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White paper calls for acceleration of geothermal energy projects in the UK

A new white paper of national importance has been published today (Monday 17 July) providing evidence for the acceleration, development and deployment of deep geothermal energy projects in the UK.

The case for deep geothermal energy – unlocking investment at scale in the UK was commissioned by the North East Local Enterprise Partnership, funded by the Department for Energy Security and Net Zero (DESNZ) and the North East and Yorkshire Net Zero Hub, and led by the British Geological Survey and Arup.

Gathering evidence from the geothermal industry, regulation, finance, and academia, the white paper outlines how deep geothermal energy – energy generated and stored in the form of heat in rocks, groundwater and soils – can provide a low-carbon source for heating, cooling and power generation; supporting the UK’s net zero targets and providing a domestic form of decentralised energy. It also highlights how investment in geothermal energy could deliver an economic boost to areas across the UK via job creation and tackling fuel poverty.

The white paper looks at the potential opportunities and benefits that geothermal energy could deliver for the UK economy, local communities, and government’s Net Zero commitments and energy security ambitions.

The deep geothermal energy white paper goes on to explore some of the potential challenges around the deployment of deep geothermal energy in the UK, before putting forward a set of recommendations to build, scaleup and support the long term growth of the sector.

New maps made available in the paper by the British Geological Survey, who has been leading the UK’s geothermal research since the 1980s, show that deep geothermal energy offers decarbonisation opportunities across the UK.

Lucy Winskell, Chair, North East Local Enterprise Partnership, said: “Geothermal energy has one of the lowest carbon footprints compared to other technologies and its availability across the UK means that by connecting it to district heating networks we can deliver a secure, local and flexible baseload technology which can provide for our domestic, commercial and public sector requirements for heat.

“Like Mine Energy, its exploitation has the potential to deliver new jobs and investment into regions of the UK which are central to Government’s Levelling Up agenda.

“As well as helping the UK meet its net zero targets, adopting geothermal energy would bring a host of economic and societal benefits too. Growing the sector will not only lead to job creation, but it provides a unique opportunity to transition roles within the oil and gas sector to grow skills, knowledge and economic activity in domestic low carbon technologies.

“With many of the UK’s potential deep geothermal projects located in areas identified by the UK Community Renewal Fund as in need of economic stimulus, we also have the opportunity to support the levelling up agenda by creating green jobs and addressing fuel poverty.”

Most of the UK’s onshore deep geothermal energy resources can be found in deep sedimentary basins in large parts of Great Britain and Northern Ireland, where water circulates through deep rocks (>500 m) to form hot sedimentary aquifers (HSA) or fractured sedimentary aquifers (a sub-type of HSA). Temperatures range from 40–60°C, but can reach up to 100°C in some deeper parts.

Radiogenic granites form another source of deep geothermal energy in the UK. Heat accumulates within the rock to form ‘Hot Dry Rock’ (HDR). Granites found in Cornwall, North of England, Scotland and Northern Ireland have been already been identified as proved and potential geothermal targets for power and/or heat production.

The white paper uses stakeholder views, collected as part of a recent inquiry by the Environmental Audit Committee, to demonstrate there is widespread, collective agreement on the potential for developing deep geothermal in the UK, especially for space heating, industrial heating, and agriculture/horticulture heat use.

Research from published literature estimates that individual deep geothermal projects in the UK could achieve total savings of 72,000 tonnes (geothermal heating project) and 700,000 tonnes (geothermal power project) of CO2 equivalent over their estimated thirty-year and fifty-year operational lifetime, respectively.

Because geothermal energy has one of the lowest carbon footprints compared with other space and water heating technologies, it could significantly reduce greenhouse gas emissions across the UK.

Colin Bell, Business and Sector Growth Director at the North East Local Enterprise Partnership, said: “The North East has undertaken geothermal research at the regional level for more than 20 years. We have made significant contributions to the UK’s geothermal knowledge, which is why we were asked to oversee this important piece of work. We commissioned the British Geological Survey and Arup to lead the development of the white paper.

“The North East is poised to become the UK’s first low carbon heat cluster, and the geothermal potential means we’re well positioned to demonstrate the commercial viability of deep geothermal heat deployment. As a region we have the expertise, infrastructure and collective ambition to take forward the recommendations in the white paper and lead the proposed demonstrator projects; paving the way for the scalability of deep geothermal across the UK.”

In addition to exploring the opportunities and benefits of deep geothermal energy, the white paper also outlines some of the potential challenges to its deployment, including high upfront costs, public awareness and support, and government investment.

Jason Boddy, Associate Director at Arup said: “If we really want to accelerate the use of deep geothermal energy in the UK, we need to address current regulation and drive forward innovation in the sector so we can bring costs down and build confidence amongst investors and the supply chain.

“Improving the availability of data will reduce some of the risks associated with geothermal projects and allows us to identify more opportunities and areas for future developments.”

The paper concludes with a set of recommendations to build the sector over the short, medium, and long term. They include reviewing financial support for geothermal energy projects; signposting the role of geothermal in UK Net Zero efforts; reviewing the legal status, regulation and licencing of geothermal energy; improving data availability and accessibility; understanding public perception of geothermal energy; and facilitating communication between stakeholder groups.

Dr Corinna Abesser, Policy Director at the British Geological Society, said: “Geothermal energy provides a unique opportunity to deliver a wide geographical area of the UK with a decentralised, low-carbon energy source via district heating networks.

“This white paper sets out how we can utilise deep geothermal energy to meet our net zero objectives, deliver economic growth across the country, increase our energy security, and improve our communities by creating the green jobs of the future.”

This white paper follows and is intended to complement the mine energy white paper, led and procured by the North East Local Enterprise Partnership during 2020/21 on behalf of the UK Mine Energy Taskforce.

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Decarbonising homes set to bring tens of thousands of skilled roles to North East and Yorkshire

A new study has shown that up to 80,000 skilled workers will be needed in the North East and Yorkshire if the UK is to reach its net zero target by 2030.

Commissioned by the North East Local Enterprise Partnership (North East LEP) and funded by the North East and Yorkshire (NEY) Net Zero Hub, the Domestic Retrofit Skills Needs Assessment examined the types of skills that will be needed to decarbonise homes in the region, and the opportunities this presents for the area.

David Lynch, Energy Innovation Partnership Manager at the North East LEP, explains: “The UK government has laid out its Net Zero strategy and it’s clear that, if we’re to meet its targets, we need to get more people into the energy sector, working on retrofitting properties with low carbon technologies like heat pumps.

“We want to make sure the North East is ready to capitalise on any opportunities this presents – like a surge in skilled jobs – so with funding and support from the NEY Net Zero Hub, we commissioned this in-depth assessment of the skills which will be needed.”

The Domestic Retrofit Skills Needs Assessment focused on skills needed in retrofitting homes with low-carbon technologies. It identified the main types of job roles which will be needed – including designers, installers, advisory and procurement roles – and the current and projected market sizes.

NEY Net Zero Hub Manager, Karen Oliver-Spry, said: “Having delivered a £53 million programme of housing retrofit across the North East and Yorkshire, the Hub is aware that there are huge opportunities for skilled workers and supply chains to help decarbonise homes in our region. It was important to gain a detailed understanding of this need so that we can support organisations to take the necessary steps to realise the ambitions of the area.

“This study provides valuable insight and will help organisations to make informed decisions about how to allocate resources at a time when every penny counts.”

The study also looked at Further Education colleges in the North East and their current and planned training provision in these areas.

“As we know, the UK aims to decarbonise homes by 2050. That means we need to decarbonise around 20,000 homes a week – at the moment, that’s the number we’re achieving in a year,” added David Lynch.

“While this is a huge task, it’s also a huge opportunity. Post-pandemic, we’ve seen some sectors retract, and people have been burnt by experiences of redundancy or insecure employment. Whereas energy is a sector that’s growing and the need for this very large number of skilled workers presents a huge opportunity for people in the North East.”

Based on the findings of the study, a 10-year action plan has been created by the North East LEP, laying out how the region can scale up its training provision, support people to upskill, and promote the new opportunities that are emerging in the energy sector.

The North East LEP has been awarded £2.4 million to deliver Green Skills Bootcamps across the region, providing the opportunities for people to develop the skills needed in the green energy sector.

Details of the Domestic Retrofit Skills Needs Assessment are available on the North East Evidence Hub (evidencehub.northeastlep.co.uk).

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The Sustainable, Smart Port.

Port of Tyne to demonstrate blueprint for decarbonisation of UK ports

The Port of Tyne will unveil a new sustainable smart port platform that will provide a blueprint for its transition to net zero at an event held at its Maritime 2050 Innovation Hub on Wednesday 6 April.

As part of the Clean Tyne Project, the Port of Tyne and Siemens have worked with Connected Places Catapult, Newcastle University and the North East LEP to deploy a real-time digital platform for scenario planning and feasibility studies that will help determine the future power needs of the Port. Understanding its current and forecast power usage as well as its infrastructure opportunities will enable the Port to define its path to decarbonisation – and ultimately achieve its vision of becoming a net-zero port by 2050, part of the Port’s overall Tyne 2050 strategy for growth.

The Clean Tyne project was granted funding by the Department of Transport to create a blueprint for the decarbonisation of the UK’s ports. The project is part of the Clean Maritime Demonstration Competition, which sees £30m in total invested in a number of initiatives to reduce emissions from the maritime sector.

The project consortium has built on its extensive technical expertise, academic research and wider industry knowledge to integrate multi-vector renewable energy information into the purpose-built digital port platform. This allows the partners to determine which renewable energy implementations will offer the greatest benefits to the Port and what capacity it will need from the grid going forward ensuring the optimisation and resilience of clean energy supplies for shore power, land-based infrastructure and other use cases.

By using this form of planning, the Port of Tyne can evaluate the benefits of introducing new technology solutions before implementing them, thus minimising risk. The planning will focus on multiple areas including optimised operations, grid compliance and flexibility, enhanced communications using 5G, the electrification of shipping and logistics, the reduction or avoidance of fossil fuels and the development of new digital skills.

Testbed for other UK ports

The digital platform will play a fundamental role throughout the Port’s decarbonisation journey by supporting the creation of business cases, budget planning and investment cases. It will also allow the project consortium to assess the technical, environmental and economic impact of the Port. Using the Port of Tyne as a testbed, the Clean Tyne project’s digital energy platform has enabled Siemens and its partners to develop a universal blueprint for decarbonisation that can be replicated in other port environments as well as other industries.

The event on 6 April will be held in-person and online. To register to attend the event, visit Port of Tyne – Clean Tyne Project | Eventbrite

Quotes from the project partners

“The success of the Clean Tyne project is testament to the expertise, research and collaboration of the consortium. The project outputs show real benefits to decarbonisation efforts across the UK Port Sector and will be the backbone for future developments in that space. This tool will be pivotal for the Port of Tyne to achieve its ambitious decarbonisation and environmental targets, and we are already exploring how we can expand the benefits further. Using the 2050 Innovation Hub at the Port of Tyne, the first of its kind aligned to Maritime 2050, has given us the perfect platform to demonstrate and disseminate the learnings and outputs with all ports in the UK.” Ian Blake, Head of Innovation and Technology at the Port of Tyne

“There are hundreds of ports across world, all burning a lot of diesel and impacting the environment. Through the Clean Tyne project with the Port of Tyne we have been able to undertake an advanced feasibility study and to create a dependable and scalable roadmap for the decarbonisation of ports worldwide.” Ian Lloyd, Head of Microgrid Solutions, Siemens

“This project is a great example of how digital technologies can be applied to drive decarbonisation of our regional infrastructure.  North East LEP via the North East Energy Catalyst will work to share the results of the project and help other ports and industries learn from the findings in the Clean Tyne project.” David Lynch, Energy Innovation Partnerships Manager – North East LEP

“Through the Clean Tyne project, we have been able to apply novel concepts of digitalisation in real-world energy systems to help identify solutions for ports that cut across energy systems, marine transport, and data – all helping reduce carbon emissions. We are excited to have the opportunity to present the findings to the wider maritime community.” Dr Haris Patsios, Senior Lecturer in Power Systems, Newcastle University

“Ports are critical stakeholders in the future clean energy transition at sea and on land. Access to and supporting renewable energy sources such as solar, wind and tidal so ports become energy hubs across multiple modes of transport; is vital if we are to accelerate our journey to net zero. This has been an exciting project that demonstrated how digital infrastructure helps make greener ports possible. The Port of Tyne now has a set of clear next steps and we have invaluable transferable insight for ports across the UK.” Paul Wilson, Chief Business Officer, Connected Places Catapult

Ends.

Notes to editors

The Clean Tyne – UK Blueprint for Decarbonisation project is part of the Clean Maritime Demonstration Competition, funded by the Department for Transport and delivered in partnership with Innovate UK.

Announced in March 2020, and part of the Prime Minister’s Ten Point Plan to position the UK at the forefront of green shipbuilding and maritime technology, the Clean Maritime Demonstration Competition is a £20m investment from government alongside a further c.£10mfrom industry to reduce emissions from the maritime sector. The programme is supporting 55 projects across the UK, including projects in Scotland, Northern Ireland and from the South West to the North East of England. As set out in the Clean Maritime Plan (2019), Government funding has been used to support early-stage research relating to clean maritime. The programme will be used to support the research, design and development of zero emission technology and infrastructure solutions for maritime and to accelerate decarbonisation in the sector.

About the consortium partners

Port of Tyne is one of the UK’s major deep-sea ports – operating in bulk and conventional cargo, car terminals, cruise & ferry, port centric logistics and estates. Overall, the Port of Tyne enables £557 million to be added to the North East economy, supporting 9,300 jobs directly and indirectly. The Port’s cruise and ferry business adds another £57 million to the local economy and 1,600 jobs.

Port of Tyne was recently awarded two Maritime UK 2020 Clean Energy Awards for Clean Energy Operator and Clean Energy Enabler.

One of the UK’s largest trust ports and entirely self-financing, the Port receives no Government funding, is run on a commercial basis and reinvests all profits back into the Port for the benefit of all of its stakeholders.

As one of only two deep sea ports in the North East of England, 83% of the world’s largest cargo ships can be accommodated at the Port of Tyne.

During a decade of development, the Port of Tyne has invested over £130 million in diversifying its operations to handle a growing range of commodities.

Siemens Smart Infrastructure (SI) is shaping the market for intelligent, adaptive infrastructure for today and the future. It addresses the pressing challenges of urbanization and climate change by connecting energy systems, buildings and industries. SI provides customers with a comprehensive end-to-end portfolio from a single source – with products, systems, solutions and services from the point of power generation all the way to consumption. With an increasingly digitalized ecosystem, it helps customers thrive and communities progress while contributing toward protecting the planet. SI creates environments that care. Siemens Smart Infrastructure has its global headquarters in Zug, Switzerland, and has around 71,000 employees worldwide.

Connected Places Catapult is the UK’s innovation accelerator for cities, transport, and places. We provide impartial ‘innovation as a service’ for public bodies, businesses, and infrastructure providers to catalyse step-change improvements in the way people live, work and travel. We connect businesses and public sector leaders to cutting-edge research to spark innovation and grow new markets. We run technology demonstrators and SME accelerators to scale new solutions that drive growth, spread prosperity, and eliminate carbon.

Newcastle University, UK, is a thriving international community of some 27,750 students from over 130 countries worldwide.

As a member of the Russell Group of research-intensive universities in the UK, Newcastle has a world-class reputation for research excellence in the fields of medicine, science and engineering, social sciences and the humanities.

Its academics are sharply focused on responding to the major challenges facing society today. Our research and teaching are world-leading in areas as diverse as health, culture, technology and the environment.

The Research Excellence Framework 2014 (REF) placed Newcastle University 16th in the UK for Research Power and the vast majority of our research (78%) was assessed to be world-leading or internationally excellent.

Newcastle University is committed to providing our students with excellent, research-led teaching delivered by dedicated and passionate teachers. This is reaffirmed by achieving the best possible outcome – a Gold Award – in the Teaching Excellence Framework (TEF).

Newcastle is placed joint 146th in the world and in the top 20 in the UK in the latest Times Higher Education World University Rankings.

The North East Local Enterprise Partnership (North East LEP) is a public, private and education sector partnership. We are one of thirty-eight LEPs in the country and are responsible for promoting and developing economic growth in the local authority areas of County Durham, Gateshead, Newcastle, North Tyneside, Northumberland, South Tyneside and Sunderland. We produce our area’s Strategic Economic Plan, which acts as a blueprint for the activities that need to take place to improve our economy.

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Key takeaways from the North East Energy Catalyst Summit

“This region is unique. We have everything. The challenge for us as a region is how to take that gift and grow it and multiply it.” Professor Colin Herron of Zero Carbon Futures.

Earlier this week, more than 100 North East organisations came together at the North East Energy Catalyst Summit to explore opportunities that COP26 and the drive to reach Net Zero could bring to our region (you can watch a video of the event here).  

So, what were the key points which emerged during the Summit that can help our energy sector businesses to grow? David Lynch, the North East LEP’s Energy Innovation Partnership Manager, gives a summary.

Attracting investment

At the event we heard three different perspectives on investing in the North East. Tom Nightingale from Equinor gave an update on the development of the world’s largest wind farm at Dogger Bank. Components for the wind farm are being tested at the Offshore Renewable Energy Catapult in Blyth and the operations and maintenance base will be at the Port of Tyne.

Neil Spann, CEO of Power Roll, explained how the businesses is expanding its capabilities in the region with a new facility in County Durham, as it develops new ways to generate solar energy.

And we were absolutely delighted when Richard Blackwell from CrowdHouse Energy announced at the summit a commitment to invest in the North East with plans to create a manufacturing facility in the region as the business prepares to take its new Helios Volt technology around the world.  Why did they choose this region? Because his company was met with “delirious enthusiasm” – that’s what sets up apart! 

What all three investors have in common is an appreciation of the skills and track record our region has when it comes to energy innovation, our assets and infrastructure, and the joined-up approach and enthusiasm we have for driving forward our energy sector.  We’re making a significant contribution to carbon reduction – here in the North East.

Accelerating innovation and identifying opportunities

Many of our speakers talked about de-risking and accelerating new technologies, in turn creating new jobs and supply chain opportunities.

This is something we address through the North East Energy Catalyst’s challenge programme, which supports SMEs to develop and test new energy solutions. A new and exciting challenge will be launched in the next few weeks so sign up to our Energy for Growth newsletter and watch this space! .

The Energy Catalyst has recently commissioned a supply chain analysis which we’ll be able to share with you soon, identifying opportunities for supply chain investment in areas like green hydrogen, heat networks and heat pump manufacture.

Working together

The Energy Catalyst model has demonstrated that innovation works at its best when we bring businesses and academia together. We heard from Newcastle University, Northumbria University and Durham University about research into carbon reduction and the importance of taking a collaborative approach  to accelerate new technologies. 

Newly-formed partnerships like the North East Battery Alliance are raising awareness of the North East capabilities and, of course, the entire event was underpinned by the North East Energy Catalyst, whose members work together to showcase how the North East can accelerate decarbonisation through its innovation and demonstration assets.

Join us to drive future regional growth and investment across heat, power and transport. 

We need to make sure that, as a region, we are shouting loudly about what we can do here and making sure we can grab these opportunities. If you’re a business in the energy sector, I’d encourage you to be a part of this by:

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Port of Tyne and Equinor announced as new North East Energy Catalyst partners

The Port of Tyne and Equinor have been announced as partners in the North East Energy Catalyst network.

The Port of Tyne and Equinor have been announced as partners in the North East Energy Catalyst network.

The two companies joined the ground-breaking partnership that brings together the North East’s leading energy innovation, demonstration and delivery capabilities to work towards shared goals.

The Catalyst was set up in 2019 to invite and co-ordinate engagement with industry and business, promoting opportunities available in the North East to diversify, commercialise new solutions, and to deliver regional growth and employment across the energy sector.

Offshore innovator Equinor is part of the joint venture behind the world’s biggest offshore wind farm Dogger Bank. It recently announced plans to build a new Operations and Maintenance (O&M) base at the Port of Tyne, supporting the Port’s ‘Tyne 2050’ strategy to become one of the most environmentally sustainable ports in the UK by 2030. 

Tom Nightingale, North East Stakeholder Manager at Equinor, said: “We are delighted to become part of the North East Energy Catalyst’s partner network, joining the region’s leading energy innovators.

“The broad range of assets and organisations we can access presents exciting opportunities for collaboration and research in offshore wind and the wider energy space. The Catalyst aims to solve innovation challenges and support the development of the offshore wind industry in the UK and beyond, aligning with our goals as a developer with offshore wind activities globally.

Dr Jo North, Technology and Transformation Director at the Port of Tyne, said:Having collaborated with the North East Energy Catalyst in several exciting and beneficial ventures, the Port of Tyne is delighted to cement this relationship by joining the Energy Catalyst Partner Network.

“The port and the 2050 Innovation Hub are firm believers in open innovation and continual dialogue with like-minded, cross sector organisations. 

“The North East Energy Catalyst acts as a conduit for collaborative partnership development, bringing organisations together to work towards shared visions and goals.  The Catalyst has been extremely proactive in bringing partners and solution providers to the port and receptive to approaches for help and support when needed.”

Facilitated by the North East Local Enterprise Partnership (LEP), the partnership includes Newcastle University; Durham University; Northumbria University; Zero Carbon Futures (a subsidiary of Gateshead College); Northern Powergrid; Northern Gas Networks; the Offshore Renewable Energy Catapult which has test facilities at Blyth; the British Engines Group; the Innovation SuperNetwork; Northumbrian Water; the North of Tyne Combined Authority; and the North East Combined Authority.

Together, they are working to tackle major energy challenges and deliver on national policy; drive new economic growth opportunities; accelerate regional decarbonisation; and foster engagement with partners.

David Lynch, Energy Innovation Partnership Manager at the North East LEP, said: “Both Port of Tyne and Equinor are at the forefront of the offshore wind revolution and play a pivotal role in our shared goal of creating a green and resilient economy, as well as reaching our target of net zero emissions.

“Along with our other key partners, we are delighted to welcome Port of Tyne and Equinor to the North East Energy Catalyst.”

The initiative follows the identification of energy innovation and demonstration as a key theme within North East LEP’s Energy for Growth strategy, which aims to drive economic growth in the North East while also bringing sector partners together to deliver on national energy strategy.

Energy was identified as an area of key importance in the North East Strategic Economic Plan, with the potential to bring investment and jobs to our region.

Read more about the North East Energy Catalyst here.

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Supporting Community Energy in the North East

A new report, commissioned by the North East LEP in partnership with the North of Tyne Combined Authority, Durham County Council and South Tyneside Council, has today shone a light on the vital opportunity that community energy projects present in the region. Andrew Clark, Energy Lead at the North East LEP, explains more.

It is with great pleasure that we today welcome the publication of the North East Community Energy Study.

Never has the need to tackle the climate emergency been more urgent and this important piece of research has brought us a step closer to supporting our communities to benefit from the move to net zero.

Community energy projects are initiatives led by local communities, with an emphasis on community ownership, leadership or control, where the community benefits. They can include things like wind turbines or solar farms that have been set up by local people or aim to benefit the community, community groups offering energy advice to people in their neighbourhood, green tariff switches and car sharing clubs.

As a region, the North East historically has the lowest amount of community energy projects in the UK. To help address this, the North East LEP commissioned the North East Community Energy Study in partnership with the North of Tyne Combined Authority, Durham County Council and South Tyneside Council.

The aim was to carry out in-depth research on what structure, mechanisms, models and support would enable the successful development and delivery of more community energy projects in the North East LEP area. The report will inform the approach and actions taken by regional stakeholders.

The Benefits of Community Energy

Community energy projects have typically been developed in response to climate change concerns, as community groups set out to reduce carbon emissions. However, reducing emissions is just one of the benefits that motivates community organisations to develop energy projects. Community energy projects have been used to generate income for social and environmental focused community development projects, raise awareness around energy use and climate change, improve local economic resilience, create community cohesion and tackle fuel poverty.

The North East Picture

The North East LEP’s Strategic Economic Plan identifies Energy as one of four areas of strategic importance that could improve the North East’s economic competitiveness and community energy is identified as one of the 13 key strategic themes highlighted in the Energy for Growth strategy.[1] Creating a community owned green energy company is part of the North of Tyne Mayor’s Manifesto.

The North East region has a number of community organisations involved in energy initiatives but few dedicated community energy groups. A similar situation is found in neighbouring regions such as Yorkshire and the Humber where there are nine active community energy groups.[2]

Making a Difference Locally

Developing a clear approach to supporting delivery of community led energy projects in the North East, and ensuring wider successful involvement of communities in projects, should be an important part of our regional approach to net zero. This report has carried out extensive engagement with community groups and the regional partners that could be part of a supporting ecosystem for projects. The intelligence gathered will now inform practical steps that can be taken by regional stakeholders to progress the community energy projects that will make a difference locally whilst being part of something bigger.

You can read the Executive Summary and full North East Community Energy Study report on the North East Evidence Hub.

Ends


[1] https://www.northeastlep.co.uk/wp-content/uploads/2019/08/full-strategy-energy-for-growth-strategy.pdf

[2] https://communityenergyengland.org/files/document/353/1575564696_CatalysingPeople-poweredEnergyinYorkshireandtheHumberReport2019.pdf

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Andrew Clark, Energy Lead at the North East Local Enterprise Partnership, on the publication of the Green Jobs Taskforce report

In November 2020, government published its ambitious ten point plan for a green industrial revolution in the UK.

Focused on increasing ambition in emerging and growing sectors like offshore wind, low carbon hydrogen, and electrification, it cemented government’s aim to build back better from the coronavirus pandemic, support green jobs, and accelerate the UK’s path to net zero.

Announced as part of the ten point plan was the formation of a new Green Jobs Taskforce – made up of representatives from industry, trade unions, and the skills sector – which would set the direction of travel for the green jobs market.

On 15 July, the Green Jobs Taskforce published its first report to government, industry, and the skills sector, outlining the importance of investing in the UK workforce to ensure people develop the right skills to deliver the country’s net zero transition, and thrive in a green economy it creates.

The report is of particular relevance to the North East, where green jobs are poised to transform our economy. We are already one of the world’s leading destinations for offshore wind, and recent investments from Nissan and Britishvolt have put our region at the forefront of the electric vehicle market. Innovations in heat networks and other forms of low carbon heat – including mine energy – also position the North East to become the UK’s first low carbon heat cluster, which will see the region benefit greatly from the growth of the green economy.

So how do we plan to maximise on this unique opportunity and play a central role in helping the UK reach its net zero target by 2050? Working alongside partners in industry and academia, we’re mapping the current and future skills needs in the green economy to ensure sectors in the North East – particularly those with the biggest potential for growth – have access to the talent and expertise they need to scale.

As facilitator of the skills workstream for Energi Coast – North East England’s offshore wind cluster – the North East Local Enterprise Partnership is working with industry and the education sector to develop an action plan to meet the needs of the sector with demand-led provision. Central to this is the commitment to increase diversity and inclusion in the offshore wind industry, and the group is actively working with employers to review their current recruitment and retention processes to ensure opportunities are provided to all.

The Energi Coast skills group is also working on a series of case studies that will reflect the partnership approach adopted by the offshore wind industry, the education sector, and government, in ensuring green careers advice is available to people in all sectors and at every stage of the career journey; reinforcing the importance of reskilling and retraining in creating new green jobs.

The low carbon heat supply chain is another significant growth area for the region’s economy, and we’ve recently completed a piece of work to identify the opportunities that exist both now, and in the future, for supply chain businesses, and what this will mean for skills demands. Additionally, as outlined in our Recovery and Renewal Deal for the North East, we’re addressing the need for investment in skills and training around retrofitting by working with the North East and Yorkshire Local Energy Hub on a housing retrofit skills model.

The North East’s significant automotive cluster and hub of activity in the battery and electric vehicles sectors means it’s well placed as a UK centre to meet the global demand for electric vehicles, and help lead innovation in the sector. Nissan’s decision to open a new gigfactory battery plant at its site in Sunderland, and the news Britishvolt will open another gigfactory in Northumberland, demonstrates the industry’s level of confidence in the North East. To ensure we have the skills to meet the demand, we’re working with the North East Automotive Alliance to address skills development in electrification and electric vehicle batteries.

The North East LEP’s Skills team is working alongside the eight early adopter status T-Level providers in the region to help strengthen their links with the business community, ensuring the new vocational qualifications – which include a 45-day industry placement – meet the needs of employers, and help deliver the skills needed to meet the green jobs of the future.

The Skills team is also working with the North East Institute of Technology, local colleges, and major employers like Nissan and Esh Group, to highlight Higher Technical Qualifications in subjects like advanced manufacturing and other STEM topics, as skills in these areas will be central to delivering the green industrial revolution in the UK.

The green economies of the future offer a huge opportunity for the North East to grow its economy and create thousands of more and better jobs. But to do that, we need to invest in skills – both in our future workforce via schools, colleges and universities, but also in our workplaces, by re-training and re-skilling our existing workforce.

In doing so we’ll position the North East as a major destination for skills and talent in green jobs, helping attract more businesses to invest here, ensuring the North East is at the forefront of the UK’s green industrial revolution.

Read more about the North East LEP’s work to support and grow the North East energy sector.

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Energy Minister visits projects putting North East at the forefront of Net Zero drive

As the North East is poised to become the UK’s first low carbon heat cluster, the government’s Minister for Business, Energy and Corporate Responsibility, Lord Callanan, is touring the region to see some of the projects which are leading the way in the nation’s drive to achieve Net Zero carbon emissions.

The visit follows the launch of three nationally significant activities in the region:

  • The first, a report highlighting the potential of mine energy for the UK published on behalf of the BEIS Energy Hub Network – which uses natural geothermal-heated water that has gathered in the underground networks of former deep coal mines – in helping the UK to achieve its Net Zero target by 2050.
  • The second is Gateshead Council’s Zero Carbon Heat Strategy, outlining its ambition to make all Council buildings and homes net zero by 2030, though major investment in heat networks, as well as supporting clean hydrogen and heat pumps.
  • And the third, is the launch of a ‘High Potential Opportunity’ to promote the North East and Tees Valley as an inward investment location for the UK in heat networks.

Andrew Clark, Energy Lead at the North East Local Enterprise Partnership (North East LEP), said: “The North East has an existing skills base, supply chain and infrastructure, plus a nationally-significant project pipeline, which means we are ideally positioned to make a huge contribution to the UK’s drive to achieve Net Zero.

“During today’s visit, we were able to showcase some of the globally-important energy projects which are taking place in our region, and demonstrate how the North East is on its way to becoming the UK’s first cluster for low carbon heat innovation, supply chain and delivery.”

Lord Callanan was able to meet beneficiaries of the Government’s Heat Networks Investment Project (HNIP); two mine water heat networks in the region are among those to have been awarded funding by Triple Point Heat Networks Investment Management in partnership with the Department for Business, Energy and Industrial Strategy (BEIS).

The Minister visited Seaham Garden Village district heat network in County Durham, which will supply low-carbon geothermal heat from former coal mines to a new development to the south of Seaham. It is hoped that the scheme will be a commercially viable sustainable energy demonstrator project that can be duplicated across the UK coalfields, which contain 25% of the UK population.

Energy Minister, and Heat Networks Industry Council Ministerial Champion, Lord Callanan of Low Fell said: “Heating our homes and workspaces without causing carbon emissions is going to be key to tackling climate change and heat networks are proving an effective solution as well as opening up huge potential for investors at home and abroad.“

These low-carbon technologies are allowing us to build back greener from the pandemic, and as the Heat Networks Industry Council’s Ministerial Champion, I’m excited to see the opportunities they are providing in the North-East. “As a native of this region, I’m well aware of how coal dug from under our feet powered the industrial revolution 200 years ago and it’s fitting that that legacy and heat taken from former mines is now helping drive forward a new Green Industrial Revolution.”

Councillor Mark Wilkes, Durham County Council’s Cabinet member for neighbourhoods and climate change, said: “We’re delighted to be part of the drive towards achieving Net Zero carbon emissions.

“The proposed district heating system at Seaham Garden Village will use ultra-low carbon energy from the former mine workings.  

“The use of this technology could be replicated in other parts of County Durham, the North East region and elsewhere across the UK’s former coalfield sites.” 

Also on the agenda was a visit to the Gateshead District Energy Scheme, which has been awarded funding to double its heat network, using geothermal energy from a network of old mine workings 150 metres below Gateshead to supply heat to homes and businesses. 

John McElroy, cabinet member for the environment and transport at Gateshead Council, said: “Our work on heat networks and harnessing geothermal heat shows our ambition to tackle climate change and reach our zero carbon goal by 2030.

“We already have a significant track record of investment in heat networks, so this is proven technology – now we need to move across to sustainable sources of energy and roll out zero carbon heating to a much wider audience across the borough.”

Ken Hunnisett, Project Director at Triple Point Heat Networks Investment Management said: “These two projects represent the first two mine energy schemes to be awarded HNIP funding and signify genuine levelling up in the North East in preparation for net zero. With mine energy ideally suited to district heating, the ability of our coalfields to provide clean, affordable and perpetually renewing heat should be a source of great national pride.” 

Richard Bond, Innovation and Engagement Director at the Coal Authority, said: “Using heat from former coal mines is an innovative way to decarbonise heating supplies, attract investment, create employment and lower energy bills. The Coal Authority is actively working with a number of partner organisations across the country, including the North East Local Enterprise Partnership, to help unlock the potential of mine water heat to make UK homes greener, warmer and more efficient.”

Also in Gateshead, Lord Callanan joined Anne-Marie Trevelyan, MP, Minister for Energy, Clean Growth and Climate Change who was officially opening Hydrogen House, the UK’s first house to demonstrate the use of hydrogen-fuelled appliances in a real-world setting, at Northern Gas Networks’ Low Thornley site. 

Andrew Clark added: “These projects are not just regionally significant; they’re leading the way for the entire nation and no doubt contributed to Government’s recent decision to select Heat networks in the North East and Tees Valley as part of the Department for International Trade’s High Potential Opportunities Programme (HPO). We now have a completed investment proposition to promote to foreign investors and drive investment into the region.

“We’ll continue to work with government, the energy sector in the North East, and our partners in Tees Valley, to push forward the work taking place in our region which will help the UK cut its carbon emissions and help tackle the issue of climate change.” 

On the High Potential Opportunities Programme, Minister for Investment, Gerry Grimstone said: “Our HPO programme is designed to showcase the best opportunities across the UK to international investors and attract investment that will help the UK build back better.

“Attracting investment into the UK’s clean growth industries like heat networks is critical, and with so many projects in the pipeline and such a fantastic ecosystem, the industry should take note of this huge opportunity. This programme along with the Global Investment Summit we are hosting in October will be a chance to show why the UK is a great place to invest in a greener future.”

Find out about the North East LEP’s work to support the North East energy sector here.

Home / Energy

Research into the North East Offshore Wind Supply Chain reveals jobs opportunity

In conversation with Andrew Clark, Energy Lead at the North East LEP

A study commissioned by the North East LEP, and delivered by Cambridge Econometrics and Element Energy, has reinforced a major employment opportunity in the offshore wind sector.  Andrew Clark, Energy Lead at the North East LEP talks about how the findings highlight an opportunity for the North East to take a lead role in delivering national clean growth ambitions and to create more and better jobs for our region.:

What was the aim of the study?

We already know that the North East is a major global hub for the offshore energy and subsea sectors, with world leading supply chain expertise for example in subsea engineering, design, and fabrication of components such as turbine foundations, pipelines and umbilicals. We also have world-class skills and innovation capabilities, and excellent infrastructure.

We wanted to delve deeper into that area, to understand the scale of the role the region can play in delivery of the Offshore Wind Sector Deal, which was launched last year. The aim was also to set out a series of recommendations which will help inform how we further develop our regional cluster to best capitalise on the opportunities identified.

How was the study approached?

Engagement was at the core of this study, with contributions from key regional, national and international stakeholders in the sector and in the UK offshore wind project pipeline. With expert input the study assessed the existing strengths and capabilities of the North East sector, in the context of the existing UK and exports markets.

It then set out the national opportunity articulated as part of the sector deal, specifically in terms of employment and GVA growth based on the current and planned UK project pipeline. This was set out across all the major stages of wind farm development.

Using this information, we determined how much of this national job creation and GVA growth could be secured in the North East in the coming years, building on our existing capabilities. We explored several scenarios for growth in which different assumptions were tested in terms of the region’s future contribution in the UK domestic market, and international export markets.

What does the study tell us?

The study confirmed we should be hugely ambitious in this sector as a region, with a significant economic opportunity for the North East to create more and better jobs and build on its current position as a major global hub for offshore wind.

The study highlights that the total number of jobs created in and supported by the supply chain for offshore wind could reach 8,600 in the North East by 2025. This includes playing a significant national role in terms of the total numbers of jobs within direct sector supply chains, with growth being supported through the national offshore wind sector deal.

Even in a business as usual case, where the region does not increase any further market share, the direct supply chain could reach 3,500 jobs by 2025 representing up to £140m in GVA a growth of 150%.

However, with further strategic development, such as securing a greater share of the operations and maintenance market and specifically developing a wind turbine component supply chain locally, the number of jobs existing in the direct supply chain of the sector could reach 4,600 jobs and generate up to £180m in GVA.

Furthermore, an additional 3,000 – 4,000 jobs could be supported by the offshore wind sector through indirect supply chains and other economic impacts within the region.

Plus, an additional 2,000 – 3,000 jobs could be supported in the rest of the UK as a result of increased activity in the North East’s offshore wind sector

This clearly represents a huge opportunity for the region, demonstrating the central role the North East is already playing in delivering national growth in the sector, and how we can build on this even further.

What’s next?

To help us understand how to drive this level of ambition, the study also presented several strategic recommendations, including around skills and innovation programmes to future proof the sector, coordinating activity across partners, targeting an export offer to key markets, and supporting development of our infrastructure and supply chain.

The North East LEP will continue to work with Energi Coast, the North East’s offshore wind cluster, to work through the findings to help shape cluster development work with sector partners across the North East and Tees Valley.

Read an executive summary of the study. 

For more information on the findings of the study, please contact [email protected].