Economic Development Group

NORTH  SEA  COMMISSION

 Meeting of the Economic Development Group

Renewable Energy Subgroup

Aberdeenshire Council, Aberdeen, Scotland

Friday 28th May 2004

DRAFT  MINUTES,  CONCLUSIONS  AND  ACTIONS

1.  Present:

Name and Organisation

Vivien Collie
North Sea Commission

Daniel Dobson-Mouawad (Chair)
Suffolk County Council, England

Paul Kyle
Perth & Kinross Council, Scotland

Erik Lindboe
Rogaland Fylkeskommune, Norway

Elizabeth Marshall
Highland Council, Scotland

Roddy Matheson
Aberdeenshire Council, Scotland

Ross Mackenzie
Fife Council, Scotland

Morag McCorkindale
Aberdeen City Council, Scotland

Albert Moens
Provence North Holland, Netherlands

Apologies:

Jessica Algehed
Västra Götalands Regionen, Sweden

Ed Craig
Napier University, Scotland

Jens Goesswein
REpower Systems, Germany

Dietmar Gosch
REpower Systems, Germany       

Dr Sibylle Hönscheidt
Business Development Corporation of Nordfriesland, Germany

Susan Matheson
Aberdeen City Council, Scotland

Michael Moll
Suffolk County Council, England

Cathy Reeve
(New job - Buildings Research Establishment)

Eric Stewart
Angus Council, Scotland

2. Introductions  

Daniel Dobson-Mouawad (Suffolk County Council) welcomed everyone to the meeting.  He thanked Roddy Matheson (Aberdeenshire Council) and Morag McCorkindale (Aberdeen City Council) for all their arrangements and assistance with the meeting and the previous day's study tour (see meeting notes attached).

Roddy Matheson gave an introduction on the economic links between Aberdeenshire and Aberdeen City.  Aberdeenshire is the fourth largest local authority area in Scotland (approx 630,000 ha) but with approximately 240,000 people it has just 4% of the Scottish population.   Aberdeen is the 3rd largest city in Scotland and has a population of approximately 220,000 people.  The area has a relatively low unemployment level but there is a high dependency between the city and the surrounding rural area for employment and skills.

3.  Agreement of minutes

The minutes of the meeting of the Renewable Energy Subgroup held in Göteburg, Sweden on Thursday 5th February 2004 were agreed.

4.  Matters arising

Daniel Dobson-Mouawad highlighted the key points from the previous meeting and related the North Sea Commission's endorsement of the continuing success of this subgroup.

He also described how the group's comments had been incorporated into the NSC's formal response to the OSPAR Guidelines.  It has now been agreed that a group member (Michael Moll, Suffolk County Council) will represent the NSC on future OSPAR matters.

Daniel circulated copies of a recent press article he had written on 'Bio-Ethanol and the prospects of adopting this technologically mature alternative to petroleum'.

Albert Moens (Province North Holland) advised the group that he had written to his government minister about the Kyoto agreements and the fact that the targets are not progressing as originally planned.  He has received a response from his minister to confirm that this issue will be added to the agenda at a European level.

Daniel advised the Group that he will be leaving Suffolk County Council at the end of June.   It will, therefore, be necessary to identify a new Chair for the subgroup.  It was agreed that the new chair should have an expertise in the Renewable Energy sector and be able to build on the group's profile within Europe.

Action:

Group Co-ordinator to circulate information about the new Group Chair.

Group Co-ordinator to request a response from the NSC Secretariat and Executive Committee on the need to meet the Kyoto agreements at a European level.

5.  Project Updates

Roddy Matheson described an Interreg project currently involving Aberdeenshire Council.  

Daniel Dobson-Mouawad outlined the successful Pushing Offshore Wind Energy Regions (POWER) Interreg project.  This project aims to support those regions with opportunities and ambitions in offshore wind energy, by establishing a common platform for discussion, exchange and transnational activities.  This is a three year project with four work packages.

For more information visit the Interreg website. 

The group discussed the difficulty of having limited resources to participate in large European projects.

Action:

Co-ordinator to request project updates for the next meeting of the group.

6.  All-Energy Conference and Exhibition - Feedback and Summary

Morag McCorkindale (Aberdeen City Council) gave the group a brief summary on the aims and development of the All-Energy Conference and Exhibition in Aberdeen.  This three-day annual event was held from 25-27 May 2004.  Now in its fourth year, it is the largest Renewable Energy event in the UK and is increasing in size every year.  This year there were approximately 200 exhibitors and 1,800 visitor registrations.  The conference hosted approximately 130 presentations covering all aspects of the renewable-energy industry including:

• Wind
• Wave and Tidal
• BioEnergy
• Fuel Cells, Hydrogen and Biogas
• Hydro
• Solar
• Working with the Community
• Grid, Transmission and Embedded Generation
• Diversification
• Health and Safety Issues
• Industry Guidelines.

Press articles from the event were circulated to group members.  A CD with summary information about the event will be available later this year.  For more information members should visit the website www.all-energy.co.uk

It is proposed that next year's event will be held in Aberdeen on 24-26 May 2005 and will coincide with the World Renewable Energy Congress (WREC) Regional Meeting in Aberdeen on 22-27 May 2005.  For more information about the WREC event visit www.WREC2005aberdeen.co.uk

Action:

Co-ordinator to circulate feedback from the conference and information about next year's event.

7.  Aberdeen Renewable Energy Group

Morag McCorkindale (Aberdeen City Council) updated the group on the development and progress of the Aberdeen Renewable Energy Group (AREG).  AREG is an innovative private-public partnership whose aim is to develop a significant renewable energy industry in the city of Aberdeen and the North East of Scotland.  Members of AREG comprise leading oil and gas industry companies, service companies, major research interests, public bodies, development and support agencies and many SME energy specialists.

AREG was started approximately four years ago.  At the start of the project a small group of AREG key players carried out a scenario planning exercise.  This resulted in the creation of a formal plan that was subsequently adopted by Aberdeen City Council.

The plan aims to maintain, and build upon, Aberdeen's status as a Global Energy Capital.  It is also working to drive forward the city's vision for the rapid development of its renewable energy industry.

AREG has now appointed a 'renewables champion' to spearhead its activities.  Iain Todd - previously the oil and gas director at the UK's Department for Trade and Industry - will take up this post in June.  AREG has recently been allocated £1.5 million from Aberdeen City Council's successful bid to the Scottish Executive's 'Building Better Cities' growth fund.   

The organisation now plans to employ a team to take forward a series of projects - including the creation of an 'Energy Futures Centre'.  This will include:

• Office accommodation for energy organisations
• A public/visitor attraction
• A solar panel project
• An onshore wind turbine
• The possibility of a wind farm development in Aberdeen Bay (to be approved).

For more information visit www.aberdeenrenewables.com

Morag also outlined a planned Offshore Wind Energy project for the Moray Firth area in the north of Scotland.  This will require new development skills, new components, new manufacturing techniques and new installation techniques.  Morag described, however, how the locally-based oil and gas industry expertise will be used to help provide the cost effective R&D and construction capabilities that will be required.

Elizabeth Marshall (Highland Council) highlighted the potential tax benefits for the large oil and gas companies which become involved in the renewables sector.   If their Petroleum Revenue Tax (PRT) regime could be extended, and they could look at ways of avoiding abandonment and dismantling costs, then they would be more likely to look at ways of exploiting the opportunities offered by the renewables sector.  The group agreed that the skills and expertise within the oil and gas sectors would help make the renewable sector more commercially viable.  It is important, however, to work with the relevant supply chain industries too.

Morag pointed out that there are obvious links between the skills of the oil and gas industries and the requirements for the offshore wind farms. 

The group discussed how parts of the renewables sector (and particularly land-based projects) have been developed by a different group of companies and supply chain businesses.  It is important, therefore, to identify and promote the relevant oil and gas industry expertise that will benefit this sector.

Action:

Morag McCorkindale to provide a pdf file on the Aberdeen Energy Futures Centre.

8.  Lowestoft, England  - Centre of Excellence

Daniel Dobson-Mouawad (Suffolk County Council) outlined the recent launch of a scheme to develop a Centre of Excellence for wind power in Lowestoft, Suffolk in England.  This has received £5 million from the East of England Development Agency and is a joint project with Suffolk County Council.  This project will create office facilities for companies wanting to develop in the wind power industry.

The centre will raise the profile of the renewables sector in Suffolk, will bring a landmark project to the area and will provide education opportunities. 

Albert Moens (Provence North Holland) raised the issue of whether these centres are competing or should be co-operating.  The group discussed this issue and there was general agreement the global renewable energy market was large and that the competition is likely to be on a global basis (involving multinational companies). 

Research commissioned by Scottish Enterprise has shown that the annual global capital expenditure on renewable energy is forecast to grow from more than £13 billion in 2002 to over £25 billion in 2007.  About 44% of this investment is expected to be in Europe.

The members agreed that the initial focus of the group's activities should be on promoting areas of mutual need, identifying areas of expertise, and ensuring that local demand is met wherever possible. 

9.  Any other business

Erik Lindboe (Rogaland Fylkeskommune) suggested that there was an opportunity to investigate the possibility of introducing Norwegian wooden building expertise into a project in Scotland.  Elizabeth Marshall (Highland Council) described a demonstration renewable energy 'house of the future' project that is being developed in Caithness, Scotland.  This project will look at designing a house that will include waste recycling/minimization, heat saving features, and sources of renewable energy.  There may be an opportunity, therefore, to link Norwegian timber house building expertise with Scottish renewable energy technology in a showcase project. 

The group discussed the problems experienced by housing developments in remote rural areas. 

Elizabeth suggested a September meeting in Scotland to progress this project with a representative from a Norwegian wooden house building company.  

Action:

Erik Lindboe to establish contacts with local wooden house building company and levels of interest in this project.

Elizabeth Marshall to identify possible dates for a meeting and interested project partners in the Caithness area.

Group Co-ordinator to establish if any financial assistance may be available from the NSC to help with sharing expertise in a North Sea 'home of the future' project.

10.  Date of next meeting

The autumn meeting of the group is due to coincide with the 'New Energy Husum' exhibition and conference in Germany from 7th - 10th October 2004.  The group agreed that the meeting should take place during the event (maybe as a lunchtime or evening event).  The Group Co-ordinator advised that Dr Sibylle Hönscheidt (Business Development Corporation of Nordfriesland, Germany) had suggested that there may be a possibility of holding one of the conference lectures in English.  

For more information about the event visit www.new-energy-husum.de

Action:

Group Co-ordinator to liaise with contacts in Husum to plan and promote the meeting.

NORTH  SEA  COMMISSION

Meeting of the Economic Development Group

Renewable Energy Subgroup

Study Tour

Rotech, Aberdeen, Scotland

Thursday 27th May 2004

STUDY  TOUR  NOTES

The NSC Renewable Energy subgroup attended a talk and study tour hosted by Ken Stewart, Managing Director of Rotech in Aberdeen.

Ken described how the company had been established in 1994.  Their original business had been fabrication work to support the offshore oil and gas industries.  Their ambition, however, had been to develop their research and development engineering expertise to provide added value work to the offshore sector.

The company now employs approximately 75 people - with about 1/3 involved in research and development.  They have employees with a diverse range of disciplines.  With this wide range of expertise, and their own testing facilities, Rotech now offers a complete approach to new project development.

Ken described a number of the innovative projects and products that Rotech has been involved in - and how they had started work in the renewable energy sector.  Their interest had begun six years ago with a wind energy project.  More recently, however, they have been working with 'Lunar Energy' to develop and build a new tidal turbine.  It is proposed that a prototype of the turbine will be installed and tested at the European Marine Energy Centre on Orkney next year.

Ken described the problems companies often experience when financing new research and development work, and the difficulties of ensuring a return on the investment required for product innovation.  

The group then toured the companies test facilities.

For more information on Rotech visit www.rotech.co.uk