Renewables East Annual Review 0708

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Information about Renewables East Annual Review 0708

Published on December 2, 2008

Author: Renewableseast


Helping Businesses seize the opportunities for Renewable Energy Renewables East Annual Review 2007 2008 RENEWABLES EAST

Renewables East Annual Review 2007/08 Helping Businesses seize the opportunities for Renewable Energy 03 Contents Chairman’s introduction 03 Chairman’s introduction John Reynolds Chairman As we approach our fifth anniversary, Renewables East continues to grow. 04 MD’s Report We now have more than 200 companies as members and investment is 07 Primary energy growing, as is our reach. It is clear that Renewables East is successfully in the Region fulfilling its initial vision: to advance the cause of renewable energy while 08 East of England Renewable helping deliver significant economic benefits for the region.This year once Energy Statistics again, we have delivered a number of firsts for the region and for the UK. 09 Technology Acceleration 10 BioREGen and Anaerobic We hosted the first UK conference dedicated to Anaerobic Digestion. Digestion Conference Renewables East also secured the first high profile tenant - Airtricity/SSE 13 PurePower – for the magnificent all-new OrbisEnergy centre in Lowestoft. 15 Renewables Energy Highlights JDR Cables secured the first multi-million pound component order for 16 OrbisEnergy soon to offshore wind to be won and delivered within the region, after being be ready for business introduced by Renewables East into the offshore wind marketplace, 18 JDR Cable Systems with support from EEDA and what was then the DTI. 19 The Crown Estate announces Offshore PurePower won planning approval for the region’s first smaller scale biomass Round 3 - complete electricity power plant with the support of the Renewables East BioRegen 20 Responding to project. This £7m development should come on stream later this year. the Skills Shortage 21 Working with LAs across Many of the activities that the company instigates are first-of-kind, novel the region to address and innovative but we also take time to learn from others. In October we planning permission facilitated a visit to the Renewable Energy Installer’s Academy in Northern 22 Resource Efficiency East Ireland, clearly capturing the benefit of learning from others, and as a 23 EMDA Developments result, we have established the Eastern Renewable Energy Academy, 24 The way forward bringing together colleges, business and sector skills councils. for Renewables East 25 Financial Report Across the region, the UK and globally, there is an ever greater requirement 26 Renewables East for renewable energy to offset increasing energy demands, along with Team and Board growing concerns over energy prices, energy security, and the need to 26 Strategic Partners reduce our dependency on fossil fuels, and tackle the greatest challenge and Funders of our generation, climate change. Against this backdrop, I assure you that all of us at Renewables East will continue to work as hard as ever to enable, deliver, and to inspire even greater renewable energy opportunities for the region. Image shown: Leading edge solar collector technology from HelioDynamics Ltd

Renewables East Annual Review 2007/08 Helping Businesses seize the opportunities for Renewable Energy 05 MD’s Report Over the last few years Renewables East has continuously evolved to meet fresh challenges and a changing funding climate. Thanks to the success of our finance and systems teams, we have made the transition from a micro-business into a fully functioning small business. We have already secured investment commitments of approximately £2 million for 2008/09, which will help us deliver the ambitious programme of activities outlined on page 24 of this Review. If we get it right, and I believe we will, then the commercial prizes that we can bring to the East of England are huge. Measured simply in terms of jobs and money, if we reach our goal of delivering 20% of the region’s energy requirements from renewables by 2020, that will generate an extra £1 billion of GDP into the region, and create an additional 24,000 jobs locally. As significant as that is though, Renewables East is not just about the numbers. Concerns over rising energy prices, climate change and energy security – or the lack of it – are not going to disappear. “Having just become a father There are clearly enormous challenges for the East of England, for me, for the first time, I am now and for my new-look team, with the arrival of Ian Williams (Director of even more keenly aware that Operations), John Heath (Delivery Manager), Carole Randall (Renewables we must take every available Deployment Manager), Kim Warnes (Office Manager), and Nigel Dent opportunity to reduce our (Northstowe Project Manager). impact on the environment.” But with continued support from our regional stakeholders, with the James Beal advice and support of renewable businesses, and by continuing to mobilise Managing Director those visionaries in the region to join us on this journey, I know that we Renewables East can deliver. Image shown: Ecogen’s Ransonmoor Wind Farm

Renewables East Annual Review 2007/08 Helping Businesses seize the opportunities for Renewable Energy 07 Primary energy Government’s target. East of England potential. 15% of primary energy The region has the potential requirements should come to achieve 20% of final in the Region from renewables by 2020 energy consumption from renewables by 2020 15% 20% The report identified four key A report commissioned by Renewables East with funding support from East of England. areas of opportunity in heat National average. EEDA and wide support from the region including East of England renewables: 2.2% of our primary energy Regional Assembly, Environment Agency, Natural England, numerous 1.4% of primary energy • Community off gas grid comes from renewables local authorities and businesses, showed that the East of England could comes from renewables installations. Over 30% of the plot a course to surpass the Government’s target for 15% of primary energy requirements to come from renewables by 2020. region’s housing is currently not connected to the gas network. 2.2% 1.4% We are already the UK’s leading region in this field with 8.9% of our Often these properties are electricity supply, and 2.2% of our primary energy overall – coming poorly insulated, and together from renewables, against a national average of 1.4%. with using heating oil, are responsible for high costs The region has the potential to achieve 20% of final energy consumption and carbon emissions. • Individual business from renewables by 2020. This would generate over 75,000 jobs of which installations. Many businesses a further 24,000 could be captured within the region, increasing regional rely on costly and high carbon economic activity by more than £1 billion a year and reducing the region’s emitting oil heating for main carbon emissions by 24%. supply or back-up supply. To increase their competitiveness, To achieve such ambitious goals means the region needs to maintain businesses need to look to its significant progress. It is a tough challenge but one we are absolutely renewable alternatives. confident that the region, with support from Renewables East, can • New developments. With deliver on. 500,000 houses and associated public and commercial buildings The report also found that while demand for electricity and transport needing new heat sources, fuel is likely to increase, the demand for heat in buildings is likely to fall renewable energy will play an due to their greater thermal efficiency and industrial processes. increasingly important role in delivering on site energy supplies. It is already clear that the region is going to significantly benefit from • Biogas to feed into the offshore wind with the creation of the multi-billion pound market gas grid. Anaerobic digestion around our coast, and key investments such as OrbisEnergy, to capture produces methane (natural new business opportunities. The region needs to bring forward a raft of gas). With some cleaning, measures to stimulate and capture benefit from an increased deployment this gas, subject to legislation, of renewable energy. In particular, a massive growth area is the provision could and should be fed into of heat from renewable sources. the national gas network. Image shown: Lotus Exige 270E Tri-fuel, which runs on any mixture of petrol, bio-ethanol and methanol

Renewables East Annual Review 2007/08 Helping Businesses seize the opportunities for Renewable Energy 09 East of England Renewable Technology Acceleration Energy Statistics June 2008 The East of England could exceed its 2010 offshore The region only has some 70 turbines - or 120MW target of 317MW, if, The Gunfleet Sands Round One of installed capacity - up and running so far. During project off Clacton and Airtricity’s Round Two Greater the 12 months to June 08, only 4 schemes (53 MW) Gabbard project off Orford, deliver to their planned have been approved but 8 schemes (99MW) refused. timetables. The signs look good following Dong Renewables East is therefore disappointed that the Energy’s acquisition of the 108MW Gunfleet Sands new Infrastructure Planning Commission is currently project and the grant of consent for Greater Gabbard. not intended to deal with schemes less than 50MW, As a result the region could well meet its overall and has lobbied accordingly. target of 10% electricity from renewables by 2010. The relaxation in April this year of rules governing solar The region’s 2020 target - of at least 17% electricity and heat pump installations should mean more smaller from renewables - will need to be met purely from scale power generation. While the larger housing onshore renewables. The disappointing rate of planning schemes to be built as part of 500,000 homes planned permissions for onshore wind schemes over the past for the region could easily source all their power and year is therefore a matter of concern. heat from local renewable energy generation. Renewables East is to develop a Technology Acceleration Renewables East is working with businesses, universities, scheme backed by EEDA funding to stimulate more trade associations and support organisations capable of Planning decisions June 07-June 08 renewable technology developments. delivering and supporting innovation in all these areas. Approved by Approved Refused by Refused New local authority on appeal local authority on appeal applications Although there is significant demand for new innovation Using this style of support Renewables East has Coldham Extension 12-14MW Kessingland 6MW Poddington 20MW Guestwick 12MW Lotus resubmission 6MW in the low carbon arena, the demand is not being met demonstrated significant success in the past, for Tilbury (UDC decision) 8MW Bradwell on Sea Wadlow Farm 30MW Hempnall 14MW Swaffham Extension 12MW Snowmountain 2MW 25MW with credible and investment ideas. This Scheme will example, working with JDR Cables to innovate their Flag Fen 12MW French Farm 4MW help innovators at the earliest stages of their work to cable design. Making it available to the offshore wind Creek Road 2MW Benington 6MW assess their ideas in terms of both “technology-push” market has resulted in new multi-million pound orders Earls Hall Farm 10MW and “market-pull”, and in this way assist them in being won. QE Hospital 0.8MW 22MW 31MW 86.8MW 12MW 32MW underpinning their business plans with a credible route to market. The scheme’s first call will be for innovations in the field of offshore renewables, since global demand Progress - Installed capacity of all renewables against 2010 and 2020 targets (MW) The scheme will involve a twice-yearly call for innovation. for wind turbines is set to remain significantly higher 1800 Applications will be assessed by a panel. Funding for than supply, while for successful innovations there are 1600 the projects that are selected will come from Renewables financial incentives such as 1.5 times ROCs (Renewable 1400 East and from selected third-party service providers. Obligation Certificates) for offshore wind technologies, 1200 and 2.0 times ROCs for marine technologies. MW 1000 Support will be available for components, systems, 800 services, research, infrastructure, grid connectivity The second call for innovation is likely to go out towards 600 and transmission, investment analysis, and the end of 2008, and support will be available for all 400 200 intellectual property/patenting. technologies credited as being ‘Renewable’ under the 0 terms of the Renewables Obligation (RO). 2003 2004 2005 2006 2007 2008 2009 2010 (E) 2010 (T) 2020 (T) Image shown: Lotus Concept Ice Vehicle Landfill Gas Biomass Onshore wind Offshore wind All onshore technologies

Renewables East Annual Review 2007/08 Helping Businesses seize the opportunities for Renewable Energy 11 BioREGen and Anaerobic Digestion Conference The highly successful BioREGen project ended in be actively involved with Government in developing March 2008 with a London conference on Anaerobic a framework for the future. Digestion (AD) - the first event of its kind in the UK. BioREGen provided £20,000 towards developing The event, a complete sell-out, was attended by more a Quality Protocol and Digestate Standard (PAS 110), than 250 delegates from all over the UK and by 17 a protocol which could be in place by early 2009. exhibitors from across Europe. The project has given rise to a series of guidance notes In his keynote speech, Jeremy Eppel from DEFRA’s for biomass projects; studies into technologies including Farming for the Future programme, outlined deployment of combined heat and power using wood Government interest in AD as part of its renewable waste; and surveys of potential energy feedstocks. energy strategy. The Renewables East decision to focus on AD and Presentations at the event covered topics including gasification through its BioREGen project has been a digestate standard, organic residues from municipal fully vindicated. These are now recognised as emerging waste collections, opportunities for land owners, ‘advanced technologies’ qualifying for ‘double ROCs initiatives for a zero-waste strategy, and the handling (Renewable Obligation Certificates)’ from April 2009. of pig slurry and commercial food waste. The potential for small scale gasification projects has been shown by PurePower’s Huntingdon plant. Richard Parker, Development Director for Bio Energy, outlined the BioREGen project to delegates. BioREGen Which is why, although the BioREGen project is now has enabled Renewables East to significantly advance ‘closed’, Renewables East continues to work to promote AD technology across the region and the UK, and these technologies and give support where possible. Image shown: OWS – Dranco System, located in Stuttgart

Renewables East Annual Review 2007/08 Helping Businesses seize the opportunities for Renewable Energy 13 PurePower “PurePower really appreciated From 2006 to 2008, Renewables East invested £680,000 of funding the practical support and from EEDA under the Government’s Business Resource Efficiency and guidance received from Waste (BREW) programme, for our BioREGen project. Renewables East throughout the development stage of a BioREGen was set up as a regional initiative to identify and evaluate number of its projects located opportunities to divert material from landfill, and to recover renewable in the East of England.” energy from organic residues and waste wood. BioREGen also provided support to help companies ‘kick-start’ projects in this arena. Adam Overfield Chief Executive One of the companies to have benefitted from BioREGen’s support is PurePower PurePower, which focuses on the development, construction, ownership and operation of renewable power stations. PurePower also explores the acquisition and development of waste recycling businesses. Earlier this year PurePower raised financing totalling £12 million, allowing the company to acquire Huntingdon Recycling, a large composting and wood recycling business on a 14 acre site by the A14/A1 junction. The facility currently composts a large proportion of Cambridgeshire’s green and animal by-product waste and also processes large volumes of mixed waste wood. On the site, PurePower is investing up to £8 million on advanced gasification/ pyrolysis technology. This will produce a ‘syngas’ used to generate around 3MW of electricity - enough to power the equivalent of 5,000 homes. Waste heat from the power generator will be used to dry material to be sold as a biomass fuel. The process will save up to 25,000 tonnes of wood waste a year from going to landfill. The site - to be finished by late 2008/early 2009 - will comply fully with the Waste Incineration Directive, and the company expects to construct up to five other plants at strategic locations in early 2009.

Renewables East Annual Review 2007/08 Helping Businesses seize the opportunities for Renewable Energy 15 Renewable Energy Highlights 2007/08 • urePower announced their financing of the P • overnment Renewable Energy Strategy sets G £7 million Huntingdon plant to generate 3MWe out £100 billion plan to achieve 15% of primary from the pyrolysis / gasification of wood waste. energy from renewables by 2020. • ritish Sugar commissioned the UK’s first B • enewables East Primary Energy Report puts region R bioethanol plant at Wissington, demonstrating on course to produce 20% of its primary energy a carbon saving of 71%. demand from renewables by 2020. • he Renewables East BioREGen project culminated T • he East of England Plan is the first regional spatial T in the sell-out Anaerobic Digestion event in London strategy requiring new developments to include - the UK’s first event of its kind. renewable energy. • he Crown Estate announced Round 3 of Offshore T • lanning permission no longer required for P Wind Developments, taking UK capacity from 8GW photovoltaic installations. to 33GW by 2020. • ambridge University secure £5 million Carbon C • rbisEnergy won EU project of the year AND O Trust investment to develop and deliver organic National Gold Winner – England International photovoltaic technology. Green Apple Awards 2008. • egional company PolySolar secure £1 million R • enewables East, working with industry and R investment from Technology Strategy Board regional stakeholders, ensured development to develop new photovoltaic. of a new UK protocol for Anaerobic Digestion. • rident Energy secures £700,000 of investment T • irtricity/Scottish and Southern Energy chose A for region’s first wave technology test site off the Lowestoft as their long term operation and coast of Lowestoft, at which Trident’s first array maintenance base for the £2 billion Greater of four point absorber devices is to be deployed Gabbard offshore wind farm following planning following their manufacture in the Lowestoft area. consent for a heli-pad and hanger. For the same • enewables East secures the East of England as a R pilot region for £1 million BERR (Department for project, Cambridgeshire-based JDR Cables secured Business, Enterprise and Regulatory Reform) the multi-million pound contract for the investment into piloting renewable technologies inter-turbine array cables. • herringham Shoal offshore wind and Gunfeet S to relieve fuel poverty. Sands Phase 2 wind farms consented. • astern Renewable Energy Academy established E • ver 2GW (approx £5 billion capital) offshore wind O - a regional partnership of Further Education now consented around region awaiting construction. Colleges, sector skills councils, and industry. • nvirolink produce DVD highlighting the region’s E advancing renewable energy capabilities and technologies.

Renewables East Annual Review 2007/08 Helping Businesses seize the opportunities for Renewable Energy 17 OrbisEnergy soon to be ready for business “OrbisEnergy is open for business and changing the outlook for Lowestoft.” This iconic low-carbon structure, housing a unique business space, grew out of the regional commitment from EEDA, ERDF, Waveney District Council, Renewables East and Suffolk County Council to capture a bigger share of the growing offshore wind, wave and tidal energy technologies. A huge boon, helping establish OrbisEnergy at the heart of the region’s offshore renewables industry, came in May 2008 when national energy utility Airtricity/SSE (A/SSE) signed up as a key anchor tenant. A/SSE’s pledge came after planning consent was given allowing Bond Air Services to build a helicopter pad and hanger in the Lowestoft Harbour’s docks area. The deal between Bond Air and A/SSE is the first of its kind in the UK offshore wind sector. The move sees A/SSE committing itself to OrbisEnergy, Lowestoft and the region, by making OrbisEnergy the company base for the long-term operation and maintenance of their 500MW, 140-turbine Greater Gabbard offshore wind farm. As well as its role in fostering business creation and growth, OrbisEnergy has spectacular exhibition and conference facilities. A number of high profile events have already been booked for guests including the Royal Institution of Chartered Surveyors and WindPower Renewable Solutions Ltd. The role for OrbisEnergy is to develop and grow as part of the wider, surrounding energy park; to give tenants the space they need to expand, and to work closely with complementary businesses within the low-carbon and offshore renewables energy sector. Underpinning regional growth in this sector is EEDA’s award to Renewables East, of the feasibility assessment for four regional capital infrastructure projects, two of which are directly linked to the offshore renewable agenda. Image shown: Steve Clarke, Development Director, Offshore Renewable Energy at OrbisEnergy.

Renewables East Annual Review 2007/08 Helping Businesses seize the opportunities for Renewable Energy 19 JDR Cable Systems The Crown Estate announces Offshore Round 3 - complete Indicative Economic Potential for Offshore Wind The Crown Estates’ 4th June 2008 announcement on Round 3 for offshore wind developments further emphasised the East of England’s role at the forefront of the offshore renewable energy industry. Under the auspices of its Championing Offshore Greater Gabbard offshore wind farm - a round 2 Renewables programme, Renewables East feels both project which, once built, will be the largest offshore proud and privileged to have been able to support wind farm in the world at 500MW from 140 turbines. JDR Cables during their ongoing diversification from oil and gas umbilical cables, into offshore wind. So, for Ely-based JDR Cables Ltd. renewable-sector growth is on the agenda for the foreseeable future. During 2006/7, year one of the Championing Today it’s within their domestic market, but in years programme, Renewables East supported JDR’s to come, theirs will undoubtedly become a huge need to assess the market opportunity by providing regional success story in terms of penetration into Legend sector/market and technology data, contacts, and export markets too. Round 2 Development Zones offshore wind farm project information, including Potential Round 3 procurement timescales. Development Zones “Renewables East’s support, UK Territorial Sea Limit Having then made their decision to target specific technology understanding offshore wind projects, JDR were further supported and access to market in year two (2007/8), but this time Renewables East’s information, was invaluable Note intervention had a clear focus on driving down for JDR in securing the UK’s This map represents The Crown production costs through lean manufacturing largest component order Estate’s initial view of locations of and productivity initiatives. for offshore wind.” potential zones for the development of offshore wind farms. It will be This strategic positioning of their cost and pricing Patrick Phelan subject to revision. The zones do structure relative to the market has helped yield Managing Director not in any way reflect the output the recent confirmation of contract award for the JDR Cable Systems Ltd of BERR’s SEA. inter-turbine array cable order for Airtricity/SSE’s

Renewables East Annual Review 2007/08 Helping Businesses seize the opportunities for Renewable Energy 21 Responding to Working with LAs across the Skills Shortage the region to address planning permission Fulfilling the region’s potential for the uptake of renewables will require Renewable energy is becoming more common in Having recognised this need, in 2007, Renewables East a substantial increase in the number of skilled people – trained to high new build developments and retro-fit installations responded, in partnership with Creative Environmental standards – in the region. across the UK. Networks, by holding a series of events across the region for local authority planning department staff. Recognising this need, Renewables East seeks to support agencies and As a result, local authority planning department organisations involved in all aspects of training, and where possible, staff are having to assess increasing numbers of These bespoke training sessions were tailored make its own contribution. applications involving the deployment of renewable specifically to help relevant staff better handle this energy technologies. important element of sustainable development. After a visit to the Renewable Energy Installer’s Academy in Northern Ireland, facilitated by Renewables East, a group of colleges and sector To enable them to make fully informed decisions A further round of updated seminars will take place skills councils, along with the Higher Education Funding Council for as to the suitability of proposed installations, these in the Autumn of 2008, and will again bring England and MOVE, realised the opportunity for the region and formed personnel need a basic understanding of the common up-to-the-minute, relevant and expert knowledge the Eastern Renewable Energy Academy (EREA). technologies, and a much more detailed understanding to local authority planning department staff across of the current tools available to them from the the region. EREA, a virtual academy of training providers, supports and stimulates planning system. sustainability and growth in the use of renewable and alternative energy technologies in the East of England. It aims to drive the low carbon economy, stimulate and increase demand for, and use of, renewable and alternative energy systems, and provide a forum for sharing best practice in training. In June 2008, EREA, with six European partners, submitted a one million Euro bid to the Intelligent Energy Europe programme. If successful this funding will facilitate workforce development, training and skills programme development, quality assurance standards and technology awareness-raising, in seven countries. This group is also putting together a bid that will be submitted to the recently announced Learning Skills Council’s Further Education Specialisation and Innovation Pathfinder Project. If successful this will see EREA members take the lead in a national project facilitating knowledge transfer in the Further Education network between businesses and training providers. Image shown: Heat pump lab at Lisburn College, Northern Ireland

Renewables East Annual Review 2007/08 Helping Businesses seize the opportunities for Renewable Energy 23 Resource EMDA Efficiency East Developments The REE programme will: In a move that recognises the many successes we have had in delivering Based on Renewables East’s successes in the East Image shown: Centrica’s Lynn and Inner Dowsing offshore wind farm key regional projects and programmes, Renewables East has been tasked • romote Business Link P of England, similar support services are now being to lead the Resource Efficiency East (REE) regional project. as its key point of contact. provided to business in the East Midlands on behalf • ssist business to identify A of the East Midlands Development Agency (EMDA). REE aims to improve resource efficiency among the region’s businesses, potential resource savings particularly among small and medium sized enterprises (SMEs). as well as the actions needed The two year programme is a little over halfway to achieve those savings. through but already a significant number of businesses Having been allocated £2.1 million for the project, the Renewables East • aximise nationally funded M have been helped to better understand technology REE programme will help businesses in the East of England become more activity in the region. development opportunities for offshore wind, wave and • nsure businesses receive E efficient operationally, by delivering and coordinating a comprehensive tidal generation. The project has helped deliver greater effective, consistent and package of guidance, advice and support. understanding too of the opportunities for innovation quality support from in the renewables supply chain, and of how to access The help and advice from REE will be business-focused and commercially- appropriate service providers. lean manufacturing and productivity assistance. • eliver effective solutions D orientated, giving practical guidance and support about all aspects of to environmental issues resource efficiency. Significant events have also been delivered to the of strategic importance. regional EMDA businesses, including a ‘Meet The • enerate new employment G REE is to establish a single point of contact for any business looking to Utility’ event with Centrica, and an event delivered and secure existing jobs. improve its performance. The aim is for REE to assist the region’s businesses in partnership with Siemens and others, focussed • timulate new environmental S to identify, implement and monitor environmental and resource efficiency wholly on the long term ‘Operation and Maintenance’ innovations. initiatives. These will in turn lead to a reduction in the environmental agenda, the first of its kind in the UK. • stablish resource efficiency E impact of regional businesses, bringing long-term efficiencies and as a key regional economic greater commercial competitiveness. function, further assisting Key REE initiatives will include business reductions in CO2 emissions, the region to prosper in use of landfill, water consumption and materials. global, competitive markets.

Renewables East Annual Review 2007/08 Helping Businesses seize the opportunities for Renewable Energy 25 The way forward Financial Report for Renewables East Renewables East - Key Financials - Income Income for Renewables East has grown significantly £1,500,000 in the time the organisation has been in existence, £1,125,000 with grants providing its main source of income. £750,000

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