All Energy Industry Council

25/06/2020

Microsoft Teams

In attendance:

Andrew Harston - Associated British Ports

Andy Holyland - ORE Catapult

Andy Paine - Vattenfall

Chris Starkie - New Anglia LEP

Esmee Thornton - East of England Energy Group

Ian Pease - Suffolk County Council/ OrbisEnergy

Johnathan Reynolds - Opergy/ New Anglia LEP

Julia Pyke - EDF Energy

Julian Munson - New Anglia LEP

Katie Snell - New Anglia LEP

Mark Goodall (Chair) - Aker Solutions

Maxine Narburgh - Greater South East Energy Hub

Nigel Cornwall - Cornwall Insight

Paul Warmington - Suffolk County Council

Rich McLean - West Suffolk College

Richard Goffin - Peel Ports

Rob Bush - East of England Energy Group

Sara Rushworth - Great Yarmouth Borough Council

Sherlyn Deguzman - Shell

Stuart Rimmer - East Coast College

Stuart Smith - People with Energy

Tom McGarry - EDF Energy

Victoria Sinclair - ScottishPower Renewables

David Glason - Great Yarmouth Borough Council

Colette Matthewman - UEA

Apologies:

Bill Cattanach - Oil and Gas Authority

Graham Hacon - Worley

Konstantinos Chalvatzis - UEA

Madeleine Coupe - New Anglia LEP

Martin Dronfield - James Fisher Marine Services

Nikos Savvas - West Suffolk College

Paul Wood - East Suffolk Council

Shan Lloyd - BEIS

Sheila Oxtoby - Great Yarmouth Borough Council

Welcome from the Chair

Actions

The Chair welcomed all to the meeting and apologies were noted.

The minutes from the previous meeting were reviewed with Subgroup updates in

relation to actions to be further discussed within the meeting.

Outstanding Action - AH to send FIT4OR Programme information to the Chair.

The regional recovery plan, what has been put in place to date, what are the

next steps, timelines?

The Norfolk and Suffolk Economic Recovery Restart Plan slides were presented. It was

confirmed that the LEP have been mobilised to support businesses with existing

programmes adapted to suit a new environment. The LEP has been working with the

Norfolk and Suffolk Resilience Forum during the crisis. Focus has been on immediate

support for businesses. The Growth hub has been reaching and responding to enquiries,

mostly around finance.

The LEP have launched a recovery and resilience fund including £3.5 million in grants

for smaller businesses to help revaluate and improve efficiency. A small number of

energy companies have accessed these grants.

The LEP are feeding intelligence to the Government and are supplying a briefing

document each week highlighting key issues and trends. Early stages of the pandemic

have enabled policies and measures to be changed, e.g. the furlough scheme and self-

employed etc.

In the long-term recovery will not be quick, the focus has been to get the economy

moving and learn how to cope with the new normal. The Economic Recovery Restart

plan is due to be published 2^nd July, subject to sign off by local authority leaders.

The plan is structured as follows: shows what the impacts of COVID-19 have been and

the key inventions planned. There are separate sections for local Government industrial

strategy and foundations of productivity, which look at business environment, the issues,

opportunities and what the authorities will do in each of the sections, for example skills,

ideas, innovation and infrastructure. Each local authority has their own plan which sit

within the recovery plan.

A page of each of the sectors has been provided and there is a broader range of sectors

due to the impacts where support is required for all.

The longer term plans still remain locked into the Local Industrial Strategy and the three

opportunity areas - Clean energy, Argi tech and ICT - which bring together clean growth.

The LEP, local authorities and other partners can produce their own and more detailed

plans to sit beneath the appropriate sectors, including energy which will be in more

detail.

The key stages are: Respond, Restart and Renew.

We are in the Restart stage and which runs from March 2020 until autumn this year. The

Restart stage runs from June 2020 to autumn this year. The Restart document was

produced within a month with a swift consultation for development. It will be updated

through the summer and the LEP welcomes dialogue in relation to this document.

The Renew document will be an update and upgrade document of the Local Industrial

Strategy and this will show what has happened and where to go next. The Renew

document will be developed from autumn this year and will be published at the end of

the year to the start off the year of 2021. The Renew document will be shared once

published.

Sector responses to recovery plan

Oil and Gas

An update was provided by the Chair in the absence of Bill Cattanach.

Oil prices have recovered somewhat however, gas prices are still very low. Many

employees remain furloughed with minimum manning offshore assets and many

projects are being cancelled across the board.

The Council asked if there were any updates on the governments Oil and Gas Sector

Deal and suggested the AEIC keep an eye on the deal to see how it can be implemented

or put ideas into the deal to make sure the supply chain is factored into the planning.

An update was provided, the sector deal is to work towards the net zero decarbonisation

and BEIS rejected previous drafts. Oil and Gas UK, BEIS and the Oil and Gas Authority

have now agreed on a framework.

Offshore Wind/ OWIC

Andy Paine (AP) update. Strategy remains in place, projects and pipelines continue and

investment decisions are being made. There has been a tightening of costs and

resources in the current climate. There have been no big strategic shifts. Clean growth

will help but this puts pressure on having adequate pipelines in place. There have been

delays on consenting on Norfolk Vanguard and Norfolk Boreas projects, looking to hear

more on the Norfolk Vanguard on 1^st July. Awaiting to hear more from the government

on clean growth.

The sector deal work continues, the momentum is not as strong and we need to think

about how we can reinject this. The current chair is coming to an end of his term, the

focus is to keep driving and focus on progression.

Andy Paine commented on the Restart Plan. We would like to know how other LEPs

are doing in other parts of the country, and we also welcome the place of clean growth

within energy. We must make use of vehicles we already have such as the AEIC and

other areas so that we do not reinvent some of the ideas and move onto some of the

initiatives already in place.

National Grid has started consultation for integration of offshore wind. A project team

and manger are in place. A webinar took place recently which focused on progress and

(AP) to share link

how to engage stakeholders going forward. The website will be shared with this group

with group.

so that all can join the next webinar.

Victoria Sinclair sits on the Offshore Wind Growth Partnership Reference Group and the

Offshore Wind Supply chain group. The partnership have proposals for new funding calls

which will be published soon, they have been overcoming delays due to coronavirus

using virtual events such as the webinars.

Supply Chain Group Update there have been delays on developing the UK content while

they wait for guidance to come out from BEIS in response to the recent consultant

around the supply chain guidance. Once this has been received from BEIS there will be

more progress.

Round four and Scotwind process are still running to short timeline processes and are

progressing well.

Simon Gray added the maritime recovery plan and sector deal link:

https://www.maritimeuk.org/programmes/maritime-sector-recovery-plan/

An update was provided from Simon Gray based on the meeting with RenewableUK.

(SG) to send

subject topics

The meeting discussed different trade organisations and the meetings which had taken

place with Kwasi regarding the BEIS proposal. Subject topics focused on maximizing

round to group.

UK content and the supply chain, jobs, sdkills and apprenticeships systems, getting

homes net zero ready and deploying new technology.

It was confirmed that UK content targets have been discussed and prices are of

paramount importance and may exclude some UK content issues. Government are keen

to see more action on jobs, skills and apprenticeships with post Covid -19 bounce back

being led by the clean energy sector. Getting homes to net zero include the likes of

hydrogen and passive houses. Deploying new technology via the ORE catapult and

other stakeholders to support this is important?

(AP) to send

Andy Paine (AP) - confirmed that there has been encouraging input from National Grid

round website to

with regards to connection and integration and they must be engaged with on this. There

is a good opportunity for engagement. The Chair offered to support on this. It was

confirmed that there is a website to sign up to input ideas.

AP and the Chair

to engage with

EEEGR and the Offshore Wind SIG have written to government with concerns about

National Grid.

delays in granting permissions for offshore wind farms and issues to cabling and

substations. It has been made clear that there is a need to act quickly not waiting on a

ring main or East Coast Infrastructure enhancement. This has been shared with

RenewableUK who are pushing this along with Kwasi. It was confirmed that the

SNS2020 event will provide an overview in support of offshore wind farms and

connection with another session focused on the East Coast and what is happening in

our region.

Nuclear

Tom McGarry provided a Sizewell update. Application for development consent order to

build and operate Sizewell C was accepted, and will now go through the DCO process

and the 18 month period towards the final decision. All will be published soon. In the

meantime, a presentation has been put together to show what has been applied for.

The Sizewell C site was identified by Government as a potentially suitable site over a

decade ago. Many elements of the proposal have since changed with over four more

stages of public consultation. Following consultation there will be a physical distinction

to Hinkley Point C in that SZC will clad the turbine halls. Most importantly there is 3.2GW

of electricity that will be generated. It will no longer be undergrounding the cabling,

following several engineering analysis, the safest approach is to have four pylons built

on the 33 hectare platform connecting into the new 400kv substation.

The existing distribution around Sizewell C is the most modern in the UK it has the

capacity to take additional electricity therefore no need for additional pylons and cables

across the surrounding countryside.

The power station has changed the way they transfer freight and people to the site and

will be via a mixture of rail, sea and road. We have responded to the environment and

technical assessment undertaken to inform what the infrastructure will look like. There

will be several roads that will have changes made to them and will bypass certain

communities along those roads to deliver the construction phase of Sizewell C.

Estimated to run from ten to twelve years.

In relation to the DCO, a decision will be made by late 2021. We will work with partners

to lean on government to push the energy white paper, to proceed with a final investment

decision towards the end of 2021 with view of starting construction early 2022. There

are already a number of suppliers involved in the early works such as ground works and

local plant hire services and this includes local employment.

A press release has been issued today to note that an application has been submitted

along with the launching of 11 pledges to the local community. At the end of construction

period it will deliver a net gain of land for natural capital and wildlife and confident the

impact on RSPB and other sites with minimal impact from coastal processes.

At peak construction will require 8,500 people working across the project. This will

include the Sizewell C site as well as development sites such as accommodation, freight

management facilities and park and ride facilities. Construction is aimed to start in 2022

with a likely peak around 2027 to 2028. The early work will reduce the impact on traffic

on local rural roads. The beach landing facility will be the first to do. A spur of the

Leiston/Saxmundham branch railline will go direct into the site, bypassing the Leiston

railway line. It is estimated that through sea and rail this will be able to deliver 40% of

the freight, which will reduce the number of HGV movements on the roads. The

requirement for land for temporary construction area reaches 260 additional hectares

which will be returned after construction to it’s original use. Construction aims to finish

in 2034.

Information on the environmental statement, has a total amount of 56,000 pages within

the application. Local environmental challenges are as important as contributing to net

zero.

A beach landing facility will mean very large or heavy freight deliveries by sea can only

withstand 1/10000 year storm.

We are building a temporary accommodation campus, and it is estimated that local

employment will reach 2,500 - 3,000 who will use the park and ride sites. The four village

(TM) to send

bypasses on the A12 will be amplified. We will build a link road direct from the A12 to

presentation to

the Sizewell C site, and this is being delivered because of the environmental impact of

EEEGR

the HGV’s that will drive through villages. Freight management facilities on the A14 will

be important to managing the logistics to site. Estimated on average 325 HGV deliveries

at peak. The land will be returned for the management facilities and the park and ride

sites for agricultural use at the end of construction.

Economic and community benefits are a priority. From 2,500-3,000 workers will come

from the local area. They will enable 1,000 apprenticeships within the local supply chain.

Sizewell consortium, the main tier 1 suppliers will be working on Sizewell C working in

tandem with the Suffolk chamber of commerce to develop the local supply chain.

There are concerns that Sizewell C will cause a lift and shift from the South West, this

is not the case and it has invested to develop the supply chain development team who

are ready to pick this up with £1.5billion signed up in contracts with South West

companies at HPC. £900million has been invested in contracts with East of England

companies to date.

The main aim is to help local companies get ready for the jobs and opportunities and

there are many initiatives being put into place. We are working very closely with the local

authorities as well as further education colleges and training providers, which is included

in the LEP recovery plan.

Investments will be made in local employment, skills and we aim to create a jobs

services, skills fund. Socioeconomic strategy at HPC is looking at the wider economy

and to make sure that any job losses as a result of a big project coming into the local

area are backfilled. By having a skills strategy behind it local employers can find people

who are qualified and skilled in order to take on the roles. A public services contingency

fund will be provided along with a community fund as well.

A pre-examination stage will be running from July to September which you can register

online and view the application documentation.

Stuart Rimmer (SR) added that he was keen to see the commitment in apprenticeships

and asked if the apprenticeship will be secure.

It was confirmed that Sizewell has committed to the delivery of 1,000 apprenticeships

and added that they are not all EDF Energy apprentices, but that they will join through

several companies through various different tiers.

Clean energy hub project and ‘Net zero Leiston’

Julia Pyke (JP) director of finance for Sizewell C.

In the UK, nuclear has only been used to supply electricity to the grid and everyone has

forgotten it is a source of heat. In other countries the heat is used to make electricity and

to provide district heating. There is an opportunity to use a design of heating which has

been approved by the UK regulator, and EDF has started to seek UK approval for the

design of its power station, a model already being built in Europe in 2008. Outline

approval was received in 2012, which states you can build this in the UK if they were to

comply with 771 engineering changes, including new additional safety systems. The

details of the design was frozen this year. The UK has one of the toughest nuclear

regulators in the world, it takes a very long time to get a nuclear design to be approved.

EDF haven’t had to spend a lot of time and money redoing the design therefore they

have had time think about how to use power stations more efficiently to maximise the

output of the power station such as excess heat.

There has been a massive reduction in energy consumption during the lockdown period.

Nuclear has been stable and has produced 20% of UK electricity for a long time.

EDF are pro renewables, wind, solar, gas, carbon capture and storage. Pro keeping

20% generation from nuclear, the other 20% needed will come from carbon capture

storage in due course.

Energy Systems Catapult report on how nuclear contributes to net zero and are able to

model the whole system. Provided we are able to reduce the costs of nuclear proceeding

with more GW technology, this establishes nuclear as a low regret decision. EDF would

look to reduce construction cost and save costs by not having to redo the design, this

would also benefit as suppliers would not have to requalify their equipment.

Key messages from the Energy Systems Catapult on a whole systems basis confirms

that in order to achieve net zero, nuclear needs to play it’s part. Assuming the cost

reductions it is a very low regret decision to proceed with, including more GW

establishment.

Hinkley is putting £14 billion into the UK economy during the construction period. The

audit of UK content is carried out in two ways, one way is audited by government,

calculating where contracts are in the workforce. Cross checking by looking at if spend.

They are spending 2/3 of their money in pounds by the end of Hinkley and they will have

spent £14bn in the UK economy. An audited figure of £1.7bn has been invested into the

supply chain in the south west of England, and there is hope to replicate this to the East

of England. After Sizewell they will need two additional sites.

EDF would like to collaborate with the offshore wind and oil and gas industry looking at

using heat, and green hydrogen through electrolysis. A focus will also consider heating

and cooling for domestic use as well as looking at district heating for housing

developments. We are seeking to collaborate with as many people as possible in

approach to grid connections.

Nuclear takes a long time to build, and EDF are looking to explore a 2 MW demo

electrolyser at Sizewell B. This would produce 800kg H2/ day, and is the same size as

a shipping container. Hydrogen buses, trains and homes will also be explored. Other

countries use for processed heat, district heating, desalination.

As part of the energy hub and net zero Leiston project, EDF are talking within the main

EDF group who spend £2m a day on R&D. They work with Pivot Power, POD Point and

EDF Renewables.

Net Zero Leiston is engaging in the community working to engineer a solution for

decarbonising a town. There is need to identify the right solution and the acceptable way

of taking carbon out of everyday life. The right technology is available to reach net zero

but this does not mean we should not develop these technologies because we don’t

have a social acceptance blueprint. Work is being carried out with Leiston and East

Suffolk Council and other companies, to create a blueprint for Leiston. This will help to

find the socially acceptable way to engineer Leiston to be net zero. This project will be

launched soon.

In the process of creating a replicable route map for other towns to reach net zero. The

project is community led and hopes to provide a greater social mobility. It will endeavour

to train people and implement what the community has put forward. It has an open

source approach and aims to be as collaborative as it can be for example, by looking at

how local agriculture can benefit.

The Chair mentioned the benefits of working with offshore renewables and oil and gas

sectors in this region. All three are a good starting point. Asked if the pilot being run is

in confines of Sizewell B? It was confirmed that this does not have to be on site and is

flexible.

Subject to planning it would look for the best place to put a facility, but it does not have

to be right on the coast.

MN - Manages Great South East Energy hub, around local energy, and rural energy

fund for south east. Can be joint ventures if the requirement is the community picks up

the most, therefore could work together.

Hydrogen East

Johnathan Reynolds (JR) Slides attached

Hydrogen East has been worked on for a few months and is soon ready to launch in

July. The aim of the project is to stimulate the hydrogen sector in the East of England

with a prominent focus on Norfolk and Suffolk.

Hydrogen is a zero emission (if produced using renewable technologies) and can solve

lots of challenges as it is very versatile. There has recently been lots of attention from

major operators and developers. Hydrogen has a range of significant applications from

electricity generation to heat, transport as well as storage for homes and marine

shipping.

We talk about the East Anglia having all forms of generation, however we are falling

behind the rest of the UK with hydrogen, lots of other regions are already developing

large hydrogen projects. There are no plans in East Anglia yet, however we have the

chance to leapfrog the rest of the UK if we are ambitious.

Hydrogen is highlighted in the Local Industrial Strategy with potential at both Bacton and

Sizewell. Hydrogen East’s vision is to be an independent vehicle to promote and support

businesses and supply chain and will work in partnership with private and public bodies.

It’s about championing and developing. So far those who are included in discussions

are; CPH2 Clean Power Hydrogen Group, New Anglia Energy, TCP Eco, ORE Catapult

and Opergy.

The Region has the potential for a H2 SNS regional cluster. Hydrogen East are already

talking to the OGA, looking at blue and green hydrogen and the potential for an

integrated concept for the SNS. There is potential at Bacton with the group already

working with Shell and Bacton. Bacton has the potential to be an onshore terminal for

hydrogen and there are already discussions with the OGTC about this.

Great Yarmouth Power station is the single biggest source of carbon emissions in

Norfolk and Suffolk and has a direct pipeline to Bacton. There is the potential for a partial

conversion or upgrade to Hydrogen and this could be Britain’s first Hydrogen Power

Station. It could also supply local heat.

There is a need to look at how onshore renewables can work with hydrogen and how

hydrogen can align with existing projects.

What’s next? Creating a business lead network and raise awareness and research.

Hydrogen East are working with partners who can develop and deliver. There is a need

for a visible hydrogen route map for East Anglia.

An ask for the council is for their insights, ideas, guidance, endorsement, and views.

Hydrogen is something they perceive as a gap and timely to have a bespoke presence

for this.

The Council commented that the drive for hydrogen is welcome and all figures for

decarbonisation is based on hydrogen being part of the mix. There’s no insight of East

Anglian Local Authorities moving to H2 for transport however in Kent, Rise Hydrogen

has successes with a pilot of hydrogen busses.

I The Council asked if Hydrogen East was a private company or connected to the LEP.

Also, that Large infrastructure was noted in the plan. To what extent are Hydrogen East

aware of the plans?

Hydrogen East confirmed that there is no link to the LEP. It will be a limited by guarantee,

i.e. not for profit. Not a member association but an independent body who can develop

in partnership with local businesses and authorities. Bacton are aware and the OGTC

and OGA are working with Hydrogen East on the plans for this.

The Council added that they have only just started to leverage informal networks and

want to engage with local stakeholders. Does not matter where it sits as long as

someone is doing it. Open as to how to take this forward.

Hydrogen East were asked if there are geographical boundaries and commented that

public sector and HGV’s must be looked at. Happy to look into this and get companies

(AH) to engage

to engage.

with HGV

companies

The Council commented that 27 million boilers in the UK can operate on H2 boilers but

can H2 boilers operate on Gas? In the meantime, if Natural Gas could have a blending

solution, what would the boiler situation be?

Hydrogen East confirmed that a 20% hydrogen blend is viable for modern (10yrs max)

boilers. Older would be a problem 20% is the upper limit for blending with Natural Gas.

The EU do not consider green hydrogen (that produced by renewable sources) to

include hydrogen produced through nuclear, however the UK do.

The Council commented that we should identify our unique opportunities as a region,

such as potential for hydrogen powered boats on the Norfolk Broads. If something were

to get established and make a difference, people will take notice.

Subgroup updates

BWCER

Andy Holyland (AH)

Building world class research group - Nigel Cornwall has been welcomed to the group.

working on developing input and outputs and an exit strategy and what the long term

outcomes will be. As of last meeting looking to further define the primary objective of the

steering group, and make sure it is achievable long term and sustainable. UEA have

been building a survey questionnaire testing it to understand the resources structure,

expertise etc. Share among the universities, technologies, and stake holder group. Start

to build and understand where the interests are who would like to work collaboratively.

Katie has been working on an engagement letter to outline what the scope of the group

is to ensure that they have a clear message and a clear call for action. Being finalised

now, just looking to include AEIC to ensure it has credibility around what the call for

action is.

Collating where they are going to find the funding from and who the stakeholder groups

are. What is the primary function of this group. Looking to deliver on projects or signpost

to the relevant businesses that can successfully bid and deliver on these projects.

Call of action to AEIC group to have a look at the document against the original aim of

All to confirm and

activity to give a sense check on the direction of travel for the steering group to ensure

make suggestions

it still meets the requirements.

before nxt mtg

Next steps are to finalise the survey and letter and collate a list on who to engage with.

Start to engage and develop and map infrastructure resources to understand what the

capabilities and opportunities are and how to collate and share the information.

Now working to ensure that all is in line with the recovery plan and making sure they are

focussed in the areas of need that are highlighted in the post Covid-19 pandemic.

Briefing papers have been shared.

Capability Matrix

Rob Bush (RB)

Since last meeting the subgroup met on 25^th May to review all comments from council

members, great responses. Looked at previous slides and drafting a terms of reference

and scoping document. Had volunteers agree to assist with this, just need to put it

together.

RB to discuss

RB will discuss with the Chair whether to send around the scoping document via email

sending out

or wait until the next council meeting.

scoping document

with MG

Cohesive Marketing

Ian Pease (IP) and Sara Rushworth (SR)

Good progress and links to EEEZ mission. There is a chance to collaborate with Sara

at GYBC, as project manager. 15 responses received from AEIC and other partner and

stakeholders which followed up with 12 interviews. Currently refining the feedback and

get into a usable piece of work for tender.

Product is an all energy mix USP. Key findings have raised debate in terms of what the

audience looks like with different messages for each of the different audiences.

An important public and local community role, able to communicate, and be open to

conversation. Need to understand locally what energy opportunity is.

Strength of sector see’s an energy mix with 55 years of experience, based on innovation,

education, world class facilities, developers, and skilled workers

- which are all

important messages

Weaknesses have been confirmed as road, rail connection, infrastructure with a lack of

visibility on national level, with poor communication.

Opportunities are the diverse energy mix, journey to net zero, hydrogen, port expansion

and world class research.

Threats, are that some regions have more backing and others are fighting for same

prize.

Messages is that our region is collaborative and joined up. Leading with many

businesses, leading in Offshore Wind.

Ambitions for the future are that we want to be world leaders in clean energy, to see

growth and indigenous energy as well as jobs for local people. To be national exemplars.

Went out to tender this week. Going out to preferred partners and publicly. Deadline in

4 weeks where we will shortlist. A panel will be presented to in Orbis in August and from

there we will make a decision. with a launch at SNS. Recruited in 4-6 weeks. Revisited

document 4C produced for EEEGR and refreshed and updated the statistics. Longer

term look to refresh social media and website.

AOB

LEP/AEIC/EEEGR

to pick up

The Council asked if there was an Energy sector restart Formal plan being put

discussion on

together.

energy sector

restart plan

The LEP confirmed the opportunity for each sector to develop a focused plan so the

group will need to decide if they want to do this. If the AEIC has the appetite they can

assist in developing a plan.

The Council confirmed it would be good to put a collaborative plan together.

RG: AP or VS Offshore Wind Sector deal there would be funding from the Offshore

RB to pick up with

Wind Growth Partnership to allow to achieve the 30gw by 2030, is there a plan on how

AP or VS to

this is coming out of the Offshore Wind Growth Partnership funding. Action on Andy