Renewable Energy in Scotland Sponsors

young company finance

YCF Special Report Renewable Energy in Scotland Sponsors

Young Company Finance is grateful to the sponsors who made this publication possible:

Grant Thornton Hillington Park Innovation Centre ITI Energy Scottish Oceans Institute University of Strathclyde young company finance

YCF Special Report Renewable Energy in Scotland

We are determined to ensure that Scotland harnesses our vast renewables potential to make Scotland the green energy capital of Europe. Our potentially cheap, green energy sources – such as wind, water, biomass, wave, tidal and solar - are estimated at more than 60 Gigawatts, ten times Scotland’s peak electricity consumption. These are the foundations for sustainable economic growth and a greener deal for Scotland.

We have a fantastic competitive advantage and the economic opportunities in moving to a low carbon economy, especially for young and innovative companies, are huge. There are opportunities in our rapidly expanding onshore and offshore renewables industry, in new energy efficiency and microgeneration industries and in the development of clean fossil fuels technologies. These are areas where Scotland can excel, develop exportable technology, intellectual property and skills, while boosting our economy and playing our part in the global fight against climate change, while giving future generations a legacy of which we can be very proud.

Jim Mather MSP, Minister for Enterprise, Energy and Tourism Contents

Introduction 3

1 Global energy 4

The Scottish Oceans Institute Focus for excellence in marine related research 8 2 Current status of renewables 10

University of Strathclyde Training engineers for future UK wind industry 16 3 Scotland’s current strategy 18

Grand Thornton Who we are 22 4 Investment in renewables 24

ITI Energy Igniting innovation and wealth creation 28 5 Research & development 30

Hillington Park Innovation Centre Switched on to renewable energy companies 36 6 Landmark projects 38

7 Scotland’s emerging companies 44

Design: Omnis Partners, Cumbernauld Print: The Print People, Glasgow Introduction

Young Company Finance is very pleased to present this survey on the near-market research in academic institutions and the of the renewable energy sector in Scotland. emerging companies which are beginning to make their mark on the sector. The ‘showcase’ of young company profiles in The renewable energy sector stands at the threshold of an chapter 7 is intended to give a flavour of how Scotland is prepar- exciting period of development. The argument in favour of ing to capitalise on what Scotland’s First Minister Alex Salmond reducing carbon emissions to combat climate change is almost recently called a “second energy windfall”, after North Sea oil. universally accepted, and countries around the world are taking steps to accelerate the generation of energy from renewable This report is one of a series intended to cover different market resources. The technology, both to harness new energy sources sectors in which Scotland can boast world-class strengths. Previ- as well as to reduce carbon emissions, is fast catching up with ous titles in the series have covered Life Sciences and Digital the considerable demands facing it, and political and physical Entertainment. For the past ten years, Young Company Finance barriers to generation and transmission are gradually being has been tracking early stage companies in Scotland from tackled. conception through start-up and development to full maturity, with special emphasis on how such companies are financed – It is Scotland’s stated ambition to become the world leader in there is more about YCF on page 60. The investment reports in clean, green energy. The country has compelling credentials for our monthly publication are in effect excellent case studies of such aspirations; not only in its vast potential in offshore and businesses at different stages of development, and of the issues onshore wind power (Scotland has a quarter of Europe’s wind they must address to attract external investment. This knowl- energy potential, as well as a quarter of Europe’s tidal resource), edge base underlies the conception and detail of this report. but also in terms of its proven capabilities in academic research and development, engineering excellence, and crucially in the We are extremely grateful to our sponsors, listed on the inside extensive experience gained from the exploitation of offshore front cover, without whom this publication would not have oil and gas over the past four decades. been possible.

The renewable energy sector is dominated by large scale, headline-grabbing projects which extend the boundaries of Jonathan Harris, Editor the possible, and we give profiles of some of these in chapter Young Company Finance – May 2009 6. However, to meet carbon reduction targets it is necessary for progress to made at every scale, and some of the most interesting developments in Scotland are in micro-energy projects and community developments.

Young Company Finance focuses, as its name implies, on early stage businesses, and there is considerable scope for them to benefit from the opportunities which the renewable energy sector is creating. While not overlooking the large scale developments in Scotland, this Special Report concentrates particularly

Renewable Energy in Scotland 3 1 Global energy

Most people will be aware by now that economically and socially – they can and of World Energy is a comprehensive and energy consumption is subject to a must be altered. Rising imports of oil and authoritative source. For oil, the June number of conflicting market drivers. gas into OECD regions and developing 2008 Review gives a reserves to produc- Asia, together with the growing concen- tion ratio of 41 years, based on proven The demand for energy is rapidly tration of production in a small number of reserves. This does not however paint the expanding, in part due to the high rate countries, would increase our susceptibil- full picture. of economic development in countries ity to supply disruptions and sharp price such as China and India. Although this The oil industry bases its forecasts on hikes. At the same time, greenhouse-gas growth rate has been dented by the proven oil reserves, and indeed reduces emissions would be driven up inexo- recent tribulations of the global economy, these to ‘recoverable’ reserves when rably, putting the world on track for an there is little reason to suppose that these reporting its financial results; a couple of eventual global temperature increase of setbacks will alter the medium-term rate years ago the world’s stock markets took up to 6°C.” of increase in energy demand. Shell and other oil majors to task when Although one does not have to believe they failed to make enough reduction The International Energy Agency (IEA) doomsday scenarios about fossil fuels in estimates of recoverable reserves to projects that world energy demand will running out within a lifetime, the need to reflect political risk. increase by 45% from 2006 to 2030, on increase energy output from every avail- the assumption that current laws and The US Geological Survey (USGS) is an able source must be acknowledged. policies remain unchanged throughout independent and reliable commenta- the projection period. China and India ac- On top of the potential imbalance tor on energy. Its most recent World count for over half of incremental energy between supply and demand is the threat Petroleum Assessment in 2000 found demand to 2030 while the Middle East of climate change. According to Shell’s that 539 billion barrels of oil equivalent emerges as a major new demand centre. energy scenarios to 2050, the limiting of had been produced worldwide up to greenhouse gas (GHG) concentrations 2000, with 859 bboe remaining, 612 bboe The IEA has revised its forecasts down- to 450 ppm carbon dioxide-equivalent is available growth in reserves and, based wards a little in response to the global expected to limit temperature rises to no on carefully judged geological principles, economic slowdown, but nonetheless, the more than 2°C above pre-industrial levels, 649 bboe undiscovered. In other words, current recession is a relatively small step a level that scientific evidence suggests is at 2000 there was almost five times as backwards in the overall trend of eco- necessary to reduce significantly the risks much oil potentially available as had nomic growth over the past few decades, of climate change. This will be well-nigh been produced to date. For natural gas, and it will be difficult to step up current impossible to achieve on any of the the USGS figures are even more startling, supplies of energy to meet this demand. projections being currently debated, but it with potential reserves amounting to AS Nobuo Tanaka, executive director of is a necessary target. almost 15 times production to date. the IEA comments, “Current trends in There is no shortage of statistical data for Coal like oil and gas is not about to run energy supply and consumption are pat- present energy sources and consumption, out. The World Coal Institute states “coal ently unsustainable – environmentally, and for example BP’s Statistical Review reserves are available in almost every

4 YCF Special Report the source is one such; coal for example is more difficult to handle and transport than oil, and these factors must be reflected in pricing. Nations are usually willing to develop energy resources such as coal mines for multiple reasons, including the benefits of creating local employment, the security of supply for national consumption, and the ability to earn valuable export revenue.

However, once infrastructure has been built, whether in the form of oilfields and coal mines, nuclear power stations and hydroelectric schemes, or even an electricity transmission system, the nation is to a greater or lesser extent ‘locked in’, and less able to respond flexibly to such developments as price changes following new production coming online elsewhere. country worldwide, with recoverable re- the difficulty of disposing of nuclear The end use of the fuel is another factor serves in around 70 countries. At current waste, and misgivings about creating which affects the energy mix. Transport production levels, proven coal reserves technology which could be appropriated needs are currently met almost entirely are estimated to last 133 years.” This is by states wishing to adapt it to nuclear by liquid fuels, but improvements in the same figure as given by BP, and again weapons. It seems that in the short to me- and widescale adoption of electrically relates to proven reserves. dium term nuclear capacity will plateau powered vehicles would have a dramatic or even decline further, therefore making effect upon carbon emissions. The USA Nuclear energy production has slightly no contribution to meeting the global consumes more energy per head of declined recently, according to the BP increase in energy demand. population – almost double that of the re- report, with Germany and Japan account- mainder of the developed world, let alone ing for the largest falls. It is not easy to As we will see in chapter 2, renewable that of poor countries – and it has been expand nuclear production quickly, as energy sources can meet only a small estimated that if US cars had to comply planning for and constructing nuclear proportion of future energy demand, but with European emissions standards, power stations is a lengthy process, and they are crucial in a number of ways, not there would be a saving of 6 million bbls developing additional uranium sources only because we are likely to need all of oil per day. to meet significant extra demand would possible energy sources to meet demand also take time. Although in many ways over the next few decades. The other main uses of fuel are the the fuel with the best credentials for generation of heat, and the generation of There are several matrices which have meeting the threat of climate change, electricity as the most easily distributable a bearing on which energy sources are nuclear suffers from two issues which form of power. A wide range of technolo- developed at which rates. The location of limit its adoption on a much wider scale: gies has been and is being developed

Renewable Energy in Scotland 5 1 Global energy

to increase the efficient use of energy, and development of fossil fuel reserves; savings. Modest real price increases from including combined heat and power in other words, price increases are limited post-1986 levels (of 10 to 20% by 2020 (CHP) and smart grid networks, and to not only by fluctuations in demand but and 20 to 30% by 2040) will subsequently reduce carbon emissions, for example also by improvements in processes be constrained by lower-cost renewable carbon capture and storage (CCS). These (exploration, production, transmission), energy supplies.” will sometimes have competing priorities, and renewables are unlikely to be able to Shell has created and publicised two but must be developed and implemented compete head to head with traditional scenarios which explore the complex mix in a complementary way if the world is fuels on price alone for many years. of factors in meeting world energy needs to achieve its twin objectives of more A warning against assuming never- to the middle of this century. These are energy and less CO2. ending increases in the price of oil is also thought-provoking, and illustrate two very Price is the other main issue affecting given by Professor Peter Odell of Erasmus plausible patterns of development that are which energy sources are developed at University in Rotterdam, who even in however substantially different from each what speed. The cycle is familiar: increases the 1970s was taking the oil industry to other. Shell describes them thus: in demand lead to shortage of supply, task for underestimating the potential “In the first scenario – calledScramble which leads to increased prices, which of North Sea oil and gas reserves. He has –policymakers pay little attention to more damp the demand. Although the renew- been proved right, and in a recent paper efficient energy use until supplies are able energy community needs govern- he has commented on oil prices: “Serious tight. Likewise, greenhouse gas emis- ment subsidies until its technologies have medium- to long-term upward pres- sions are not seriously addressed until the scale which will bring prices down to sures on oil and gas prices are unlikely. there are major climate shocks. National fossil fuel levels, any increase in prices will Higher finding/exploitation costs will governments focus their energy poli- have the effect of accelerating the finding be offset by technologically-derived cies on supply levers because curbing the growth of energy demand – and hence economic growth – is simply too unpopular for politicians to undertake. A lack of international cooperation means that individual countries are unwilling to act unilaterally in a way that will damage their own economic growth.

“In the second scenario – Blueprints – growing local actions begin to address the challenges of economic development, energy security and environmental pollution. A price is applied to a critical mass of emissions giving a huge stimulus to the development of clean energy technologies, such as carbon dioxide capture and storage, and energy efficiency measures. The result is far lower carbon dioxide emissions.

6 YCF Special Report “Reducing CO2 emissions through be developed now. In the short term it The statistics and quotations in this chapter [transport] electrification triggers strong seems probable that reductions in carbon are taken from the following publications: growth in the power sector and pulls in emissions will come more from improve- World Energy Outlook 2008 renewable energies. By 2050, over 60% ments in fossil fuel supply chains and International Energy Agency of electricity is generated by non-fossil from mechanisms such as carbon trading www.iea.org sources. Carbon capture and storage than from the displacement of fossil fuels can make an important contribution to by renewables World Petroleum Assessment reduce emissions but is not a silver bullet.” US Geological Survey However, renewable energy technolo- www.usgs.gov Shell believes that the Blueprints out- gies have one characteristic which is not comes offer the best hope for a sustain- shared by fossil fuels, namely scalability. Shell energy scenarios to 2050 able future, but acknowledges that they You cannot have your own oilfield or coal Shell are subject to “the right combination mine or nuclear power station in your back www.shell.com of policy, technology and commitment garden, but you can have a wind turbine, a Statistical Review of World Energy 2008 from governments, industry and society solar panel, a heat pump, or even a small BP globally.” run-of-river hydro generator. Likewise, your www.bp.com local community can have a rather larger Energy forecasting is notoriously difficult, version of these. Although these sources Coal statistics and unforeseeable events such as regime might not remove the need for nationally World Coal Institute changes in developing countries could distributed energy, they can make a very www.worldcoal.org make a big difference to all current considerable difference, and avoid many of projections. There is a temptation to Why carbon fuels will dominate the 21st the geographical and political issues faced extrapolate increases on a straight-line century’s global energy economy by new large scale projects. basis – those who felt in the middle of Peter Odell last year that there was nothing to stop www.multi-science.co.uk/whycarbon.htm oil reaching US$200 per barrel have been proved wrong – and developing countries in particular, estimated by the IEA to see an 85% increase in energy demand over the next couple of decades, are subject to constraints in supply of raw materials and increases in price. Jonathan Harris is the publisher and editor of Young Company It must also be said that the forecasts Finance. referred to here take us by and large only After a degree in Modern Languages at Cambridge, he joined Scot- to the middle of this century. Fossil fuels tish shipping group The Ben Line. After two years in the Edinburgh will indeed dominate the energy markets head office and four years in Japan, he joined the offshore drilling for the remainder of the century, but it division Atlantic Drilling Company, where he spent 15 years as must be assumed that they will eventu- general manager. During the prolonged recession in the offshore ally run out, even if this takes 200 years or industry in the early 1990s, Jonathan left the Ben Line and started more. For that reason alone, it is impor- working with young companies. He acquired YCF in November tant for renewable sources of energy to 2000, and now all his activities come under the YCF umbrella.

Renewable Energy in Scotland 7 The Scottish Oceans Institute Focus for excellence in marine related research

The Scottish Oceans Institute is an inter- Teaching disciplinary institute of scientists with Courses are available from basic under- interests in the marine environment. graduate to advanced graduate levels.

SOI operates from the deep oceans to Examples of undergraduate modules for the coasts and includes research that is junior and senior honours students in- relevant to people who use and interact clude Environmental Physiology, Aquatic with the sea, and the biological and Ecology, Biology of Marine Organisms physical processes that make the oceans and Marine Mammals. function. Postgraduate courses include MRes in SOI focuses on fundamental and applied Environmental Biology, Marine Mammal research, commercialisation of research, Science, Marine Systems Science (Col- and teaching marine science at an laboration with SAMA). The University advanced level. of St Andrews also runs award winning graduate skills courses for PhD students. Research Commercial The Centre for Research into Ecological SOI Research will help to support UK and SOI is a response to the increasing and Environmental Modelling (CREEM) Scottish Government policy and offshore significance of the oceans to the wealth also runs training workshops in distance industry with sound advice and new and wellbeing of Scotland. sampling (introduction and advanced knowledge about the seas around Scot- Research themes within SOI include: level) and modelling population dynamics. land and elsewhere. SOI closely integrates Anthropogenic Effects and Exploitation academic research and commercialisation of Marine Systems of research results. Benthic Systems FEEA The Facility for Earth and Environmental Analysis Coastal Zone SERG:ES Sediment Ecology Research Marine Policy & Economics Group: Environmental Services Ocean and Earth Sciences SMRU Ltd Sea Mammal Research Open Ocean Unit products & services Renewable Energy and the Environment SMRU Instrumentation Sea Mammal Ecological Modelling and Data Analysis. Research Unit Instrumentation and software.

8 YCF Special Report Scottish Oceans Institute East Sands St Andrews Fife KY16 8LB Scotland, UK tel: +44 (0)1334 462630 fax: +44 (0)1334 462630 e-mail: [email protected] http://soi.st-andrews.ac.uk

SMRU

Renewable Energy in Scotland 9 2 Current status of renewables

“By developing new low-emission technolo- enhanced geothermal systems, and solar when North Sea oil came on stream gies, we can meet the growing demand for hydrogen generation. Carbon capture and (in hindsight a huge missed opportu- storage (a ‘clean’, but not strictly renewa- nity). The current driver, however is the energy and at the same time reduce air ble technology) is clearly still at this stage, increasing consensus on man-made pollution and greenhouse gas emissions.” while wave power is just moving from global warming and the need to reduce George W. Bush, Washington 28 Septem- development to commercialisation with emissions of carbon dioxide and other ber 2007 the advent of systems such as Pelamis. greenhouse gases. Quotes such as the one from President Bush at the top of What are renewables? The global problem this chapter portray renewables (to use a According to the International Energy The impetus towards the development Texan metaphor) as the ‘cavalry coming Agency (IEA), the term renewable energy and utilisation of renewable energies has over the hill’ to rescue us. varied over the years. Sometimes political covers at least three generations of tech- It seems likely that at next year’s post factors raise the apparent desirability nology, some ultra-modern, others dating Kyoto conference at Copenhagen there of renewables. President Carter had the back hundreds if not thousands of years. may be multilateral agreement on a Middle East in mind when advocating system of pricing carbon emissions. The first generation of traditional sources ‘energy independence for America’ even This would be intended to encourage of renewable energy includes various before the Iranian revolution in 1979. Dr efficiency savings and the implementa- types of hydropower, biomass, and geo- Stephen Salter’s ‘duck’ received attention tion of technologies such as renewables, thermal energy. These technologies are at the time of the 1970s oil price shocks, with the aim of stopping the growth of already in place and currently producing but official enthusiasm seemed to wane energy.

The second generation includes technologies such as wind power, photovoltaics, biofuels, and solar thermal systems. These technologies have been developed and are ready for use but are not yet fully installed/implemented to their maximum extent.

The third generation are those technologies which, while they look promising, still require some development work before they can become commercially available as ‘off the shelf’ products. Some examples might be biomass gasification, Source: KKI Associates & Z/Yen Group. Carbon Emissions Pricing Model.

10 YCF Special Report carbon emissions (peak carbon) between Source: IEA report Energy 2015 and 2020, and reducing carbon Technology Perspectives emissions by 60-80% by 2050. In other 2008 words, renewables would not simply need to supplement existing conventional sources but to replace significant amounts of them.

In a new study for the think-tank Tomor- row’s Company, KKI Associates and Z/Yen have modelled the impact of public policy, price elasticity and technology on the future price of carbon emission permits. The model deflates carbon prices by a ‘pessimistic’ 1% pa to an ‘optimistic’ 3% pa Furthermore, a number of other green motors (about 5 times better than IC to reflect the total impact of new tech- technologies require incremental electri- engines) significant conversion to electric nologies and energy efficiency savings. cal power. For example the widespread vehicles might require an incremental Between 2020 and 2030 there are huge adoption of electric vehicles in the United 1,000 GW. The IEA has generated a series differences (over 300%) between the States might require anything from 8 to of scenarios reflecting forecast energy re- pessimistic and optimistic cases. How 160 extra power stations according to Oak quirements and balancing them against optimistic can we be that renewables Ridge Laboratories. On a worldwide scale, CO2 emissions. The IEA ‘business as usual’ technology will indeed ‘rescue’ us? the liquid fuel energy required by the or ‘reference scenario’ sees CO2 increasing The scale of the problem transport sector equates to about 20-40 beyond 2030, with a very small contribu- trillion kilowatt hours. Even allowing tion from non first generation renewables. The US Energy Information Administra- for the increased efficiency of electric tion quotes world installed electricity capacity as being 4,000 GW at 2006 (last available statistics) of which first generation renewables comprise just over 22%. This capacity could theoretically produce some 24 trillion kilowatt hours of electricity, but in practice produces about 17.3 trillion. US EIA expects world electricity consumption to double by 2030, which implies the need to double the installed generation capacity to around 8,000 GW. So, with about 160 GW of new electricity capacity being installed each year up to 2030, the world needs to install about 36 GW of renewables just to keep the current ratio of renewables to non-renewables. Source: IEA report Energy Technology Perspectives 2008

Renewable Energy in Scotland 11 2 Current status of renewables

The IEA’s ‘alternative policy scenario’, combining first and second generation renewables with increased efficiency, sees CO2 peaking around 2030.

Status of some key renewable technologies First generation Hydroelectric power (HEP) provides over 20% of world electricity capacity (776 GW in 2006). Massive hydropower installation is going ahead particularly in China, which is already the world’s largest producer and user of HEP. The NGO International of about 50 GW total, although the IEA 120 GW, growing at around 29% pa ac- Rivers lists over 20 major projects in also states that “countries have difficulty cording to the global wind energy council. China alone with a capacity of 133 GW, monitoring the supply and consumption Again, China, often quoted as relying on scheduled between 2009 and 2020. The of biomass” and that “the quality and coal power stations, has doubled its wind world’s feasible hydro potential is around reliability of the data may be limited”. capacity and is expected to become the 2-3,000 GW according to Hydropower Unless specific action is taken to encour- second largest wind power user by 2010. and Dams, with the largest proportion age biomass use, IEA scenarios expect its Other major users of wind power are being in Asia. Chinese companies have share of production will fall as countries Denmark, Spain, and Portugal. become the major constructors of HEP shift to more modern forms of energy. schemes in other countries around the Photovoltaics (solar cells), which convert world. Overall, hydropower looks set to Although not used for electricity produc- light into electricity, are the fastest grow- maintain its share of world electricity tion, biofuels could also be regarded as ing renewables technology. Historically production. There are concerns that large a first or second generation renewable. used for local supply in remote areas, schemes damage ecosystems, and also The IEA expects biofuels to grow about photovoltaics are now being assembled that rotting vegetation is a major source ten times by 2030, to around 150 millions into power stations. Australia is plan- of methane – a more potent greenhouse tonnes of oil equivalent. Biofuels have ning the largest of this type (154 MW) in gas than carbon dioxide. been criticised for removing agricultural Victoria. At the end of 2007, total produc- land from food production at a time of tion had reached 12 GW, with nearly 4 Conventional geothermal power is smaller population increase and food shortage. GW added that year. Annual production scale compared with HEP, and limited to Biomass gasification, where the material is increasing by nearly 50% per year, specific parts of the world. The IEA sug- is converted to carbon monoxide and doubling every two years. gests that an incremental 85 GW may be hydrogen at high temperatures, is still at implemented over the next 30 years. Solar thermal plants differ from photo- the development stage. voltaics in that they concentrate the sun’s Combustible biomass and combustible Second generation Wind power rays to provide a source of heat. At the waste account for about 6% of renewable is the most widely implemented of the moment there are three such plants in the energy electricity generation according second generation technologies. Its USA, two in Spain and one in Australia to the IEA. This would suggest a capacity installed capacity at the end of 2008 was with a combined capacity of less than 0.5

12 YCF Special Report GW. From a small base the industry looks analogous to underwater wind turbines, example Alderney Renewable Energy es- set to grow rapidly, with 40 projects (typi- set on either a vertical or horizontal axis timates a potential to extract 3 GW from cally 50 MW each) announced in Spain, 17 (with an intriguing helical Russian design the waters around that island. A scheme larger projects in the US, and another 8-10 being mooted for South Korea). Although is being evaluated for the Pentland Firth, around the world. The total capacity of they avoid the problem of barrage between Scotland and the Orkney Islands, the announced projects is around 8 GW. schemes, most are still at the pilot/devel- which could be rated at 1.7 GW. opment stage. The University of Strath- Fuel cells are sometimes counted as a Wave power utilises the motion of waves clyde’s Baseload Strategy website lists a renewable technology, but are correctly rather than tidal currents to generate dozen different development concepts. regarded as a conversion device. They power and has the advantage of being can allow transport to be effectively The first small full-size marine current rather less site specific than tidal power. non-polluting (only water is produced propeller prototype rated at 1.2 MW has The energy is rather less concentrated from hydrogen oxygen cells), but ulti- been installed at Strangford Lough in so wave power farms may be smaller mately the hydrogen (or other fuel) has Northern Ireland in 2008. Other small than some of the large tidal systems. The to be prepared by processes such as the projects will be in Norway, the US, Aus- first commercial wave farm in Portugal electrolysis of water. So the ‘renewability’ tralia and Canada. Such schemes are site uses machines from the young Scottish depends on that of the electricity used to specific, requiring strong local currents company Pelamis. Current capacity is 2.25 produce the fuel. Mass acceptance of fuel but some sites have great potential. For MW eventually increasing to 21 MW. cell vehicles also depends on engineering solutions to the storage of hydrogen, the lightest element and one which is correspondingly difficult to liquefy.

Third generation Although the IEA classifies wave and tidal power as third generation there are a number of schemes already in place. The longest established is the tidal barrage power station (approx 70 MW) at the Rance estuary in Brittany, which opened in 1966. Tidal barrage schemes have not been widely implemented, due to their high capital cost, and the potential for interference with marine ecosystems. The country that seems most interested in tidal barrage systems is Russia, which is investigating two 10 GW (!) schemes in the White Sea and the Sea of Okhotsk, according to the Washington Post.

Novel approaches to tidal energy involve tidal stream generators. These are

Renewable Energy in Scotland 13 2 Current status of renewables

The IEA expects tide and wave power and a larger 250 MW site in Australia is 65%. It does not look like renewables will together to grow nearly 50 times by 2030, currently being drilled. produce the annualised technology defla- but starting from a very small base to tor of 1-3% in the Tomorrow’s Company total perhaps 7 GW. Conclusion – ‘where is the carbon price model mentioned above. cavalry?’ Other third generation technologies are This alternative energy scenario is quite The IEA, in their 2006 ‘alternative policy further from the market. In 2006 MIT conservative with respect to power scenario’ projections, forecast that world reported on the prospects for energy from solar, geothermal and wave/tide. governments do invest in renewables for from enhanced geothermal systems It forecasts that together, these sources electricity generation. In this scenario, (sometimes termed ‘hot dry rock’). Water contribute 120 GW from a world demand hydropower capacity doubles between or other fluids, (possibly supercritical of 8,000 GW. In its ‘beyond alternative’ or 2004 and 2030, biomass increases four carbon dioxide) is pumped into deep ‘blue scenario’ the IEA begins to map out times, geothermal three times, wind 18 subsurface fractured rocks. The fluid can the investment needed for renewables to times, tide and wave 46 times and solar return to the surface at temperatures ap- really transform the outlook for energy 60 times. However, these increases from proaching 300°C and be used directly for and climate in the mid 21st century. The a low base are barely enough to maintain heat or to power turbine generators. MIT answer is that we need not hundreds but the current proportion of demand met by estimated that 100 GW could be installed thousands of gigawatts from these sources. renewables (roughly from 24% to 28%). in the United States by 2050 following a That is the challenge for the ‘technological Assuming a growth in nuclear capacity 15 year R&D programme. Small com- cavalry’ (to not quite quote President Bush) at 2% pa (again, an IEA forecast), the mercial developments (below 20 MW) are – 1,000 GW generating capacity each from proportion of electricity met by thermal underway in France, Germany and the US, solar, wind, geothermal, wave/tide by 2030. power shifts from about 66% to about

Source: Data interpolation by KKI from IEA 2030 forecasts

14 YCF Special Report The annual rates at which new power generation capacity would need to be added in each scenario. Source: IEA report Energy Technology Perspectives 2008 units CSS coal-fired plants Present rate 30 (500 MW per plant) 36 35 ACT Map CSS gas-fired plants 1 BLUE Map (500 MW per plant) 20 Nuclear 24 (1000 MW per plant) 32 Hydro (1/5 of Canada’s capacity) Biomass plants 30 (50 MW per plant) 100 Wind turbines onshore 2900 (4 MW per turbine) 14000 Wind turbines offshore 775 (4 MW per turbine) 3750 Geothermal 50 (100 MW per unit) 130 Solar panels 115 (million square meters) 215 CSP plants 45 (250 MW per plant) 80

0 10 20 30 40 50 60 GW per year

Dr Kevin Parker is the principal and founder of KKI Associates, a consultancy which for the last 15 years has worked on around 150 technico-economic assignments, especially in sectors based on chemistry and/or energy. Most recently, he has built an economic model, which allows companies and regulators to predict the price of carbon emissions permits in the EU/ETS scheme. Kevin trained as a chemist, and worked for 12 years with British Petroleum, including spells in R&D, international sales, and technico-economic corporate planning. He is a Sloan Fellow of London Business School.

Renewable Energy in Scotland 15 University of Strathclyde Training engineers for future UK wind industry

With increasing concern over climate change and the security of energy supplies, wind power is now an important source of electrical energy throughout the world. It is becoming increasingly competitive with conventional fossil fuels sources such as new coal and gas fired power stations.

Wind power is an established energy source in over 50 countries globally. Those with the highest wind installed capacity are Germany, Spain, the USA, In- dia, and Denmark, and a number of other countries, including Italy, the UK, the Netherlands, China, Japan and Portugal around 8 GW of wind capacity by 2010, However, integration of large amounts of have already surpassed the 1 GW mark. consisting of approximately 4 GW onshore wind generation poses diverse challenges. and 4 GW offshore. Wind is an intermittent source of energy In the UK, the electricity supply industry is and, in the absence of large-scale energy currently undergoing a challenging transi- The UK market for both onshore and storage, conventional generating plant tion driven by the Government’s binding offshore wind energy is set to grow may be required when wind power is European targets to provide 15% of the to £20 billion by 2015. A significant not available. Additionally, its technical UK’s total primary energy consumption expansion in the amount of electricity characteristics do not match those of from renewable energy sources by 2020. generated from offshore wind power was conventional forms of generation around Given that a limited proportion of trans- announced recently by the UK Govern- which the existing electricity systems port and heating energy will come from ment. Licences are being issued for the have evolved. The intermittent nature such sources, it is expected that electricity construction of thousands of turbines off of wind is thus a new dimension that supply will make the major contribution the British coast, to generate electricity transmission and distribution network to this target. As a consequence, at least equivalent to the output of six nuclear operators have not traditionally had to 40% of the electricity produced will have power stations. Support and investment manage on any significant scale. Hence, to be generated from non-thermal renew- for wind farm development is illustrated concerns have increased about how able sources. It is widely recognised that, by the creation of the Energy Technolo- to incorporate a significant amount of in order for the targets to be met, the wind gies Institute (ETI), and the Carbon Trust intermittent generation without disrupt- industry will have to deliver the major plans an ambitious £40m initiative to ing the balance that electricity networks share of this renewable energy capacity. cut the costs of offshore wind power and demand. Current predictions are that there will be accelerate its deployment around the UK.

16 YCF Special Report The location of the best wind energy Ten prestigious 4 Year PhD studentships The Department’s extensive research resources are often found in locations are available to talented UK & EU engi- activities are focused in six interdepend- remote from demand and/or remote neering or physical sciences graduates ent research institutes and centres: from existing conventional generators for each of the next five years. Students Institute for Energy and Environment and grid supply points. Added to the receive a formal programme of training Centre of Excellence in Signal & Image difficulties associated with long distance and research to develop and enhance their Processing power transmission: concerned with technical interdisciplinary knowledge, stability; reactive power compensation and broaden their understanding of the Centre for intelligent Dynamic Com- and voltage control, the connection of social, political and economic contexts of munications large wind farms, whether onshore or wind power. Wind farm design, condition Centre for Ultrasonic Engineering; offshore, also present particular ques- monitoring, reliability, the socio-economic Centre for Microsystems & Photonics tions regarding their ability to meet the impacts of wind power, public attitudes Industrial Control Centre. connection requirements of present and and planning concerns, cost implications emerging Grid Codes. Significant future and market regulation are a few examples For further information on the Depart- wind energy penetration will similarly of the PhD topics on offer. The Centre is ment, its research activities and the impact on the operational requirements housed in custom built facilities within Doctoral Training Centre are available of the power system, and in particular, the internationally-recognised Institute from Mrs Gillian McArthur, Marketing & on the capacity margins required to for Energy & Environment in the Depart- Recruitment Coordinator: guarantee the required levels of system ment of Electronic & Electrical Engineer- email: [email protected] reliability. ing at the University of Strathclyde. or tel: +44 (0)141 548 2089.

Aside from these technical challenges, it The Department has a world-class Bill Leithead and Olimpo Anaya-Lara is also clear from UK Government statis- reputation for electronic & electrical tics and other reports, that the projected engineering teaching, research and growth of the wind industry will be innovation. The largest of its kind in limited by a severe shortage of skilled en- the UK, it is home to over 200 academic, gineers. Senior industry representatives research, technical and support staff, 250 estimate that up to 20,000 additional UK PhD, MPhil and MSc students and 650 jobs in this sector are expected over the undergraduates. The Department’s £40 next six years. To this end, the University million research portfolio is supported by of Strathclyde has recently been awarded Industry, UK Research Councils, EU, UK funding from the Engineering & Physical and US Governments and research insti- Sciences Research Council (EPSRC) for a tutions. Its success in establishing strong new Doctoral Training Centre (DTC) in partnerships with these organisations Wind Energy Systems. The Centre com- has resulted in the provision of industri- bines pioneering research and advanced ally relevant educational programmes, skills training to help the UK meet its an enviable record of research commer- ambitious renewable energy targets, and cialisation, and excellence in knowledge address the widely accepted skills short- exchange and technology transfer to the age in this rapidly growing sector. local and global marketplace.

Renewable Energy in Scotland 17 3 Scotland’s current strategy

“Scotland is particularly well equipped barrels of oil equivalent (boe) have been In its Energy Policy overview, the Scottish as far as energy is concerned, with fossil produced so far (to September 2008), and Government sets out its ambition in ring- that the reserves remaining in the UK ing terms: “We are confident in our ability fuels and renewables in abundance and Continental Shelf range from 16 bn to to be a world leader in clean energy.” It the skills, expertise and infrastructure to 38 bn boe, although the actual level of goes on to describe its strategy for achiev- exploit these resources.” reserves recovered will depend upon a ing this role: “The main objective is to range of factors including price, technol- progressively increase the generation of These words come from the Scottish ogy, and the rate of further discovery. renewable and clean energy, to migrate Government’s Energy Policy overview of Scotland away from a dependence on September 2008, and form the platform Coal reserves are also substantial, with nuclear energy. from which the country hopes to grasp opencast coal mines producing in the the opportunities presented by the green range of 5 to 8 million tonnes per year “The secondary goal is to increase the energy revolution. over the last ten years, and almost 30 overall impact of energy generation and million tonnes of coal remaining at related activity such that Scotland not Scotland generates more electricity than consented opencast sites. only maximises energy exports, but also it needs, and in 2007 exported over 15% maximises the retention of wealth from of its capacity. This is currently produced Scotland uses over half its energy for that activity and also from the develop- by a small number of large coal, gas, and heat (and half of this is used for domestic ment of skills, intellectual property rights nuclear power stations, together with purposes), and over a quarter for trans- and manufactured products.” a larger number of smaller renewable port. This has significant implications installations, mainly established hydro for public policy; improvements and Scotland already meets 20% of its and onshore wind. However, within ten efficiencies in heating may not grab as demand for electricity from renewable years Scotland will lose about 30% of its many headlines as the latest marine tech- sources, primarily hydro and onshore electricity generating capacity from large nologies, but have a considerable role to wind. The Scottish Government aims for plants and within twenty five years is play in an integrated approach to energy 31% of all electricity to be renewably gen- likely to lose it all. policy. The current energy mix, and the erated by 2011, and 50% by 2020. The 31% proportion currently met from renewable is equivalent to 5 GW of installed capacity, As far as North Sea oil is concerned, it sources, is given in the table below. or twice the capacity in September 2007 is estimated that around 36 billion when installed renewable capacity first Current share of Scotland’s total energy use by sector, with renewable share exceeded that of nuclear generation. Energy sector Share of energy mix Renewable energy share in 2007 Heating 53 4 Electricity for heating 5 20 Transport 27 2

Electricity 15 20 Source: Scottish Renewables

18 YCF Special Report renewable projects totalling over 1.5 GW. opportunities are south and west of It is currently processing 30 renewable Stornoway, with potential for a 150 MW energy applications, which include 23 wind farm in North Lewis in addition to wind farms and seven hydro projects, and projects already in planning. Elsewhere, it has adopted a target of coming to a in Harris, the Uists and Barra, smaller decision on new applications within nine community led wind development is months where there is no public inquiry. more suitable. The area has marine potential of 105 MW by 2015, comprising Progress has also been made in the inshore wave potential of around 30 MW, relatively new field of marine energy. In tidal potential of 75 MW in the Sound of May last year the Crown Estate requested Harris, and much greater energy poten- initial expressions of interest for the tial in the offshore wave resource. development of commercial windfarms within Scottish territorial waters, and Nuclear generation will continue to be received a high level of interest from 23 a significant proportion of the energy consortia. The Crown Estate plans to have mix for the life of the current power awarded all Zones to selected partners by stations, but the Scottish Government the end of 2009, and the first round three has controversially made it clear that offshore wind farm sites are expected to new nuclear power is not wanted or be completed by 2018. needed in Scotland. In the words of the The EU has set a target for 20% of all en- Energy Policy overview “There is no clear ergy use (not just electricity generation) Renewables will play an increasingly im- or reliable proposition on storage of to be renewable by 2020; the proposed portant part in Scotland’s energy strategy, nuclear waste, and we are not willing to UK contribution is 15%, but Scotland aims as much as anything because Scotland countenance such very substantial and to go further than this to 20%. Scotland has a large share of estimated capacity. also open-ended costs for this and future has also committed to the ambitious According to trade association Scottish generations.” In 2007 electricity produced target of reducing carbon emissions by Renewables, “Scotland has sufficient by nuclear power fell by 13% (having 80% of 1990 levels by 2050. renewable energy resources to provide fallen by 24% the previous year), mainly up to 75% of the UK’s electricity needs, At the beginning of this year, the total in- due to unplanned outages at nuclear with estimates that it has 25% of Europe’s stalled capacity of renewables (excluding stations. onshore wind resource, 10% of wave, and hydro) in Scotland was over 3 GW. Adding significant potential for tidal stream and It is the marine resource which appears in all the potential energy from already offshore wind capacity.” to be the most exciting for Scotland, as consented renewable projects brings the academic and engineering expertise total to 5.5 GW, equivalent to around 35% A recent report commissioned by the developed in part as a result of develop- of electricity demand, meaning Scotland Scottish Government, after having ing offshore oil and gas can be applied to is set to surpass the 2011 target. refused consent to the Lewis wind farm what will be a large international long on grounds of incompatibility with The Government has set about meeting term industry. As reported by Scottish European law, confirmed the immense its targets by matching words with Renewables, wave and tidal energy could potential in the Western Isles. Onshore action. Since May 2007 it has determined build to 15% of renewable electricity wind energy offers the greatest eco- 24 energy applications, including 20 generation by 2020, but they require nomic and community benefit; the best

Renewable Energy in Scotland 19 3 Scotland’s current strategy

considerable development issues to be The proposal proved to be extremely As far as CCS is concerned, the recent re- resolved in the short term, including a controversial, and in August 2006 it was port Opportunities for CO2 storage around planning regime for offshore develop- referred to a public inquiry. The inquiry, Scotland, launched this month (May 2009), ment, commitment to grid infrastructure which handled over 17,000 objections, was indicates that Scotland has the ability both offshore and onshore, and an invest- completed in February 2008 and a report to accommodate industrial emissions ment climate conducive to supporting the was presented to Ministers a year later, on generated in Scotland and the North East early development of this market. 19 February 2009. The alternatives to this of England for the next 200 years, utilising transmission line are technologically feasi- the nation’s offshore storage capacity At present the industry seems to be in a ble, although considerably more expensive, which is greater than that of the Nether- ‘chicken and egg’ type stalemate; develop- and include subsea cables, underground lands, Denmark and Germany combined. ers need to have certainty that the trans- cables, and the upgrade of the east coast There are real economic opportunities in mission infrastructure will be in place for transmission system. developing storage hubs and pipeline net- the export of the electricity generated by works for Europe, but the report also refers marine projects in the Pentland Firth and A determination is expected within this to the need to fund CCS demonstration in the Western Isles, whereas the trans- year; if it goes against the Beauly-Denny using EU and other funding. EU funding is mission organisations need to have some line, the whole development of offshore expected to provide a total of £160 million idea of which projects might go ahead wind and tidal projects in the north and for carbon capture and storage projects in and on what timescale. Both need to have west of the country will inevitably be the UK, and four projects are under consid- some clarity on the financial and regula- delayed by many years. To protesters eration, two of them in Scotland – one of tory regimes which will be applied. against the project, such a delay in the these is at the Longannet power station on context of infrastructure being developed Scottish Renewables spells this out clearly: the Firth of Forth. for the next century or more is rela- “How the planning system operates in tively insignificant; to those who want The opportunity for Scotland to benefit Scotland is a litmus test of political com- to see Scotland take a leading role in the from trends in the green energy sector mitment to renewables, and wind power development of offshore wind and tidal and renewables in particular is immense, in particular, and will, along with finance energy, and to those who see the tipping and leaving party politics to one side the and grid access, fundamentally determine point for catastrophic climate change Scottish National Party administration whether the 50% target will be met.” approaching rapidly, such delays are hard has made an excellent job of focusing on The challenge is considerable, and the to countenance. and promoting this opportunity. However, response to date has not been wholly it is not the sort of windfall that requires There are however signs that in Scotland encouraging. no effort and no difficult decisions – there all parties, government and industry, are plenty of other countries which In July 2005 a route was proposed for a regulators and public agencies, are now would like to take pole position in this new 400kV overhead electricity line to working together much more closely to sector, and recent history gives a salutary replace the existing 132 kV line between ensure that all possible barriers to devel- warning in the shape of wind energy. As Beauly, west of Inverness, and Denny, opment are assessed jointly and on an Scottish Renewables tells the story, “Den- west of Falkirk, and an application to appropriate timescale, but the planning mark and Germany over the last twenty construct the line was submitted in process is still widely regarded as a more years seized on and developed onshore September that year. The proposed line difficult issue to overcome than technol- wind at a time when few other nations would use fewer but much taller pylons ogy or pricing on major renewable energy took this technology seriously, and now than the existing line. developments. employ thousands in this sector.

20 YCF Special Report “Scotland is currently playing catch up in The benefits will extend throughout the The statistics and quotations in this making the most of onshore wind invest- nation; as the Scottish Government asserts, chapter are taken from: ment, but the big prize rests in establish- “we want to provide the conditions which The Scottish Government ing the emerging wave and tidal sectors will see strong commercial companies www.scotland.gov.uk as world beaters. Much of that early work operating in Scotland which are competi- in marine energy research and develop- tive in international markets. We will also Energy Policy: An Overview ment will be able to capitalise on the actively promote community led energy Western Isles Economic and Community momentum from onshore wind. The oil generation and energy saving projects. Benefit Study and gas sector infrastructure and know- Such approaches can stimulate communi- Scottish Renewables how of deep sea operations will also be of ties to take this activism into wider areas www.scottishrenewables.co.uk advantage provided industry is supported and promote community regeneration.” Determining and delivering Scotland’s to make the transition. The maintenance So the prize is well worth the effort, and energy future: and in some cases re-opening of offshore the renewable energy sector could provide Scottish Renewables written submission fabrication yards will provide a vital link a turning point in Scotland’s economic to the Economy, Energy & Tourism Com- from the former hydrocarbon derived development. Bring on the challenge! mittee Inquiry business into the sources of new low carbon innovations.” Beauly Denny Public Inquiry www.beaulydenny.co.uk The “big prize” is being promoted in an innovative way in an international competition. The £10 million Saltire Prize will be awarded to the team that can demonstrate in Scottish waters a commercially viable wave or tidal energy technology that achieves a minimum electrical output of 100 GWh over a continuous two year period using only the power of the sea, and is judged to be the best overall technology considering of cost, environmental sustainability and safety. More than a hundred registrations of interest have so far been received from scientists and businesses across 23 countries and five continents.

Beyond 2020 the more mature renewable technologies which will have been instrumental in achieving the 2020 target will increasingly be supplemented by new technology including marine, and it is on this timescale that companies in Scotland should be planning.

Renewable Energy in Scotland 21 Nathan Goode, Partner Grant Thornton +44 (0)131 659 8513 Who we are +44 (0)7887 625265 [email protected]

Grant Thornton UK LLP is a leading financial and business adviser, operating out of 30 offices and 3 staff support sites. Led Charles Yates, Associate Director by over 250 partners and employing over +44 (0)207 728 2947 4,000 of the profession’s brightest minds, +44 (0)7768 33785 we provide personalised assurance, tax and [email protected] specialist advisory services to over 40,000 individuals, privately-held businesses and public interest entities.

Our offer to the market is great depth of expertise, delivered in a distinctive David Morgan, Manager and personal way. Through proactive +44 (0)131 229 8596 and partner-led client relationships, our +44 (0)7887 895 224 teams deliver solutions to problems, not [email protected] pre-packaged products and services. Our deep-rooted experience in the issues affecting mid-sized businesses, combined with the true global reach and resources of Grant Thornton International Ltd mean Charlie Saunders, Manager that we’re uniquely placed to deliver the +44 (0)131 659 8561 best advice, in a seamless way - regardless +44 (0)7970 819575 of service line, regardless of location. [email protected]

We are a member firm within Grant Thornton International Ltd, one of the world’s leading international organisations of independently owned and managed Marianne Burgoyne, Executive accounting and consulting firms. Clients +44 (0)141 223 0746 of member and correspondent firms can +44 (0)7792 485 187 access the knowledge and experience of [email protected] over 2,400 partners in over 100 countries and consistently receive a distinctive, high- quality and personalised service wherever they choose to do business.

22 YCF Special Report Big decisions follow you around.

At Grant Thornton, we understand that the big decisions you have to make are sometimes difficult, often finely balanced, always with you. To explore this and other big decisions visit our website or contact renewables expert, Nathan Goode on 0131 659 8513.

www.grant-thornton.co.uk

© 2009 Grant Thornton UK LLP. All rights reserved. ‘Grant Thornton’ means Grant Thornton UK LLP, a limited liability partnership. Grant Thornton UK LLP is a member firm within Grant Thornton International Ltd (‘Grant Thornton International’). Grant Thornton International and the member firms are not a worldwide partnership. Services are delivered by the member firms independently.

B1457503 GT Edinburgh Press 210x210.indd 1 5/5/09 14:33:33 4 Investment in renewables

Renewables businesses are no less in terms of complexity – both in terms lack of capital availability; affected by general market conditions, of the green tariff (which varies accord- cost of debt finance; and any ‘green premium’ that boosted ing to technology) and the consenting reduced leverage – lenders want more prices last year is this year hard to find, regime (which remains time consuming equity in projects. despite the long term prognosis of high and difficult to predict). demand for this sector’s output. Long Generally, a proposition has to be The sector has the same range of financial term demand is there; in the short term substantial enough to be of interest; but options open to it as any other sector – if focus should be on commercial basics. not too big, otherwise finding enough anything, they are broader in scope money will be difficult. Projects at both This article gives a view on current than most, because renewable energy ends of the finance spectrum will find life conditions for financing in the renewable businesses can be either asset-based or challenging at the moment. sector, attempting at the same time to corporate and intangible / brand –driven – see this in a longer term context. and in some cases both. The utilities are big players in this sector, and because they have hitherto financed Finance for renewable can come with The market a lot of projects on balance sheet the varying levels of recourse, and varying The renewable energy sector is highly impact of the recession has been more levels of risk. Just like other sectors, the diverse in terms of scale, risk and technol- opaque, but cost of capital has clearly market has changed in the past twelve ogy. It should be no surprise that the increased for them over the past year or months for three main reasons: financial issues and solutions are just as diverse.

The key differentiator between renewables and other sectors is that most technologies are not yet economically self-sustaining. They are dependent on government underpinning to be economically viable. In the UK it looks as if government support will be needed for at least the next two decades. Globally, support regimes for green energy vary in scope, quantum and volatility, resulting in a highly fragmented global marketplace where investors need to assess market attractiveness on a country by country basis. In the UK, the system scores highly in terms of reward, but also

24 YCF Special Report so and stocks with a significant green energy portfolio (eg Iberdrola Renovables) have not performed well. This is affecting their appetite for projects.

Some policy and regulatory risk is part of the entry price for this sector. Compari- sons have been drawn with the dot.com boom and e-commerce but the reality for renewables is that a significant proportion of the investment risks are non- market risks. They are about changes in legislation, policy and public perception and not simply about whether there is a market to buy the product. This creates a need for investors to: understand and form a view on these forces; and ensure that the rest of the ‘risk universe’ for a project or business is managed as effectively as possible. E.On and RWE (nPower) developing prices appears to be having a significant commercial scale biomass projects; effect on the appetite of this investor Investors Scottish Power, identifying a single segment for projects in the UK. Whereas The key players in the UK market are: marine device to partner on; it might have been said of this group last year that all projects were of interest, this UK utilities. This investor seg- SSE, building up a more diverse port- year there is still interest, but in selected ment underpins the pricing for the UK folio of interests, covering technology projects at the right price. renewable sector because the Renewables development for consumer products, Obligation rests with them. Ultimately supply chain components, small scale Private equity. This segment (VCs they need the green certificates produced. anaerobic digestion etc. in particular) has generally found the All of the major UK electricity suppliers renewable sector’s time horizons difficult These businesses are both risk averse and have therefore shown a strong appetite to reconcile with its shorter term exit structured to control and manage projects for renewables. As multi-national energy requirements, as well as understanding both operationally and financially. producers the UK sector also fits into their the kind of risks it needed to take to get global alternative energy strategies. Other utilities. Increasing num- higher returns. Quite a few specialist bers of utilities are showing an interest in green funds have been set up, such as They have primarily focused on wind the UK market principally because of the Climate Change Capital, but there is a energy as the proven technology but all attractiveness of the UK support mecha- limit to the capacity that specialist funds have also dipped into other sectors, for nism. This segment includes names such have. Real momentum looked as though example: as Dong, Statkraft, Eneco, Gaz de France, it was building up for green energy to ‘go and Vattenfall. The current dip in power mainstream’. A number of players like

Renewable Energy in Scotland 25 4 Investment in renewables

by renewables projects. There is a logic to this, and pension funds (eg Canadian public sector funds) have shown an interest in the past, but they are likely to be risk averse (and want to back proven technologies), interested in opportunities of scale (thus a need to consolidate smaller projects) and are not generally leading edge (looking for commoditisa- tion).

Government. There are a lot of calls on government money at the moment, but as we have identified this is a government-driven sector anyway. The opportunity for government is to bridge the commercialisation gap caused by a lack of leverage. The questions for government are whether it can accept the delay risk if the funding market is allowed to find its own level and whether, on the other hand, it can move quickly enough to make a difference. Government should also have a policy interest in smaller-scale Terra Firma were at the forefront of this is also a good illustration of how the renewable, where the economic drivers and only time will tell how far this mo- management team needs to evolve as the may be less strong for purely commercial mentum has been damaged or delayed by business gets closer to commercialisation. investors. the current recession. There appears currently to be a strong High net worth individuals. Successful private equity fund raisings preference amongst private equity for There appear to be a number of HNW in- in the sector have seen multiple rounds revenue generating businesses. This will dividuals already active in or considering and groups of rather than single equity be difficult for the many green energy participating in the market. This form of investors. Pelamis, the wave technology, propositions that have yet to reach that capital is highly flexible and mobile, so by is perhaps the best known example. stage. creating the right vehicles this may well Pelamis Wave Power has raised some help to source new capital particularly for £40m during its development phase. Its New investors smaller businesses. shareholders include asset management Three investor segments have been touted funds managed by Emerald Technology as potential investors in renewables: Ventures, Norsk Hydro Technology Ven- The business case Pension funds. Pension funds This is not a great time to raise money. tures, BlackRock Investment Managers, should have a natural affinity for the long One large equity investor recently said 3i, Carbon Trust, Nettuno Power and term predictable revenue flows offered that if renewables businesses could get Tudor BVI Global Portfolio. Pelamis

26 YCF Special Report by without external equity this year they should do so. If last year there was a view that money could be raised on the strength of a ‘green ticket’ alone, simply because a project or a business proposition was in tune with the drive for reduced carbon emissions and green energy, this is clearly not the case today.

The focus needs to be on the sort of areas that are important for all businesses, ie: getting the product, device or process as far along the commercialisation curve as possible; constructing a robust business case; working out how much cash is needed; locking down the elements that create value. This may be physical or intellectual property rights, patents, supply or off-take agreements.

This may look obvious but the drive to develop the idea can obscure the more boring commercial tasks at times.

In short, renewables is not exempt from the need to build on sound business Nathan Goode is a Partner at Grant Thornton. He provides lead, principles. The idea has to be converted strategic and commercial advice to clients in the public and pri- to maximise its life chances. Funds raised vate sectors. Nathan is the lead partner for the firm’s renewables at the moment may not always enable advisory work, having established the team about 4 years ago. a business to follow its owners’ ideal He and his team provide financial and commercial advice in the trajectory, but hopefully they will enable Renewables sector to a range of developers, funders, utilities and it to move to the next stage. the public sector. Projects advised on are predominantly onshore wind, but also cover biomass, waste to energy and maritime renewable projects. He also has experience advising on e-Govern- ment, outsourcing and accommodation PPP / PFI projects. Nathan Goode joined Grant Thornton in 2002 from Arthur Andersen’s Infrastructure team, where he had worked since 1998. Previously Nathan was with the PFI team at British Linen Bank (1996 - 1998) and prior to that worked in corporate and investment banking with Hill Samuel Bank and Barclays Bank.

Renewable Energy in Scotland 27 ITI Energy Igniting innovation and wealth creation

In the current financial climate with criteria and the technology aims to pro- 2009, researching the opportunity for the rising costs of energy, the need to vide a return on our investment, create the development of existing regenera- minimise energy consumption and value for our research providers, further tive technology to capture significantly encourage all renewable sources is development opportunities for our com- more energy and improve the vehicle’s greater than ever. The need for low mercial partners, and deliver economic or performance. carbon solutions that deliver security related benefits to Scotland. In terms of the future for renewables, the of supply and energy efficiency will ITI Energy has launched a portfolio of rise of intelligent energy technologies require a different approach to research, R&D programmes, which we hope will and processes is driving a real revolution development and deployment across the help shape the future of the renewable that is reshaping the way generation, energy supply chain. energy sector and encourage more take power networks, storage and the end- Conventional energy generation such up of the technologies. One such example user will interact in the future. The intel- as fossil fuel and the nuclear power is an innovative development provid- ligent house/business of the future will industries have seen a revival in their ing a solution to expensive and scarce need to integrate with the new active fortunes due to security of supply world crane resources - Orangutan® - a distribution grid that will be developed being highlighted in recent history. It is Wind Turbine Access System, which over the next decades. recognised that a portfolio of generation will dramatically improve the efficiency Large offshore wind, marine (wave, tidal, capabilities and balance between base of maintenance operations on wind biofuels, etc), hydro, solar, geothermal, load and intermittent renewable sources turbines. A new low-cost, high-energy small wind, micro-generation, etc as will be needed. Clearly, as with all new rechargeable battery has also been well as energy efficiency measures will technologies, the introduction of higher developed by ITI Energy based on using all develop at different timescales, each risk and higher initial costs has to be Lithium-ion (Li-ion) technologies. This providing a piece of the low carbon counterbalanced with incentives. has the potential to deliver 150% higher supply of energy and reducing the use of energy capacity, giving longer periods As part of ITI Scotland, the innovation fossil fuels. between recharge. body for Scotland, it is ITI Energy’s ITI Energy is determined to be a leader in mission to identify and develop new Sustainable transport and alternative developing innovative niche technologies innovative energy enabling technologies fuels are currently key areas for ITI to help achieve mandatory Government to tackle the growing issues around Energy. A new programme is about energy targets and provide real returns low carbon energy supply and demand to be launched with respect to macro for the Scottish community via commer- optimisation. Working with commercial algae and its capability to contribute cially successful companies. partners from industry, academia and to the portfolio of generation and lack other key stakeholders, ITI Energy of competition with food chains. A identifies future energy technologies to further programme exploring Energy research, develop and exploit. Our invest- Recovery Systems in electric vehicles is ments are based on commercial selection also being considered for ITI Energy in

28 YCF Special Report 31698 ITI Energy Engineering ad:31698 ITI Energy Engineering ad 02/04/2009 14:41 Page 1 ign on

Wind Turbine Access System

Composite Pipeline Structure

Rechargeable Battery Igniting innovation and wealth The intellectual assets from

Resonance Enhanced creation in Scotland’s energy sector. these programmes are then Drilling commercialised for the benefit ITI Energy is committed to making of the Scottish economy. brilliant ideas a commercial reality. Seaweed Anaerobic Digestion We commission trailblazing R&D To find out more, come and visit R&D Programme Areas Programme R&D programmes to generate market- us at All-Energy 09, Stand D1, driven, commercially focused business Aberdeen 20-21 May '09, Energy Recovery Systems opportunities in the energy sector. or visit www.itienergy.com

Offshore Blade Technologies

Intelligent Energy Interface Renewable Energy in Scotland 29 5 Research and development

Scotland continues to grow its reputa- funding council driven pool. The exercise UK meet its environmental emissions tion as a global centre for exceptionally itself has been largely driven by the Scot- targets by improving the sustainability innovative research into renewables. tish Funding Council. JRIE links the IES of power generation. Heading up the Individually, its universities and with the Energy Academy at Heriot Watt, SuperGen Marine programme, the largest research institutes are leading the way which brings us expertise in disciplines ongoing marine research programme in in bright ideas and the development of such as solar power, and links with the the UK, is the University of Edinburgh. novel technologies, making a com- International Centre of Island Professor Bryden explains: “SuperGen is mercial splash here and overseas. But Technology (ICIT) in Orkney.” Bryden is a £7.2m project, linked with Heriot Watt, it doesn’t end there. A head of steam is personally linked to Orkney as he sits on the University of Strathclyde, Lancaster building behind collaboration, creating the board of the European Marine University and Queen’s University Belfast. a strong matrix of specialisms to ensure Energy Centre (EMEC). We’re working on ten parallel projects Scotland’s international reach. Of the many exciting projects underway researching the fundamentals necessary At the heart of this is the Energy at present, SuperGen is one of the to develop the marine resource. The aim Technology Partnership (ETP), as biggest. A multidisciplinary initiative led is to extend engineering science under- Professor Jim McDonald, principal of by the Engineering and Physical Sciences standing to people who are developing Strathclyde University and chair of the Research Council, the aim is to help the the actual devices. Partnership, explains. “It’s a very strong alliance of the energy research-intensive EMEC universities, making a big splash on The European Marine Energy Centre (EMEC) is Scotland’s leading test site for the international scene. Each individual marine-based renewables. The first of its kind to be created anywhere in the world, university has its own key strengths, but the site allows developers to test prototype devices in EMEC’s wave test site. A world together we’re very much stronger, rising first was achieved when Pelamis Wave Power generated electricity to the National above institutional boundaries to present Grid from its deep water floating device at EMEC’s site. A second test site for tidal the Scottish capability in renewables. All devices off the island of Eday has recently been opened with the first developer, of the key university partners are well Dublin-based OpenHydro, already installed and generating electricity to the grid. bound together in the ETP.” For most developers, installation at EMEC’s facilities will be the first time their de- There are also more regional linkages, vice has been in the open sea and grid connected, so EMEC also monitors devices states Professor Ian Bryden, of the being tested in relation to their impacts on the receiving environment. However, Institute of Energy Systems (IES) despite links with a range of different developers and devices, as well as academic at the University of Edinburgh. “There has institutions and regulatory bodies, EMEC remains resolutely independent. certainly been a move towards pooling EMEC is currently involved in a range of research projects, including the Wildlife capabilities. For instance, the IES is part Displacement: Observations Programme, looking at the impact renewable energies of the Edinburgh Research Partnership have on wildlife in the area, and Hydrodynamic Modelling of the Orkney Islands to Joint Research Institute in Energy (JRIE), a provide developers with detailed information on the waters surrounding the islands.

30 YCF Special Report “The University of Edinburgh has been working on marine renewable energy International Centre for Island Technology, Orkney The International Centre for Island Technology (ICIT) is part of Heriot-Watt since 1972. There’s nowhere else in Europe, University’s Institute of Petroleum Engineering. Established to carry out research, if not the world, with the same capability postgraduate training and consultancy in marine resource management and in marine. And that’s not just because of related issues, it specialises in renewable energy research and sustainable the length of time we’ve been doing it, development. but the quantity and quality of people involved and the depth of expertise.” Says Dr Sandy Kerr, based at ICIT: “We don’t do all the work ourselves because we’re a small unit, but we partner with other universities. Some projects we’re Also underway is a new £8m project, working on are in grid and energy storage, looking at petroleum and marine Redapt, funded by the Energy renewables (learning from the offshore oil and gas industry), and also risk such as . Bryden adds: Technology Institute (ETI) shipping hazards, and the risk element involved in the supply and maintenance of “This is a major project led by Rolls Royce renewable energy, such as accessibility to offshore devices. and involving the University of Edin- “On different work themes, we work with different universities, from the Univer- burgh, EDF, EMEC, Plymouth Laboratory, sity of Highlands and Islands, to Queens University Belfast, and The University of and Tidal Generation Ltd (TGL). We will Edinburgh. We have international collaborators too. be instrumenting and monitoring TGL’s turbine at EMEC, and we hope to get A significant project for ICIT at present is RASCAL, mapping the tides in the instruments in the water this summer.” Pentland Firth. Dr Kerr explains: “Some people like to believe the Pentland Firth can supply 25% of Scotland’s energy. However, we know very little about its actual Other research at the university includes tides, turbulence and waves. This project involves putting in high frequency radar work by Dr Markus Mueller into the to give surface currents over the entire area. We want to provide this data as development of novel forms of electrical near to real-time as possible. We’re looking for funders at the moment, and are generators, with marine being a possible working hard on the feasibility study. This research will open up a lot of research application. “We also have a PhD student possibilities, particularly in tide and wave modelling.” looking at a very novel and very exciting form of energy storage which we believe take North Sea offshore capability, apply Professor Bryden are now working on a may well solve most of the problems of it to tidal turbines and all will be well. secondary stage model, with an ongoing intermittent renewables,” Bryden states. The problem is that tidal turbines only aim to place it in the Firth of Forth at the Bryden was also principal investigator produce kilowatt hours, not black barrels Isle of May. on the Sea Snail Proof of Concept (PoC) of oil, and there’s nothing like the same There are a variety of other areas of project, working with Dr Alan Owen, funding involved as in the oil industry. research being undertaken at Robert Head of Renewables in the Centre “The thinking behind the PoC was that Gordon University, particularly around for Research in Energy and the a quick, easy installation methodology tidal energy, resource assessment for the Environment (CREE), at Robert Gordon is needed, and by using the downforce Pentland Firth, and a major project at University, Aberdeen. from a hydrofoil we can hold something the Sound of Islay, where Scottish Power “In order for tidal energy to be success- in place without having to connect it are putting in a number of turbines. “We ful,” says Dr Owen, “we need installa- physically to the seabed.” were instigators of the project with the Is- tion technologies to be quick and cost lay Energy Trust, doing the pre-feasibility This is the Sea Snail, designed, built and effective. There is a theory that we can work,” says Dr Owen. deployed in Orkney in 2005. Dr Owen and

Renewable Energy in Scotland 31 5 Research and development

The CREE is expanding, further to securing £0.5m funding for a new Centre SuperGen Sustainable Power Generation and Supply (SuperGen) is a multidisciplinary for Understanding Sustainable initiative managed and led by the Engineering and Physical Sciences Research Practice (CUSP), based in the School of Council (EPSRC), the country’s main agency for funding research in engineering Engineering, but active across the campus. and the physical sciences. SuperGen is run in partnership with the Biotechnology “It will look at how to get the behavioural and Biological Sciences Research Council (BBSRC), the Economic and Social Research change required to actually make things Council (ESRC), the Natural Environment Research Council (NERC) and the Carbon happen,” adds Dr Owen. “As a society, we Trust. The aim of the initiative is to help the UK meet its environmental emissions need to change the way we do things at targets through a radical improvement in the sustainability of power generation a fundamental level, technology is not and supply. Rather than working on individual projects, researchers work in consor- the ‘business as usual’ solution. In the tia, in multidisciplinary partnerships between industry and universities, focused new CUSP we have funding for three PhD on specific programmes of work. This approach supports generation new ideas and studentships, and have other funding ap- sharing of research results and the move towards tackling broad challenges rather plications in, which could mean taking on than making incremental progress. A total of 13 consortia have now been funded or half a dozen more in the next few months.” approved for funding, covering renewables from marine energy to solar cells. Also expanding in marine renewables is the Institute for Energy and It’s a £7m programme, and will launch in policy in renewable energy, its impact the Environment (InstEE) at the autumn.” on regional economics, and policies for University of Strathclyde, on the cusp of encouraging its greater deployment.” “Similarly, the ETI funded four programmes launching the Strathclyde Institute for in January. Two of them in off-shore wind, Another interesting PoC project currently Marine Technologies. A Proof of Concept with the scientific programme led by underway at Strathclyde is led by Dr John project at Strathclyde has also developed Strathclyde, are looking at novel turbine Fletcher, Electronic and Electrical Engi- a contra-rotating tidal flow turbine, designs, through to major off-shore wind neering (EEE), into a novel type of electri- which has been trialled on the west coast farm architectures. We also lead the cal generator. “The project focuses on the of Scotland. “The device is now attracting SuperGen programme in wind energy and electrical generator which takes mechani- interest from some major corporates,” have major funding for research in this cal energy and converts it more efficiently states Professor Jim McDonald. area from facilities and manufacturers.” into power,” explains Dr Fletcher. “We’re He expands on the scope of the Ins- building two demonstrators – a low The University of Strathclyde is also at tEE: “We are now the largest and most speed generator, as used in wind turbines, the vanguard of research into electrical intensive wind energy research centre in and a high speed generator, suitable for networks and grid, co-hosting the Depart- the UK. In January, we were awarded a micro-turbine applications.” ment of Energy and Climate Change’s Doctoral Training Centre in wind energy centre for “Whereas a traditional generator has systems from the EPSRC. Over the next Sustainable Electric- three phases, with a wind turbine, you five years, it will be looking to produce ity and Distributed Generation , addressing the major UK network can have as many as you want. The more 50 PhD students in wind energy, ranging (SEDG) technologies and policies required to there are, the more efficient the generator from advanced turbine design, materials, meet government targets. “In addition to is, and the more fault tolerant it becomes. control and integration of wind de- all of this, at the Fraser of Allender Insti- This is a valuable asset in situations such vices, economics and policy issues, right tute we look at economics, regulation and as putting wind turbines off-shore, when through to wind modelling and mapping.

32 YCF Special Report you can’t get to them very often to fix As for Aberdeen, the Institute materials to produce energy sources. We them. We’re aiming to have the demon- of Energy Technology (IET) covers work on photocatalysis, a way of taking a strators ready by July of next year.” a range of renewables R&D, including waste material and producing energy. We modelling climate change as it affects are also involved in biomass and biofuels.” Dr Fletcher describes another project he is land use. Professor Paul Mitchell, the involved in with Proven Energy, the Wind Professor Martin Tangney, the director director of IET, says: “We’re looking at Crofting Concept. “We’re looking at how of the Biofuel Research Centre heat, power and transport fuels from you take the energy from lots of small, (BfRC) at Edinburgh Napier University, is biological sources. We are also involved distributed wind turbines and get that completely focused on biofuels. Forming in marine energy and are working on a into the network. It’s a three-year project, the Centre in 2007 as a way of connect- novel wave technology at the moment, a and we’re about a year into it.” ing up knowledge and diverse areas of wave pendulator, which we’re moving research around biofuels, Professor Tang- He adds: “We’re an academic team that not from the lab to demonstration scale. We ney is working particularly on microbial only addresses basic research challenges, also have people working on wind energy biofuels and butanol. we’re also involved in the engineering and – not so much the turbines, but more on deployment of the technology.” the power take-off – getting on-shore the Also working on biofuels is Professor power which is generated off-shore. “ Graeme Walker at the University of Aber- Another university focused on deploy- tay, who recently secured funding from ment of the technology it develops is “We also do a lot of work with hydrogen the Institute of Brewing and Distilling. the University of Aberdeen. Professor storage, and have a particular strength in “We’re looking into second generation Donald Macphee is currently involved catalysis, using catalysts to manipulate in a PoC project to develop a novel fuel cell technology. He describes the aim of the project: “We want to create a more efficient fuel cell, with the focus on the chemistry of the anode of low temperature fuel cells which utilise hydrogen or hydrocarbon fuels. We’re looking at limiting poisoning reactions on the surface.

“The hydrogen used in conventional proton exchange membrane (PEM) fuel cells may contain carbon based impuri- ties, leading to loss of cell performance. This project looks at ways of inhibiting the absorption of by-product carbon monoxide to make the cell more efficient.”

St Andrews University is a centre of excellence in the UK for fuel cell and battery technology research, with Professor John Irvine also working on two PoC projects in this area.

Renewable Energy in Scotland 33 5 Research and development

biofuels, producing bioethanol from any non-food source, residues from other Edinburgh Napier University, Biofuel Research Centre Based at Edinburgh Napier University, the Biofuel Research Centre (BfRC) was food industries and co-products that may founded by Professor Martin Tangney in 2007. Professor Tangney was aware of dif- currently be low value.” ferent opinions about biofuels, including concerns about diverting food sources The focus of Professor Walker’s research into fuels, and displacement of wildlife. He also wanted to address the diversity of is on spent grains, the husky material academic disciplines involved in biofuels, pulling them together in one place. He left behind when beer and whisky are states: “It became clear to me that the whole area was disjointed. The stakehold- processed. He explains: “Our thinking ers are so wide reaching, farming, processing, end users, distribution, storage, PR, was that distillers in Scotland have this legislation, trading. I realised it needed to be better connected, so set up the BfRC material on their doorstep, and the as a portal bringing everything together.” technologies to convert it into alcohol are The Centre’s R&D is based entirely around renewable biofuels, that is by-products already in existence.“ or waste products, such as molasses, a by-product of the sugar industry. The “We are making good progress in the Centre’s research is particularly focused on a next generation biofuel – biobutanol research project and the hope is that we – an alcohol which has inherently more energy than ethanol, also used in biofuels. can demonstrate technology to show the Professor Tangney is principal investigator in a Proof of Concept (PoC) project brewing and distilling industry that there looking specifically at creating biofuel from waste material. The Renewable is potential higher value from residual Transport Fuel Obligation (RTFO) requires that 5% of the UK’s transport fuel comes material.” from a renewable source by 2010, with longer term targets in place for capacity building. As there are problems associated with the existing biofuel industry, At the Caledonian Environment particularly regarding bio-ethanol, Professor Tangney saw the opportunity to Centre within the School of the Built develop a competitive sustainable UK biofuel industry. Butanol is now recognised and Natural Environment at Glasgow Cal- as an important next generation biofuel, superior to ethanol. It has a higher edonian University, work is being done on calorific value, equating to more energy produced, lower vapour pressure, allow- a project to convert waste cooking oil into ing easier storage and transportation, and it can be blended at any concentration biodiesel on the Isle of Bute. The School with petrol without modifying engines. The overall aim of the PoC is to develop has a research centre with expertise a biological process for production of butanol-biofuel from the biological waste in the waste management field, with stream of an indigenous Scottish industry. interests in any form of energy recovery from waste, including landfill gas recov- Adds Professor Tangney: “These types of processes are entirely sustainable, using ery, anaerobic biogas and mainstream already generated biological waste. That’s the focus of our work, across the incineration. It is also working on projects spectrum. There’s huge potential in island communities, for instance, making relating to renewable energy policy and them self-sufficient in recycling waste into energy.” management issues. solar energy in particular, for around Professor Burek is also involved in Professor Stas Burek, based at the School, 30 years. I have colleagues looking at research into novel small-scale wind specialises in solar energy. “The School sustainable buildings, energy efficiency turbines, primarily for the rooftops of focuses on the built environment, with in buildings, work on double glazing and flat-roofed buildings. He adds: “There is a further focus on buildings and energy improved solar efficiency of buildings, potentially a massive market and so there provision in buildings. Personally, I’ve and so on.” is a lot to be done. We’re just about to been involved with renewable energy, recruit a PhD student.”

34 YCF Special Report The Castlemilk wind farm is an ongoing the turbine to climb the tower and lift up environmental impacts of marine energy project. “There have been some hurdles to 70 tonnes of payload, so you can for technologies. to overcome, but we are getting there,” example change the gear box, or add new The Environmental Research states Professor Burek. “It started off as a blades. It could also be used for building Institute, based in Thurso and linked to student exercise, looking at communities the turbine from the ground up. It works the North Highland College, undertakes and how to make them more sustainable. as an orangutan climbs a tree, clamping research in a number of areas relating to The students came up with the idea of to the mast, with the system changing renewables, including on- and off-shore putting a wind turbine or two on the city the position of two clamps to ease itself wind resources, wave and tidal, and boundaries. The Castlemilk development up to the top.” sustainable building design. agency liked the idea and it grew into a Novel research is also being undertaken £5m or £6m project. We now have plan- Whether at universities or other by the Scottish Association for ning permission to put up one turbine.” research organisations and institutes, Marine Science (SAMS), Scotland’s energy research is becoming increasingly And it’s not just Scotland’s universities premier marine science research interconnected, allowing Scotland to play which are involved in novel research. organisation. Based at the Dunstaffnage a central role in international renewables ITI Energy, a publicly funded Marine Laboratory near Oban, SAMS’ R&D now, and into the future. research institute, has a unique model activities run across the entire breadth which allows it to take innovative R&D of marine science. Its renewables team is from commission to the commercialisa- researching a number of areas, including tion stage. Duncan Botting, the Institute’s a large scale project into biofuel genera- managing director, goes through the tion from marine algae and looking at the detail: “We receive £15m a year from the government, so we have to identify opportunities for future markets where Scotland can make a large economic Rowan Morrison, writer and editor, has impact. We do this by foresighting areas been working in business and lifestyle of interest, and by acting as a surrogate publishing for six years. Following gradu- R&D department for the SME community.” ation with a First Class Honours Degree in Publishing from Napier University, she One particularly exciting piece of worked with ICP, part of Insider Group, research is the Orangutan Wind Turbine where she was quickly promoted to role Access System, coming up to commer- of Co-Editor of Scottish Banker magazine. cialisation phase. Botting states: “It’s There, she built a reputation for having addressing a major problem with wind an insightful editorial eye and excellent turbines in that there is a 70% shortage writing skills. In 2006, with Alison Bird, she of craneage in the world to actually build set up Bird Morrison, an award-winning them. Also, in terms of operating and writing, editing and publishing company. maintaining them, turbines often don’t Rowan writes and edits for a huge variety have the most reliable gearboxes, so they of publications and organisations, on a need craneage to be able to repair them. wide range of topics, and contributes a “Our system uses the centre column of monthly column to No1 magazine.

Renewable Energy in Scotland 35 Hillington Park Innovation Centre Switched on to renewable energy companies

As the environment increasingly be- In the last nine months the Scottish Gov- comes the victim of the harmful effects ernment says the private sector invested of carbon dioxide emissions, remarkably £1 billion in the industry. Industry sources nature herself holds out potential solu- indicate there are continuing investment tions to the problem. opportunities in a sector that is perform- ing better than most in the current Renewable energy sourced from water, economic climate. wind, waves, landfill waste, tide and biomass can help combat global climate The surge in the industry’s growth has change. been reflected in the tenant profile of the Innovation Centres Scotland managed Ross Clark, Centre Director for Hillington, Here the Scottish government has set a Hillington Park Innovation Centre where said “Hillington has become a hub of in- target of achieving half of our electricity one in five companies is engaged in the novation for the renewable energy sector needs from renewable sources by 2020. sector. in Scotland and we are tapping into a Hillington Park Innovation Centre has number of industry experts to help our These include companies providing also taken up the renewable energy baton companies grow and identify new op- software to monitor efficient use of green and is creating a hub of Scottish based portunities in this exciting marketplace.” energy, developing tidal current genera- companies dedicated to developing the tion systems, generating power from He added “We are organising an event in technologies that will assist in harness- landfill waste, and wind driven turbines. the Hillington Park Innovation Centre on ing the natural resources necessary to the 17th June, focussing on understand- meet the stringent green energy targets. The move to attract young innovative ing the carbon reduction targets, the companies to Hillington specialising in Renewable energy is a growth sector strategies being proposed and imple- creating the technologies that will drive within the Scottish economy. The indus- mented, and the technological solutions the development of renewable energy is try body Scottish Renewables reported which are enabling carbon reduction to a planned strategic move by ICS manage- a 4% growth in turnover in 2008 to £570 be a reality”. ment. million, with a similar rise in sector Hillington Park Innovation Centre is help- employment to 2,660. Having identified the growth potential ing nature fight back in the battle against of the renewables sector in the past two global warming. Contact years companies are being targeted and Ross Clark, Centre Director given assistance and advice under Hil- Hillington Park Innovation Centre lington’s novel E3 programme of business 1 Ainslie Road support which provides access for tenant Glasgow G52 4RU companies to leading entrepreneurs, +44 (0)141 585 6300 executives and experts. www.innovationcentre.org

36 YCF Special Report The following two companies are One of the company’s 11 KW turbines representative of a growing cluster of will completely eradicate the carbon innovative renewable energy technol- foot print of a four person household. ogy companies based at Hillington Park Generating up to 30,000 kWh of electric- Innovation Centre. ity a year the turbine has two blades and a 13 m diameter rotor, and requires 3.0 A wind of opportunity metres per second of wind speed to start Being swept by winds from all parts producing. If connected to the grid any of the compass does blow benefits in surplus electricity generated will be sold Scotland’s direction. In an era of growing to the national distribution network. recognition of the importance of green With seven turbines already generating energy in sustaining the environment power for Scottish clients, 15 across the and the economy, wind is a winner. UK and sales growth in mainland Europe, Gaia-Wind (www.gaia-wind.com) Kenneth Peterson of Gaia Wind said: ”We blew in on the wind of opportunity from have the turbine technology to harness Denmark in 2007. Its small wind turbine Scotland’s excellent wind conditions to technology, based on the Danish design give farmers, landowners, small busi- anywhere in the world. More than one used for most large wind turbines on nesses and individuals the opportunity to site can be linked into the internet based the market, is the only one to achieve produce their own green energy from the programme and the results displayed on the Danish government’s HB-standard wind. Being part of the renewable energy a PC, laptop, PDA or even a mobile phone. certification. hub being developed at Hillington gives us the support and confidence to grow our Eduardo Estelles, managing director of business in a sustainable environment”. Logic Energy, said: ”Everyone is aware of the need to be energy efficient, not The logic of energy monitoring only to save costs, but also to help reduce Logic Energy (www.logic-energy.com) carbon emissions and combat climate is plugged into society’s growing aware- change. Our easy to operate monitoring ness of the need to monitor the efficient system simplifies the collection and use of energy. Improved energy efficiency analysis of data and increases the user’s is of paramount importance in buildings, awareness of electricity consumption which produce almost half of the UK’s and encourages more energy efficient carbon emissions, nearly twice those behaviour. This type of instant feedback produced by cars and planes. can help cut usage by as much 12%.”

Logic Energy has developed a sophisti- cated software system, LeSense, that will remotely monitor a building’s real time energy usage allowing access to the easily understood graphical interface from

cent Renewable Energy in Scotland 37 6 Landmark projects

Scotland’s long coastline, innumerable national economy. An objective has been islands and extensive woodlands make set by the Scottish Government to harness it an ideal location for the development 1,300MW of tidal energy in the Pentland of wind, tidal or biomass generated Firth by 2020. Project manager Louise energy, while its intellectual capital Smith says “There is no better place than remains a rich resource for innovation, to find yourself at the centre of where research and development. marine energy kicks off in Scotland. It has put us on the map and now we have set In this chapter we take a brief look at a about realising this opportunity not just handful of Scotland’s many landmark telling people about it anymore.” renewable projects, significant locally, nationally, and internationally. Some She explains the history of the project. are at early demonstration stage, some “The Pentland Firth is a 20 mile stretch of well advanced, while others are already water between the Caithness coast and on their way to helping meet Scotland’s the Orkney Islands, which contains six of what kind of structures they need, while 2020 goal of deriving 50% of the country’s the top ten tidal energy sites in UK wa- others will wait until they have a definite electricity from renewable sources. All ters, and is one of the best tidal resources lease before they take the plunge. The can be recognised as world class. available anywhere in the world. closing date for applications for leases is “As part of its renewable energy mid-May. Currently there are 38 short- Wave and tidal projects programme, Highlands and Islands listed developers.” By late summer 2009 Unrivalled wave and tidal conditions Enterprise is working with its partners leases will be awarded. off Scotland’s coasts make it a hotbed of to capitalise on the tremendous marine activity in the marine energy sector. With “We restructured internally once the energy opportunities here. The Pentland a vast coastline exposed to strong winds Crown Estate confirmed our status, and Firth Tidal Project established in 2007 and tides, Scotland’s potential for devel- we now have an HIE Board which inter- brings together the area’s principal agen- oping renewable marine energy is finally faces with a Co-ordination Committee. cies to provide the key contact for device being realised. The technology is being This comprises the Crown Estate, HIE and developers, investors, utility companies developed and tested and the sector has the Scottish Government and is looking at and the supply chain.” strong political support from the Scottish resourcing and workstream development. Government. Smith outlines the current status and Alongside this are a number of other structure of the project: “The Crown groups such as a Stakeholder Advisory One of the major initiatives underway, Estate confirmed in September that this Group which comprises people like the the Pentland Firth Tidal Project, is in fact the only area available for com- NDA, Highland Council, Orkney Islands aims to create a globally important ma- mercial leasing. Currently we are dealing Council; there are also plans to have a rine energy industry in the Pentland Firth with questions from developers about Developers Forum which is led by the to the significant benefit of the local and when they would want to move in and Crown Estate.

38 YCF Special Report “We are going through the transition energy industry. As the first centre of npower Renewables and Wavegen, 400 process, working to tackle key issues to its kind to be created anywhere in the metres off the shore of Siadar Bay in Lewis. get everything operational and smooth, world, it offers developers the oppor- It is claimed that it will be the world’s such as the National Grid, the supply tunity to test full scale grid connected biggest wave farm, as it will be larger chain – to ensure that it is ready to take prototype devices. EMEC’s wave and tidal than the Pelamis station in Portugal, the up the opportunity and support develop- test centres are now well established, only other commercial scale wave farm. It ers through the provision of services and and Pelamis, the first tidal device, was is planned to open in 2011. facilities – planning and consenting; de- generating electricity for the grid by the Bill Langley, Marine Development veloper liaison and so on. All of these are end of May 2008. Engineer at npower renewable, said “This being solidly fleshed out at the moment.” Meanwhile, the world’s largest wave farm is a really exciting time. So much has While the Pentland Firth Tidal Project is now underway in the Outer Hebrides. been said about using wave power to will offer commercial opportunities, the In January 2009, the Scottish Government generate electricity, and those words are Orkney-based European Marine granted consent for the £30m Siadar now beginning to be turned into actions. Energy Centre (EMEC), provides the Wave Energy Project (SWEP) on the The Siadar project could be the gateway infrastructure for a ground breaking Isle of Lewis in the Outer Hebrides. SWEP to the best wave resource in the UK and, contribution to the developing marine will be a 4MW wave farm, to be built by if it becomes a reality, would be a very real step for marine renewables towards Beatrice Demonstrator Wind Farm taking its place at the energy table.” The Beatrice Demonstrator Wind Farm is a flagship project for offshore wind energy development in Scotland, the UK and Europe. The €41m project is a joint venture The wave station will be based on oscil- between Talisman Energy (UK) Limited and Scottish and Southern Energy, and a lating water column technology. A 200 central part of the European DOWNViND (Distant Offshore Wind Farms No Visual metre causeway will be constructed, and Impact iN Deepwater) initiative. The 85 metre high 5MW turbines, the largest in a breakwater with 10 concrete caissons, offshore deepwater, generate electricity for the Beatrice oil production platform. containing 36 to 40 Wells turbines, placed on the seabed. The demonstrator project comprises two prototype wind turbine generating units (WTGs) of 5MW capacity located 25km off the east coast of Scotland, on the The energy produced each year could sup- seabed about 1.6km and 2.3km from the Beatrice Alpha complex, linked to the ply the average annual electricity needs Beatrice AP platform by a subsea cable, in water depths of up to 45 metres. The of approximately 1,500 homes, equal to project will be used to examine the feasibility and benefits of creating a commer- a fifth of all homes on Lewis and Harris. cial deepwater wind farm at this site. The team at npower renewables has been The first turbine was installed in the summer of 2006 and the second a year later, working hard to develop a viable scheme, and since then the process of measuring, collecting and evaluating the data and enlisting the support of external special- performance of the turbines has been underway. ists to assist in designing a breakwater and other engineering features. The project has already set a new standard for future deepwater wind turbine deployments. This highly successful effort to transfer technologies, methods and In addition, Wavegen has continued practices from the offshore oil and gas industry and apply them to deepwater to refine the turbine design through a wind farm development has resulted in many breakthrough innovations in the programme of testing and modelling. An construction and installation of the world’s largest wind turbine deployment in environmental assessment of the site and offshore waters. surrounding area is nearing completion.

Renewable Energy in Scotland 39 6 Landmark projects

Wavegen, based in Inverness, developed The Clyde Windfarm application was of 322MW. To put this in perspective cur- and operates Limpet, the world’s first submitted by Airtricity, the renewable rently the biggest operational windfarm commercial scale wave energy plant, grid energy development division of Scottish in Europe is the Maranchon windfarm in connected since 2000. and Southern Energy (SSE). Guadalajara, Spain which has a generating capacity of 208MW. Airtricity was acquired by SSE in February Wind power 2008 and the combined Airtricity / SSE Work commenced early 2009 and will be Wind turbines are the fastest growing team has developed 40 new wind farms completed over three years, with turbine of the renewable energy technologies in across Europe and North America result- delivery starting early 2010. Grid capacity Scotland. Most turbines in the EU produce ing in over 1,500MW, making it a leading is already available and the wind farm electricity at an average of 25% of their wind farm developer. will be connected to the national grid at rated maximum power depending upon the Elvanfoot substation. the reliability of wind resources, but Scot- The Clyde Windfarm will be built in clus- land’s wind provides an average of 40% or ters of turbines on either side of the M74 Hydro higher on the west and northern coasts. motorway. It will have a total capacity of Scottish and Southern Energy (SSE) It is estimated that 11.5GW of onshore up to 548 Megawatts (MW). At present, the continues to build on its hydro heritage (it wind potential exists, enough to provide largest consented windfarm in Scotland began life as the North of Scotland Hydro 45TWh of energy. More than double this is Whitelee, on Eaglesham Moor, Electric Board in 1943) as it celebrates amount exists on offshore sites where south of Glasgow, which is currently under the construction of the first large-scale mean wind speeds are greater than construction and will have a total capacity on land. The total offshore potential is estimated at 25GW, which although more expensive to install, could be enough to provide almost half the total energy used in Scotland. The first offshore turbines are operated by Talisman Energy, who have erected two large machines 25km offshore adjacent to the Beatrice oilfield. These turbines are 85m high with the blades 63m (207ft) long and have a capacity of 5MW each, making them amongst the largest in the world.

Massive wind-based energy developments onshore are also underway in Scotland. Europe’s largest onshore windfarm, the Clyde Windfarm near Abington in South Lanarkshire was given the go-ahead last summer. It is projected to be capable of powering up to 320,000 homes via its 152 turbines.

40 YCF Special Report comprehensive landscape restoration and PURE (Promoting Unst Renewable Energy) planting scheme by mid 2009. This project was a pioneering demonstration project in the Shetland Islands which in 2005 showed how wind power and hydrogen technology can be com- Biomass bined to provide energy for a remote rural industrial estate. Commissioned by the It is thought that the biomass energy Unst Partnership Ltd, a community development agency established by the Unst supply in Scotland could reach 450MW or Community Council it has become the first community owned renewable energy higher in coming years (predominantly project of its kind in the world. from wood), with power stations requir- On the back of this the Pure EnergyTM Centre was established (February 2006). ing 4,500–5,000 tonnes per annum per It has been involved in off-grid energy projects and renewable hydrogen devel- megawatt of generating capacity. The opments in four continents. Many of its key customers are grid constrained or multitude of innovative domestic and off-grid communities seeking a renewable solution to local energy insecurity. small-scale biomass projects represent The differences between the PURE project and other hydrogen energy systems solid small steps towards Scotland’s deployed around the world are its scale and low development budget. renewable ambitions of 50% by 2020. But The Pure EnergyTM Centre premises incorporate high and low cost stored energy a commercial landmark biomass project (hydrogen and thermal) as well as providing a fuelling station for the UK’s only is about to make a significant leap in road licensed renewable hydrogen fuel cell powered car. Wind turbine technology helping realise this goal. is the primary source within the PURE project system. However the PURE energy Northern Irish company Balcas chose In- system was designed so that any type of renewable resource could be connected to vergordon to build its new £24m biomass it such as wave, tidal, solar, or even the grid in case green tariffs are being solicited. plant. This is the UK’s largest pellet plant It consists of two 15kW wind turbines. It has a 3.55Nm3 per hour high-pressure renewable energy project, producing hydrogen electrolyser, high-pressure hydrogen storage, and a hydrogen dispens- 8MW of power, up to 5MW of which will ing facility to fill hydride cylinders. The cylinders are used in a fuel cell/battery be fed into the national grid. Richard hybrid vehicle and other hydrogen applications as an alternative to fossil fuels. Smith, business manager of the brites operating company, explains the choice. conventional hydro electric station to reservoir to the turbine – of any hydro “The key to a wood pellet plant is access to be built in Scotland for almost 50 years, station in the UK, allowing it to generate long term supplies of raw material. In the alongside Loch Ness, at more energy from every cubic metre Glendoe Invergordon area, there is both an ideal . The 100MW scheme began of water than any other facility in the Hydro site, and reliable supplies of wood fibre generating electricity at full output in country, making it the UK’s most efficient and residue.” The Invergordon develop- December 2008, over two months ahead hydro electric scheme. ment built on the former Alcan smelter of schedule. In January 2009, it generated Under construction it was the biggest site aims to produce 100,000 tonnes every 12.7GWh of electricity, enough to supply civil engineering project in Scotland, and year of brites, the Balcas branded wood the annual needs of over 3,500 homes. like most projects of this nature and scale pellet, enough to heat 20,000 homes. Glendoe’s prime purpose is sustainable it used an experienced international Designed for both commercial and generation of electricity, with its turbine team as well as companies with Scottish domestic use, brites are made exclusively able to produce enough to power every headquarters like Halcrow and The Weir from locally sourced wood. During the home in a city the size of Glasgow. It has Group. The major task now facing main manufacturing process the resin or lignin the highest head – the drop from the contractor Hochtief is to complete the moves to the surface creating a safe and natural coating for the pellets.

Renewable Energy in Scotland 41 6 Landmark projects

Richard Smith, says that the whole array, a new 100kW run-of-river hydro, This project is significant in another way project is self sufficient. “The plant aims wind power from four new 6kW wind too – in the cautious approach of the to be carbon neutral as it will use waste turbines, and two existing 6kW Hydros. people of Eigg to energy consumption. residue – sawdust and other wood fibre Although the island has a continuous The scheme includes a control system – to generate the power and electricity 24hr electricity supply, for the first time and a battery system that can yield to make the pellets, and will sell the energy usage has been capped at 5kW for 24hrs of stored renewable electricity. For surplus to the national grid in the region domestic properties and 10kW for larger back-up there are also two 80KW diesel of 3-4MW.” properties. If these limits are exceeded generators. Estimates are that the scheme then meters ‘lock-out’ and require to The plant is expected to be fully opera- will be 98% renewably powered. be reset, with customers incurring a tional by May 2009 for the production of Eigg Electrical Limited, a subsidiary of the financial penalty. Every property on Eigg pellets but will be producing electricity Isle of Eigg Heritage Trust, is the operator has smart energy meters, and this fact from April. It is projected to cut carbon of the scheme. It is vital for its long-term together with the capping of supply has emissions by 70,000 tones per year. operation that it is able to sustain itself engendered a culture of energy prudence Says Smith: “There’s been a fourfold financially, and therefore maintenance amongst the islanders. increased in the number of customers is a significant issue. Because of the over the past year, especially in rural isolation of the island, Eigg residents have areas, and we predict this to increase.” been trained as part-time operatives to cover day-to-day maintenance. Micro-scale technologies There are a multitude of groundbreaking projects focused on providing renew- Alison Bird has been writing about enviable energy to smaller communities in ronmental issues since the 1980s when Scotland, but the composition of the she launched EnviroRisk an international Eigg Electrification Scheme makes publication focused on environmental it unique in both Scottish and UK terms. liability for the business community. It is the first island electrical grid network She was a founding Director of Institute in the British Islands that is being pow- of Environmental Management (now ered by an integrated mix of micro-scale Institute of Environmental Management renewable energy technologies. and Assessment) the leading professional The Island of Eigg Electrification scheme body for environmental managers, setting is now commissioned and operational standards of competence in consultation with total take up by the community. with practitioners throughout the UK. All 37 households and five commercial She helped set the criteria, which became properties on the island are connected the benchmark criteria, for environmental and now have their very own supply of courses at universities throughout the renewable electricity. The island harness- UK. Alison is a partner in Bird Morrison, es solar and kinetic energy to generate the award-winning writing, editing and electricity using a mix of renewable tech- publishing partnership of Alison Bird and nologies: a new 10kW solar photovoltaic Rowan Morrison.

42 YCF Special Report SUCCESS IS ACHIEVED BY OVERCOMING RISK

(We’ve been helping our clients to do this since 1995)

To find out how we can help you Insurance Management Group Ltd contact Simon Blyth: Sovereign House 58 Elliot Street [email protected] Glasgow G3 8DZ 0141 225 1774 www.img-insurance.co.uk Insurance Management Group Ltd is regulated and authorised by The Financial Services Authority Clear about Risk 7 Scotland’s emerging companies

The profiles in the following pages A further crucial lesson from North happening in the industry, but the picture represent a cross section of the young Sea oil is that the best players will see it paints is one of Scotland drawing on its companies which are starting to seize the renewable energy as a global opportunity, traditional strengths in innovation and opportunities opened up by the renew- rather than concentrating solely on the engineering to meet new challenges and able energy sector. local marketplace; indeed, some will opportunities. take the impetus given by the evolution There are opportunities across a wide of the sector in Scotland to take their spectrum, through the various stages of own products and services overseas new projects from conceptual design, from the outset. Some observers have through installation and commissioning, bewailed the fact that the Pelamis wave to ongoing operation and maintenance. energy converter, devised and developed The parallels with the evolution of the in Scotland, should have had its first North Sea oil industry are clear, and many commercial break offshore Portugal, but companies which benefited from the in fact such technology needs to address development of the UK’s offshore oil and global markets, and the opportunity to gas resources will have gained experience learn from its first application in an easier that will be very relevant to this “second physical and regulatory environment has energy windfall”. This involves not only no doubt been used by the company as practical matters such as the technology excellent experience for future projects for installing structures in deep water, both in Scotland and around the world. laying pipelines and cables, and operating We have concentrated in this chapter on remote sites, but also matters of business young companies which are involved procedure such as working with planning fairly directly in new forms of energy authorities and participating in joint generation, rather than on those which ventures. are focusing on carbon reduction, smart As with North Sea oil, the development of grids, installation or site assessment, or Scotland’s renewable energy resources will any of the other aspects of the industry. attract some of the world’s largest com- Even with this filter we have had to omit panies, and many projects will comprise a some companies which are currently ‘off large number of participants of differing radar’ while negotiating new investments size. Again as with North Sea oil, Scot- or collaborations, and as will be seen land’s smaller companies must find ways from Chapter 5 covering Scotland’s R&D of bringing their own specific capabilities activities, there are many exciting projects to such groupings, and relish playing a nearing commercialisation. This there- small part in a large scale operation. fore is a small cross-section of what is

44 YCF Special Report Contents

Aquamarine Power 46 AWS Ocean Energy 47 Green Ocean Energy 48 MTDS 49 Proven Energy 50 Psymetrix 51 Reactor Technologies 52 Renewable Devices 53 Scotrenewables 54 SeaEnergy Renewables 55 Shrews 56 St Andrews Fuel Cells (SAFC) 57 Windsave 58

Renewable Energy in Scotland 45 Aquamarine Power

Aquamarine Power specialises in technical solutions to deliver renewable marine energy. By 2030, it is projected that global demand for electricity will increase by 55%. This has generated impressive growth across the renewable sector and Aquamarine Power is providing the technology to meet this demand.

Oyster®, a hydro-electric nearshore wave power converter, is Aquamarine Power has established itself at the forefront of Aquamarine Power’s leading technology. The company recently marine energy project development by investing heavily in announced the appointment of Fugro Seacore to commence technology as well as engaging innovative and enthusiastic installation of a full scale prototype of Oyster® on the seabed at staff. Supported by key investors and continuing its growth by the European Marine Energy Centre (EMEC) this summer. This seeking motivated team players, Aquamarine Power is tackling will be the UK’s first nearshore generator. the challenge of making marine renewable energy mainstream.

Aquamarine Power has a promising technology development portfolio for the future. Consisting of a wave device and two tidal devices, which include the investment in Ocean Flow Energy’s technology, Evopod™, the company is also actively pursuing the application of its technologies into the desalination industry.

Continuing to grow from strength to strength, the company has signed a 1,000MW development agreement with Airtricity and has extended its current partnership with Queen’s University Belfast for a further five years.

Led by an experienced and successful engineering and management team with considerable knowledge from the offshore wind, marine energy, and oil and gas industries, Aquamarine also boasts an in-house site development team, delivering a complete concept to consent site development service. In the last seven months Aquamarine Power has grown by more than 250% and over a quarter of its staff hold PhDs.

Contact Sian McGrath, Head of Commercial Development 10 Saint Andrew Square, Edinburgh EH2 2AF +44 (0)131 718 6011 www.aquamarinepower.com

46 YCF Special Report AWS Ocean Energy

AWS Ocean Energy is working hard to deliver the next generation of technologies to harness energy from the waves and tidal streams around our shores.

AWS Ocean Energy Ltd is a Scottish company which aims to provide enabling technologies and related services to the fast emerging marine energy sector.

Based in Alness, on the shores of the Cromarty Firth, AWS has a current team of 17, with significant expertise in wave energy strategic partners on technology development – eg power conversion, hydrodynamics and offshore engineering. take-off, control, fabrication, installation and Q&M. And it will A key differentiating factor for AWS is its mature, informed continue to work in partnership with project developers to approach to wave energy commercialisation. The company has promote early demonstration projects. a strong reputation for realism within the sector and, as such, In building a secure, sustainable business, the AWS approach is believes it is a valuable long-term partner for utilities serious to look for diversity. The company considers and develops com- about success in marine energy. plementary technologies, and has evolved a highly professional AWS is currently working across various technology streams, services capability specialised in marine energy, with activities including the proven Archimedes Waveswing™ – a leading ‘first- in various countries. generation’ wave power technology and one of only a few with Looking forward, the aims of AWS are to develop technology, full-scale open-ocean experience. make it work and then reduce costs. The next major milestone This depth of experience means that AWS has evaluated the for the company will be the deployment of a medium scale major issues in wave energy, including anchoring, Infrastructure, technology demonstrator in Scotland later this year and, beyond maintainability, reliability, scale and economy. that, AWS is actively seeking partners for farm scale deployment.

The current focus for AWS is on those key activities necessary Investors in AWS Ocean Energy include the Shell Technology to deliver technology, quality and value. To achieve this, the Ventures Fund and RAB Capital, and the company has also company will continue to work closely with existing and new attracted grant support from the Scottish Government.

Contact Amanda Nicolson, Office Manager Redshank House Alness Point Business Park Alness, Ross-shire IV17 0UP +44 (0)1349 88 44 22 www.awsocean.com

Renewable Energy in Scotland 47 Green Ocean Energy

Green Ocean Energy’s pioneering wave technology is fast becoming one of the most widely talked about renewable developments of 2009.

Based in Aberdeen’s Carden Place, the company was established in 2005 with the aim of generating ample, clean and sustainable energy. It has since developed two wave power devices that are “These are really exciting times for the company. There has been likely to have a major impact on renewable energy production considerable interest in the technology and we are currently in around the globe. discussions with a number of companies about the huge benefits these devices can bring. The ability to combine offshore wind and The company’s Wave Treader and Ocean Treader use similar tech- wave power devices has certainly captured people’s attention.” nology which is not only highly efficient at generating power but also has virtually no impact on the environment. The technology Both devices comprise of two large sponsons mounted on the achieved proof of concept last year after undergoing feasibility end of metallic arms. Hydraulic cylinders are attached between studies and testing at wave tanks at The Robert Gordon Univer- the arms. As the wave passes along the device, the sponsons and sity (RGU) in Aberdeen and Strathclyde University in Glasgow. arms lift and fall stroking the hydraulic cylinders. The cylinders pressurise hydraulic fluid which, after smoothing by accu- Wave Treader attaches to offshore wind turbines to provide mulators, spins hydraulic motors and then electric generators. combined wind and wave power (see illustration). The device Uniquely, the devices can turn to face the direction of the wave has already secured backing from npower’s Juice Fund which train to ensure maximum operational efficiency. They also have supported the feasibility study. Each Wave Treader machine has active on-board adjustments to allow for the effects of tidal range. a peak power output of approximately 500 KW which is enough electricity to power 125 homes. Further tests are currently being undertaken in the wave tank at Strathclyde University and results are due to be announced Ocean Treader is a floating device designed to be moored one or in June. Tests with a full size prototype are anticipated to take two miles offshore and forms an offshore wave farm. As with the place next year. Wave Treader, each device has a peak power output of approximately 500 KW. A farm of 20 machines would give approximately 10 MW – enough electricity to power more than 3,000 homes.

George Smith, managing director of Green Ocean Energy said:

Contact Osborne House 28 Carden Place Aberdeen AB10 1UP +44 (0)1224 651051 www.greenoceanenergy.com

48 YCF Special Report MTDS

Mowat Technical and Design Services Ltd (MTDS) is an engineering company located in Caithness in the North of Scotland, which is one of the world’s greatest natural energy areas for tidal, wave and wind. MTDS finds technical solutions for delivering renewable projects into the energy sector, particularly in, tidal, run of river, mini hydro and micro schemes. and reduced maintenance costs while being environmentally MTDS Vertical Axis Turbine (VAT) is suitable for slow flowing friendly to sea-life. Following confirmation of design param- open waters. Manufacturing and installation costs are kept low eters at the Wolfson testing centre at Southampton in May, a through the use of inexpensive materials and simple fabrication. prototype unit is to be show-cased in a major river and then Its relatively low operating speeds offer long life expectancy commercially deployed.

MTDS has done extensive work for the nuclear industry as well as for subsea engineering and construction companies servic- ing the oil and gas industry. In addition to devising the marine turbine, MTDS has also been working with a US technology company to develop a low NOx system for turning waste, biomass and coal into liquid fuels.

MTDS provides engineering for Energy Invest Group (EIG), a London based project developer, which has energy projects globally. EIG markets a portfolio of technologies spanning from MTDS’ marine turbine into remediation, water cleanup, captur- ing flared gas, efficiently cracking heavy crude oil and improved methodologies for enhanced oil recovery.

Rounding out the collaborative partnership is PSL, a research spinout of the University of Edinburgh. PSL generates commercially viable intellectual property and prototypes. The company is engaged in a number of R&D contracts and collaborations Contact including the nuclear decommissioning industry. James Mowat, Mechanical Design Engineer Mowat Technical & Design Services Limited We are very excited to be on the verge of offering a marine Building B23, Murkle House turbine at the price point of land-based wind power and with Forss Business & Technology Park the near-constant dispatch of tides. Please contact us for further Forss, Caithness KW14 7UZ details on this and our other technologies. +44 (0)1847808214 www.mtds.co.uk

Renewable Energy in Scotland 49 Proven Energy

Proven Energy is a leading supplier of small wind turbines. Our high performance turbines are the result of almost thirty years of inspiration, innovation and development.

With over 2,000 units installed worldwide, Proven Energy has unrivalled experience and has built up a global reputation for its robust and reliable performance.

Our patented Proven Flexible Blade System enables the wind turbine to generate power in light or strong winds. Proven Energy has expanded rapidly since 2006 enjoying annualised sales growth averaging over 50%. It now supplies its range of 2.5 kW, 6 kW and 15 kW turbines to over 30 countries worldwide. The US remains a strong target market with orders continuing to increase year-on-year.

Contact Samantha Sinclair, Marketing Executive The Torus Building Rankine Avenue Scottish Enterprise Technology Park East Kilbride G75 0QD + 44 (0) 1355 597 017 www.provenenergy.com www.15kwsmallwindturbines.com

50 YCF Special Report Psymetrix

Psymetrix provides world-beating products and services that deliver significant benefits in the operation and planning of electrical grid systems. Established in 1997, Psymetrix is recognised as an industry leader in the field of power system dynamics, wide-area monitoring systems and the practical application of synchronised phasor measurements.

Psymetrix’s proven PhasorPoint smart grid solutions are used In Iceland, where over 99% of electricity is produced from by power system operators and planners worldwide to help renewable energy sources, Psymetrix recently helped with the increase the capability of the grid to connect new renewable successful connection of 700 MW of new hydro generation. This generation capacity, improve utilisation of existing transmission represented a 40% increase in the installed electricity genera- and generation infrastructure, and improve the ability of the tion capacity. The remote location and the weak grid connection grid to avoid blackouts. With over a decade of experience gained meant that there were major concerns regarding the stability in successfully using its solutions to resolve power system of the grid and the real possibility of damage to equipment or issues, Psymetrix is able to offer a number of services including blackouts. Psymetrix was able to address these issues by provid- wide-area solutions design, power dynamics assessments and ing real-time tools and tuning power system stabilisers. The power system stabiliser tuning. project was a resounding success and now means that Iceland can bring on-board new generators with confidence. This is Reinforcing its leadership position, Psymetrix established and pivotal to Iceland being able to realise its economic ambitions led a UK wide consortium to investigate the impact of wind gen- with regard to green electricity generation. eration on grid stability using detailed dynamics measurements. This recently completed project demonstrated that in certain Landsnet Control Room, Iceland situations the wind turbines in the case study could oscillate together and interact with conventional generation on the grid. This may have implications for the stability of the grid as the penetration of wind generation increases. Psymetrix’s products and services help identify and resolve these issues. Furthermore, Psymetrix has identified ways in which the grid connection capacity for wind generation may be increased.

Contact Dr Jos Trehern, CEO Mitchell House 1st Floor, 5 Mitchell Street Edinburgh EH6 7BD +44 (0)131 510 0700 www.psymetrix.com

Renewable Energy in Scotland 51 Reactor Technologies

RTL is developing a Fast Thermal Reactor (FTR), which can proc- RTL was started in Scotland in 2004 with the help of SMART ess a variety of wood, coal, Municipal Solid Waste (MSW) and award to demonstrate the self-sustaining production of other waste streams to create both heat and, when the feedstock activated carbon and the export of clean thermal energy derived is suitable, activated carbon. from wood chip. The company has now moved on to the next stage of development with a second SMART award, to develop a Activated carbon is a form of charcoal, which is extremely porous, Fast Thermal Reactor which can handle a wide range of inputs. and can therefore adsorb contaminants from liquids and gases, with a wide range of uses in purification and decontamination. Conventional technologies for producing activated carbon take much longer than the FTR, and use much more fuel in the The forerunner of the FTR was developed in the Philippines by process. The FTR takes woodchip (for example) and converts it Dan Morgan to provide sufficient heat to calcine (decompose) in one seamless process into activated carbon, deriving its entire 90 tonnes of limestone per day. A commercial scale pilot thermal energy needs from the pyrolysis of the feedstock, and plant was built which obtained its entire thermal energy from exporting 80% of the calorific content of the woodchip as clean chipped coconut shell, and delivered high grade charcoal which usable heat and gas for raising steam or power generation. sold for a higher price than the cost of the coconut shell. RTL will initially market its Fast Thermal Reactor in modular form, with each module capable of processing up to 10 tonnes per day of feedstock. The reactors will be leased to customers worldwide who have thermal energy requirements in excess of 40 MW per day, and depending the feedstock the option to produce activated carbon.

Besides founder Dan Morgan, and manager Dr Neil Robertson, RTL’s team includes two academics from the University of Strathclyde’s Department of Chemical and Process Engineering – Professor Peter Hall, and Dr Mark Heslop , and two academics from Napier University - energy consultant Dr John Currie, and materials scientist, Dr Alan Davidson,

Contact Dan Morgan, Technical Director Reactor Technologies Ltd Seaforth, Craigmill Alloa Road Stirling FK9 5PP +44 (0)1786 448621 www.reactortechnologies.co.uk

52 YCF Special Report Renewable Devices

Renewable Devices provide accessible renewable energy through innovative product development and expert renewable energy consultancy.

Flagship product, the SWIFT Wind Energy System is the world’s first building mountable silent wind turbine with innovative aerodynamic technologies for unprecedented silent, safe and efficient operation. Installed internationally on homes and businesses, the SWIFT is a revolution in the renewable industry; proving that micro-wind energy can both meet the demands of the consumer, perform efficiently and complement the built environment.

In the latest high profile installation, a SWIFT was installed on the tallest free-standing man-made structure in the Southern Hemisphere - the Auckland Sky Tower. With panoramic views and unobstructed winds for miles around, the SWIFT is expected to generate in excess of the 2000kWh annual output quoted by the manufacturer.

The sky seems to be the limit for the SWIFT; with the system now in mass manufacture and a network of international installers and distributors which is expanding by the day, the SWIFT Turbine is reducing our global dependency on energy from fossil fuels and helping to safeguard the environment for future generation, providing clean green renewable energy accessible to anyone anywhere the wind blows.

Contact Alex Howell, Sales and Business Development SAC Bush Estate Edinburgh EH26 0PH +44 (0)131 535 3301 www.renewabledevices.com

Renewable Energy in Scotland 53 Scotrenewables

Scotrenewables is a renewable energy R&D business based in the Orkney Islands in Scotland. Since the company was formed in 2002, Scotrenewables has been actively involved in the development of wind and marine energy throughout Scotland and technology, nor is it an attempt to realise an abstract academic internationally. It is the intention of Scotrenewables to become idea. The SRTT concept was developed by Scotrenewables as the a leading developer of renewable energy solutions, achieving best means of extracting energy from tidal currents based on a sea-change in attitude, to help reduce the consequences of practical design experience and a thorough understanding of global warming brought about through traditional forms of the principles involved. fossil fuel power generation. Scotrenewables has systematically sought out and recruited the Scotrenewables is currently developing a unique floating rotor- best available team members. The result is that Scotrenewables based tidal energy converter. The Scotrenewables Tidal Turbine has a highly skilled technical team and support network with (SRTT) has been in development for over five years. The design the requisite skills in theoretical and experimental hydrodynam- has won various awards, including the Royal Society of Edinburgh ics, conceptual and practical engineering design and offshore Fellowship, the inaugural Shell Springboard competition, and technology. With the company based in Orkney, a well-estab- a £1.8m funding award from the Scottish Executive in 2007. lished centre of excellence for renewable energy development Scotrenewables has backing from energy company Total and in and home of EMEC, Scotrenewables is ideally located to take the 2008 secured £6.2 million funding from Fred Olsen, believed to be project to full-scale demonstration quicker and at a considerably the largest investment in a Scottish tidal energy project to date. lower cost than its competitors.

Designed above all for rapid and low-cost access and mainte- A fifth scale version of the Scotrenewables Tidal Turbine (SRTT), nance procedures, the free-floating SRTT is predicted to produce weighing two tonnes, will be tested in Orkney this summer clean and predictable renewable energy at a lower cost than with the full size 1.2MW prototype expected to be deployed at competing technologies. From the outset Scotrenewables the EMEC tidal test site in 2010. has been committed to a responsible, staged development programme to systematically tackle all major elements of risk before committing to a full-scale prototype, hence minimising the risk associated with the development programme. The SRTT has not been developed as an application for a specific

Contact Briony Hourston, Office Manager Hillside Office Stromness Orkney KW16 3HS +44(0)1856 851641 www.scotrenewables.com

54 YCF Special Report SeaEnergy Renewables

SeaEnergy Renewables has been established as an offshore wind development company, to maximise the opportunity in achieving the EU renewable energy targets of 20% by 2020. SeaEnergy’s business model involves (i) identifying develop- With the next stages of offshore development expected to occur ment opportunities (across various stages of the development in deeper and more technologically challenging waters than the spectrum) (ii) establishing mutually beneficial equity partner- UK Round 1 and 2 licensing rounds, deep-water experience will ships to fund, develop, construct and operation projects (iii) be of paramount importance to achieving offshore deployment. building relationships with key suppliers, contractors, regulators and stakeholders to maximise the viability and delivery of SeaEnergy comprises the team that pioneered deep-water projects and (iv) achieving significant value for shareholders. wind power development through completion of the Beatrice Wind Farm Demonstrator Project, for joint owners Scottish and Currently, SeaEnergy’s primary focus is on obtaining consent for Southern Energy and Talisman Energy. The Project involved its Scottish Territorial Water sites, along with its Joint Venture the installation of the two largest wind turbines (5 MW) ever partners, Airtricity and RWE npower renewables. Applications deployed offshore, at water depths of 45 metres. were submitted in October 2008, with successful bids announced on 16th February 2009, where the JVs were granted exclusivity to progress plans for two of the ten sites awarded: JV with Airtricity – Beatrice Offshore Wind Farm, 920MW JV with RWE npower – Inch Cape Offshore Wind Farm, 905MW

Most recently, SeaEnergy formed a JV with EDP Renewables, the world’s fourth largest wind power generator, to submit bids for the UK Round 3 tender process. Bids were submitted to The Crown Estate on 3rd March 2009. Zone awards are expected to be made by year-end.

SeaEnergy has appointed RBC Capital Markets to assist with additional equity financing in order to allow the company to fund its share of development costs and corporate overheads associated with its ongoing operations. Contact Britannia House, Endeavour Drive The UK is now the world’s largest generator of electricity from Arnhall Business Park offshore wind and is expected to comprise almost half of the Westhill global market for offshore wind power by 2020. This high Aberdeenshire AB32 6UF growth industry offers an exciting opportunity for SeaEnergy +44 (0)1224 766100 to become one of the leading offshore deep-water developers in www.seaenergyrenewables.com Scotland, the UK and Europe.

Renewable Energy in Scotland 55 Shrews

SHREWS Ltd is a Scottish based project development company specialising in Energy from Waste (EfW) and biomass energy projects. The company identifies the opportunities in a problem and develops businesses based on these, working worldwide but most recently in UK, Baltic States, Russia, the Balkans and West Africa. Our team has a strong environmental and business SHREWS Ltd is promoting the use of residual waste as the most background and focuses on being a solution driven company in environmentally sound and cost effective way of using non- renewable energy. economically recoverable waste and reducing the use of primary fossil fuels as well as reducing the amount to landfill. SHREWS Ltd works through the project cycle from: inception of the idea The company is currently developing an Ef W project in Latvia at Malpils (www.firstmalpilspower.com). definition of the project technology solution SHREWS Ltd is also engaged in biomass projects to convert biomass to useful energy in efficient and clean ways. preparation of the business plan planning and permitting If you have a waste stream or a biomass source and want to develop into renewable energy, or heat demand which could application for funding be supplied by renewable energy, or have a site suitable for a project implementation project, we would like to hear from you. Equally if you have a delivering the project. solution or a technology that could be an opportunity in markets you are not familiar with, please contact us. SHREWS Ltd acts as project developers on their own behalf and work for others, either as direct advisors for an agreed fee or sometimes on a carried interest basis. In the course of our work we have become familiar with a number of technologies but concentrate on small scale operations based on Advanced Thermal Treatment (ATT) technologies. Pyrolysis and gasification are at the heart of these technologies.

Contact John Birchmore, Managing Director [email protected] +44 (0)1968 660022 +44 (0)47711 337550 +371 (0)2661 0260 www.shrews.co.uk

56 YCF Special Report St Andrews Fuel Cells (SAFC)

St Andrews Fuel Cells Ltd. is commercialising a patented, rolled solid oxide fuel cell (SOFC) technology that is cost-effective and robust.

SAFC’s technology offers the potential of lower cost together with faster thermal cycling times and better durability. This is SAFC’s technology is particularly suitable for use in small, achieved though a patented architecture that combines the best transportable power generators, small backup / UPS systems, features of both planar and tubular SOFCs. Its cells are shaped and residential / small-scale CHP. These market segments are from ceramic ‘clays’ whilst they are still pliable and then fired to forecast to provide an addressable market of over $1.5bn by 2015 produce the final rigid product, much as high-quality porcelain that will still be growing rapidly. Achieving low cost is a vital or many electronic components are manufactured. The produc- step in allowing SOFCs to address the multi-billion dollar market tion process reduces the number of high temperature steps for these target markets. required, thereby significantly reducing cost. SAFC has completed prototypes of its technology, with individual cells producing up to 2W output. It has constructed demonstration units containing up to 30 cells. Having proven the cell technology, SAFC is focusing its development efforts on continued cost reduction, manufacturing process improvement, stack integration and lifetime enhancement.

The company will be carrying out its second investment round during 2009 and is seeking partners for collaboration on small stationary fuel cell applications.

In common with other SOFCs (and unlike PEM fuel cells), SAFC’s cells can be applied in applications where natural gas, propane, butane or other hydrocarbons will remain the energy vector of choice. However, they can be fuelled with hydrogen when it is available. This removes the requirement for a complex (and expensive) fuel pre-processor, which explains the interest in SOFCs for applications such as domestic central heating and power (CHP), where natural gas will remain the preferred energy vector for a number of decades.

Contact Clive Dyson, Chief Executive www.standrewsfuelcells.com

Renewable Energy in Scotland 57 Windsave

Windsave Ltd, established in 2002, is a dynamic Scottish company within the renewable energy sector, focused on developing micro generation solutions for domestic and commercial properties.

The Windsave System is a small wind turbine generator system, which uses low wind speeds to create electricity. The System uses our unique technology, which generates electricity supplementary to the national grid supply, reducing reliance on traditional energy sources, benefiting the environment, and helping to lower domestic electricity bills and CO2 emissions.

The Windsave WS1200 is a revolutionary micro-wind turbine system, designed to supplement the supply of electricity drawn

from the National Grid. It is a wall-mounted micro-wind turbine system which uses specifically designed anti-vibration bracketry, and is professionally installed by our Windsave trained, nominated and Government accredited installers. Contact Windsave’s latest product is the new street lighting system Anya Gordon, Sales Manager which enables local authorities to greatly reduce their energy 10 Lambhill Quadrant bills and cut half a tonne of carbon per year. Milnpark Industrial Estate Kinning Park For further information on the domestic WS1200 micro-wind Glasgow G41 1SB turbine system please contact 0800 707 6208 and for more +44 (0)141 420 7400 information on the street lighting system please call on 0141 420 www.windsave.com 7400 and ask for Derek Wynne, Commercial Contracts Manager.

58 YCF Special Report •

Campbell Dallas is the third largest independent firm of Chartered Accountants in For more information on how Campbell Dallas LLP Scotland. The firm has 16 partners located in offices in Aberdeen, Bearsden, Paisley, can support your renewable energy business please Perth and Stirling. Campbell Dallas provides the full spectrum of financial and contact: advisory services including corporate finance. Ian Williams, Partner We have a dedicated team of renewables experts that can provide financial advisory services to organisations in the renewables sector, covering: David McKenzie, Director of Renewable Energy

• Mergers & Acquisitions Tel: 01786 460 030 • Financial Due Diligence Email: [email protected] • Business plans and projections Website: www.campbelldallas.co.uk • Financial modelling • Fund raising • Specialist Tax Consultancy Campbell Dallas is the Scottish associate of UHY Hacker Young making it part of Top 20 Accounting Group in the UK. • Accounting and tax compliance UHY Hacker Young Group has fee income of over £40m, 16 offices, 80 partners and around 415 professional staff. UHY Our team have connections with experienced lawyers, funding providers, the British Hacker Young is allied to UHY International with offices in Hydro Power Association, the Association of Electricity Producers and the Scottish over 72 countries giving Campbell Dallas access to a world Renewable Forum. wide network of knowledge and experience. Campbell Dallas LLP acts for a number of small scale hydro, biogas, biomass and wind operators ranging from mini schemes (50KW) up to medium schemes (5MW) and has experience and knowledge of the regulations which control renewable developments.

About Young Company Finance

Young Company Finance (YCF) has been milestones which such companies must devoted to tracking and reporting on pass on their way to profitability. early stage companies in Scotland since We also report news from other organisa- it was started in 1998 by Gavin Don, and tions involved in the wider ecosystem in it is the only publication to cover this which young companies develop; inves- market exclusively. tors, advisers, incubators, public sector YCF is issued monthly, and aims to report agencies, and many others. all significant investments in young Scot- There’s certainly a lot happening in this tish companies from start-up to maturity. sector - investment deals, new funds, Although our particular focus is on how commercialisation initiatives, new young companies finance their develop- companies being formed, and much more. ment from start-up to maturity, we also While some of this might be reported in report news about senior appointments, the general press, it is often not consist- business awards, product launches, and ent or in depth, and in many instances sales successes - in short, any of the this type of information simply goes unreported. ISSUE 121 JANUARY 2009 The website www.ycfscotland.co.uk gives headlines and the first few lines of arti- A separate publication, YCF North, covers cles which have appeared in recent issues the young company sector in the North of England — the region from Lancashire/ Deals Hubdub prediction market of YCF, as well as many other resources Hubdub page 1 draws large crowds Calvatec 2 including details of our annual confer- Cheshire and Yorkshire northwards to the

Money Dashboard 2 ubdub is an online market Husband and wife team Nigel and Lesley Eccles came up with the Hubdub Tayside Flow Technologies 3 Hwhere people trade border, including Liverpool, Manchester, predictions on running news idea in August 2007 and founded the ence and of the series of Special Reports Proven Energy 4 stories and future events. company in November that year with three friends, Tom Griffiths, Rob Jones, NovaBiotics 4 Hubdub allows users to predict the and Chris Stafford. Nigel Eccles has 10 outcome of news events by staking years’ experience in the media and on different market sectors. Sheffield, Leeds, Durham, York, and New- virtual cash on the results. Over the technology industries and was past few weeks Hubdub users have previously with Flutter.com (acquired Features correctly predicted the outcome of the by Betfair) and BETDAQ. US presidential elections and the castle. For further details see the website The company has now secured appointment of Hillary Clinton as US £810k ($1.2m) in a funding round led ———————————————- Secretary of State, as well as the by Pentech Ventures and completed The website also contains a searchable ar- outcome of the X-factor competition. Deals monitor page 6 just before Christmas. Pentech Over time users build up a portfolio invested from its Pentech Fund II, www.ycfnorth.co.uk ———————————————- of predictions (like a virtual stock which was launched in November 2007 portfolio) with its value rising and having raised £45 million to invest in chive of all articles which have appeared Scottish Enterprise doubles falling in response to real news events. UK/Eire companies in enterprise rate of investment 6 Hubdub brings engagement to news software, telecoms software, internet, stories with an average user generating mobile, embedded applications, and For details of how to subscribe to YCF, Business support over 400 page impressions per month tech media. in YCF over the past five years, plus the (compared with about 8-10 for a Besides Pentech Ventures and organisation: typical news site). Scottish Health please email [email protected], or register Innovations Ltd (SHIL) 8 full Deals Monitor listing of private In this issue Company news: equity investments over the same period. on the website www.ycfscotland.co.uk. Cythera Technologies - here was a significant increase apparently on the grounds that the Burdica Biomed - T in completed deals towards worsening economy changed the DADA Events - Essentially the end of 2008, and this continues parameters for investment. In this Scottish Botanicals (ESB) into the New Year, with many more connection, it is good to see These features are available to premium than usual deals at the legals Pentech starting to spend the cash LINC Scotland: 11 stage. it raised towards the end of last year (Hubdub and On the other hand, two TRI Cap Maximiser). and corporate subscribers. companies reported in this issue (Hubdub and Burdica) were turned Long may this down by VCs after clearing most of level of activity the hurdles towards completion, continue!

60 YCF Special Report Contact Jonathan Harris, Editor Young Company Finance 8 Oxford Terrace Edinburgh EH4 1PX +44 (0)131 315 4443 www.ycfscotland.co.uk young company finance