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Government commits £12m to help energy-intensive industries cut emissions

 960 640 Stuart O'Brien
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Businesses across the UK will benefit from a share of more than £12 million government funding to help energy-intensive industries cut their carbon emissions and energy costs.

The funding for the 22 winning projects will help businesses across England, Wales and Northern Ireland clean up their industrial processes and improve their energy efficiency – benefiting industries including pharmaceuticals, steel, paper, and food and drink.

This £12.4 million funding was awarded as part of the Industrial Energy Transformation Fund (IETF), which has awarded grants to British projects across the country to increase the energy efficiency of their industrial processes, from car manufacturing to steel production and food processing.

The winning bids include sustainably harvesting food in Carmarthenshire, Wales, through a new air source heat pump system, capturing waste heat to dry, heat, crush and grind materials for roadmaking in South Yorkshire and using revolutionary high temperature heat pumps to reduce the energy needed to heat and cool cheese, reducing emissions in dairy farms across the Midlands.

It is estimated that industry is currently responsible for producing 16% of the UK’s emissions and will need to cut emissions by two thirds by 2035 in order for the UK to achieve its net zero target.

The funding will play a crucial role in helping to clean up big-emitting industries as part of the UK’s green industrial revolution – decarbonising their industrial processes and reducing their reliance on expensive fossil fuels, such as gas. This means businesses will not only reduce their environmental impact, but also save on their energy bills and safeguard thousands of British jobs.

Graham Stuart, Minister at the Department for Energy Security and Net Zero said: “Boosting the energy efficiency of industrial processes is a critical step not only in our transition to a lower-carbon economy, but also by helping businesses to cut their energy costs and protect valuable British jobs.

“That’s why the government has stepped in once again to support energy intensive industries, with a fresh funding round to unleash the next generation of green innovators who are re-shaping the way technology can reduce carbon emissions.

“So far, £34.8 million of funding has been awarded through the Industrial Energy Transformation Fund, which was first launched in June 2020.”

Aston University touts new industrial CO2 measurement breakthrough

 679 323 Stuart O'Brien
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Researchers at Aston University are to take the UK a step nearer to net zero emissions by developing a better system of measuring industrial carbon dioxide.

The government is giving the University £100,000 to improve measurement of CO2 streams from sites such as at power plants and factories. The Energy and Bioproducts Research Institute (EBRI) at Aston University is to develop a comprehensive guide based on industry and academic expertise.

Industrial decarbonisation will play a major role in achieving the UK’s 2050 ambitious net zero emissions target, however current measurement guidelines need to be improved.

The six-month project will be a collaboration between EBRI researchers and the company Progressive Energy and the Energy Institute. Progressive Energy will work alongside potential end-users and the Energy Institute will help to ensure the final guidelines are clear.

The work is being led by Dr Paula Blanco Sanchez, who has more than 15 years of experience in bioenergy. She said: “This funding will help Aston University to address a major gap in the decarbonisation pathway. It will contribute to the UK’s net zero target and is another example of how the University is using its expertise to tackle real world problems.

“Our experts in EBRI will provide research, industrial experience and knowledge in areas such as gas measurement, metric and analytics, life cycle and techno-economic assessments, and thermal conversion processes.”

The funding has been awarded by the Industrial Decarbonisation Research and Innovation Centre (IDRIC) to achieve the net zero ambition set out in the UK Industrial Decarbonisation Strategy (2021).

Bryony Livesey, challenge director, Industrial Decarbonisation Challenge, UKRI, said: “The announcement of this funding continues to build upon IDRIC’s whole system approach to decarbonising industry, enabling the UK to remain at the forefront of a global low-carbon future. These successful Wave 2 projects will build evidence on a range of areas from economics and emissions to skilled jobs and wider net zero policy, supporting UK’s green growth and net zero ambitions.”

It’s hoped the Aston University project will lead to future collaborations and funding to support UK industry to decarbonise their businesses.

In May, June and September the EBRI plant will be opening its doors to professionals who want to enhance their careers with a short hands-on course in Practical Process Engineering. For more information visit https://www.aston.ac.uk/study/courses/practical-process-engineering

Salford and Gloucester shopping centres first in UK to achieve net zero status 

 930 640 Stuart O'Brien
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Two retail destinations, Quayside MediaCity in Salford and Gloucester Quays, are the first of their kind to achieve ‘Net Zero Carbon – Operational Energy’, in line with UKGBC’s Net Zero Carbon Buildings Framework.

The two retail destinations have been added to the growing list of Peel L&P’s buildings which have achieved net zero carbon status, demonstrating the company’s commitment to climate resilience by rolling out net zero carbon initiatives across its estate.

The buildings have achieved ‘Net Zero Carbon – Operational Energy’, in line with UKGBC’s Net Zero Carbon Buildings Framework, following action taken to reduce those emissions and their renewable energy use. In 2021, many of Peel L&P’s assets were transferred to a 100% renewable electricity tariff linked to named wind farms, which considerably reduced carbon emissions across the property portfolio. Within the retail outlets, energy efficiency programmes have included upgrading lighting systems across all spaces including public areas, food courts, back office and advertising signage.

Jo Holden, Peel L&P’s Sustainability and ESG Director said: “This is a huge milestone. To have achieved net zero carbon with two significant retail destinations is a UK first and shows just how serious we are at taking action to reduce carbon emissions across our portfolio.

“Net zero carbon status has really driven our energy team and everyone around the business to seek out ways of using less energy and more renewable sources. The impact on our carbon emissions has been far-reaching and the effort of our people shouldn’t be under-estimated. But it is our ambition to build on this and make our properties even more resilient to climate change, which is why we were so proud to have eighteen buildings verified at the end of 2022, including two key retail centres.”

Yetunde Abdul, Head of Climate Action at UKGBC said: “The challenge of decarbonising the UK’s built environment is a complex one, but Peel L&P’s long-term commitment to aligning their built assets to UKGBC’s net zero carbon buildings framework demonstrates their ambition to take this challenge head-on. Given that buildings are directly responsible for around a quarter of the UK’s carbon footprint, businesses across the sector must work together to fundamentally change the way we construct, operate and de-construct our buildings, and ultimately drive a more sustainable built environment.”

Peel L&P’s work to reduce carbon emissions across its assets is part of its five-year sustainability plan which supports the United Nations Sustainable Development Goals (UN SDGs) to help create a fair and sustainable planet by 2030. In 2022, Peel L&P unveiled its Climate Positive Plan, a promise to take more greenhouse gases out of the air than it produces by 2030.

Change or be changed – The looming threat of regulation for data centre energy use

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By Simon Harris, Head of Critical Infrastructure at BCS

Climate change and the global response of Net Zero has dominated the political discourse in recent years. There appears to be widespread agreement within the data centre industry – as a major and growing consumer of power – that it has an important role to play in the debate and resulting actions to implement change to limit and ultimately reverse the damage caused by historical methods of power generation.

According to the findings of the latest BCS Summer Report 2022, which showcases the views and insights of over 3,000 senior industry professionals, there is a firm commitment amongst respondents to move towards a renewable-sourced future.  However, there are also strong concerns that regulation could be placed on the industry to push initiatives for the greater use of renewable sources of power at a more rapid rate, with around 90% of those surveyed believing that this could be introduced to ensure greater compliance.

Despite the industry taking action, the direction of travel in the political realm suggests that regulation could be placed on the industry due to increasing socio-political pressures and Net Zero requirements

Should the industry self-regulate?

The issue of regulation is always difficult. There is of course a need for industries to operate within a regulatory framework to ensure standards on many aspects. However, the extent of that regulation lies at the very heart of the fundamental debate of state intervention in the private sector and its implications for how business operates. There is a real and practical debate to be had, and in the real world there are industry groups to influence policy makers and legislators to ensure positive outcomes without stifling industry growth. Sensible policy makers accept and welcome this knowledge as it provides – accepting a degree of self-interest – knowledge, experience, and expertise on an issue from those with the greatest exposure to it.

In turn those reputable businesses accept the need to operate their business within a sensible regulatory framework as it provides a stable and secure environment and gives their customers confidence around industry standards. The argument around self-regulation is to what extent processes within the industry need to guide and frame within a legal process and how much can be voluntarily supported and provided.

For the data centre industry there is little doubt that the industry recognises the need to move forward with power optimisation and sensible sourcing initiatives. There are several high-profile groups and initiatives already in operation including the voluntary European Code of Conduct for Energy Efficiency in Data Centres and the Climate Neutral Data Centre Pact for example. The argument here is that those within the industry – and whose bottom lines it will directly impact – are best placed to know how to innovate and produce solutions. Around three-quarters of all our survey respondents believe that self-regulation offers the best course of action to aid the push to meet Net Zero targets. Around 94% of developers and investors, and 85% of service providers indicated this view.

There are ambitious targets to be achieved by 2025 and 2030 under the green deal, and it begs the question that if our sector doesn’t get ahead of these targets, will this be the catalyst that sees the self-regulatory initiative become legislative and regulated?  Our sector is at a crossroads with one route being proactive, investing in new technologies, self-generation and looking at innovative storage solutions to reach climate neutral targets. The other route is having legislation and regulation imposed on us and having to react to the imposition of energy, water and emission targets that we have no influence over. The outcome is uncertain.

Small businesses call for greater Government leadership in the race to Net Zero

 960 640 Stuart O'Brien
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New research suggests small businesses are maintaining a commitment to tackling the climate emergency despite the immediate economic challenges they face – but many would like to see Government take more of a lead to encourage and support the green initiatives of small enterprises.
Despite the tough economic climate, the research from Novuna Business Finance says 85% of UK small businesses are working hard to put green issues higher up the agenda within their enterprise. Nationally, 17% have green issues on the agenda for senior management meetings, 17% run green incentives for their staff, 21% encourage staff ideas on green projects and 16% run staff education programmes on the urgency of climate change issues.
The research was conducted by MaruBlue among a representative sample of 1,228 small business decision makers, spanning all key industry sectors
These positive steps continue despite the seismic barrage of economic challenges faced by small businesses today, who cite their top worries being: the rising cost of living (47%), rising fuel prices (34%), the economic impact of Covid (34%) rising interest rates (24%) and long term-impact of Brexit (23%).
Whilst small businesses want to do more to become green and work towards Net Zero, many believe the Government could be doing more to help them.
  • Thinking about cutting carbon emissions in the community, only 20% of small business owners believed the national and local Government were doing enough to champion the issue.
  • Looking at the challenge of how to become carbon neutral in their supply chain, small businesses were most likely to call on the Government to do more to help. Nationally, 28% of enterprises felt the Government should give small businesses clearer guidelines on what steps they can take to help supply chains become greener. This was most strongly felt in three sectors – transport and distribution (40%), medical services (39%) and manufacturing (36%).
  • For those businesses where staff had returned to the workplace, there was a stronger belief that the Government should give clearer guidelines and advice on how small firms could make their supply chain greener (33%, compared to 22% of enterprises where staff worked from home).
  • When reflecting on specific business initiatives that could be undertaken in order to achieve Net Zero, less than one in five enterprises said the Government had been influential in helping them thinking more positively about a range of green issues they could consider. Only 20% of small business cited the influence of Government advice on their move to use renewable energy. The figure was even lower when it came to presenting the case for electric vehicles (19%), using less packaging (12%), cutting down on business travel (11%) or weighing up the relative benefits of staff car sharing schemes (9%).
  • Thinking about the mindset sea-change required to achieve carbon neutrality, small business owners were asked where this process needed to start. Whilst 23% of respondents said they took ownership on themselves – to drive change and influence others – small businesses were most likely to say it was down to the Government and major businesses to lead change – and when they led, small businesses would follow (27%).
Joanna Morris, Head of Insight at Novuna Business Finance, said: “Successive Governments have done a great deal to support Net Zero and the green agenda but, despite the current and immediate economic challenges, now is the time to maintain a focus on the climate commitments made in recent years. The global debate on climate change often focuses on major businesses and their role as change agents. Yet it is clear from our research that the small business community has a vital role to play. Combined they employ three fifths of the UK workforce and their relative size and agility means they can adapt more quickly. Furthermore, whilst many small businesses are making good progress on the road to becoming Net Zero and sustainable, they expect Government to take a lead – to devise policies, offer support and frame guidance that small businesses can follow.”

Can we get to Net Zero by 2030?

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By Steve Lorimer, Group Technical Director at Keysource

In 2021, 25 operators and 17 associations in the data centre industry pledged to be net zero by 2030, when they signed up to The European Data center Association’s Climate Neutral Data center Pact (CNDCP).

They committed to three-quarters of the energy used by their data centre facilities to be renewable or carbon-free by 2025, and completely carbon-free by 2030.  The dichotomy however is that demand for computing power and digital services is growing fast. In the last decade, global internet traffic increased ten-fold and data centre energy use is likely to increase accordingly by 2030.  As a result, there is much talk within the market about sustainable solutions, and innovative ways to reduce carbon emissions.

Let’s take a step back and look at what sustainability means for a data centre and what does the next generation data centre need to have for sustainability to be at its core…

Building efficiency

Historically a lot of decisions and considerations around data centre facilities have related to commercial incentives and lower operating costs. It’s only more recently that the focus has shifted to how sustainable the building, its infrastructure and the operation of the facility is and there is now some excellent work being done. However, in my view, it’s going to require an even bigger step forward to hit the net zero target.

Performance related M&E Infrastructure improvements will continue to be relevant but ultimately these will be further enabled and driven by the performance and technologies implemented at the IT layer – after all the ability to deliver the workload in the most sustainable manner is the ultimate goal.

This can only be done by ensuring that resource utilisation measurements are aligned against the relevant IT performance statistics to drive a relevant KPI/metric for the given organisations use case. Historically the focus has been on carbon reduction achieved both through energy optimisation, and plant upgrade including implementation of newer technologies. As our energy sources decarbonise, considering whole life carbon of the services will become more critical, as embodied carbon becomes a more dominant factor.

This is somewhat at odds with the cyclical nature of both IT lifespan and the supporting M&E infrastructure so ensuring that facilities are designed and implemented with this in mind is critical. Using existing best practice considerations including right sizing, modular implementation and appropriate implementation of resilience will continue to form the bedrock; reducing embodied carbon whilst optimising performance. However, having the ability to accommodate new and future IT technology requirements (such as direct liquid cooling), without wholesale plant replacement, and whilst still maximising energy performance, will be critical to keeping equipment relevant and therefore maximising lifespan.

Reap the benefits

Professional data centre operators will be challenged from numerous angles moving forward to demonstrate their carbon reduction credentials. That will include: planning and permitting new facilities or upgrades; meeting reporting and disclosures which will now in some case be under a legal mandate to provide; or just addressing internal operational improvement obligations. Increasingly operators will need to regularly reciprocate more data with their clients to meet each of their own obligations. From raw materials to water and energy use, the whole supply chain across the facility lifecycle will need to become more mature in both its consideration of resources and the availability of relevant data.

This increased pressure from both up and down the supply chain, along with pressure from investors, may mean data centres who can achieve the 2030 target on time or earlier, whilst integrating seamlessly with customers and supply chain, will come out on top. Not only will they reduce their impact on climate change but also their operating costs through increased operating efficiencies, whilst maximising the value of existing capacity, and helping to comply with regulations and initiatives. 

Conclusion

The data centre sector has made some huge changes during a complex and challenging time and we should all feel proud of the progress that has been made to date. However, to become truly sustainable there are still many things that must change and practices that must end. There is no doubt that it is only through a wholesale approach that our sector can reach net zero. We cannot afford to stand still.

New collaboration to support data centre market on net zero goals

 960 640 Stuart O'Brien
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Keysource and Chapmanbdsp have formed a partnership to support clients on the road to net zero carbon emissions in the data centre and critical infrastructure market.

The collaborative service combines both industry leaders’ expertise to provide customers with the ability to measure and manage the full carbon lifecycle of a project, including embodied and operational carbon, along with carbon offset options, whether planning a new build or upgrading an existing facility.

The aim is to give customers the insight of what contributes to a projects whole life carbon and the intervention opportunities available to realise their sustainability goals. The approach and methodology developed provides a transparent and visual way to manage key decision making whilst considering the broader impacts of those options.

Jon Healy, Operations Director at Keysource, said: “We recognise that measuring and managing embodied carbon needs to form part of a holistic development process, particularly for data centres. This partnership provides customers a combined resource of consultancy and advisory services to complete carbon assessments in parallel with other project drivers. Leveraging our data centre experience, we’re able to provide customers with high impact and feasible opportunities.”

Ray Upjohn, Chief Executive Officer at chapmanbdsp, added: “We see great value in combining our skills in the energy and sustainability arena. Together we’re proud to support the data centre market in overcoming the challenge of achieving net zero.”

Understanding and overcoming the carbon reduction net-zero challenges faced by UK businesses

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By Shell Energy

It is predicted that by 2050, the world’s total energy demand is likely to double. Business energy needs will increasingly be delivered by a wider portfolio of more sustainable alternatives. This will need to be achieved in tandem with a net-zero approach, as organisations seek to further reduce the impact of energy costs on their bottom line.

Buying better is no longer enough. Companies need to focus on managing better and using less. Reducing kWh is not only the best strategy but the most effective long-term solution to reduce cost and carbon.

While insight from a recent Shell Energy survey of major UK energy users found that 99% were aware of the government’s carbon target and 90% have a comprehensive plan in place to transition to net-zero, there is still more work to be done. Further decarbonising the UK requires effort and collaboration across smart technologies and infrastructure, at an accelerating pace and level of investment.

This is reflected by the government’s Energy Security Strategy (April 2022), aiming to secure UK energy supply amongst ambitious plans to embrace decarbonisation in the long-term and manage shorter-term volatility across global markets. The goal is to increase the UK’s low carbon electricity production by 95% by 2030.

Companies nationwide are looking toward new initiatives to help them decarbonise operations, improve efficiencies, reduce overheads and save costs. Findings from our recent survey confirm this viewpoint, identifying that 90% have a plan to become net-zero, while 93% have already invested in net-zero measures.

Shell Group is also aiming to decarbonise its own operations. In October 2021, we announced a target to halve our absolute emissions by 50% by 2030, compared to 2016 levels on a net basis. By building out our power business and continuing to innovate, we can help our customers achieve their long-term decarbonisation goals.

This is echoed by businesses such as leading corrugated packaging manufacturer, Cepac, which enlisted our support to replace its traditional energy contract with the annual supply of 14GWh renewable electricity to the UK production facilities.

Businesses relying on the carbon-based status quo will see their competitive advantage diminish over the next decade. Those that take a long-term view of their energy use and see energy efficiency and decarbonisation as strategic opportunities, will not only survive, but thrive.

Find out more about Shell Energy here: www.shellenergy.co.uk/business.

EU and Egypt to collaborate on COP27 energy transition goals

 960 640 Stuart O'Brien
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The EU and Egypt will join efforts to implement the Paris Agreement and ensure ambitious outcomes at COP27, which takes place in Sharm El-Sheikh in November.

The joint statement commits both parties to work together on a global just energy transition, on improving adaptation capacity, mitigating loss and damage due to climate change, and on increasing climate finance to respond to the needs of developing countries.

The cooperation will have a particular focus on renewable energy sources, hydrogen, and energy efficiency. The EU and Egypt will develop a Mediterranean Hydrogen Partnership to promote investments in renewable electricity generation, strengthening and extension of electricity grids, including trans-Mediterranean interconnectors, the production of renewables and low carbon hydrogen, and the construction of storage, transport and distribution infrastructure.

In light of the new geopolitical and energy market reality after the Russian invasion of Ukraine and in line with the REPowerEU plan, the EU and Egypt will accelerate and intensify their energy partnership. Security of gas supply is a common concern. Today in Cairo, European Commissioner for Energy Kadri Simson, together with Minister El Molla and Minister Elharrar signed a trilateral Memorandum of Understanding between the EU, Egypt and Israel for the export of natural gas to Europe.

The three parties will work together on the stable delivery of natural gas, in a way that is consistent with long-term decarbonisation objectives and based on market-oriented pricing. Natural gas from Israel, Egypt and other sources in the Eastern Mediterranean region will be shipped to Europe via Egypt’s LNG export infrastructure.

The parties will promote the reduction of methane leakage, and in particular examine new technologies for reducing venting and flaring and explore possibilities for the utilisation of captured methane throughout the entire supply chain. They will also endeavour to ensure that future investments will not cause pollution of the marine or land environment.

President von der Leyen said: “We are starting to tap into the full potential of EU-Egypt relations, by putting the clean energy transition and the fight against climate change at the heart of our partnership. I look forward to working with Egypt as COP27 Presidency to build on the good momentum from last year in Glasgow. Egypt is also a crucial partner in our efforts to move away from Russian fossil fuels and towards more reliable suppliers.”

Routes to deliver net zero

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By David Kipling, CEO – On-Site Energy

Businesses have complicated energy needs, particularly those that use a lot of thermal energy such as for steam or ovens.  Achieving net zero is going to require elements of re-engineering, re-thinking business processes, adopting new technology and changing energy purchasing strategy. But is it even possible in the current climate when those decisions will also directly affect the P&L through changed operating costs.

The main routes to net zero most businesses consider are:

  • Buy green tariffs – and hope they won’t be looked-through as “green-washing”. SECR reporting is starting to highlight energy intensity (how many kWh of energy your company uses to produce 1 kg of product) – which will aim direct comparison with competitors
  • Electrification – and hope the Government will make good on its promises to decarbonise the electricity grid
  • Await Hydrogen to move off gas – another big “if”. When or will it be commercially viable and available ?
  • Invest in energy efficiency

The problem with approaches (1) – (3)  is they will have failed to deliver the change that your customers are looking for anytime up to at least 2030. That could put your business at a competitive disadvantage. Also you are fully exposed to market volatility with these routes.

We believe the right path is option (4), to invest in reducing your energy intensity and also consider low-carbon generation solutions.  This way you reduce your CO2 footprint, reduce your exposure to the grid and are in control of your costs. Also bear in mind that the third round of ESOS is less than 2 years away, and its likely to be mandatory to enact the recommendations of the auditor.  In that ESOS round there is going to be an even greater focus on action on energy efficiency.

The challenge is keeping operating costs under control whilst achieving progress towards decarbonising and deciding when to adopt new technologies.  With a recession looking likely, capital availability may also become more difficult.  We can help deliver measures without any capex from you, using our zero-capex energy partnership solution.

If you would like to discuss how to be more energy efficient and accelerate your net zero strategy, please contact David Kipling, CEO – On-Site Energy on 0151 271 0037 or email  david@on-site.energy (www.on-site.energy).