Opportunities in
Low Carbon Heat
Prof Sir Jim McDonald
Principal & Vice Chancellor,
Strathclyde University and
Scottish Enterprise Board
Member
18th November 2014
Summary of Presentation - Opportunities in Low Carbon
Heat
•
Drivers for Change
•
Strengths in the Scottish Low Carbon Heat sector
•
Opportunities for Businesses
•
International Opportunities
•
Emerging Opportunities
•
Current Developments
Drivers for Change - Technological
Biomass
Energy from Waste
Heat Pumps
Drivers for Change - Legislative
EU Priorities
-
EU Energy Efficiency Directive
Obligation on each Member State to set an indicative national energy efficiency target
Energy Savings Opportunity Scheme - Government established the Energy Savings Opportunity
Scheme (ESOS) to implement Article 8 of the EU Energy Efficiency Directive (2012/27/EU)
Article 8 of the EU Energy Efficiency Directive requires all member states to introduce a programme
of regular audits for ‘large enterprises’. I.E. Non SME’s
Scottish Government
- Scottish Planning Policy: Issued June 2014 – Guide development to appropriate places
-
National Planning Framework 3 - Build national and local heat maps into development plans
Drivers for Change – Financial
•
Renewable Heat Incentive (RHI) for commercial applicants in operation since 2011
•
Since April 2014, Domestic Renewable Heat Inventive has been in operation
•
In Scotland, 1,596 Domestic accreditations to date, in 6 months of the scheme (Includes some
historic installations)
Biomass
669
Air Source Heat Pump
404
Solar Thermal
300
Ground Source Heat Pump
223
Drivers for Change – Commercial & Customer Led
•
High Energy Bills
•
Fuel Poverty
•
Consumer Choice – Flexible fuel sources
•
Smart Energy Approach
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Demonstrate best Practice in Linkages of district heating schemes
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Development of the ESCo – Energy Services Company model
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More certain Procurement about total lifecycle costs
•
Potential to attract other funding mechanisms such as ECO (Energy Company Obligation)
Strengths in the Scottish Low Carbon Heating sector
•
Mechanical and Engineering Innovation that continues...
•
A diverse Industrial Sector
•
Recent Heat Mapping – Work with Local Authorities
•
Renewable Heat Incentive
•
Strong Government Support – Both UK and Scottish
•
Strong Public Sector support Network
•
Strong University Sector
BUT Need to adopt a more collaborative approach, working in partnership with regulatory bodies and
academic institutions
Opportunities for Businesses
Definition of Low Carbon Heating / Cooling & Supply Chain Opportunities
The four clusters
Heat Generation
Cooling
Energy Management
Heat Distribution
Heat pumps
Controls
District heat
Efficient heat / fossil fuels (eg CHP / fuel cells)
Heating, Ventilating
and efficient air
Geothermal
conditioning
Sensors
Heat storage
Heat modelling
Waste heat recovery
Burning organic
matter, biomass
Refrigeration
Energy monitoring
-
Solar thermal
-
Demand management
-
Opportunities for Businesses – Analysis of Research
•
Purpose: To identify market opportunities arising from the global growth in demand for related
goods, services and technologies (in low carbon heating / cooling) and to assess the
capabilities of firms in Scotland to exploit these opportunities
•
We Identified 227 low carbon heating and cooling companies, 76 of which completed the
survey, equivalent to 33% return rate
•
Majority of the companies were involved in design and installation of equipment although there
was also a significant manufacturing base
•
Heat recovery, storage, heat pumps, passive heating and cooling, bio fuels and fuel cell
companies present
•
Strong core of companies in the heat control, sensors and monitoring areas
•
Companies in solar and biomass tended to be predominantly installation
Opportunities for Businesses – R & D Spend
Opportunities for Businesses – Growth in Recent Years
LCH Performance
100%
80%
High Growth
60%
Growth
40%
Static
20%
Reduced
en
t
In
ve
st
m
Pr
of
it
en
t
pl
oy
m
Em
Tu
rn
ov
er
0%
Australasia
China
South America
North America
Far East
Asia
Africa
Middle East
Central/Eastern
Europe
Western
Europe
Percentage
Opportunities for Businesses - Export Markets
LCH export markets
25
20
15
10
5
0
Current
Planned
International Opportunities
•
Address New Market Opportunities
•
Exporting target market opportunities – identified through Innovas Report and then Delta-EE analysis
•
Markets with drivers are:
- France – Leading country for heat pumps and has strong Building Regulations
- Sweden – District Heating and Renewable Heat
- USA – State Led Incentives driving the market
- China – Air Pollution and Energy Efficiency
•
Developing a Market proposition for exporting products, services and technologies
•
Attracting Investment to Scotland
•
CONCLUSION – Focus on Domestic Opportunities with niche export opportunities
Emerging Opportunities
•
Current Work by Scottish Enterprise’s Renewable Energy Team
•
Phase 1 – Covers:
–
Energy Storage
– Biomethane Injection to the Gas Grid
– Smart Thermal Grid
•
Phase 2 – Covers:
–
Analysing Heat Scenarios to estimate Future Deployment Rates
– Description of each Technology and Market Drivers such as: Heat Pumps, Solar
Thermal and District Heating
Current Developments
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Integration of 35 university buildings in multiple phases
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Cost £16 million +
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Delivered 2015 to 2018
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Catalyst for local heat network partnerships
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Institute for Future Cities
o
o
o
o
Strathclyde University
Won £8 million in funding from SFC
Integrating the DH system with the University’s research agenda
Urbanite project - demonstrating and research low carbon technology. Sensor systems. Optimising energy
production and demand.
City Observatory – capturing, joining together, visualising, multiple urban datasets. Enabling the city to be
understood in new ways. Platform for Urban Energy Research e.g. advanced bio fuels
Platform for Urban Energy Research e.g. advanced bio fuels
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Platform for Urban Energy Research e.g. advanced biofuels
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Sustainable Facilities Training Centre
Current Developments