| Sourced From Nebusiness.co.uk |
TOMORROW the Government will set out its tactics to help businesses clean up by going green. The Low Carbon Industrial Strategy will explain exactly how corporate UK can benefit economically from tackling the twin challenges of securing green energy supply and meeting climate change targets.
Ahead of the long-awaited white paper, the CBI has challenged the Government to focus on three key areas.
With public finances stretched, the CBI says the Government needs to attract significant levels of new private investment.
It calls on the PM to select a limited number of low-carbon technologies with the potential to add value to the UK economy built on the foundations of our existing industrial and academic strengths.
The CBI also urges more support for the commercialisation of new technologies through backing for research, development, deployment and the use of public procurement.
The Low Carbon Industrial Strategy could have a huge impact on the business landscape of the North East, which is fast becoming a hotbed for clean energy sources and low-carbon technologies.
The North East could be on the cusp of becoming a global epicentre for electric vehicles manufacturing with the ongoing success of Washington’s global Tanfield group, headed by founder Roy Stanley, which makes electric vans for a number of major firms.
Car manufacturer Nissan has already signalled that its Wearside plant is a “strong contender” to build the next generation of electric vehicles.
Meanwhile, yesterday the CBI urged the Government not to concentrate all its renewable energy efforts on offshore wind, despite a concerted campaign by the organisation in the North East to promote the sector as part of the Great North Revolution.
The call came alongside a report which claims the North East is the second worst performing UK region in a national league table for onshore renewable energy targets. The CBI called for a “more balanced” energy mix, including other renewables .
The North East could be on the cusp of becoming a global epicentre for electric vehicles.
Views from the frontline of green tech
We asked business leaders at the frontline of the battle to save the planet what they would like to see come out of the Low-carbon Industrial Strategy tomorrow.
COLIN Billiet, the former boss of North East industrial giant Domnick Hunter, now runs fledgling green technology firm Nanoporous solutions limited (n-psl).
The Gateshead company makes environmentally-friendly filtration technology and is currently in the process of preparing to enter the market commercially.
Mr Billiet said: “We are a very early stage company and we are still trying to develop products. the most important thing for companies is to be supported by the Government and organisations like One North East.
“People are willing to invest in innovations and it’s important that the Government encourages the development of this. We recently participated in a competition for a development grant. There were 80 companies in the competition and there was a limited amount of cash. Even though we had a really good idea, we missed out. If there was a bit more cash available it would have helped us.”
He also believes the green technology market will get more and more competitive in the coming years as an increasing number of large players realise the value of it.
“I think it will get more competitive. Right now people are looking for low carbon technologies and which save energy and keep costs down. Once we launch the product into the market people will respond to that.”
ELECTRIC vehicles maker Tanfield believes the Government needs to implement a sharp increase in the level of grant funding available to develop the green technologies of the future.
Chairman and founder Roy Stanley said: “The Government is now starting to offer grant funding for the low carbon vehicle technologies of the future, but that investment needs to increase tenfold if the UK is to maintain its market-leading position on electric vehicles.”
Mr Stanley also called on the Government to increase tax incentives for private sector and subsidies for public sector electric vehicle fleet operators.
He said: “At present, electric vans have an artificially high capital cost because the industry as a whole is producing hundreds rather than thousands per year.
“This creates a chicken-and-egg scenario where companies hold off buying electric vehicles until the ticket price comes down.
“The simple solution is for the Government to stimulate demand for commercial electric vehicles by offering a 100% capital allowance on the first 10,000 electric vans and trucks. This would allow companies to write down 100% of the list price of the vehicle against tax in year one of ownership, incentivising early adopters.”
Andrew Mill, CEO of New and Renewable Energy Centre (Narec), said: “Low carbon technologies are still in their infancy but the UK has taken the lead in a number of areas, such as offshore wind and marine renewables, where huge potential has been identified for new generation around our shores.
“Significant public investment is essential to accelerate the deployment of these new technologies and stimulate the prospective supply chain to guarantee future energy supplies; and bring optimum benefits to the wider economy.
“Narec welcomes the Government’s commitment to the low carbon sector, which we hope will see additional spending aligned with the needs of industry and encourage the private investment required to deliver 2020 targets.
“Narec works with companies across the supply chain to prove their new technologies which utilise offshore wind, wave, tidal and distributed energy systems and enable the integration of new devices into the electrical network.
“We have grown in size by 30% over the last year and much of this growth has come in offshore renewables from new commercial testing and development contracts and from funding wins for research and supply chain acceleration projects.
“Recent investments in the supply chain in the North East of England from companies such as JDR Cables further strengthened the region’s rising profile as the independent hub for the industry in the UK.”
