‘Decarbonising industry a winner’
DECARBONISING industry in south Wales could ‘unlock billions of pounds in investment, cut carbon emissions by 40% by 2040 and secure over 100,000 jobs in the region.’
That is according to a new cluster plan report unveiled by the South Wales Industrial Cluster (SWIC), a partnership between Welsh industry, energy suppliers, infrastructure providers, academia, legal sector, service providers and public-sector organisations.
The report, led by CR Plus and entitled “South Wales Industry – A Plan for Clean Growth”, sets out a plan to collectively decarbonise the region following over two years of work by around 40 Welsh businesses, academia and public bodies.
It is the result of funding by the UKRI’s Industrial Decarbonisation programme in 2021 to map out what is needed to support south Wales in becoming a net-zero-carbon region by 2050.
The report outlines 30 policies that
SWIC believes are vital to decarbonise the industry while reversing the decline of heavy industry and creating economic prosperity for Wales. Its key priorities included ensuring energy and carbon policies are internationally competitive; business model support for electrification and carbon capture and utilisation; and urgent development of infrastructure for the south Wales electricity grid and hydrogen.
If implemented, the SWIC said the policies would achieve net-zero industries in south Wales by 2040, equating to 40% reduction of current Welsh CO2 emissions. It would also
Editor SION BARRY 029 2024 3749 retain 113,000 existing jobs and potentially create new skilled jobs, while unlocking £30bn investment opportunities in the region and growing the £6bn GVA from south Wales industry.
South Wales is the second-largest industrial emitter in the UK, releasing the equivalent of 16 million tonnes of carbon dioxide per year across industry and energy generation. The region has a significant industrial base including the Valero Pembroke oil refinery, the UK’s largest integrated steelworks in Port Talbot, and the only nickel refinery in the UK.
It also has a large and diverse energy supply sector including large combined cycle gas turbine (CCGT) power stations plus numerous onshore wind sites and two liquefied natural gas (LNG) terminals which supply over 20% of the UK’s natural gas demand.
However, if the UK and Wales are to hit their net-zero ambitions, new ways of heating homes, powering businesses and heavy industry and fuelling transport need to be found.
This requires reducing emissions as far as possible using methods such as: energy efficiency, fuel switching and carbon capture utilisation and storage (CCUS); plus offsetting the residual carbon dioxide by other means, such as negative emissions technologies.
Dr Chris Williams, head of industrial decarbonisation at Industry Wales – who has been leading SWIC since its inception in 2019 – said: “This report sets out a step-by-step roadmap for the decarbonisation south Wales industry and the infrastructure required to achieve net zero.
“It could potentially unlock an unprecedented £30bn investment in south Wales, creating new industries, walesonline.co.uk/business producing tens of thousands of jobs and securing thousands more. Our industries need a solid plan, backed by supportive policies, to enable them to carry out their own individual decarbonisation journeys, which in turn will support our south Wales communities and future generations.”
He added: “We have unique opportunities in south Wales with the Port of Milford Haven – which supplies 20% of the UK’s energy supply – to be at the forefront of decarbonisation activities in the UK. To do nothing now would mean we are always playing catch-up and that is simply not an option.”
Managing director of CR Plus Tony Parton said: “The over-riding message of this report is that we have to do something now.
“This is the culmination of more than two years of work where SWIC examined in detail what is needed to help our industries decarbonise and safeguard hundreds of jobs for the region. Now it is imperative that we work collaboratively with UK and Welsh Governments to deliver these policies to unlock necessary investments to reach net zero by 2050 or sooner.”