said:

“Nissan’s investment in a new battery plant and its hope to start producing electric vehicles here in Sunderland is great news for the local economy, creating up to 350 direct jobs and creating and safeguarding hundreds more in the associated supply chain.

“This investment is also hugely significant as we embark on Building Britain’s Future, our plan for recovery and beyond powered by low carbon, high technology industries, products and services.

“Sunderland could now be a strong contender to produce electric vehicles for Nissan in Europe, and we will continue to work with Nissan to ensure this happens.”

The Government is working with Nissan on supporting this investment by offering grants and loan guarantees, including support through the Automotive Assistance Programme.

Low Carbon Economic Areas (LCEAs) were introduced in the Government’s Low Carbon Industrial Strategy last week. They aim to draw together national, local and regional agencies to focus support on accelerating the growth of low carbon industries, skills base and supply chain.

The North East LCEA, led by One North East, will focus on supporting the transformation of automotive industry, providing support for innovation and demonstration, skills training and clustering of manufacturing.

Business Secretary Peter Mandelson said:

“The North East has distinguished itself as the first specialised region for ultra-low carbon vehicles. This is good news not just for the North East, but for the whole of the UK, helping to attract foreign investment and securing UK’s place as a global leader in high-tech manufacturing and automotive industries.

“The collaboration between local businesses, universities and colleges will create a hub of expertise to boost innovation and accelerate business growth in this important area of ‘green’ industry.”

As part of the Low Carbon Economic Area, the Government intends to establish:

·A training centre - the first to specialise in the manufacture and maintenance of ultra-low carbon vehicles. Government is in discussions with national companies such as the AA about how the centre can help update skills to keep up with the growing use of ultra-low carbon vehicles.

·A Research & Development Centre - serving as a home for research from all five local universities bringing together fundamental and applied research in ultra-low carbon vehicle technology and use.

·An open access test track to trial the use of new technologies.

·One NorthEast is also looking at options to reopen all or part of the Leamside Rail Line, which would help improve access to the Port of Tyne to boost imports and exports in the region.

·Over the next two years 750 charging points will be installed in a range of locations in the NorthEast, including supermarkets, shopping centres, public transport installations, hospitals, universities, public buildings and domestic and business premises. The first points are currently being installed in Newcastle and Gateshead.

One North East chairman Margaret Fay said:

“One North East welcomes this visionary announcement. It confirms the North East of England’s growing role at the forefront of the low-carbon economy and cements the region’s position as a leading location for electric vehicle development in Europe.

“The North East’s Low Carbon Economic Area will be extremely important for the future of the automotive industry in the region and will enable One North East to attract further investment related to electric vehicles and their infrastructure.”

Industry News-Review of UK policy annoucements on the future of energy and transport

Through out the week there was a blizzard of announcements focusing on the future of UK energy and decarbonising transport.

On Wednesday 15th of July the UK government published a white paper called the UK Low Carbon Transition Plan which has three elements; Renewable Energy Strategy, Low Carbon Industry Strategy and the Low Carbon Transport Plan. The paper sets out the government’s plans to meet its target of cutting carbon dioxide emissions by 34 per cent from 1990 levels by 2020.

In general the announcement focused on the renewable sector which is expected to increase its production of electricity from 6 per cent to 31 per cent over the next eleven years to 2020. The government wants to encourage all forms of low-carbon energy, Marine, Biomass, Onshore & offshore wind, nuclear power and clean coal (CCS) power stations that capture and store their emissions.

At the heart of the government's plans are giant offshore wind parks. The renewable energy industry will be given £120m to develop offshore wind technologies. The Government is allocating up to an additional £60 million for a suite of measures which will help accelerate the development and deployment of wave and tidal energy

The government reiterated their support for clean coal power generation and the progress being made in the area but were not forthcoming with any more statements. The June 2009 CCS consultation document along with the four site trials that are being funded will determine the future of the industry in the UK. In a new move the government are to open an Office of Carbon Capture and Storage to support the delivery of CCS. Full details will be announced in the autumn of this year.

Nuclear energy received little mention in the announcement apart from the government saying that it still had a part to play in the energy mix. The government are looking at streamlining the planning and regulatory approvals processes for new nuclear power stations. A national policy statement and a consultation document is due to be launched later in 2009.

The Government will provide capital investment to establish a Nuclear Advanced Manufacturing Research Centre that combines the knowledge, practices and expertise of manufacturing companies with the capability of universities. This will complement the existing Advanced Manufacturing Centres in Sheffield and Glasgow and the Nuclear Laboratory in Sellafield.

Low Carbon Transport Plan

The Low Carbon Transport Plan focussed on decarbonising transport by moving to an integrated transport system with cycling, cars, rail, public transport and aviation all playing their part.

Lord Adonis, the Transport Secretary pledged to reducing CO2 emissions from transport by 14 per cent by 2020. Under the new proposals the government will offer consumers grants of up to £5,000 if they purchase low polluting cars such as electric and plug in hybrids. Under the new proposals only cars that emit 75g per km of C02 or below will be eligible for these grants. The best-performing hybrid in the market in of 2009 is the Toyota Prius emitting 89g/km per KM of CO2.

The transport white paper has been welcomed environmentalists and business groups and is expected to become law by the end of the year. An overall a package of £250m of consumer incentives is being invested by the government to stimulate the take up of electric and plug-in-hybrid vehicles (This £250m figure is not new this announcement was made by Lord Mandelson the spring 2009).

One area where the move to more electric vehicles and hybrids has been falling down is in the area of charging points. There are very few in London and even less per square mile across the UK. This is significant. The move to electric vehicles will be slow if the consumer has the hassle of having no charging points outside their home. There is a serious need for charging points to be rolled out across the UK transport infrastructure quickly.

Recognising this as an issue the government have launched a new Alternative Fuel Infrastructure Grant Programme. The government will also unite Whitehall interests through the new Office for Low Emission Vehicles.

But this will not be the end of the debate. The government are working closely with industry and key stakeholders to develop a roadmap to 2050 by spring 2010. In autumn, the Committee on Climate Change will provide further analysis of the pathway through 2030 to 2050. The Government will work with the Committee, taking its analysis and recommendations into account when developing the roadmap to 2050. So there are several more negotiations and steps to go in the UK energy debate.

Jonny Mulligan

Industry News-Strategy For Low Carbon Businesses to Benefit British Jobs

The Low Carbon Industrial Strategy, launched today, sets out the action the Government is taking to ensure that British businesses and workers are equipped to maximise the economic opportunities and minimise the costs of the transition to a low carbon economy.

The strategy follows from Building Britain’s Future: New Industry, New Jobs, and sets out how the Government aims to ensure that the transition to low carbon is a source of quality jobs and business savings in Britain: from our rapidly developing civil nuclear industry and renewable energy sector, to energy saving in our smallest SMEs.

The strategy identifies a range of low carbon sectors with potential for job creation and growth. These include: wave and tidal power; civil nuclear power;offshore wind; and ultra-low carbon vehicles. It also sets out the Government’s strategy for removing barriers that are blocking the development of Britain’s full potential in these areas.

The strategy recognises that local and regional strengths offer a good foundation to realise future economic benefits for Britain. The first Low Carbon Economic Area in the South West of England will create a business and skills focus on marine energy demonstration, servicing and manufacture.

The strategy also sets out the first investments from the £405 million for low carbon industries and advanced green manufacturing announced at Budget 2009.

Key investments include:

•Up to £60 million to capitalise on Britain’s wave and tidal sector strengths, including investment in Wave Hub – the development of a significant demonstration and testing facility off the Cornish coast – and other funding to make the South West Britain’s first Low Carbon Economic Area.

•Up to £15 million capital investment in order to establish a Nuclear Advanced Manufacturing Research Centre consisting of a consortium of manufacturers from the UK nuclear supply chain and universities.

•A £4 million expansion of the Manufacturing Advisory Service, to provide more specialist advice to manufacturers on competing for low carbon opportunities,
including support for suppliers for the civil nuclear industry.

•Up to £10 million for the accelerated deployment of electric vehicle charging infrastructure.

•Up to £120 million to support the development of a British based offshore wind industry.

The strategy also recognises that there are challenges for the workforce particularly for those in high carbon industries. The Government will create a new Forum for a Just Transition to advise on how to address the issues, with representatives from Central Government, national, local and regional bodies, Trade Unions, business organisations, and third sector bodies.

Announcing the strategy Business Secretary Peter Mandelson said:

“There is no high carbon future. But if the transition to low carbon is inevitable, what is not inevitable is that we use the transition as a chance to develop new jobs, new industries here in Britain. This strategy builds on the New Industry New Jobs approach, outlining the strategic role the government will play alongside the private sector, to make the most of the potential benefits for innovation, growth and job creation in the UK.

“Low carbon and environmental goods and services are already worth £3 trillion to the global economy, and in the UK employ nearly 900,000 directly and through the supply chain. With the sector set to grow by over 4% per annum over the next six years we must do all we can to support British businesses and workers in benefitting. Today we are announcing the first investments under the £405M funding allocated in the budget. We must ensure that we equip businesses and the workforce with the capabilities and skills to take advantage of the potential benefits as the world moves towards a low carbon future.”

Click here for more details

Industry Renewables Report-Managing Variability by David Milborrow

One week ahead of when the UK government is expected to publish its ‘Renewable Energy Strategy’, a new report Managing Variability, by energy analyst David Milborrow, claims that the UK’s grid could cope with the variable energy input generated from wind farms.

The report commissioned by WWF, RSPB, Greenpeace and Friends of the Earth looks at the options already available to manage variability on the system, identifies solutions for the future and assesses ways to minimise costs.


Summary of Findings:
•Wind Power can significantly reduce our climate damaging emissions.

•Fluctuations in wind strength can be managed technically and at modest and declining cost.

•High proportions of wind power in our energy mix are feasible, and are already successfully integrated in other countries.

•A range of technological developments already underway could allow for a steadily increasing use of wind power and the phasing out of conventional carbon based fuels as backup technology.

Conclusions:
•There is no technical barrier to accommodating large amounts of wind power in our energy mix. We can keep the lights on.

•Even at relatively high levels of wind in the energy mix, the need for backup capacity is modest, with most backup needs being met by the existing pool which supports all forms of power generation.

•The cost associated with managing the variable nature of wind power are modest and can be expected to decline as new technologies including a supergrid, smart grid and improved energy storage are developed.

•As other variable renewable technologies are developed, it is expected that these too would be suited to displace conventional power stations.

•Other European countries are already using large proportions of wind power in their energy mix and see no technical barriers to increasing to higher levels.


Recommendations:
•Ensure that the energy market is able to deliver a massive expansion of renewables. This must include ensuring that the energy regulators main task is to cut climate change emissions by prioritising renewables and energy efficiency.

•Grant priority access to the energy market and electricity grid system for renewables ahead of conventional dirty power.

•Deploy continued and substantially increased financial support and regulatory incentives for renewable energy beyond 2020.

•Secure attractive grants and green loans for energy efficiency measures and research and development for renewable technologies.

•Enable better planning for renewabels, including spatially based approaches to ensure timely delivery and facilitate appropriate siting.

•Create an industrial strategy that will establish skills and manufacturing in the UK, addressing shortages in the supply chain for renewables and boosting jobs and the economy.

Click here for the full report Managing Variability by David Milborrow

Political News-Miliband calls on business to support the early transition to a low carbon economy

'We must act early in low-carbon transition to take full advantage’

Businesses here and abroad must apply their best ideas, engineering skills and technologies to forge ahead in a changing world, says Ed Miliband.

The transition to low carbon will lead to a restructuring of economies around the world,and it is my job to make sure that we make this transition as urgently as possible, and in a way that helps British businesses to take advantage of the new opportunities.

In the energy sector, we are moving to a trinity of flow-carbon sources, each with potential for supply chains and industrial opportunities in Britain. With the developing technologies for coal, for example, it is possible to capture 90 per cent of the emissions at the power plant and store them permanently underground.

We are providing funding and setting rules for new coal-fired power stations in such a way both to prove the technology and to seed new clusters of low-carbon industries.

Similarly, the renewable power industry has doubled in the past five years, and last year wind provided enough power for two million homes. In the next decade, though, the amount of renewable power is set to increase even faster, as energy suppliers have to show they have used it for a fixed and rising proportion of their supply.

This will mean new opportunities in manufacturing, as well as in the shift to a smart grid that balances power from intermittent sources. To maximise the opportunities for Britain, industrial funds can attract investment from abroad and kick-start export industries.

Nuclear power, too, is undergoing a renaissance, as many who originally opposed it rethink their views in the face of climate change and the need to cut emissions. The construction of each of the new powerstations could provide up to 9,000 jobs – we need to make sure that the skills are in place and the supply chains are prepared. In each of these areas, we need dynamic and effective companies, but we also need government to play its role, setting the right framework to drive the technology forward.

The transition to a low-carbon economy will no longer be a niche activity but, like the internet, part of how everyone does business. We must make sure that Britain acts early by providing certainty about the path ahead.

With the introduction of legally binding carbon budgets, we know the carbon savings we have to make: a third of 1990 emissions by 2020,and 80 per cent by 2050. Every business knows that the transition is not a case of if, but when.

Businesses around the country are rising to this challenge. When I take part in negotiation abroad, it strengthens my hand that British industry has been forward-thinking on climate change.

I can point to the savings that have been made by British companies and the fact that they argue not for weakening ambition, but for all countriesto do their bit.

Other countries, from China to the United States, are also seeing that it can be a mission of prosperity rather than one of austerity.

But we need businesses, here and around the world, to apply their ideas, their engineering skills, their technologies, to help to chart that course to a low-carbon world.

— Ed Miliband is Secretary of State for Energy and Climate Change

Click here for the original text of this article in the Times

Industry News - Lord Browne calls for nationalised banks to invest in renewables and green technology

State-controlled banks such as Royal Bank of Scotland and Lloyds Banking Group should be forced to invest in renewable energy schemes, helping to kickstart a transition to a lower-carbon economy, Lord Browne of Madingley writes today.

In an exclusive interview with The Times, the managing partner of Riverstone Holdings, the private equity firm, and former chief executive of BP says that the Government’s commitment to build 25 gigawatts of offshore wind generating capacity by 2020 — equivalent to a fortyfold increase from present levels — is an “ambitious but achievable” target.

“The biggest obstacle is lack of credit,” he says. “This could be alleviated by directing state-controlled banks to lend more to projects in the supply chain and by working with the European Investment Bank to speed up implementation of its programme of green lending.”

Britain has 2,537 operational wind turbines capable of generating 3.6 gigawatts of electricity. However, plans to build new wind energy schemes have been hit by restricted access to finance over the past 18 months. Weaker oil prices have also undermined the economics of the industry.

click here for the full times article

Political News-UK Government, Draft Legislative Programme (Building Britain’s Future)

On Monday, the UK Government announced its legislative programme for the coming parliamentary session.

The coming session is due to be a short year, starting in November, and finishing in April, and as such, only 11 Bills have been proposed.

The early announcement of next years Bills allow for consultation between now and November to amend or suggest changes and policies for the subject areas covered.

The Bill of relevance is another Energy Bill

Energy Bill
Moving decisively to a low carbon economy while maintaining the security and diversity of electricity supplies by:
• Introducing a financial incentive, funded by electricity suppliers, to support up to
four Carbon Capture and Storage (CCS) commercial-scale demonstration projects.


The Energy Bill is primarily concerned with Carbon Capture and Storage, and the energy challenge facing the UK. However, the Bill may develop more ‘meat’ between now and November, with market incentives for energy production possibly being re-visited and potential obligations for energy providers to move to renewables.

The Government also announced consultation papers, which if elected they would propose at the next Parliament.

Energy and Climate Change White Paper:
Setting out proposals on how we might adapt the UK’s energy grid to link homes and businesses to new forms of power generation as well as proposals and polices to de-carbonise electricity generation and other energy supplies. (Department for Energy and Climate Change)

Low Carbon Industrial Strategy:
Providing a clear and credible long-term framework to encourage investment in the sector and to ensure the UK is the best place to locate and develop a low carbon business. (Department of Business Innovation and Skills/Department for Energy and Climate Change)

Active Transport Strategy:
Setting out how we can encourage different ways of getting around that use less carbon, reduce congestion and promote health and wellbeing. (Department of Health/Department for Transport)

None of these Bill’s will be introduced this year, and it would seem unlikely they will be unless the present government wins the next election. However, they offer opportunities to shape the thinking of the Civil Servants as well as influence decisions made by Minister’s between now and May 2010.

The Government also laid out its vision for investment in new infrastructure.

Building world class infrastructure:
Seizing the opportunities of the future depends on having truly nationwide, high quality business and technical infrastructure. That is why we must give priority to bringing greater focus to building and modernising our economic infrastructure in energy, water, waste, communications, as well as transport and housing.