Mercedes Maroto-Valer, UK Champion of Industrial Decarbonisation Research and Innovation Centre
Creating low carbon industrial clusters within the UK will boost the competitiveness of key industry regions, driving inward investment to protect and create green collar jobs
The chemical industry is the UK’s second biggest manufacturing industry, after transport. Globally, meanwhile, the chemicals sector consumes 28% of the world’s industrial energy resources, so this isn’t just a UK issue. While efforts have been made to harness low-carbon alternatives such as hydrogen, bioenergy and renewables to generate heat and power within the industry, a dependence on carbon feedstock from fossil fuels represents a key challenge in emitting carbon emissions altogether. Evidently, innovative solutions are required quickly if the sector is to reach net zero commitments in the desired timeframe.
Another significant challenge is cost. Low carbon solutions such as hydrogen and bioenergy, as well as renewable technologies, can be expensive to purchase and install, especially for SMEs. Increased demand, driven by a cluster approach and backed by UK-wide policy changes, should increase and accelerate market share for such technologies and consequently reduce overall cost per system.
This is the approach taken by The Industrial Decarbonisation Research and Innovation Centre (IDRIC), which works closely with the UK’s six major industrial clusters – Grangemouth, Teesside, Humberside, Southampton, South Wales and North West England. By addressing the decarbonisation challenges faced by each region, the Centre aims to accelerate and de-risk the deployment of low-cost solutions, which can be widely distributed across UK industry, while working alongside government representatives to ensure that these developments are accompanied by appropriate changes in policy. IDRIC aims to position the UK as a world-leader in low-carbon manufacturing ‘hubs’, achieving at least one low carbon industrial cluster by 2030 and the world’s first net-zero industrial cluster by 2040.
Collaboration is the key to achieving these goals. Cooperation between academics, policymakers, and industry members is crucial if we are to make effective and timely progress, ensuring the latest scientific developments in decarbonisation are transferred to industry, and simultaneously reflected and supported by government policies. Rapid developments are required if the UK is to transition towards a net zero economy, and changes of this scale can only be achieved by working together.
On top of the indisputable benefits for our planet and population, achieving a net zero status also brings a considerable opportunity for commercial gain. Low carbon credentials can be seen as an important differentiator for global multinationals seeking a new base for business activities, especially as companies become increasingly aware of their corporate social responsibility. Creating low carbon industrial clusters within the UK will boost the competitiveness of key industry regions, driving inward investment to protect and create green collar jobs and further reinforce a low-carbon global economy.
Evidently, there is considerable scope to accommodate sustainable developments and still achieve economic growth. And, as a significant contributor to the UK economy, the chemical industry is well-placed to illustrate the achievability of this goal. With much of its commerce tied up in the profitable pharmaceuticals industry, the sector reported a revenue of £55.5bn in 2018, investing a total of £5.4bn into public and private R&D. Furthermore, it is estimated that around half a million people depend on employment within this industry, 153,000 of which are in skilled positions. A similar story exists in the petrochemical industry, which currently employs around 99,000 people, generating £12.1bn for the UK economy.1
Importantly, and somewhat paradoxically, the chemical sector also plays a key role in the creation of low carbon technologies. Coatings for solar panels, lightweight materials for planes and cars, and insulation for homes are all a product of chemical processes. In fact, a 2009 study2 reported that for every tonne of CO2 produced by the chemical industry, 2t of CO2 were saved as a result of the sector’s involvement in low carbon manufacturing. Clearly, the transition to net zero cannot be achieved without this wide-reaching sector.
As the nation quickly takes action to restore the smooth running of the UK economy, the opportunity to ‘rebuild greener’ must not be missed. By supporting organisations to integrate sustainability into their business models, harnessing the latest low-carbon developments from academic research, and fostering a cluster approach to encourage knowledge sharing and cooperation, IDRIC is passionate about guiding the UK’s six biggest industry clusters on a path to net zero.
Economic stability is no longer enough if we are to continue to thrive for generations to come. The time for decarbonisation is now.
1 newstatesman.com/politics/uk/2020/02/brexit-isnt-done-what-next-uk-chemicals-industry
2 cia.org.uk/Portals/0/Documents/Publications/Low%20carbon%20brochure_2015_MR.PDF?ver=2017-01-09-143808-563
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