All Energy Industry Council
22 February 2021 - Via MS Teams
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
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
Richard Goffin – Peel Ports
Paul Wood – East Suffolk Council
Shan Lloyd - BEIS
Apologies:
Sherlyn Deguzman – Shell
Maxine Narburgh – Greater South East Energy Hub
Stuart Smith – People with Energy
Agenda items
Actions
1 – Welcome from the Chair
Mark Goodall (MG) opened meeting, reminded participants of Teams etiquette, and
received apologies.
2 – Recap on minutes, actions, and subgroups
• No actions on sector updates
• JM confirmed that he had received only limited feedback but had some follow-up with
AEIC members – JM to discuss the recovery plan later in this meeting.
• MG said AEIC had yet to convene a small group to discuss ways of increasing
community involvement with National Grid planning process. Will move it forward.
• AH confirmed a post December conversation with MG about the Energy Research
Steering Group and the sub-group had met. AH to cover points later in this meeting.
• RB confirmed that IP had volunteered to help with the Capabilities Matrix subgroup
and will update AEIC in this meeting.
• MG confirmed he had spoken to JM and CS about the remit of the AEIC and that they
are reviewing all the sector groups.
• No further comments on previous minutes and MG confirmed them accepted.
Await output
from the
NALEP
review.
3 – Cohesive Marketing – Sara Rushworth and Ian Pease
SR recapped development of brand discussed at previous meetings. Brand needs to be
bold, clear, flexible, international, and dynamic. Generate: Unlimited Opportunities In The
East was the preferred brand name and main brand tagline.
SR summarised design concepts and development of branded collateral including
brochures and event stands. Highlighted complexity of project – in terms of number of
partners, stakeholders, sectors, and audiences.
Aim: create single joined-up set of 4-5 key messages – backed by statistics / data - for all
partners to amplify. Has to communicate 3 main points – transition, change, innovation.
Branding that supports Norfolk and Suffolk Unlimited.
MG thanked SR for detailed presentation and invited comments and questions.
MD expressed continued concern with lack of emphasis on East and the word Generate
but congratulated SR on work done and said presentation was impressive.
SR stressed need in marketing communications to explain the logo and the name to build
familiarity and resonance. Building brands take time.
JR said he felt the branding looked great, but he shared MD’s concerns – and felt it might
have oversimplified the complex offer. Questioned whether there was a strong enough
link with Norfolk and Suffolk Unlimited brand.
SR explained that different elements could be turned up or down in intensity depending
on audience. Also, that brand needs to be flexible to reflect nature of regional energy.
JM said brand focus should be on Norfolk and Suffolk but does not want to prevent
collaboration with other counties so brand needs to be flexible and not over prescriptive.
SR – next steps. We are working on an inward investment prospectus. Asked AEIC to
review content plan before end of week and feedback any comments.
IP summarised work on key messages and target audiences. Asked AEIC members to
review messages and identify any gaps and to give views on usefulness of summary – will
it be useful to them. Focus is on five key messages with support statements – aligns with
energy recovery plan.
MG thanked SR and IP and moved on to sector updates.
Returned to Questions after Nuclear update – AH asked how the Generate brand would be
used.
SR we are working on brand strategy document that will explain how it works with Norfolk
and Suffolk Unlimited.
AEIC to
feedback any
comments
on content
plan and
messages by
end of week.
4 – Sector updates
Nuclear – Tom McGarry (TM)
Hinkley Point C – This year will see ‘dome 22’ milestone - dome placed over reactor for
unit 1. Estimate that COVID has caused 3-month delay.
Sizewell C – Consultation on changes to planning application for development consent
order submitted in May 2020. Proposals went before Planning Inspectorate in January
2021 and succeeded in reducing HGVs on local roads at peak times by about 30%. Have
increased amount of materials that can be delivered to site by rail and sea by 60%.
Residual issues that need considering – focus on biodiversity considering location. Our
strategy is to avoid, limit, mitigate and compensate for any impact on the local
environment. Section 106 is being negotiated and a comprehensive environment fund will
form part of the 106 agreement.
Have acquired 800 hectare estate (almost same size as RSPB Minsmere) to help mitigate
environmental impact and will establish an independent environment trust to manage it.
Focus on re-wilding and increasing biodiversity net gain by more than 10%.
We understand concerns of RSPB but we are working to mitigate any impact early on –
including wetland habitat creation before project starts.
Next steps: Government discussions continue but its commitment to 1GW of new nuclear
remains and to enter discussions on funding of Sizewell C. Positive engagement with
minister and government. But TM stressed need for urgency and that building could start
in 2022 if clearance is given soon. Proceeding as if it will because 2500 people registered
on supply chain portal. Aim to deliver local workforce: focus on up-skilling and levelling up.
TM announced JR will join team to help with engagement on workforce development.
Timetable. Section 106 Agreement under discussion with local authorities.
Next six monthly examination of the DCO application will be underway. Two preliminary
meetings in March and April before 6 month timetable starts. Planning Inspectorate will
have 3 months after examination to make recommendations to Secretary of State who will
have 3 months to announce decision. If all goes to plan (including agreement on funding
model) building should start in 2022.
Webinars for supply chain development are running. East of England MoU agreed on levels
of investment in the region – the broader six counties not just Norfolk & Suffolk. Aim is to
ensure region benefits from this infrastructure project. Looking for signatures from
business leaders to support application.
Net Zero Leiston vision launched this week. Surveys and focus groups with local
community to follow. Looking to link with accommodation strategy of housing workers in
local accommodation so helping to revitalise local community.
Supported Freeport East bid and hydrogen hub.
Overall Sizewell C’s ask from AEIC and NALEP is to continue support but make it louder and
emphasise urgency. There is 58% support for the project in East Suffolk (27% opposition).
Offshore Wind / OWIC – Andy Paine (AP)
AP was going to talk about Crown Estate Seabed Leasing Round 4 but reflected on
Vanguard consent issues instead. Vanguard up for Judicial Review regarding cable route.
The Judge quashed Vanguard consent. Judicial Review focused on process not merits of
the project and concluded Secretary of State had not considered impact of development
and was inconsistent with BEIS policy. Pressure on BEIS to re-determine consent speedily
but to get it right. AP asked whether AEIC could provide a letter of support for the
Vanguard project encouraging BEIS to approve it speedily.
MG has no objections to AEIC providing letter of support and proposed submitting one
speedily, stressing urgency and importance of project.
JM said NALEP could also provide letter of support.
AP stressed need for projects with approval to go ahead if investors were going to remain
confident.
AEIC
members to
provide
signatures in
support if
asked.
AP thanked
MG and said
he would
check with
the team on
wording and
method of
submitting.
MD asked AP about timescale for review of Vanguard’s application but AP said it was
unclear.
JR and MG raised concern that this Judicial Review decision might hamper other Offshore
Wind projects and deter future investors.
AP said it was a risk but that there is a process – the problem is that the Judge decided
BEIS had not followed the process, which left the approval open to being quashed.
KA said SPR shared concerns about the consent process for future projects. Offshore Wind
is a key path to Net Zero but the industry needs certainty to proceed.
AP provided update on Crown Estate Seabed Leasing Round 4. Shared map of allocations.
Auctions and announcement in February 2021. Six projects awarded in all, including three
in Southern North Sea. All 1500 MW projects, except one in Irish Sea. None in immediate
proximity to Norfolk and Suffolk (the three in the SNS are closer to Humber). Winning bids
from traditional developers and Oil & Gas developers moving into offshore wind.
KA said the current delay to the Scottish leasing round was frustrating for SPR.
Various AEIC members expressed concerns for how the Judicial Review would affect the
UK’s ability to hit Net Zero by 2050 and how it would affect investor confidence in the
offshore wind sector.
Oil and Gas – Bill Cattanach (BC)
BC Oil price firming and COVID vaccinations progressing points to restart of O&G activity.
Around 25 projects need to now come forward, which would bring welcome business for
supply chain.
Freeports in conjunction with transition should help energy supply chain.
Bacton is a crucial hub for the region (a third of the UK’s gas comes through it). OGA study
into Bacton as a hydrogen hub out soon and BC will share results with AEIC. Could be
positive for the region.
North Sea Energy Transition Deal is with the minister for consideration and BC expects
announcement fairly soon. Has potentially good news for supply chain including
introducing local content rules for O&G sector.
Less positive announcement that UK government would withdraw international support
for O&G activity. Industry view is energy transition will take 5-10 years before we get close
to heading towards net zero so shutting down support by October 2021 is too soon. O&G
says it needs to continue producing profits to invest in energy transition for next decade.
OGA published new strategy. Maximising economic recovery from the North Sea is still
central but not in isolation – now takes account of transition and need for O&G to have
public support to continue operating. Regulators need to be aware of public scrutiny.
Opportunities for supply chain – particularly in electrifying offshore installations (moving
away from gas and oil powered generators on installations) and stopping flaring. This is a 3
year vision. Net zero is generating new activity for the supply chain. CCS is also a big part
of the strategy. Decommissioning language in OGA strategy has changed from cost
reduction to cost efficiency and value, again creating opportunities for supply chain
around strengthening stewardship.
BC said Freeports could help fabricators be more competitive against overseas bidders.
Hydrogen / Solar / Biomass – Nigel Cornwall (NC)
1. Hydrogen East study on Bacton is funded and contract in place – aim to deliver by
end of April. A lot of the work is done and the project group (of four funders) has
had its fifth meeting. Particular aspects to highlight:
AP to
confirm if
and when
letter of
support
would be
helpful from
AEIC.
i. We are trying to produce a more dynamic assessment of hydrogen use
cases in the local economy – establishing view of potential regional market
demand.
ii. We have developed granular mapping platform to work with local
authorities on plans and aspirations.
iii. Organising webinar consultations and focus groups with stakeholders to
discuss use cases and other issues with hydrogen.
2. Freeport East announcement – looking at how this relates to clean transport
(road) powered by hydrogen and moving into shipping use.
3. There is continuing high level policy interest in hydrogen. Awaiting UK Hydrogen
Strategy (promised in Energy White Paper) though expect this to echo points
raised in Scottish Government report. Welsh government is also developing
transport use case.
4. Project update for Hydrogen East around end of March / early April. Will provide
update on provisional learning. Taking on two ‘Year in Industry’ students from UEA
to strengthen regional resource and understanding.
PW said East Suffolk Council was looking at how to bring together the work of Hydrogen
East with the Freeport East project and Sizewell – and the potential for developing an
energy campus linked to Freeport East.
5 – Recovery Plan feedback – Julian Munson, New Anglia LEP (JM)
MG confirmed energy sector recovery and resilience plan had been circulated and
comments back submitted.
JM thanked everyone who had contributed to the recovery plan. Stressed role of AEIC in
owning and driving forward the plan, which is looking ahead to the medium and long term.
First time mapping all our energy assets and activity across sector and presents roadmap
of new initiatives and pipeline projects. Aim to position ourselves as a global leader in the
green industrial revolution and move to Net Zero. Collaboration is vital to success.
JM document going to NALEP board for sign-off. Key points to consider: more than 4000
business in the region and 35,000 employees in the energy sector supporting a further
12,000 jobs in the supply chain. Immense opportunities around offshore wind, nuclear
(Sizewell B is vital to local economy), and onshore renewables – solar and biomass
(including link to agri-food sector).
JM £138bn of capital investment in energy and low carbon projects across the six counties
of the East of England by 2050 – with 50% going to offshore wind. Sizewell C would be a
huge contributor to local economy with £1.5bn during 10-year construction, creating
25,000 jobs during construction. Norfolk and Suffolk could become largest contributor of
clean energy to the UK – particularly offshore wind, nuclear and hydrogen – and asked for
AEIC to support document and be consistent in messaging to government and investors.
JM stressed importance of investment in education and training, particularly new energy
skills campus in Lowestoft.
MG suggested updating forecast investment breakdown to remove the word Nil against
Hydrogen and CCS and replace it with something like TBC to show interest. JM agreed.
PW said they might be able to provide some figures for potential hydrogen investment in
Freeport East.
TM urged recovery plan to emphasise urgency of pushing ahead with energy transition.
JR suggested looking again at comments in the recovery plan about Vattenfall’s projects in
view of Judicial Review. JM agreed.
AH (ABP) asked JM whether the Generate brand reflects the ambition of the recovery plan.
JM said he felt it did in terms of generating jobs, investment, supply chain opportunities.
AH (ORE) suggested report includes detail from Imperial College London relating to savings
on offshore wind. Also emphasise infrastructure supports whole energy system approach.
BC said it was an excellent document and MG thanked JM and the NALEP team for it.
MG asked
people with
comments
on the
recovery
report to
send them in
writing to JM
before
Wednesday.
6 – Subgroup Updates
MG asked sub-groups to submit reports in writing to RB as time was short. These would be
sent with the minutes. MG asked the same with the final agenda item to do with Onshore
Civils event from EEEGR to be included in future meeting.
SG gave brief update on organising event for onshore grid connectivity for windfarm
developments in the East of England. EEEGR felt there needed to be more research done
to identify all projects and to get SMEs to form consortia to support large infrastructure
projects, particularly grid infrastructure. Still awaiting go-ahead from Norfolk and Suffolk
County Councils.
7 – AOB
No AOB. MG closed by thanking everyone for contributing and engaging. Main action is to
support Vattenfall in current challenges – and AEIC will do this.
8 – Date of next meeting TBC
