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EnviroCluster Peterborough
Cutting Carbon Emissions as an Opportunity for
Business
Gareth Jones
UK Centre for Economic & Environmental Development
(UK CEED)
Introduction
UK CEED, a charitable foundation, was established in 1984 by
leading figures from the business, government and scientific
communities.
The Centre aims to demonstrate the benefits to business and
the economy of good environmental practice. It does this
through research, promotion of good practice, provision
of policy advice to government and business, demonstration
projects and engagement activities.
Structure
Board of Directors
Chief Executive
Chris Murray
Project Managers
ResearchersProject
Officers
Associates
Academia
Private-sector
Public-sector
Research
Venture Capital
Funding
UK CEED’s funding is derived from:
•Private sources (sponsorship, membership, events, research)
•Public sources (government, RDAs, research work)
•Charitable Trusts
•Donations (from industry)
Expertise
UK CEED’s expertise includes knowledge of:
•UK environmental legislation
•European eco-innovation activities
•Support activities for UK businesses, both eco and non eco
•Environmental Management Systems (EMS)
•Environmental Impact Assessments (EIA)
•Strategic Environmental Assessments (SEA)
•Green IT
Activities
UK CEED’s activities are broadly split into 4 areas:
•Research
•Engagement
•Sustainability Tools
•Business Support
The problem…
It is not just about climate change and CO2 emissions…
•Protect natural environment / ecology
•Pollution prevention
•Sustainable development
What is the Low Carbon and Environmental
Goods and Services (LCEGS) sector?
Wind Turbine
Gearbox
Hydrogen Fuel Cell Tidal Power
Generator
Water Treatment
Plant
Particulate FilterMaterials Recycling
Facility
Low Carbon and Environmental Goods and Services
(LCEGS) Sector
Split into 3 categories
• Environmental
• Renewable Energy
• Emerging Low Carbon
Source: BERR (2009)
Low Carbon and Environmental Goods and Services
(LCEGS) Sector
Environmental
• Air Pollution
• Contaminated Land Reclamation & Remediation
• Environmental Consultancy and Related Services
• Environmental Monitoring, Instrumentation and Analysis
• Marine Pollution Control
• Noise & Vibration Control
• Recovery and Recycling
• Waste Management
• Water Supply and Waste Water Treatment
Source: BERR (2009)
Low Carbon and Environmental Goods and Services
(LCEGS) Sector
Renewable Energy
• Biomass
• Geothermal
• Hydro
• Photovoltaic
• Renewable Consulting
• Wave & Tidal
• Wind
Source: BERR (2009)
Low Carbon and Environmental Goods and Services
(LCEGS) Sector
Emerging Low Carbon
• Additional Energy Sources
• Alternative Fuels
• Alternative Fuel Vehicle
• Building Technologies
• Carbon Capture & Storage
• Carbon Finance
• Energy Management
Source: BERR (2009)
How large is the LCEGS market?
Global LCEGS Markets
Country Market Value, £bn % global total
United States 629 20.6
China 411 13.5
Japan 191 6.3
India 191 6.3
Germany 128 4.2
United Kingdom 107 3.5
France 93 3.0
Globally - £3,046bn
38% - Asia
30% - Americas
27% - Europe
5% - Africa / Oceania
Proportional to
population
Source: BERR (2009)
Global LCEGS Markets
Country Market Value, £bn % global total
United States 629 20.6
China 411 13.5
Japan 191 6.3
India 191 6.3
Germany 128 4.2
United Kingdom 107 3.5
France 93 3.0
Globally - £3,046bn
50% - top 5
Countries
Source: BERR (2009)
UK LCEGS Markets
•54,835 active companies
•881,000 jobs
•45% growth by 2017
Air Pol lution
Envi ronmental Consul tancy
Environmental Monitoring
Marine Pol lution Control
Nois e & Vibration Control
Contaminated Land
Waste Management
Water and Waste Water
Recovery and Recycl ing
Hydro
Wave & Tidal
Biomass
Wind
Geothermal
Renewable Consulting
Photovolta i c
Alternative Fuel Vehicle
Al ternative Fuels
Addi tional Energy Sources
Carbon Capture & Storage
Carbon Finance
Energy Management
Bui lding Technologies
Environmenta l
Renewable Energy
Emerging Low Carbon
Source: BERR (2009)
UK LCEGS Markets
Source: BERR (2009)
What are the export opportunities?
Market Opportunities
Developed Markets?
• Largest markets are in developed countries and rapidly developing
countries. Home markets still growing rapidly in emerging low carbon and
renewable energy sectors.
• Export opportunities greatest to countries who are developing energy
infrastructure to meet rising energy demand.
Export Markets
Where are the biggest export markets?
• China
• India
• Pakistan
• South Korea
• Thailand
Source: BERR (2009)
Export Markets
What are the biggest export markets?
• Water Treatment and Distribution
• Large Windfarm Systems
• Large Wind Turbines
• Small Wind Turbines
• Systems and Equipment for Photovoltaics
• Alternative Fuels for Vehicles
• Energy Efficient Windows
• Other Fuels in Alternative Fuels
Source: BERR (2009)
UK Exports
2.490.261France20.
2.570.269Russian Federation19.
2.600.272Saudi Arabia18.
2.700.283Denmark17.
2.760.288Turkey16.
2.950.308USA15.
2.970.311Italy14.
2.980.312Thailand13.
3.000.313Portugal12.
3.000.314Romania11.
3.140.328Japan10.
3.160.331Poland9.
3.360.352UAE8.
3.540.370Taiwan7.
3.750.392Pakistan6.
3.820.399India5.
3.850.403Malaysia4.
4.320.452South Korea3.
4.580.479Spain2.
12.061.261China1.
Country as %
export total
Sector
total
(£bn)
CountryRank
China
• Wind (£0.165 bn)
• Alternative Fuels (£0.156 bn)
• Solar PV (£0.156 bn)
• Building Technologies (£0.146 bn)
• Geothermal (£0.117 bn)
Spain
• Alternative Fuels for Vehicles (£.0.089 bn)
• Alternative Fuels (£0.088 bn)
• Building Technologies (£0.078 bn)
• Solar PV (£0.051 bn)
South Korea
• Wind (£0.076 bn)
• Water and Wastewater Treatment (£0.055 bn)
• Solar PV (£0.050 bn)
• Building Technologies (£0.047 bn)
Source: BERR (2009)
UK CEED’s recent research activities:
Study of Emerging Markets in the Environmental Industries Sector
DTI / DEFRA 2006
Innovation in Environmental Services
BERR / NESTA 2007
The Commercial Opportunity for London Businesses in the Environment Sector
LDA, 2008
Research
• Ulaanbaatar – one of the world’s most polluted cities (World Bank)
• City of 1 million, pollution in surrounding settlements where
migrants live in yurts where they burn tyres, rubbish and toxic
materials creating smog
• Solution being defined by UK CEED and the International
Association of Business and Parliament (IABP)
• Stakeholder group set up between local government, business and
communities to jointly find an agreeable solution
Current Research - Mongolia
City Authorities
• Air Quality Department of UB
• Mayors Office
• Air Quality Agency
Government Departments
• National Ozone Authority
• Sustainable Development and Strategic Planning Department
• Ministry of Nature, Environment, and Tourism
• Energy Authority
Citizens, NGO’s and Businesses
• Yurt district residents
Air Pollution Assessment Visit - Method
Academic Institutions
• Hydrometeorlogical Society of
Mongolia
• Mongolian University of Science
and Technology
• Institute of Thermal Engineering
Power Engineering School
• School of Mechanical
Engineering
• Chief Scientific Advisor to the
President
Long term – 20 year plan
• Increase power supply
• Improve infrastructure
• Replace coal based yurt heating and cooking technology with grid power
• Replace yurts with low cost housing
Short/mid term
• Immediate augmentation of current work on stove technology;
• Community based small scale projects:
– Community wash house
– Sustainable buildings
Recommendations
• Inverting stove technology
– Mineral Polymer foam insulation
– 50% decrease fuel
– 95% decrease in particulate emissions
– Payback is 2-3 years
• Stirling air circulating fan
– Known technology
– Easily manufactured locally and combines better comfort in the home with
low cost and fuel saving
– Payback is 1-2 years
• Flue heat exchanger
– Reduces fuel use by 10%
– Payback in 1-2 years
• Commence community wash house and sustainable build projects
Short/Mid-Term Plan
Eco Innovation
What is Eco Innovation?
• Eco-innovation means all forms of innovation activities resulting in
or aimed at significantly improving environmental protection. Eco-
innovation includes new production processes, new products or
services, and new management and business methods, the use or
implementation of which is likely to prevent or substantially reduce
the risks to the environment, pollution and any other negative
impact of the use of resources throughout the lifecycle of related
activities.
Source: European Commission (2009)
Eco Innovation
Drivers
• Need to become more resource efficient
• Policy decisions (e.g. CRC Energy Efficiency Scheme)
• Internal decisions (e.g. Environmental Management Systems)
• Resource efficiency (to save money)
• Need to improve or protect the natural environment
• Improve health and wellbeing
• Litigation prevention - avoid fines for pollution
• Feel good factor
CRC Energy Efficiency Scheme
What is it?
• Mandatory carbon emissions trading scheme for businesses using 6,000MWh of
electricity (roughly £500,000 worth of electricity pa).
• Administered by EA on behalf of DECC.
• Started April 2010 for both public and private sectors.
• 20% reduction in carbon emissions by 2020 (based on 1990 levels)
• 80% reduction in carbon emissions by 2050 (based on 1990 levels).
• Affected organisations buy allowances. Penalties also apply for non-comp.
• Allowances bought per tonne of CO2 emitted (£12 per tonne).
• Revenues are redistributed as bonuses to compliant organisations.
• Benefits to businesses through reduced costs and benefits to environment.
• The Opportunity: Energy Efficiency
EU Emissions Trading Scheme
What is it?
• Emissions trading scheme for CO2 intensive industries:
• Electricity generation, iron and steel ind., mineral processing, pulp/paper ind.
• Will cover all metals (e.g. aluminium) and maybe aviation from 2013.
• Only covers CO2 but may include other GHGs from 2013 (Phase III).
• Permits can be bought and sold through a trading mechanism.
• Currently around €16 per tonne.
• Benefits: Reduced energy bills, income through permit sales.
• The Opportunity: Energy Efficiency
Feed in Tariff
What is it?
• Payment incentive scheme for renewable energy systems.
• Aims to increase UK renewable energy share to 15% by 2020.
• Came into affect April 2010.
• Government pays a generation tariff (e.g. 41.3p/KWh for <4kW solar PV).
• Government pays an export tariff (e.g. 3p/KWh exported to grid).
• Benefit = reduced energy bills + generation tariff + export tariff.
• Generation tariffs guaranteed for 25 years.
• Very good ROI.
• Renewable Heat Incentive coming in 2011.
• The Opportunity: Renewable Energy and Energy Efficiency
Environmental Management Systems
What is it?
• Voluntary scheme for businesses to reduce environmental footprint
• Various standards: ISO 14001, EMAS, BS8555
• Focus on energy use, transport, pollution, ecology…
• Audited to ensure compliance and that reductions are maintained
• The Opportunity: Low Carbon and Environmental Solutions
How does UK CEED support Eco Innovation?
Peterborough: The Home for Environmental Businesses
Eco Innovation Clusters: An Opportunity for Business
What is a cluster?
• Network of businesses, organisations, R&D institutions.
• Competition = innovation
• Collaboration = innovation
• Small geographical
• concentration
Private Sector
Public SectorAcademic / Research
Sector
EnviroCluster Peterborough
• 360 Environmental businesses and organisations
• 5,800 jobs
• £590m turnover
• Cluster launched by Lord Sainsbury in 2002
• Cluster attracted more than £2m of inward investment
• Peterborough recognised internationally for environ. expertise
Why Peterborough?
• Engineering Background – Railway Heritage
• Existing environmental companies, especially water-based
• Public-sector base
• Local environmental initiatives in Peterborough
• Support organisations (e.g. EIC, EnviroCluster)
• Peterborough: UK’s Environment Capital
EnviroCluster Support
• Internationalisation
• Investor-readiness
• Commercialisation support
• Marketing and branding / promotional support
• Business incubation / inward investment
• R&D support and matchmaking
• Partner-finding
• Access to grant funding and business opportunities
• Engagement and networking
• Demonstration projects
• Skills & training
Retrofit for the Future – example R&D project
• Technology Strategy Board Bid in late 2009
• EnviroCluster consortia of research, public, private, academic
• Retrofit existing property to achieve 80% energy cut
• Working with RSL to develop an end-terrace property
• Innovative, cost-effective, replicable
Example Companies
Cunnington Clark is a building services and
design engineering company with a
specialism in low energy and sustainable
design.
Example Companies
Dresser-Rand provides
innovative engineering
solutions for energy-
related industries. The
company designs and
manufactures steam
turbines, gas compressors,
CHP systems, specialist
gearboxes and special
purpose machinery.
Example Companies
The Lightning Car
Company is developing a
high-performance electric
car with 500+ bhp which
can do 0-50mph in <5s
and a top speed of
130mph.
Example Companies
Applied Energy Products
Limited manufactures and
supplies a range of heating,
ventilation, showering and
hot water products, including
low carbon solutions such as
heat-pumps, micro-wind
turbines, solar thermal
systems and mechanical
ventilation with heat-
recovery (MVHR).
Eco-Innovative Cluster Partnership (EcoCluP)
• Adapt, test and implement sector-specific support tools to allow cluster
companies to grow and internationalise.
• Toolbox for internationalisation
• Service kit for innovative SME’s
• Eco-Cluster Manager Campus
• Eco-Company Club
• Practical approach for joint research cooperation
13 partners in 10
countries
3,500 cluster companies
(mainly SMEs)
430 research institutions
Peterborough: The Home for Environmental Businesses
Eco Innovation Centre Peterborough
• Partnership activity
• Centre launched in April 2008
• Centre fully occupied December 2009
• Additional space sought in May 2010
• Incubation facilities – fully featured, subsidised offices, virtual
offices, meeting room facilities
• Centre acts as a hub for EnviroCluster activities
Aims of the Eco Innovation Centre
• Support and incubate more businesses in Peterborough, create
new businesses & jobs
• Attract new businesses to Peterborough and the region
• Enhance links with the academic and research sectors
• Engage local/regional/national businesses
• Support eco-innovation and ideas development
• Expand current centre and plan ‘Phase 2’ building
Eco Innovation Centre Peterborough
Conclusions
• Many policy decisions = greater demand for low carbon technology
• LCEGS sector is growing rapidly
• Demand for eco-innovative products and services
• Through clusters, networks, KTNs, partnerships…
• Expertise and manufacturing can take place in the UK
• Support exists from organisations like UK CEED / EnviroCluster to
support supply-side organisations
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