All Energy Industry Council

14^th December 2020 -Via MS Teams

In attendance: <ROB - please note - have put Chair first - then in alpha order on surnames>

Mark Goodall (Chair) - Aker Solutions

Kirsty Adams - Scottish Power Renewables

Robert Bush - East of England Energy Group

Bill Cattanach - Oil and Gas Authority (dialled in)

Konstantinos Chalvatzis - UEA

Nigel Cornwall - Hydrogen East

Madeleine Coupe - New Anglia LEP

Martin Dronfield - James Fisher Marine Services

David Glason - Great Yarmouth Borough Council

Simon Gray - East of England Energy Group

Andrew Harston - Associated British Ports

Andy Holyland - ORE Catapult

Colette Matthewman - UEA

Tom McGarry - EDF

Julian Munson - New Anglia LEP

Vince Muspratt - Norfolk County Council

Paul Warmington - Suffolk County Council

Andy Paine - Vattenfall

Ian Pease - Suffolk County Council/Orbis Energy

Johnathan Reynolds - Opergy/ New Anglia LEP

Stuart Rimmer - East Coast College

Sara Rushworth - Great Yarmouth Borough Council

Katie Snell - New Anglia LEP?

Chris Starkie - New Anglia LEP

Guests:

Graham Cooper - National Grid Transport Decarbonisation & Project Director for the East Coast

Simon Price - Production Bureau

Apologies:

Sherlyn Deguzman - Shell

Richard Goffin - Peel Ports

Sarah Habib - National Grid

Graham Hacon - Worley

Shan Lloyd - BEIS

Debbie McDonald <?>

Maxine Narburgh - Greater South East Energy Hub

Sheila Oxtoby- Great Yarmouth Borough Council

Nikos Savvas - West Suffolk College

Stuart Smith - People with Energy

Paul Wood - East Suffolk Council

Exec Attendees:

Esmee Thornton - East of England Energy Group

Agenda items

Actions

1 - Welcome from the Chair

Mark Goodall (MG) Opened meeting and received apologies.

2 - Recap on minutes and actions

• Most recent Recovery Plan had been circulated, as requested at previous meeting.

Comments were to have been sent to Katie Snell (KS). KS confirmed some responses

received and logged as appropriate.

• MG confirmed letter sent to National Grid (ESO).

• Johnathan Reynolds (JR) confirmed he had circulated a letter asking for support for

SuNRISE Coast projects and had received 66 responses from independent businesses

and organisations.

• Tom McGarry (TM) asked for minor amend to previous minutes - to remove words

“and planners” from his comment on the Nuclear subgroup. Rob Bush (RB) noted and

confirmed amend.

• No further comments on previous minutes and MG confirmed them accepted.

3 - Sector updates

Oil and Gas - Bill Cattanach (BC)

BC noted publication of Government’s Energy White Paper and output on

Decommissioning Call for Evidence. Also noted strong statement from Government on

ambition to move from carbon based fuels to renewables. Inevitable as we move towards

net zero.

BC noted that output on Decommissioning had stressed need for greater public

transparency to help the supply chain and a call to identify exportable decommissioning

skills. Need to market our expertise globally.

BC noted that North Sea Transition Deal submitted to Government. Industry confirmed it

would adhere to a 50% local content commitment, creating opportunities for local supply

chain.

BC noted new project with CNOOC to engage with supply chain and unlock a £75m project

- expressions of interest have to be in by end 2021. Supply chain have asked to be told

about specific projects in the next two years with actual budgets confirmed, rather than

just headline long term plans.

Johnathan Reynolds (JR) questioned whether North Sea Transition Deal had been officially

submitted to government. BC said it had been shared with the Secretary of State for BEIS,

Kwasi Kwarteng, but did not know if this counted as an official submission. JR said he

would discuss with Julian Munson (JM) offline. BC noted NSTD would need to align with

the Energy White Paper. BC noted focus in Energy White Paper on new nuclear, including

Sizewell-C.

BC reported a mood of optimism with industry operators for 2021/22 for the supply chain,

particularly maintenance professionals.

BC noted that the O&G Authority has agreed to part fund the Bacton feasibility study,

which is important for the region and could put the East of England at the forefront of

energy transition.

Offshore Wind / OWIC - Andy Paine (AP)

AP noted the Energy White Paper (EWP) focused on renewables including 40GW target by

2030 (including 1GW of offshore wind), and a review of CFDs and market structures. EWP

builds on the Government’s 10 Point Plan for a Green Industrial Revolution (which doesn’t

feature the East as much as would be liked).

AP is expecting to see sectoral statements supporting COP26 in November. AP also noted

references in EWP to interconnections and hybrid grid models - and a possible

opportunity for the East.

OWIC has a new chair - Vattenfall’s UK Country Manager Danielle Lane.

AP has joined the Offshore Wind Growth Partnership Reference Group.

AP noted CFD consultation is open, with the auction round opening later in 2021.

AP noted Crown Estate Leasing Round 4 progressing and will shape the Offshore Wind

portfolio for the next 10 years. Offshore Wind Leasing Round 4 | The Crown Estate.

AP noted the Offshore Network Transmission Review ongoing - (Graham Cooper from the

National Grid talked about this in his presentation later in the meeting). AP also noted

upcoming outputs from BEIS and OFGEM that might give more information on objectives

of the review. AP confirmed that AEIC had submitted a letter to an early part of the

consultation.

Simon Gray (SG) noted that EEEGR were putting in a letter of support for East Anglia 1 and

2 and has had a number of partners supporting them.

Nuclear - Tom McGarry (TM)

TM noted Government had confirmed it would enter negotiations with EDF about

developing Sizewell-C, with a view to making a final investment decision about one large

nuclear project in this Parliament.

TM noted that 2000 people had already signed up to work on the Sizewell-C project, 75%

of them from East Anglia. EDF are looking to take apprentices from Suffolk and Norfolk to

Hinkley Point for training as supervisors for the Sizewell-C project. EDF is consulting with

the community on other developments, including protecting the environment during and

after development (including a 10% biodiversity net gain).

TM noted that the Energy Hub at Sizewell planned to install a 2MW hydrogen electrolyser

in 2021. The hydrogen could fuel vehicles during construction of Sizewell-C - and

potentially East Suffolk Council vehicles and other businesses. TM also said the Energy Hub

had put out an EoI for direct air capture.

TM said that Innovate UK were funding a study into transitioning from diesel to hydrogen-

fuelled construction vehicles.

TM confirmed they were working to bring forward the Net Zero Leiston plans and the

route map was close to publication, and it was aiming to be replicable in other

communities.

TM confirmed that the Planning Inspectorate would conduct its examination of EDF’s

proposals for Sizewell-C in 2021 and could take 6-months. There will be ongoing

investment negotiations with the Government too. If all goes well, TM expects progress

towards beginning construction in 2022.

Hydrogen / Solar / Biomass - Nigel Cornwall (NC)

NC noted the Climate Change Committee’s release of a new (sixth) carbon budget at the

end of 2020, following the Government’s announced 10 point plan, and the Government’s

adoption of the nationally determined contribution, the target CO2 range between 2033

and 2037. The budget supports the Government’s commitments to hydrogen and the

importance of hydrogen in the transition to net zero.

NC noted that Hydrogen East continues to build its understanding and analysis of

developments. It has three work streams: Bacton, focusing on using it to generate a

regional hydrogen economy; Low carbon transport hub, looking for potential clusters of

demand, particularly the use of hydrogen in agriculture; Sizewell Energy Hub, looking at

how to develop demand for hydrogen transport in construction.

NC noted Hydrogen East was talking with Cadence and other entities about using

hydrogen in heating homes and perhaps pitching for the Government’s Hydrogen

Neighbourhood project.

4 - Recovery Plan feedback - Julian Munson, New Anglia LEP (JM)

JM thanked volunteers for a focus group on Energy Sector recovery plan. This is not a LEP

plan but owned by the AEIC. The plan stems from work on wider economic recovery plan

for Suffolk and Norfolk. JM confirmed that Rob Bush had circulated a draft of the plan to

AEIC members. JM planned to take it to the New Anglia LEP board on 27 January 2021 for

sign-off.

The plan has helped New Anglia LEP map key energy industry assets across the region -

and against the five pillars of productivity. Not just a recovery plan - sets out

achievements and opportunities for the region and our response to the Government’s 10

AEIC to send

point plan for a Green Industrial Revolution.

ideas for

JM asked for support from the AEIC on the Skills and People section of the recovery plan -

Skills and

and what our region’s ask to Government should be.

People

Johnathan Reynolds (JR) asked whether the AEIC could have more time (February not

development

January) to respond to the Government’s recent reports including the Energy White Paper.

to JM early in

Left it to JM and Chris Starkie (CS) to advise on a date.

2021.

Martin Dronfield (MD) echoed JR’s point about taking a bit more time to assimilate new

information from the Government into the region’s Recovery Plan.

JM and CS to

JM accepted the timing point made by JR and MD and will talk to CS for the New Anglia

agree and

LEP perspective.

advise on

Graham Cooper (GC) said it was important not to lose sight of the opportunity for

latest date

decarbonising transport in the region’s Recovery Plan - and that new Government plans

for feedback.

were due out in early 2021 on transport and industrial decarbonisation.

Chris Starkie (CS) said he understood the desire for a week or two extra to finalise the

Recovery Plan. Also said that it was an organic plan that could and would be updated as

new evidence emerged but that it was important to get the first edition out soon.

Andrew Harston (AH) said it was important not to forget the ports in the region for

supporting offshore renewable energy sector. AH suggested the Recovery Plan should tie

in with the Free Port application and should look for other ways to coordinate activity

across areas of Government net zero policy.

5 - Guest Speaker

The meeting adjourned (at 1:20 in proceedings) to listen to a 16-minute talk from Graham

Cooper from National Grid. An extensive Q&A and discussion followed about the points

raised by Graham in his talk. MG called an end to the discussion (at 2:16 in proceedings).

Questions and Answers

Q: AH - Does National Grid have a priority order for selecting projects, not just from the 16

proposed for the East of England but from around the UK coast?

A: GC - No. Our message to BEIS is that if you want to hit your 40GW by 2030 targets, you

can’t choose projects. You need all of them and if you miss one, you will fail. If we don’t

get on with consenting we can’t claw back the lost time. But we need to look at consenting

in the round, taking account of all elements and stitching together different projects as

regional clusters (this could help accelerate the planning process).

Q: SG - Noted that EEEGR are working closely with National Grid on engaging with the

supply chain and making them aware of the opportunities, while answering some of the

challenges from local communities about the proposed infrastructure plans.

Q: AP - How does your role fit in with Offshore Network Transmission Review (ONTR) and

what do you want from this group - how can we help you?

A: GC - I sit on the high-level steering group for the ONTR - and we are considering

onshore and offshore connections in the round. We are looking at multi-purpose

technology. There are many opportunities - for instance, National Grid Electricity System

Operator (ESO) and BEIS are looking ahead to 2050 and a fully integrated meshed-offshore

grid. We have a challenge doing this with the current rulebook - and the work groups can

help by understanding the trade-offs from delaying different elements. Engagement is

important, so please help us with considering all elements in the consenting process in the

round - what are the benefits for our communities and how do we stitch them together?

Q: JR - How do we connect the different elements of network design and architecture

across the region’s different power networks, including fresh water for hydrogen (when

this is the driest region in the UK)?

A: GC - National Grid has taken the sixth carbon budget (net zero by 2050) and is looking

at what the grid needs to look like in 2050 to deliver on that budget. What do we need to

do now to deliver then? Other utilities have their own issues but we need to collaborate

with industry and local communities on this. People should be thinking of networks not

just transmission and distribution.

Q: CS - How do we help local MPs show their constituents that they benefit from the

power that is flowing past their communities? For instance, the Food Enterprise Zone is

applying for funding to connect to power sources even though power flows through their

site.

A: GC - The immediate needs of business don’t match the long-term investment needed in

infrastructure - it’s a form of market failure. However, local authorities are likely to be

around for as long as the infrastructure so they might be able to get the funding for the

infrastructure and then coordinate business use to exploit the long term enterprise value

in the grid connection and get maximum use from it. We have an online portal called

National Grid Connect Now that shows all our substations and whether they have

AEIC to

generation or demand spare capacity.

discuss ways

of increasing

Q: TM - Noted that most of the public are reasonable and, if given the opportunity, can

community

understand the infrastructure requirements for delivering projects. We should look at the

involvement,

model of citizens’ assemblies to bring together representatives to explain their needs

perhaps

better and get community support. TM asked the chair to make it an action point for the

through

AEIC.

citizens’

assemblies

Close: MG accepted TM’s point and agreed the AEIC should discuss it further at a future

as TM

meeting. MG thanked GC for his talk and openness in answering questions, and invited

suggested, at

him to continue to engage with the AEIC.

meeting.

6 - Subgroup Updates

MG noted

H’s request

Building world-class energy research steering group - Andy Holyland (AH)

and asked in

AH said the group had made good but slow progress. He put a request to the AEIC to

turn for a

formally pause and realign the objectives of the energy research steering group to take

note from AH

account of recent announcements (including the Energy White Paper and the

development of the region’s Recovery Plan).

accompany

the minutes

so that AEIC

Key messaging and branding group - Ian Pease (IP) and Simon Price (SP)

could then

IP introduced SP to share progress on creating the new brand for the EEEZ and said he

respond

would report at a future meeting with more details on the key messaging.

formally.

SP shared details of the EEEZ brand redevelopment, including the latest suggestions for

the colour palette, logo, strap-lines. The new brand aims to combine elements of heritage

JM asked

and energy in a contemporary way. SP described the thinking behind the colours and logo.

AEIC

IP said they were meeting with the Norfolk & Suffolk Unlimited team to get their feedback

members to

on how this new brand would fit with theirs.

feedback

JR asked if the name Generate made the region obvious. AH concurred saying he felt the

comments to

name Generate didn’t work for the region. MD echoed concerns around the proposed

IP and SR by

name. SP responded by talking about what Generate means - going beyond generation of

Thursday of

energy. SP also shared thinking around the lack of reference to the East in the name. MG

the following

asked IP about next steps. IP said he would appreciate feedback.

week.

Capability Matrix - Rob Bush (RB)

RB to ask for

volunteers

RB confirmed he had circulated a report to the AEIC and that the project had reached a

from the

point of reflection and pause. Said he would call a meeting of the subgroup in early 2021

AEIC to join

to discuss possible next steps. There was a short discussion with a general agreement that

the sub-

this was still an important issue.

group.

7 - AOB

ndy Paine ( P) suggested reviewing the EIC’s remit, objectives, achievements and

future.

Simon Gray (SG) said that a group of offshore wind businesses had agreed to meet

suggested

regularly following Wind Week 2020 and invited AP to join the group.

convening a

small review

Julian Munson (JM) agreed with proposed review of AEIC and was happy to join a small

group early

subgroup to do this.

in 2021.

MG closed by thanking Madeleine Coupe for all her work supporting the sector as she now

moves on in her career.

8 - Date of next meeting TBC