All Energy Industry Council
27th May 2021via MS Teams
In attendance:
Andy Holyland, ORE Catapult
Bill Cattanach, OGA
Mark Goodall, Aker Solutions
Johnathan Reynolds, Opergy Ltd/New Anglia LEP
Julian Munson, New Anglia LEP
Katie Snell, New Anglia LEP
Konstantinos Chalvatzis, UEA
David Glason, Great Yarmouth Borough Council
Kirsty Adams, Scottish Power Renewables
Laraine Moody, West Suffolk College
Lisa Roberts, New Anglia LEP
James Allen, New Anglia LEP
Martin Dronfield, Opergy Ltd
Nigel Cornwall, Hydrogen East
Nikos Savvas, West Suffolk College
Andrew Paine, Vattenfall
Paul Warmington, Suffolk County Council
Paul Wood, East Suffolk Council
Sara Rushworth, Great Yarmouth Borough Council
Simon Gray, EEEGR
Stuart Smith, PWE
Tom McGarry, EDF Energy
Apologies:
Vince Muspratt, Norfolk County Council
Chris Starkie, New Anglia LEP
Maxine Narburgh, Greater Southeast Energy Hub
Shan Lloyd, BEIS
Ian Pease, OrbisEnergy
Andrew Harston, AB Ports
Richard Goffin, Peel Ports
1.
Welcome from the Chair, Introductions and Apologies
Actions
Mark Goodall
• Interesting times for the energy industry
• EEEGR board meeting this morning
• Apologised for the length of the minutes previously and will ensure
these come through on time and are more succinct.
• Mentioned apologies received.
• Katie has kindly pulled together an action log, which gave the actions
from the last meeting.
o Support to Julian - (JM) thanked those that put themselves
forward. Met a few times as a campaign group and progressed
this action.
o GENERATE prospectus is going live in the coming weeks and
will be formally launched at the Global Offshore Wind event at
London Excel next week.
Took minutes as an accurate representation of the last meeting.
Sector updates
Bill Cattanach (OGA):
•
Highest gas prices for some time. Will stimulate some activity in the
longer term in the southern basin.
•
From a consumer perspective, this is not good news.
•
All eggs in the LNG basket. No gas storage in UK.
•
Higher gas prices are probably here for the longer term. Should be
good for SNS investment and create work for the supply chain.
•
Mixed messages coming from political parties around future of oil and
gas exploration. Everybody waiting until after COP26. Gut feeling is that
Cambo oil field will be approved.
•
Bacton work from the OGA - moving forward to establish a number of
special interest groups - hydrogen supply, hydrogen demand,
infrastructure, regulation, supply chain, technology. Should be
announcing who will be on steering groups in the next week or so. By
end of the year each SIG should have ToR signed off and deliverables.
Grateful for EEEGR’s management of SIGs.
•
Should be working closely with skills groups to ensure right people with
right skills can take activity forward.
•
North Sea Transition Deal had ambitious targets for industry.
•
OGTC, now Net Zero Technology Centre (NZTC), - looking to do
workshops on those specific areas. Should get companies from this
region involved.
•
Low carbon electrification of offshore platforms. Lots of opportunities for
the supply chain. Blocker may be lack of skills or capacity in the UK to
benefit.
•
Public soon to understand how important gas is - in the home, for
fertiliser, for food and drink, etc. Cannot just switch tap off tomorrow.
Andy Paine (Offshore Wind)
• Hot topic is allocation framework and budget details for CFD round 4 -
Feb/Mar next year and results soon after. No capacity cap for offshore
wind this time around. All focusing on that.
• More broadly, OWIC wrestling with delivery of sector deal. Lots of work
going on around 2030+ ambitions and technologies and innovation.
• OWIC quarterly updates on progress of sector deal. Andy will share the
latest link in the chat which provides lots of detail.
• Build Back Better - coming out of oil and gas sector. Ian wood leading
a review on delivery and consenting timelines for offshore wind.
Attempting to reduce timeline from 10 years to 5 years.
• OTNR - consultation from Ofgem closed a few weeks ago. BEIS has a
consultation running for the enduring solution. Lots of parties expected
to respond to the consultation and expect follow up from BEIS and
Ofgem.
• Work around new offshore wind cluster - EEEGR and Vattenfall
launched a rejuvenated offshore wind cluster. Big workshop (hybrid
approach). Small group trying to move this forward and put some
structure back in place to fit around the proposed structure for the
AEIC.
Tom McGarry (Nuclear)
•
A number of the AGR’s in the fleet will be closing down sooner than
expected.
•
DCO was submitted in May 2020. Been through all of the planning
phases now and the consultation on the 19 changes to the consultation
submitted.
•
A long-standing objection with the planning inspectorate from Network
Rail has now been taken away as they are satisfied.
•
Proposed a desalination plant on site until water mains connection is
complete - 4-6 years.
•
Examining Authority accepted all changes and on time for deadline of
14 October. Do not need any further delays.
•
Number of statements of common ground close to completion. Deed of
obligation has been subject to lengthy negotiation but has been a
constructive process.
•
Hope the Council will edge more towards the neutral stance.
•
Thanked Julian (LEP) and Simon (EEEGR) who put themselves
forward and represent the region through the examination process.
•
Planning inspectorate has three months to get their proposal to the
Secretary of State (mid-Jan) and they then have three months to make
the announcement (mid-April).
•
Finance discussions - legislation due soon around regulated asset
base model. Lots of interest from government departments to push
things on. Need to get FID approval to move things forward by the end
of next year.
•
Opposition seems to be understanding that the project most likely going
ahead. Conversation slightly shifting. Offsetting peak of 2027/28 - main
focus of early years with parish councils etc.
•
Need to come together as a wider sector with local areas to realise the
opportunities we talk about.
•
Progressing positively with regional stakeholders - memorandums of
understanding with Suffolk colleges and UoS around pipeline. These
are in line with deed of obligation. East coast college will sign theirs at
the Lowestoft session on Thursday. Declaration of intent with ABP
around investment at the Port.
•
On 6 October, west Suffolk event with West Suffolk College and Menta
with MOU signing.
•
Putting in a number of measures to ensure they are still an
environmental exemplar with this project.
Nigel Cornwall (Hydrogen)
•
Very busy since last meeting.
•
Hydrogen strategy moves wider framing of debate quite considerably.
•
Quite clear lots of work needed around policy, regulation, revenue
support and safety.
•
Ran a webinar on the strategy last week - materials on Hydrogen East.
•
Digesting five accompanying materials.
•
Developing own work around green hydrogen. Sketched out a paper on
New Anglia Hydrogen Cluster. Looking to develop a credible framework
and set of arguments around doing something for a different sort of
regional cluster, not an industrial cluster - looking across sectors,
mobilising transport.
•
Continuing to progress Lowestoft Power Park project - assortment of
sponsors. Identified a number of key elements for something which
could evolve into a series of mini hydrogen clusters around municipal
waste, landfill, and water authority sites. Done quite a lot of work
around potential demand which could secure early delivery of
electrolysers into the region.
•
Developing thinking around repurposing scheme at Snetterton -
discussing with County Council and Breckland. There are other sites
very suitable for development around 1,2 or 3MW electrolysers.
•
Picked up first major three-party contract working with Arup and SPR
around community renewal fund. Developing Hethel Engineering site
into smart energy site with clean transport hub concept.
•
Continuing to work with local authorities who are key players in the
market and supporting them with climate action plans under Net Zero
East banner. Learnt a lot through engagement with one local authority.
Asked to quote for carbon footprint assignments with two other local
authorities.
•
Going out to look for a further analyst to support their work - six new
jobs since lockdown.
No questions.
Energy Campaign & OTNR consultation
Julian Munson
• Two parts - challenge set by this group at the last meeting around a
more coordinated approach to messaging into government about
importance of economic impact to the region and impact of delays.
• A lot of work that has gone over the past couple of months to address
positives and negatives.
•
1-2-1s with all the major offshore wind developers in the region. Also
held conversations with BEIS’ offshore wind infrastructure team. Wider
conversations with EDF and other partners.
• Letter has been drafted. Now reshuffle taken place, can get messaging
into government.
• In addition, LEP and two county councils have provided a response to
OTNR. EEEGR also fed into this consultation too. EEEGR was able to
have a sharper tongue on this due to private sector focus.
Simon Gray
• Thanked David and Sheila in GYBC given O&M campus in Great
Yarmouth. Brandon Lewis MP has been provided with a draft letter
setting out the amount of private and public investment; supply chain
and skills programmes; and the impact of delays upon the energy
industry and those programmes/investments.
Martin Dronfield
• OTNR is unclear regarding current in-flight projects whether they are
involved in the scope of the review. Industry needs clarity on this.
Ofgem are still not sure. Hoping the letter provides clarity on the five in-
flight projects in the region and that they do not get sucked into the
delays that the OTNR would create.
Mark Goodall
• Underlying messages from both the LEP and EEEGR letters need to be
absolutely aligned as they both go to government. JM confirmed that
they would be.
Andy Paine
• Asked when EEEGR letter would be sent. (Response MD - just waiting
on Brandon’s feedback from his meeting with Kwasi Kwarteng - hoping
today/tomorrow - and will be written to Kwasi Kwarteng. JM - LEP letter
will go next week).
Evolution of AEIC & sub-groups
Julian Munson
• In principle agreement over future direction of the AEIC to ensure it is fit
for purpose, agile and focused to deliver for industry.
• Badged as a regional communications structure (shared slides) not a
governance structure.
Martin Dronfield
• Backdrop is attempting to get more productivity out of AEIC.
• Communication into action has been a challenge.
• Huge amount of change in the energy landscape.
• Would like to think sector councils would form sector updates (into
overarching AEIC) moving forward.
• How the energy industry communicates going forward, not about
governance.
• EEEGR and New Anglia LEP Boards obviously have significant
interest.
• The six working groups identified show that these subjects need to be
part of comms structure (innovation, skills, supply chain, comms, inward
investment and infrastructure and planning). Not suggesting anything
new here.
• Six sector councils (offshore wind cluster, onshore renewables (solar,
battery, bio, onshore wind), hydrogen, SNS transition, nuclear, and net
zero and energy integration).
o Onshore renewables will need energy as it does not exist right
now.
o Believe offshore wind cluster was kicked off last week.
o Hydrogen needs a forum in the region to discuss and take
action.
o All aware of North Sea transition, would like a forum on the SNS
to communicate on this transition.
o Huge area of conversation going forward around nuclear to
communicate into this structure.
o Finally, all energy aspect will be one of our biggest assets.
Energy integration should put us firmly on the map around
distribution and usage moving forward.
• As Bill mentioned earlier, the OGA has launched five working groups
(hydrogen demand, supply, infrastructure, regulatory, supply chain and
technology) in support of what they are doing around the Bacton
Energy Hub. Want this to contribute to this communications structure.
Late life, reuse and decommissioning SIG would also continue under
this new approach.
• This new structure replaces EEEGR SIGs and is not restricted to
EEEGR membership.
• EEEGR has had a marine science and technology SIG for some time.
Whilst this is not explicitly energy, touches on the energy
communications a great deal. Seventh sector council - marine science
- would fit under this structure, but report to the EEEGR Board.
Andy Holyland proposed the name circular economy (late life, reuse and
decommissioning for that group.
Julian Munson
• Asking for in principle agreement of structured proposal around this and
more detailed paper will come to next meeting, linking in climate
emergency and action plans at county councils and linking in with LEP’s
clean growth TF. AEIC members in agreement.
LEP Renewal Plan
Lisa Roberts
• Not a new strategy, evolved plan consolidating ES, LIS, and Restart
Plan.
• All partners agreed during Restart Plan development that ambitions still
stood correct. But new interventions may be required given the evolved
landscape.
• Intention is to strengthen three strategic opportunities within the plan -
how can we refine this even further. Equally clean growth / net zero
needs to be centre of this renewal.
• Plan will look to medium to long term and set out interventions needed
now to deliver this.
• Launched a wide range of workshops to test economic observations,
test current interventions and understand what new
actions/interventions will be needed moving forward.
• Timeline - first round of engagements will end at the end of September.
October will be drafting period. November will share back out with
partners to help shape it. Finalised in December and published in
January.
Martin Dronfield - great deal of detail on what we will do. Why are we doing
this?
Lisa said that since LIS, we’ve had the pandemic. Needed to refresh the plan
as the national industrial strategy was abolished by gov’t and we are aligning
with Build Back Better plan. Collaboration has been a major strength for
Norfolk and Suffolk in the past.
Julian mentioned that there was a recovery plan published for the energy
sector in the background (and signed off by AEIC a few months ago) and this
work will feed into the renewal plan.
Julian Munson
• What does an ambitious future look like for the energy sector in the
East of England? What does success look like?
Martin Dronfield
• All for consolidation. Huge amount of time spent on energy recovery
plan - where does that fit in this. (Julian - that was a short-term 2-3-
year plan in terms of interventions).
Johnathan Reynolds
• Lot of the ambition set out in the energy sector recovery plan is taking a
10-15-year view. Let’s try to synthesise what we have in that plan and
then determine where the gaps are.
Tom McGarry
• Need a renewal plan following what has occurred. We do need to lift a
lot of the work and dust it down. We can all extract value from this. Will
refer to this in speech on Thursday. If we can use these opportunities to
keep rowing in the same direction, then it will help.
Johnathan Reynolds
• Need more depth to the next plan. Previous plans have been high level.
If we are going to do this properly, need to bring in a bit more about the
how, who and when. Lisa - this is about refinement and obviously
delivery plan is a way of monitoring actions set out in the LIS and ES.
Mark Goodall
• Would like to see the region being taken seriously at senior levels within
government. The all-energy element moving forward will be a major
opportunity.
• No one silver bullet for the time being, need to maximise all our
component parts of the energy sector.
What are the key strategic interventions that are needed in order to help us get
there? What are the major barriers?
Johnathan Reynolds
• We know that every vehicle will be altered moving forward. Need to join
up sectors and break down siloed thinking in some of the sectors to join
up the economy a bit more.
• Marine science council should align with AEIC and AFIC and CDT
(Aquatec and aquaculture).
Nigel Cornwall
• Mapping against the ten-point plan and raft of gov’t documents if there
is to be external interest on this.
What strategic opportunities are there from stronger collaboration with other
sectors such as agri-food and digital ICT to help drive economic growth and
innovation?
Johnathan Reynolds
• Mentioned the connections with other sub boards e.g., link up with SAP
through joint skills WG and innovation board through innovation WG.
Paul Warmington
• Let’s not miss how we link in with building of homes and so on -
construction sector important.
Nikos Savvas
• Getting too broad. Energy encompasses everything and is behind all
our sectors.
• Talking about helping energy in general to thrive in our region - this is
more to do with infrastructure and skills.
Martin Dronfield
• Same concern as Nikos - this feels as though it is all getting too broad.
• Can no longer talk about energy production, without thinking about
distribution and usage.
• How do we keep our arms around all of this? Struggling with this
dilemma.
Paul Warmington
• Nikos is right with point made. But need to take away synergies and
supply chain opportunities. This is all about communication rather than
control.
Andy Holyland
• This is not the first meeting where these questions have come out.
• Communication and cross-sector are key.
• Should start to develop 2030, 2040 and 2050 vision - what are the
realms of possibility. Where do people sit? Once we can visualise what
it looks like, we can have a bit more success with interventions.
Nigel Cornwall
• Refreshing not to hear about whole systems thinking and flexibility in
national market (and regional level). Lots of thinking going on around
this - all about integration of demand response at the right time in the
right places to support supply-side choices. This needs to be thought
out very carefully.
• These are the ways central policymakers are thinking - recognition that
net zero is unaffordable and behavioural aspects are very important.
• UKPN, Cadent, Thames Water are all outside of these debates.
Somewhere in the mix, there needs to be engagement with them.
Julian Munson
• We have got a lot of good people around the AEIC better connected
with government and national cluster groups.
• We need to ensure that we are around the table across all parts of the
industry.
Paul Warmington
• We are getting much better at responding to consultations but need to
get better with vision thinking.
Julian Munson
• Will circulate all questions to AEIC for additional responses by email.
Norfolk and Suffolk is positioning itself as the UK’s clean growth region - what
opportunities are there for local energy generation projects and how might we
move these forward?
Martin Dronfield
• Surrounded by opportunities - localised energy projects, transport,
localised hydrogen developments.
Paul Warmington
•
4 solar projects coming through and Sunnica through as NSIP.
•
Don’t forget local authority declared climate emergencies and action
plans that can feed into all of this.
• Suffolk LA's have commissioned a LEAR (Local Energy Asset
Representation) with the Energy Systems Catapult and Norfolk's has
concluded which will provide some incredibly useful data.
Johnathan Reynolds
• Need a properly sensible mapping exercise. Nigel’s team have done a
great deal around spatial mapping.
• Massive amount going on in the region.
• Integrated and co-located projects will be very interesting.
AOB
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