Targeting sustainable profits
Funds focusing on clean technologies are finding lucrative opportunities in the North East Scotland that will also benefit the planet, writes Colette Cohen
Scotland has the ambitious target of being net-zero by 2045 and since we at The Net Zero Technology Centre launched in Aberdeen in 2017, we have been championing the transition to a net-zero future.
We were launched – as part of the Aberdeen City Region Deal – to maximise the potential of the North Sea, evolving to create a vision for a technology-led net-zero future.
Since our inception, we have co-invested £176 million in technologies which have the potential to generate £10 billion to £15bn in gross value added to the UK economy, screened more than 1,280 technologies, completed 64 field trials – with a further 49 planned or already live – and progressed more than 23 technologies to commercialisation.
Core to our activities is the need to reinforce the importance of the pace of change in the energy transition. This need for urgency to deliver on the potential of a green transition, in manufacturing, jobs, skills and revenue was highlighted both in the Reimagining A Net Zero North Sea: An Integrated Energy Vision For 2050 report and in the Just Transition Commission’s A National Mission For A Fairer, Greener Scotland 2021 report.
In Scotland and the UK, we have many of the technologies needed to deliver a green transition, but there is the underlying challenge of making them affordable and scalable. If the solutions and the technology weren’t so expensive, and if it was easier to scale up, such things as workable carbon sequestration and hydrogen generation would already be in place.
As a result, there is a huge role for organisations like ours to challenge the approach, to disrupt the status quo and find new solutions that are scalable, economic and flexible. It’s crucial that Scotland starts investing in this direction at pace. There is a lot of conversation about the energy transition, but we have to stop talking and start doing.
We need a clear roadmap to 2045 and 2050. We need to realise that setting targets is great, but for industry to invest, for the supply chain to diversify and for schools and universities to start educating the workforce of the future, we need new wind, hydrogen and carbon sequestration projects approved now. We need to create a conveyor belt of activity within the UK to support the investment required. We need to decide where we will use hydrogen – industry versus transport, etc – how we will transport and store CO2 and H2 , and we need to accelerate the installation of new offshore wind energy generation.
We need to attract a diverse workforce, retraining experienced people from the current energy industry while also attracting the next generation. This is an opportunity to not only create a new integrated energy industry, but also a diverse one, by setting the expectation of what our new workforce needs to look like.
A change of mindset is essential. Both government and the private sector must invest in a range of technologies – and understand that not all will end up winners. If we accept we’re in a climate emergency, we must invest in multiple potential solutions.
If we wait until they are proven technologies, we’ll inevitably become a buyer of our solutions rather than a generator and seller. If that is the end result, we will lose out on jobs and a true green revolution within the UK.
The North Sea is recognised in Europe as the greatest opportunity for offshore wind and the creation of green hydrogen. The level that we need is large.
We’re going from ten gigawatts (GW) now, to 30-40GW by 2030 and to 70-95GW by 2050. The reality is we need about 150GW to have enough capacity for the green hydrogen we’ll require. And to deliver this, we need new floating wind solutions for the North
Sea – a technical area where the existing energy industry has huge experience and knowledge.
This year, the Scottish Government Energy Transition Fund invested £16.5m in a comprehensive programme of projects within the Net Zero Technology Centre to drive the disruption and change we need. The programme is looking at energy hubs and how we can combine and re-use facilities around the North East, how we can transport hydrogen in the UK, how to maximise the potential of robotics and automation in the North Sea as well as net-zero alternative energy solutions for our industry.
In addition to investing in technology disruption, it is critical we also invest in the development and maturation of new, innovative entrepreneurial companies. Startups are a key part of the technology ecosystem. Techx, our Clean Tech Accelerator, is currently open to applications, providing an opportunity for emerging clean tech companies to receive up to £100,000 in support, access to industry and expert help from our strategic partners and mentors. You can find out more on our website.
While there is a lot of progress being made to get the nation to net-zero, we need to pick up the pace. This is a transition – we have the opportunity to make it just and value accretive, but there is a responsibility on all of us, not just governments and companies, to realise that we all have a role to play. Our choices dictate demand, new non-hydrocarbon solutions will not be delivered overnight.
Finally, with the UN’S COP26 climate change summit taking place in Glasgow this year, there will be many challenges to getting the world aligned, but I am hopeful that a compromise will be found between developing nations and first world countries so everyone can grow back greener and better.
Colette Cohen is chief executive of the Net Zero Technology Centre in Aberdeen. See www.netzerotc.com
“Both government and the private sector must invest in a range of technologies – and understand that not all will end up winners”