All Energy Industry Council
30th April 2020
Microsoft Teams
In attendance:
Andrew Harston - Associated British Ports
Andy Holyland - ORE Catapult
Andy Paine - Vattenfall
Bill Cattanach - Oil and Gas Authority (dialled in)
Chris Starkie - New Anglia LEP
Colette Matthewman - UEA
David Glason - Great Yarmouth Borough Council
Ian Pease - Suffolk County Council/OrbisEnergy
Johnathan Reynolds - Opergy/ New Anglia LEP
Julian Munson - New Anglia LEP
Mark Goodall (Chair) - Aker Solutions
Martin Dronfield - James Fisher Marine Services
Maxine Narburgh - Greater South East Energy Hub
Nikos Savvas - West Suffolk College (dialled in)
Patrick Phelan - Energy Business Catalyst
Paul Warmington - Suffolk County Council
Paul Wood - East Suffolk Council
Rich McLean - West Suffolk College
Richard Goffin - Peel Ports
Rob Bush - East of England Energy Group
Simon Gray - East of England Energy Group
Stuart Rimmer - East Coast College
Stuart Smith - People with Energy
Vince Muspratt - Norfolk County Council
Apologies:
Graham Hacon - Worley
Konstantinos Chalvatzis - UEA
Madeleine Coupe - New Anglia LEP
Nikos Savvas - West Suffolk College
Shan Lloyd - BEIS
Sheila Oxtoby - Great Yarmouth Borough Council
Sherlyn Deguzman - Shell
Tom McGarry - EDF
Victoria Sinclair - Scottish Power Renewables
Exec Attendees:
Katie Snell - New Anglia LEP
Esmee Thornton - East of England Energy Group
1.
Welcome from the Chair
Actions
Mark Goodall (MG) welcomed everyone to the meeting, noting substitutions from WSC and
GYBC.
Comments on previous minutes.
Item 2 from February minutes should be updated with the following:
How can we capitalise on the energy projects on our coast and realise that energy in constrained
regions? National Grid owns the transmission grid, UKPN owns the lower voltage distribution
network.
The current regulatory model means that DNO’s cannot invest ahead of need, investment needs
to be in their business plans which are informed through the RIIO process. Developers are
expected to pay the cost of any grid reinforcement outside of planned work. You can bypass the
grid through ‘private wire’ to customers directly such as community generation projects.
Comments on Item 4 of February minutes RE: Marketing Message
Sarah Rushworth is in position at GYBC as the new Marketing Manager. She has been in
contact with the stakeholders of the AEIC to establish what participants believe important for the
marketing message moving forward.
2.
Updates from Sub-groups
Note that supporting papers provided updates on each of the subgroups for the purposes of
the meeting.
Building on World Class Research: Andy Holyland updated on the progress of the Building
on World Class Research Subgroup. The group are currently focusing on inputs, outputs and
outcomes for the subgroup focusing on a task and finisher and exit strategy and long-term
agenda of the project.
The group have further defined the workgroup scope and individuals’ roles and
responsibilities have been assigned.
Actions identified include:
• Identify what type of system is required and how this will allow the groups
workstreams to react and respond to opportunities.
• What work needs to be done immediately to ensure a combined message is
promoted to stakeholders.
• Identification of an effective end date from inputs and outputs.
• That the scope meets and aligns with Local Industrial Strategy and sector plans such
as the Offshore Wind Sector Deal.
Energy Capability Matrix: Rob Bush updated that the subgroup has met several times since
the February council meeting. Two different platforms were demonstrated to the group and
the Inn2Power system was identified as being more flexible and suitable for future use.
Inn2Power is currently being investigated by other Offshore Wind Clusters which allows the
potential for commonality.
Opergy have presented and developed slides that outline the scope for the Capability Matrix
(attached).
Actions Identified include:
• Who will be the users of the capability matrix and why will they use it?
• How could the platform be funded?
The group will be meeting on the 6th May to continue discussions.
RB to
develop with
Mark Goodall identified that a scoping document should be presented to the council before a
the ECM
final solution is identified and any decisions are made by AEIC. This is to be raised at the next
Subgroup
Capability Matrix meeting and developed for the council.
It was noted that there could be an opportunity to take this intelligent platform to the Regional
Cluster Forum as a consistent option across all Clusters. OWGP could then be involved. It
would be Offshore Wind specific but there is no reason why an All Energy platform could not
be taken to another regional cluster forum and the OWGP could be used to take the platform
wider.
Capability Matrix solutions are being discussed across clusters and there is a willingness for
RB to ensure
clusters to do the same. The capability matrix journey started a long time ago to demonstrate
this is
regional capability to buyers in Offshore Wind. This group has expanded further than offshore
discussed at
wind. It remains vital that the solution developed gives users the ability to drive into market
subgroup
sectors. The point is to make it easy for buyers looking at the region to see what they can
buy.
It was suggested that future meetings should provide updates from cluster leads on various
MD & BC to
cluster activity. Martin Dronfield to update on the Offshore Wind Cluster and Bill Cattanach to
update
update on Oil and gas.
Cohesive Marketing Message: Mark Goodall updated that he met with Sara Rushworth in
early April and identified that AEIC marketing must be all energy focused and not just offshore
MG to bring
renewables. Sara has made contact with the AEIC to obtain input into the marketing message
scope to next
in the hope to identify the strengths and weaknesses of the region. Sara will build a scope
meeting
that can be put to the council for review and comment. Potential funding is to be included the
scope
3.
How the LEP’s and LAs are working with Government to support businesses
Chris Starkie outlined the group governance structure. The Subgroups report to the All Energy
Industry Council (AEIC) and the AEIC reports to the New Anglia Local Enterprise Partnership
(LEP) main Board. The AEIC sets the agenda and direction for the energy sector.
Funding can be explored via the LEP and in addition, the AEIC can also explore funding from
elsewhere. Sub-groups should obtain sign off from the main AEIC for all activity and actions.
• The Norfolk Resilience forum meets daily to discuss COVID 19.
• Hospitalisations are dropping in both Norfolk & Suffolk.
• Numbers of positive cases are flatlining due to increase in testing.
There is a need to reprioritise in this new business environment. Business as usual is not
expected in the next few months - nor perhaps the next 12 months. NALEP have taken the
approach to work with businesses to help support them. Next will see steps towards a first
phase recovery plan. This is expected to be a 12-month initial recovery plan where all adapt
to the ‘new world’ moving into a longer-term reboot of Local Industrial Strategy (LIS). The
current LIS still exists but will be remodelled and develop as a response.
Immediate response - is to support businesses, (see attached PDF). Businesses can access
personalised support through one of 20 growth hub advisors. The New Anglia Growth Hub
still has capacity and anyone who wants support can contact them. Local Authorities are busy
paying out grants to small businesses and larger retail businesses. 15,000 businesses so far
have received grants of the values of £10,000 to £50,000 grant.
The group were asked to encourage small businesses to put forward a claim.
There is also the opportunity for businesses to access the Business Resilience and Recovery
Scheme and are helping if businesses want to diversify. The LEP are also supporting the
promotion of vacancies via their website and working with Job Centre Plus.
NALEP are supporting the provision of PPE. Demand has increased and work is being done
to get suppliers in contact with users of PPE therefore a supply chain network has been
created. Work is also being done to help upscale production.
There is ongoing work with Visit East of England (VEE), helping to find accommodation for
key workers, this information will be shared with energy and construction sectors.
NALEP are capturing business intelligence and feeding it into government on a weekly basis.
Economic Recovery planning will soon commence which will look at how to reenergise the
economic strategy and LIS. This response will focus on clean energy as well as other sectors
that will take a substantial hit for example the tourism sector.
Local authority teams have been getting grants out to businesses. £38 million so far the by
Norfolk Local Authorities. Over £50m has been distributed by East Suffolk Council covering
around 4,500 businesses. 66% of eligible Great Yarmouth businesses have received the
grant (c.£24m). GYBC have been pro-actively promoting to increase the take-up.
The point was raised that for All Energy, securing the large infrastructure projects in Offshore
Wind, Nuclear and Decom is an essential part of the strategy to develop local high skilled jobs
and business growth opportunities. Government has outlined that they’re keen to get
construction projects moving with Sizewell C and new offshore Wind developments.. The
more people can do to rally behind these projects the better as they present an opportunity
to get the economy going post Covid-19.
4.
The current impact of Covid-19, what have council members had to do so far,
what assistance have they/secured
Impact on Oil and Gas:
• Outlook is currently bleak. This is the biggest downturn ever seen. With Covid-19 and
the low oil price.
• The OGUK activity report noted that up to 30,000 jobs could go.
• Might be some scope to carry over work but whole industry is facing cliff edge
situation by summer.
• The OGA are focusing on how to save jobs.
• Lots of testing protocols have been introduced to ensure its safe to go offshore.
• Only 40% of usual work being deployed. New work tenders dried up.
• Groups have been set up within OGA to try and stimulate activity and analysing
projects to see which could go ahead in current oil price.
• The OGA are thinking seriously as to if extensions of licence should be allowed or if
they should encourage operators to move on with project.
• Small companies have a lack of funding - is there help from Government to
underwrite loans?
• The messages from government is that energy transition is where government are
most minded to help.
• SNS has good potential for energy transition work eg electrification of platforms and
this could stimulate onshore work such as design and engineering.
Request from table. Previous downturns. Aberdeen suffered more than SNS. Concentrate
effort on southern basin to get activity here first.
Impact on Offshore Wind Developer:
• Short term impact of refocusing on what’s needed to keep turbines spinning, ensuring
safe shift patterns and allowing for the good use of planned outage periods.
• From a Utility perspective, prices of electricity are falling in Europe due to reduced
demand. This puts a strain on cash flow and cash availability and hence investment
planning is key.
• This may also make moving out of CfD at risk.
• Offshore wind is still being perceived as a key growth area and a request to rethink
the delay to Norfolk Boreas has been submitted with support from local government
and industry.
• Capital markets are volatile, but decarbonisation investments will be a growth area.
Update from Offshore Wind Tier 1 -
• Businesses are still working with several technicians going offshore daily
• Health and safety protocols have been reviewed to ensure safety of personnel.
• Non-essential work has been rescheduled to the end of year or 2021 to reduce
current workload.
• There is a good level of collaboration between operators.
• The business is forecasting a significant shifting back to Q3/4 with Q2’s work being
decimated.
• Projects mostly postponed to 2021 rather than cancelled and a 30% drop in revenue
is being anticipated.
• Cashflow has become critical and a number one priority.
• People have been furloughed but there is a commitment to retain jobs.
• There are good signs for June/July and with 70% of the business being in offshore
renewables there is cautious optimism for the future.
Update from Ports: Peel Ports -
•
40% downturn in Oil and Gas activities with drilling programmes cancelled and O&M
work dropping.
• Have had enquiry about decommissioning rig lay down for immediate placement for
long term and short breaks.
• Oil and gas clients in the supply chain are experiencing cash flow issues and
therefore impacting on Ports income.
• Offshore Wind work reducing due to completion of EA1 installation and there appears
to be a large gap before next scheduled OW project.
• Other port traffic including fertiliser, food, grain etc continue to flow as usual.
Associated British ports -
• All ports continue to operate apart from Southampton [should this be Plymouth?] due
to the number laid up cruise ships and ferries.
• As the sector are recognised as key workers they are still functioning.
• Testing was initially an issue but has settled down.
• Overall the East Anglian ports are 20/30% down overall however there in an increase
in timber through Ipswich port.
• Some challenges with debt recovery and some small customers may not survive.
• Overall, working as usual with some downturn.
Update from small businesses:
• Oil and gas clients have ceased permanent recruitment, cut salaries and contractor
rates by 20%.
•
50% decrease in sales in the last month with some employees furloughed
•
Access to £10,000 LA grant and loans assisting short term
•
Some companies are stepping up with new business opportunities. For example
there has been an increase in business from staff screening and Covid-19 tests and
high-level medical advice to boards. Service that lots of companies have now taken
up. Will it still be needed post Covid.
• Have picked up a few new clients to advise on financial strategy, responding to
COVID, how to move into different opportunities and retraining staff to move to
different sectors.
• Looking at long term view to plan for post Covid-19 recovery. Looking at bigger
projects including Sizewell C.
• Keeping busy on research side. Seeing companies further down supply chain being
most significantly affected as tighter margins.
Local Authorities all working on reaching out to businesses and helping them access grants
and support with a view to start working on post Covid-19 recovery plans. Both energy and
tourism seen as key sectors to focus on.
Update greater South East Energy Hub:
• Seen investment into electrification of transport.
• Manage community energy fund and still awarding grants for these.
• Low price of oil driving move to decarbonisation of heat.
• BEIS awarded funding for energy efficiency etc.
• Some projects on hold such as NHS estate and universities.
• Some increase in expression of interest from solar farms that can be done desk
based.
• Positive for funding for supply chain and energy efficiency.
Update from Educational Settings: West Suffolk College
• There has been an adoption of virtual and immersive technologies which has seen a
positive reaction with a 98% engagement including those who wouldn’t normally
engage in a classroom environment.
• Looking to continue the use of virtual platforms in a post Covid-19 world, particularly
the STEM innovation centre.
University of East Anglia -
• Mixed experiences from Covid-19. Teaching all online now and looking at how move
ahead for new academic year in September. Expect more to be online.
• Need to wait before seeing how impacts in long term and how student numbers are
impacted.
• In terms of research -a lot of activity into Covid-19 response; making Hand Sanitiser
and PPE and developing new testing methods.
• Some academics taken up with teaching and do not have time for research as trying
to move everything online.
• Some staff furloughed as cannot proceed with their work.
• Work ongoing into future opportunities and looking at new projects and environmental
impacts and climate change in relation to Covid-19.
• It will be important to see how things move forwards with industry placements. These
are especially important for the Energy Engineering students and have proven useful
and positive for host companies. As a critical point of interaction with the energy
sector we hope these can continue in the future.
East Coast College:
• Around 6000 students moved online.
• Energy Engineering have brought on new programmes for engineering and energy
and capital projects to support large infrastructure projects eg Sizewell C.
• Army testing on campus.
• Most commercial and maritime work stopped or paused. Worth £1.5mil over next
months.
Stuart Rimmer asks for supply chain to continue to recruit apprentices as it will have a knock-
on effect of apprenticeship infrastructure and will undermine what’s been set up over the last
few years if this now stops.
Update from EEEGR:
• In any downturn companies always look at costs and overheard and trade
organisation membership levels can suffer.
• EEEGR endeavouring to add value to keep members.
• Haven’t been hit too badly yet however this may change. Other associations including
the chamber are being affected.
• Feeding data to NALEP, BEIS and government. People suffering from too many
questionnaires so keen to work together to do one between all to engage more
industry response and collate industry as a whole.
• More this goes on the more impossible to have large gatherings towards EOY so
looking at how to offer alternatives for events online.
• Furloughed staff
• Looking at business case on daily basis and income streams and keeping costs to a
minimum whilst maximising benefits to members.
It was discussed that with the amount of money being funded from government for Covid-19
support there may be more competition for funding for infrastructure projects in the future.
What can be done to ensure the East of England projects are prioritised by government.
It was discussed if the Oil and Gas taskforce should be reinstated and stated that the LEP’s
business resilience programme was similar. It was suggested that the taskforce could be
reinstated and run in tandem however its best to see how the situation develops.
It’s expected that post Covid-19 businesses will move away from large office working and
towards working from home. Is this an opportunity to use the likes of OrbisEnergy differently
to support this move.
There is a need to ensure that subgroups are still relevant, have the correct messaging and
that workstreams adapt to a post Covid-19 world.
The value of the AEIC is noticed at this time as it is not often possible to have all parties
involved around one table putting one voice to government. It will be used to feed the recovery
plan and eventually feed to government.
5.
AOB
Andy Holyland noted ORE Catapult have secured funding from NALEP for the Fit 4 Offshore
AH to email
Renewables programme and look to make announcements in May to develop programme in
MG some
September. Aimed at those in industry that show an active intent to transitioning into the
information
industry. Will be geared around specific supply chain themes. Good recovery mechanism for
on this.
the supply chain and info to BEIS and OWGP to how it can be developed in region and
nationally.
Johnathan Reynolds - Fit for Nuclear supply chain programme is active and working with
Suffolk Chamber of Commerce.
A request for June’s meeting- working with EDF to present on a few projects - where by June
JR &JM to
on the aim is for a submission and clean energy hub which will use Sizewell B & C for large
liaise on
scale hydrogen production and data centre and storage. In addition, a Net Zero Leiston
hydrogen
project where EDF is looking to create a net zero community in Suffolk.
presentations
at next
Working with an electrolyser company for Hydrogen East. Group of interested parties into
meeting
hydrogen and supply and demand including Bacton. By June they will have a plan they would
like to present to council.
There was a discussion as to how Bacton is a prime location for hydrogen however there is
a need for National Grid and operator to join up... Many are interested in hydrogen however
there is a lack of demand. Bacton could be the centre of the industry due to its setting.
Recommended that this could be a future agenda item for further discussion.
Date of next meeting 25th May 2020, Microsoft Teams.
