Energy and Environment in North England
Leading-edge R&D, a smart workforce, a willing market and the right infrastructure have made North England home to a dynamic energy sector.
Government mandates have created enormous opportunities for energy businesses with unique technologies in both renewables and nuclear decommissioning. North England's unique resources put companies that expand here in a great position to take advantage of them.
- At a worth of more than £500 million, North England is one of the UK's most important Oil & Gas regions. More than 70 percent of North Sea platforms in operation were built on the Tyne and the Tees in our region. More than 50 oil and gas companies in our region employ 5,000 people. Key companies include Duco, Wellstream and CTC Marine Projects.
- The UK government supports the growth of renewable energy. By 2010, the UK targets that 5 percent of all transport fuel should come from renewable sources. By 2020, 20 percent of all electricity should be renewable.
- North England is home to the New and Renewable Energy Centre (NaREC), a center of excellence and one of Europe's leading independent facilities for research, testing and prototyping innovative new energy technologies.
- North England has one of the world's largest concentrations of nuclear facilities, spanning the nuclear cycle, from uranium enrichment and power generation to waste management. The value of the work to decommission former nuclear sites in the UK is estimated at US$85 billion over the next 25 years.
- The Nuclear Decommissioning Authority, Sellafield, Nuclear Skills Academy, National Nuclear Lab and the nuclear licensing agency are all found in North England.
- 1.7 million people in our labor force are skilled science and technology workers, and each year our 15 universities add another 100,000 new graduates to the labor pool. Employee costs in North England are between 15 and 30 percent less than in the greater London area.
Quick, Affordable Expansion
The North of England Inward Investment Agency provides the resources and connections for your energy company to hit the ground running. Contact us for a free, confidential Business Expansion Assessment.
Case Study - Yanmar
Originally founded in Osaka, Yanmar has been developing and manufacturing diesel engines for almost 100 years. The company is now a global success and supplies engines, parts and equipment to a selection of industries from construction to agriculture.
Yanmar's aim is to become an international leader in its field through innovations which harness environmental and sustainable technology.
Like all the most respected global companies, Yanmar has invested a lot of resource in developing a range of environmentally-friendly products. The company has become the Japanese market-leader in Micro-CHP (Combined Heat and Power), which is commonly used in larger domestic and commercial buildings such as hospitals, nursing homes, hotels and schools.
Yanmar is the leading manufacturer in Japan for commercial-use cogeneration package systems, with the highest efficiency ratings in its class. Packaged CHP systems of less than 1MW are the most versatile and widely adopted combined heat and power system used already in the UK, being installed in residential, commercial and retail buildings around the UK. The UK Government has set targets for installed CHP capacity to reach 10,000 MWe by 2010. The latest energy projections for the UK anticipate that by the end of 2010, 10% of the total electricity supply will come from CHP.
In their home market, commercial conditions make natural gas the most common fuel for Micro-CHP. Makoto Yasuda, from Yanmar's environmental business development department, explains more: "Initially, we were looking at developing a Micro-CHP unit that would be fuelled by natural gas, but we realised quite early on that we should put our focus into biofuels, because environmentally-considerate biofuels can make a significant contribution to lowering carbon dioxide emissions, particularly when they combine both heat and power."
"Europe is the biggest global market for bio-diesel fuel," explains Yasuda. "And within Europe, the UK market is the most liberalised, and it's also the most environmentally-conscious. The UK government has set itself the most ambitious target in the European Union for reducing carbon emissions by 60 per cent by 2050. We also felt that UK citizens were more conscious about the effects of carbon emissions, and more familiar with the concepts of environmental footprints and carbon offsetting." Yanmar chose the North East of England as the base for their operations. "We decided to pilot our first Micro-CHP unit in the North East because there are a lot of bio-fuel industries located there, which was an important factor in terms of procuring the bio-diesel required. Also, One NorthEast offered us a great deal of support - more than any other Regional Development Agency."
In July 2006, One NorthEast and NaREC proactively proposed a demonstration/development project to Yanmar. One NorthEast then engaged with UKT&I in order to add the UK wide dimension the project required. The company had been supported to establish a regional base and as a team One NorthEast and UKT&I then created a national network for YANMAR. In addition, One NorthEast was able to support meetings between Yanmar and key regional academics who specialise in engine development and testing. One of Yanmar's key goals was to develop a diesel engine which has a very high level of reliability when fuelled with 100% biofuel, not a mix of conventional fuel and biofuel.
Andrew Mill, CEO at the New and Renewable Energy Centre (NaREC) in Blyth, Northumberland, "The North east has an excellent supply chain for bio-fuels, and this combined with our own expertise for new energy technology application will assist Yanmar in developing bio-fuel micro CHP further for the European market. The aim of this new research and development project with Yanmar is to further explore ways of diversifying existing proven energy technology which uses conventional fuel sources, and adapt it for renewables."
Researchers at Newcastle University were keen to develop a relationship and committed to house one of Yanmar's engines on-site and conduct a series of high-stress tests using 100% biodiesel.
In November 2007, the Minister for the North, Nick Brown, unveiled the Yanmar testing facility at the New and Renewable Energy Centre (NaREC), a world-class facility situated in the North East. On show was Yanmar's 9.9kw Micro-CHP unit which is capable of running on 100% biodiesel. Yanmar hopes to start selling the units after the testing phase is completed in 2012 - when the company is celebrating its centenary.
Paul Mclean, Bioenergy Advisor at NaREC added, "Endurance tests on the systems at NaREC's laboratories in Hebburn are progressing well. Using a small scale bio-fuelled combined heat and power system to heat our 40m high laboratory is demonstrating the cost and energy savings that can be made from using alternative energy systems - especially for organisations with the readily available bio-diesel supply chain that we enjoy in the North East. This flourishing partnership bringing together both academic and industrial representatives from the region, with such advanced technology developers from Japan is signaling a new era for energy in the North East, with our heritage, expertise and experience demonstrating that we have much to offer the evolving energy industry."
"The factors which tipped the balance for us were the research available in North East England together with the excellent support offered by UK Trade & Investment and ONE North East", says Yasuda. "Without their assistance and support, it would have definitely taken us longer to make a decision to invest in the UK - and we may even have ended up going to a different country".
Energy and Environment Industry News
North-east of England could become wind power 'capital city' - 10/20/08
By Paul Eccleston
The north-east of England should become the 'capital city' of the UK's booming wind industry, experts have said.
Wind farm business scheme will help communities profit
Wind farm...Read More
Innovative low carbon vehicle programme launched in the region - 10/07/08
An innovative £100m programme to research and develop low carbon vehicles has been launched by local and national Government today.
John Denham, Secretary of State for Innovation, Universities ...Read More
NaREC & North East England - enabling U.K. offshore wind. - 10/01/08
The UK government has set a target of generating 20% of the total electricity from renewable sources by 2020 and has instigated 3 rounds of offshore wind farm development to help achieve this target. ...Read More
BNFL awards £5 million grant to Manchester University - 09/15/08
British Nuclear Fuels Ltd (BNFL) has awarded a £5 million nuclear research grant to the University of Manchester.
The funding will go towards funding further research in nuclear science at its ...Read More
Chemicals company keeps its cool with energy savings - 09/09/08
One NorthEast's Energy Resource Efficiency (ERE) programme is helping deliver a host of electricity savings at a Tees Valley speciality chemicals company.
Process technologist Grant Leitch of JMC and...Read More
