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Maximar: MAXIMISING the MARINE ECONOMY in the HIGHLANDS and ISLANDS

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Maximar: MAXIMISING the MARINE ECONOMY in the HIGHLANDS and ISLANDS MAXiMAR: MAXIMISING THE MARINE ECONOMY IN THE HIGHLANDS AND ISLANDS A Science and Innovation Audit Report sponsored by the Department for Business, Energy and Industrial Strategy MAXiMAR FOREWORD 3 CONTENTS EXECUTIVE SUMMARY 4 1 INTRODUCTION TO THE REGION AND SIA AREA 11 1.1 The Highlands and Islands SIA region 11 1.2 Rationale for the SIA and the hypotheses 13 1.3 Science and innovation activities 14 2 STRENGTHS IN SCIENCE AND INNOVATION 15 2.1 Excellence in science and research 15 2.2 Innovation strengths and growth points 16 2.3 People and talent 19 2.4 Adding value in the marine economy 19 3 AQUACULTURE 20 3.1 National and international trends and size of global markets 20 3.2 Local science and innovation assets 23 3.3 Local science and innovation talent 25 3.4 National and international engagement 27 3.5 Developments in the wider funding and regulatory landscape 28 4 MARINE BIOTECHNOLOGY 31 4.1 National and international trends and size of global markets 31 4.2 Local science and innovation assets 35 4.3 Local science and innovation talent 36 4.4 National and international engagement 36 4.5 Developments in the wider funding landscape 36 5 WAVE AND TIDAL ENERGY 39 5.1 National and international trends and size of global markets 39 5.2 Local science and innovation assets 43 5.3 Local science and innovation talent 46 5.4 National and international engagement 46 5.5 Developments in the wider funding landscape 47 6 CONCLUSIONS 49 6.1 Gap analysis 49 6.2 Targeted Opportunities 51 6.3 Making it Happen 55 APPENDICES 57 Appendix 1: Maps 57 Appendix 2: SIA hypotheses 61 Appendix 3: Educational providers in the Highlands and Islands 62 Appendix 4: Organisations within the Marine Economy Sectors 63 Appendix 5: Capacity and pricing of products from micro- and macroalgae 65 Appendix 6: Algal Technology Roadmap 66 Appendix 7: Clustering levels 67 Appendix 8: Case Studies 68 Appendix 9: Consortium members 71 GLOSSARY OF ABBREVIATION 74 2 FOREWORD The marine resource of the Highlands and biological and physical resources, make By combining the most innovative and Islands is an enviable and unique asset, the region second to none. The specialism technology-hungry sectors, enhancing the not only for the region, but for Scotland is clear, and undertaking this Science and scientific, industrial and physical assets, and and the whole United Kingdom. It has Innovation Audit (SIA) has awarded the focusing sharply on workforce requirements, created and maintained valuable economic opportunity to test it. the Highlands and Islands can become opportunities for generations, in sectors as recognised as a driver of the UK’s marine varied as aquaculture, fisheries, life sciences, The marine economy of the Highlands economy. tourism and renewable energy. With the right and Islands spans multiple interdependent strategic approach, and carefully targeted industries with well-established sectoral This audit is particularly timely given other investment, we believe it has the potential clusters and supply chains. Its growth faces current complementary developments to deliver much more, playing a key role in significant challenges – including geography, including regional growth deals across the contribution made by Scotland’s rural which can make access difficult, and distance the Islands, Moray and Argyll; Industrial economy and supporting a sustainable future from Scotland’s major universities. Seeking Strategy challenge funding bids focused on for hundreds of communities around its to identify the synergies between all the food security and clean energy; and phase coasts. industries working under the sea is sensible two planning for Scotland’s Innovation and will help Scotland to unlock more cost- Centres. The recently launched Future of By setting out the remarkable variety and effective ways of operating, create more the Sea Report also provides excellent scale of activities that are currently supported resilience within these industries and grow a direction through a strong set of well-aligned by our marine resource, this audit provides a more productive marine economy. recommendations. valuable frame of reference, and a platform for planning sustainable and inclusive Specifically, Scotland’s wave and tidal The SIA proves that the marine resource is economic growth. industries continue to push the boundaries already contributing significantly to national in both technology and project development. economic growth, and shines a light on its Six months of consultation among industry, While the sectors continue to face challenges capacity to deliver even more. Maximising academic and public sector partners, has finding a route to market, the publication of the enormous value of that resource is an confirmed that the Highlands and Islands’ the UK Government’s Industrial Strategy opportunity that has the potential to benefit marine-related sectors provide unique and the Scottish Government’s draft Energy the whole country, both now and for future areas of specialisation, economic value, Strategy provide new opportunities to generations. We, the industry voice of these and demonstration opportunities for new, promote these industries and the progress key marine sectors, strongly commend this innovative technologies in the UK. they are making. report to you, and in doing so, congratulate the MAXiMAR consortium members on their This had already been demonstrated within Aquaculture in Scotland is diverse, from the excellent work to date, and spur them on, the wave and tidal energy sector by the farming of salmon and other finfish species, with our support, to address the key targeted world-leading European Marine Energy to the production of mussels and oysters, to opportunities identified. Centre in Orkney. The opportunity to build the harvesting of seaweed. It contributes over on this global asset and at the same time £1.8bn annually to Scotland’s economy and broaden the ambitions for aquaculture and sustains the economic and social fabric of the marine biotechnology is significant. Highlands and Islands in particular. But the The natural assets, including almost two potential contribution of farming Scotland’s thirds (61%) of the UK coastline and marine seas is far greater. Claire Mack Stewart Graham Jim Gallagher Roger Kilburn CEO Managing Director Managing Director CEO, Industrial, Biotechnology Gael Force Group Scottish Sea Farms Innovation Centre SCOTTISH RENEWABLES AQUACULTURE INDUSTRY LEADERSHIP GROUP SCOTTISH INDUSTRIAL BIOTECHNOLOGY DEVELOPMENT GROUP 3 MAXiMAR EXECUTIVE SUMMARY At just over 40,000km2, the Highlands and Islands region stretches from Shetland in the north to Campbeltown at the southern tip of Argyll, and from the Western Isles to Moray in the East. In 2016 the total population for the Highlands and Islands SIA region was just over 625,000. It is a largely rural and sparsely populated area. With a population density of around 12 people per km2, in comparison to 129 per km2 in the rest of Scotland, the region has the lowest population density in the UK, and one of the lowest in Europe. Of the total population, 61% are of working age (aged 16-64). This is lower than the 63% UK average and reflects the difficulties faced by the region in attracting and retaining young people. In total there were just over 300,000 jobs in the Highlands and Islands region in 2016. Reflecting the concentration of population, over 40% of these were based in Highland local authority area. 4 INTRODUCTION AND CONTEXT In Autumn 2015 the UK Government • Wave and tidal energy: Scotland is Combining wave and tidal energy, announced regional Science and Innovation the global leader of wave and tidal aquaculture and marine biotechnology into a Audits (SIAs) to catalyse a new approach energy innovation, with the world’s marine economy strategic framework will add to regional economic development. SIAs first commercial scale projects in value to each sector as well as to the region, enable local consortia to focus on analysing development1 and excellence across and the UK overall. Investing now will secure regional strengths and identify mechanisms the supply chain. By harnessing the Scotland’s long-term position as a global to realise their potential. In the Highlands marine power of the Highlands and leader in this field. The SIA demonstrates and Islands, a consortium was formed in Islands region the UK will be able to how the marine economy will take a place- October 2016 to focus on our strength in position itself at the forefront of one based approach to deliver against the the marine economy. This report presents of the untapped global clean energy themes of the UK Industrial Strategy3 and the results which includes broad-ranging industries of the future. the Foresight Future of the Seas report. analysis of the Highlands and Islands marine • Aquaculture: The Highlands and 4It articulates the strategic opportunities economy capabilities, the challenges and the Islands is the largest aquaculture region for the marine economy and shows that substantial opportunities for future economic in the UK, and the third largest salmon innovators, infrastructure, capabilities and growth. producer in the world2, with the best ideas are concentrated in the region. It also premium for its produce. The increasing confirms that the region has the capacity to There is worldwide recognition of the demand for fish protein is being driven provide the necessary skills and assets for potential of the marine economy, for example by global population growth and rising sustainable growth. for food security, for clean energy and to affluence in developing countries. provide new solutions and a wide range There is tremendous scope to increase VISION of applications. It also has an enormous sustainable production through the contribution to make to the circular economy development and application of new With our unique marine agenda. The Highlands and Islands has science and technology. environment and our collective an outstanding marine environment and • Marine biotechnology: The pristine strengths in science and contains almost two thirds of the UK’s marine environment, described as ‘a innovation, we will work coastline and coastal waters.
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