North East England

Energy for Growth

Offshore and Subsea Technologies | Regional Energy | Demonstration and Innovation

nelep.co.uk To Edinburgh, Glasgow, Aberdeen

Port of Berwick Berwick-upon-Tweed

Holy Island

A1

Farne Islands

Wooler

Alnwick

To Scotland A697 Northumberland Coquet National Park Rothbury A1 Island A68

Ashington

Morpeth Bellingham A696 Port of Blyth A68 A189 Newcastle Cramlington Airport Whitley Bay North Shields Port of Tyne NEWCASTLE UPON TYNE South Shields A69 A69 To Carlisle, Hexham Manchester Haltwhistle Blaydon A1 SUNDERLAND GATESHEAD Port of Sunderland A692 A68 Washington Consett A693 Chester-le- Street A690 Seaham Harbour A1 (M) A691

A19 To Edinburgh, Glasgow, Aberdeen DURHAM

A68 Wingate Port of Berwick Spennymoor Bishop Berwick-upon-Tweed Auckland Sedgefield To Hartlepool Newton and Middlesbrough North East LocalAycliffe Enterprise area Holy Island The North East is reaping its A688 A1 Barnard To York, share of the enormous Castle Leeds, Farne London, Islands Midlands economic benefits of onshore To Edinburgh, Glasgow, Aberdeen Wooler Port of Berwick and offshore wind, which are Berwick-upon-Tweed Principal rail links helping to revitalise the region. Tyne & Wear Metro Holy Island Contents Alnwick LEP boundary A1 Companies based here are To Scotland A697 Motorway Farne Northumberland Coquet Islands operating at the cutting edge National Park Rothbury A1 Island A68 Key routes - designing, building and Enterprise Zones Wooler Ports delivering innovative

AirportsAshington technology for British wind Morpeth Bellingham energy projects as well as A696 Port of Blyth A68 A189 Alnwick Newcastle Cramlington Introduction ...... 02 winning contracts to export Airport Whitley Bay NorthTo Scotland Shields A697 our expertise globally. With a Port of Tyne NEWCASTLE UPON TYNE South Shields Northumberland Coquet A69 National Park Rothbury Island A1 massive expansion in offshore A69 A68 To Carlisle, Hexham Manchester Haltwhistle Blaydon A1 SUNDERLAND What the data tells us...... 03 wind capacity, clean energy GATESHEAD Port of Sunderland A692 A68 Washington Andrew Jamieson, Consett A693 offers a long-term opportunity Chester-le- Street A690 Seaham Harbour Chief Executive of the Offshore A1 (M) for the North East. A691 Catapult Ashington The North East energy sector A19 Morpeth DURHAM Bellingham A696 A68 Wingate Port of Blyth Spennymoor A68 A189 Bishop Auckland Sedgefield Newcastle Cramlington Offshore Energy and Subsea Technologies...... 04 To Hartlepool Airport Whitley Bay Newton and Middlesbrough Aycliffe North Shields Port of Tyne NEWCASTLE A688 UPON TYNE South Shields A69 Regional Energy...... 06 A69 Barnard ToTo York, Carlisle, Castle Leeds, Haltwhistle Hexham With world-leading innovation London,Manchester Blaydon Midlands A1 SUNDERLAND and research, a strong local GATESHEAD Port of Sunderland A692 A68 Demonstration and Innovation...... 08 Washington supply chain, long established Consett A693 Chester-le- Street A690 Seaham Harbour skills base and outstanding A1 (M) A691 Research and Education...... 10 infrastructure, the North East can Principal rail links A19 justifiably lay claim to being at DURHAM Tyne & Wear Metro A68 Wingate the very heart of the UK’s clean Spennymoor Bishop A supportive place to do business...... 12 LEP boundary Auckland Sedgefield To Hartlepool energy revolution. Newton and Middlesbrough Motorway Aycliffe

It could not be better placedKey routes A688

Barnard To York, to capitalise on the hugeEnterprise Zones Castle Leeds, London, Midlands ambition and future growthPorts in offshore wind. Airports

Hugh McNeal,

Principal rail links Chief Executive, RenewableUK Tyne & Wear Metro Page | 01 LEP boundary Motorway Key routes Enterprise Zones Ports Airports Introduction What the data tells us:

North East England has an Offshore Energy Regional Research Funding innovative energy community, What does the energy sector look like? and Subsea Technologies Energy and Education delivering on national energy objectives by providing regional economic opportunities. The map below shows the clustering of North East offshore energy The North East In 2016, Northumberland generated the North East universities in the top 20 The energy agenda is a crucial focus second highest amount of electricity for research publications: and subsea technology businesses by employment numbers. is the leading from onshore wind, and had the greatest for the shift to clean growth and also location in hydro generation capacity of any local presents wider social and environmental authority in England and Wales. opportunities for the region. With rapid England in the technological innovation, a growing wind energy, Sunderland, County Durham Offshore wind Oil and Gas population, and a changing climate, the Subsea & Offshore: oil and gas and Northumberland were Economic Assets in the top six UK local Durham 3rd, Newcastle 7th, way we generate and use energy must Enterprise Zones and Key Sites sectors. authorities for total Northumbria 19th Durham 11th respond. New solutions that provide Key Businesses number of Solar PV sites. clean, secure and accessible energy IDBR VOA will drive economic growth and deliver Energy secured most more and better jobs for the region. Total energy consumption Total Employment by Postcode: North East subsea sector funding from the UK >500 +38,300 GWh per year. Research Councils and 250-500 Innovate UK of any Energy in the North East 100-249 50-99 50 supply chain 38% domestic sector subject area. 25-49 The energy sector is central to the <25 companies 31% transport North East’s economy,with a range 31% industrial and commercial sector Ashington, Bedlington, Blyth, Cramlington & Morpeth Supporting of organisations creating wealth, 79 PROJECTS skills, and jobs in the region. Newcastle - Gateshead 15,000 jobs RECEIVING £46.2M

North & South Shields 13.54% households in fuel poverty The energy sector in the North East grew 11.09% is the national average (2007-2017 - North East and Tees Valley LEP areas) by 64% between 2010 and 2017, with Sunderland Chester-le-Street, Houghton-le-Srping & Washington North East subsea sector 5,515 related companies in the region. Durham City The North East (including Tees Peterlee 57% employment = Our focus on energy presents huge Consett & Stanley Valley) also secured a larger opportunities to drive and support Spennymoor engineering and Annual electricity consumption proportion of available funding Bishop Auckland technical consulting economic growth. North East per domestic meter is below than if funding was distributed Newton Aycliffe organisations are responding to the national average in all local evenly across the country. Barnard Castle national clean growth challenges 0 10 20 30km Generates combined authority areas. Annual Based upon Ordance Survey mapping with the permission domestic gas consumption of Her Majesty’s Stationery Office. © Crown Copyright turnover in excess reserved. Licence number AL50684 and opportunities through innovation, of £1.5billion is above average in all local investment and development of skills. authority areas except one.

Page | 03 Offshore Energy and Subsea Technologies In the spotlight

An inward investment opportunity

North East Enterprise Zones

Enterprise Zones are designated sites across England that provide The North East has a long established capability in With a long history of collaboration, innovation and tax breaks and Government support in strategic areas that will help offshore energy, with organisations servicing various entrepreneurship, the North East cluster has a key grow the regional economy. aspects of the global offshore renewables and oil and role to play in delivering a transformative national gas sectors. The region boasts world-class expertise in industrial strategy, offshore wind sector deal, and The North East has Enterprise Zone sites alongside the river Tyne, river subsea engineering, robotics, planning and development, clean growth for UK industry. With excellent access Wear, and at Port of Blyth supporting offshore energy and subsea as well as design and fabrication of components such as from the North East to key oil and gas fields, and businesses. Sites have direct access to port and quayside facilities, pipelines, umbilicals and wind turbine foundations. wind farm development sites such as Dogger Bank, laydown and loading space, and manufacturing and fabrication space. Hornsea, and Firth of Forth, the North East offshore Sites include Port of Tyne, Neptune Yard, Swan Hunters, East Sleekburn, Local businesses such as Soil Machine Dynamics (SMD) energy and subsea cluster continues to be a distinctive Bates and Wimbourne Quay, Commissioners Quay and Dun Cow Quay. and BEL Valves have world-class reputations and area of opportunity for the regional economy. companies from other parts of the UK and overseas, The Enterprise Zone sites present exceptional accessibility and such as Baker Hughes and Fabricom, have chosen to A comprehensive infrastructure and service offer benefits for offshore energy and subsea technology business invest in the North East. around three ports provides the capacity to continually locating in the North East. develop the regional offer as global offshore This North East cluster is of strategic importance energy opportunities continue to emerge, such as Energy Central in the global offshore energy and subsea sectors, new offshore wind developments and oil and gas winning work internationally and maximising the decommissioning. Easy access to development land Energy Central is a premier deep-water East Coast energy base, export potential of UK expertise, including: and the connectivity to do business across the globe across the Blyth Estuary. It is a unique partnership between the Port presents an attractive inward investment opportunity of Blyth and Advance Northumberland, the Northumberland property • Remotely operated vehicles (ROV’s) from Wallsend- investment, estate management and development company. based SMD, with capabilities for both sea salvage for UK and international companies. and oil and gas operations, delivering projects from Supply chain and business development support is Energy Central brings together strategic land development sites, Scotland to Shanghai. available from Energi Coast and Subsea North East, investment packages, the port’s expertise in managing offshore energy projects, an extensive supply chain capability and access • Newton Aycliffe-based Tekmar, a global market helping members win work in the offshore renewables and subsea sectors respectively. to a ready made skills base. It also neighbours the Offshore leader in offshore cable protection, has supplied Renewable Energy Catapult Centre. systems and services across Europe, and for projects in the USA and Asia Pacific region. Working in partnership: • Stocksfield-based Royal IHC Limited, the UK arm of Offshore energy and subsea technology steering group Dutch parent company Royal IHC, designed its 400ha development land 3ports 80-metre J-lay system in the North East. The Facilitated by the North East Local Enterprise Partnership, an offshore energy and subsea working system is capable of installing pipelines with the development sites, equivalent mass of 2,000 cars, while dealing with group brings together cross-sector partners to identify and deliver cluster opportunities which many with enterprise demanding conditions at sea, and following testing rivers 30 zones status at Port of Blyth is ready to tackle large and support growth and employment. These partners 3 challenging projects across the world. include universities, supply chain businesses, ports, centres of innovation and public sector organisations.

Page | 05 Regional Energy In the spotlight

Gateshead Energy Centre

Gateshead Council opened the Gateshead North East assets of national significance are District Energy Centre, described as “truly visionary” Energy Centre in March 2017, to provide delivering innovative regional energy projects, with by the Association for Decentralised Energy, has heat and power to a district energy network unique opportunities to help address national already paved the way for other schemes locally and across the town centre and the Gateshead challenges in low carbon transport, power and heat. nationally. A regional pipeline of projects valued at Quays area. A range of regional partners across the public and over £280 million is under active development. This £25 million project generates both heat private sectors, and world class researchers are and power for sale directly to customers via a continually working to capitalise on this potential. Low carbon transport and energy systems new 4km underground network of heat pipes and 5.5km of high voltage ‘private-wire’ Infrastructure providers Northern Power Grid and Local energy projects electricity cables. Northern Gas Networks are investing and collaborating The North East has a higher proportion of consumption in the region to address emerging challenges. The scheme is currently supplying public within the domestic sector (38%) compared to the UK Through collaborative projects exploring future buildings and homes managed by the overall (32%). Rates of fuel poverty (14%) are also energy systems, and delivering breakthroughs in the Gateshead Housing Company, and plans are higher than England overall (11%). decarbonisation of heat and energy storage. in place to extend the network to supply commercial developments and more housing This makes the region an important location for Regional businesses are also providing thought estates in the future. The scheme was deployment of effective domestic energy efficiency leadership and delivering innovative solutions to originally planned around public buildings as and community energy programmes and an ideal test accelerate the transition to low carbon transport and this provided a secure long term demand for bed for new ideas. smart energy systems. Examples include: both heat and power. Natural assets in the North East present considerable • The Nissan manufacturing plant in Sunderland Contractual arrangements with customers opportunities for generation of renewable energy. In is home to the Nissan LEAF mean they are signed up for longer term 2016, Northumberland generated the second highest deals (up to 20 years), and in return receive amount of electricity from onshore wind, and had • AVID Technology, based in Killingworth, designs and Our North East energy strategy a minimum discount of 5% on the prevailing the greatest hydro generation capacity of any local manufactures electrified powertrain components market rate for their heat and power costs. authority area within England and Wales. and systems for heavy-duty and high performance Through the Department for Business, hybrid and full electric vehicles Energy and Industrial Strategy (BEIS) The scheme has flexibility built in, with backup Geothermal resources, associated with granite bodies • Sunderland-based Hyperdrive Innovation utilises local energy programme, the North East heat provided through conventional gas in the North Pennines and abandoned flooded mines in market leading lithium-ion battery technology to Local Enterprise Partnership is leading boilers if the 4MW of CHP is not available to Durham and Northumberland, provide the opportunity deliver solutions to challenging applications for run. Further flexibility was installed late 2017, to de-risk and commercialise solutions to utilise this creation of a regional energy strategy. electric vehicles and battery storage systems connecting the site to a 3MW battery to enable low carbon heat. In partnership with cross-sector electricity storage and several grid services • Based on the Newcastle Helix site, Connected stakeholders, this strategy will identify Within its three cities and across its wider for National Grid, including capacity market, Energy is accelerating new approaches to grid-load regional energy strengths, opportunities, communities, the North East also has great potential back-up generation and frequency response. management with its British designed battery for heat networks. The award-winning Gateshead and a pipeline of strategic projects to storage systems and energy optimisation expertise. support through delivery.

Page | 07 Demonstration and Innovation In the spotlight

National Centre for Energy Systems Integration (CESI)

CESI is a £20 million multi-institutional, As the UK seeks to enable clean purpose built hyperbaric testing, with state of the art multi-discipline industrial research economic growth, respond to new certification and research facility. laboratory facilities. consortium investigating the future consumer demands and meet Unique chambers allow testing of energy challenges for the UK. Led by emerging energy challenges, it is deep water equipment in a range The Integrated Transport Newcastle University and partnering crucial that new energy of pressure ratings, orientations Electricity and Gas Research with other UK Universities such as technologies and solutions are and temperatures. A local Laboratory (InTEGReL), in Durham, the research undertaken by effectively de-risked and partnership between British Gateshead, is the UK’s first full CESI encompasses the whole energy commercialised. The North East is Engines and Newcastle University, scale integrated energy systems system. This includes heating, cooling, home to a suite of energy Tyne Subsea combines a heritage R&D facility. InTEGReL, led by electricity and transport, taking into demonstration and innovation in subsea engineering with access Northern Gas Networks working account energy generation, distribution assets, acting as a hub to help to leading research. It places the with Northern Powergrid and and demand as well as policy, economics enable this transition. North East at the forefront of Newcastle University, provides a and regulatory matters. innovation for offshore energy space for industry, academia, The Centre develops and investigates Offshore Energy and technology in hazardous SME’s and government to explore novel future energy scenarios. Subsea Technologies environments. and test new energy technologies and processes. The researchers utilise innovative The £150 million Offshore demonstrator buildings, networks Renewable Energy Catapult’s Energy systems Through fully integrating and facilities to test, validate and National Renewable Energy Centre transport, electricity and gas The UK’s largest improve our understanding of the value in Blyth, houses world-leading systems, the site gives the North project, the Smart Grid Lab of taking a flexible whole systems test, validation and demonstration East a leading role in de-risking integrates a £2 million energy approach to energy. Its energy system facilities. These facilities and commercialising emerging storage test bed with a full scale demonstrators include the Newcastle specialise in testing wind, wave energy systems solutions. smart grid on the Newcastle Helix Helix urban development, of office and tidal energy generation site. This allows simulation of space, energy efficient home, as well as technology, including testing of When fully complete InTEGRel distribution networks under University buildings within the heart of 100m wind turbine blades, and will host a battery storage and future scenarios in a real-time the City. Researchers also investigate the only UK centre for testing of research lab, domestic appliances network simulator, to understand rural energy systems at Cockle Park offshore cables. Clients and and smart system demonstration how smart grids will help meet Farm, near Morpeth, Northumberland, partners include multi-national homes, as well as hydrogen future energy challenges. that houses an Anaerobic Digester using businesses, investors, local and compressed national gas The facilities are the result of a waste from farming to produce biogas authorities, SME’s, start-ups and refuelling stations for vehicles. partnership between Newcastle to fuel an integrated combined heat and universities. University and industrial partners power system for the farm. CESI are also lead research partners in the InTEGReL Further adding to the offshore Northern Powergrid and Siemens, facility in Gateshead. energy demonstration and demonstrating the region’s innovation offer, Tyne Subsea is a pedigree in engaging industry

Page | 09 Research and Education In the spotlight

Durham Energy Institute (DEI)

DEI supports and produces cutting-edge energy research, drawing upon the The North East’s energy sector is supported by an extensive research and education base, expertise of world-leading researchers keeping the region at the forefront of the energy agenda and providing a pipeline of skills. across ’s departments in science, social science and humanities.

The DEI, now recognised as an internationally leading institution, was founded on the recognition that solving Newcastle College Newcastle University Northumbria University energy challenges requires collaboration across the boundaries of conventional Based on the North bank of the Tyne the Newcastle College Energy is one of the largest areas of Ranked in the top 300 for engineering and technology in the disciplines. Approaching research in a new teaching and research for Newcastle Energy Academy provides a centre of innovation, training and Times Higher Education’s World University subject rankings way, across departments, enables the DEI University and it is one of the largest development for the energy sector. The academy delivers marine technology groups in the world. 2018, Northumbria University offers courses in Electrical to address challenges and develop a range qualifications from level two through to degree level in Power Engineering (MSc), Renewable and Sustainable of unique expertise in areas such as wind, energy technologies, manufacturing and maintenance as Newcastle University leads the National Energy Technologies (MSc), and has an expanding degree solar and , , well as apprenticeships. Courses include a level two and Centre for Energy Systems Integration apprenticeship programme. It has established links with smart energy systems, and carbon capture three in Welding and Fabrication, level three in Renewable and the National Centre for Subsea and major energy companies in the region, and has delivered a and storage. The DEI is helping to shape the and Subsea Engineering and Foundation degrees (FdEng) Offshore Engineering. bespoke master’s course for a global oil company. thinking of both national policy makers in Renewable Energy Technology and Subsea Engineering. and industry. Its Blyth Marine Station hosts the The Energy Academy have successfully developed Emerson Cavitation Tunnel and DEI geothermal energy research has been a Maintenance and Operation Engineering Technician facilities for studying coatings, discussed in parliamentary debates, and apprenticeship for the wind energy and subsea sectors. fouling and hydrodynamics. Durham University strategic partnerships between with energy Its teaching includes degree sector organisations such as Ørsted are apprenticeships in power Durham University through its Energy Institute is one of linking new research directly with industry engineering, a large suite of the key national research centres for renewable energy. needs. More widely, the DEI is bringing undergraduate engineering Gateshead College There is an emphasis of science and society that provides international collaborators to the North degrees, and master’s courses Durham with a unique socio-technical approach to energy including Offshore Engineering and East from countries such as India, Malaysia, Zero Carbon Futures, a subsidiary of Gateshead College, was research and teaching. Durham offers a series of related Renewable Energy. and Mexico to develop new approaches on set up in 2011 as an independent consultancy specialising master’s courses along with a Centre for Doctoral Training topics such as organic energy research. in low carbon vehicle technologies. The company develops Newcastle University is a global in Energy, offering significant interaction with both local and electric vehicle infrastructure, and has managed a range of principal partner with engineering and international companies. The institute emphasises a ‘Science and technology giant Siemens and has Society’ approach to energy, tackling projects to increase electric vehicle uptake. Its ultimate aim strong relationships with many societal aspects of energy alongside is to research and develop new and emerging technologies, companies including Tyne Subsea, BEL developing new energy technologies. as low carbon vehicles move into the mainstream and Valves, Reece Group, and SMD. become a major part of our transport system.

Page | 11 A supportive place to do business

The North East offers a mature scaleups to continue to grow and The North East Fund business support eco-system, ones with high growth potential to brought together by the North East realise their full potential. The Growth Hub. support is flexible and tailored to the needs of the business. Scaleup The North East Fund is a The North East Growth Hub partners, who have a track record suite of five loan, equity and provides access to business in scaling businesses themselves, mezzanine funds specifically support and access to finance work with businesses to define created to provide finance to businesses in all parts of the growth objectives and mentor for North East SME’s. Guy Currey, North East economy, with business leaders to take the right Director of Invest North East England dedicated scaleup support for action at the right time. Over a period of three years those that have the potential to from 2018, the £120 million grow rapidly. scaleupnortheast.co.uk fund will invest in over 600 businesses, creating jobs, securing further private sector North East England has investment, generating for many years had a economic growth and creating well-deserved worldwide future legacy funds. The fund’s reputation for excellence in oil Growth Hub Online provides Supply Chain North East was helps stakeholders include the and gas, subsea technology, targeted access to business support businesses identify opportunities European Regional Development marine engineering and and finance to people wanting to they might not otherwise know Fund, the European Investment offshore renewables. start, grow or improve a business. exist to help them grow. Market Bank and the existing regional Growth Hub Online also provides experts work with businesses to legacy funds, managed by North Today we’re seeing that our access to over 220 sources of Invest North East England identify new customers, new East Access to Finance. Locally passion for innovation combined business advice and support from markets and supply chains that based fund managers will with outstanding facilities, across the region and from UK Acting as a single point of contact, Invest North East England (INEE ) they may never have previously manage the five funds, which are: business networks, and the programmes. is the North East Combined Authority’s strategic inward investment body. considered. The programme infrastructure supported by our • Innovation Fund rivers and ports are coming northeastgrowthhub.co.uk provides access to the specialist INEE works closely with the North East Local Enterprise Partnership and local authorities, and has access to an extensive partnership network together to make North East support and resources required to • Venture Fund unlock doors, adopt new of support agencies, sector specialists, universities, colleges, knowledge England the gateway to global technology and adhere to new • Capital Development Fund networks and business organisations throughout the North East of opportunities for the Offshore quality standards and • Growth Capital Fund England region. Energy and Subsea Technologies sector and the location of choice Launched in January 2018, Scaleup requirements. • Small Loan Fund. investnortheastengland.co.uk for leaders in the field. North East aims to increase the supplychainnortheast.co.uk density of North East scaleup northeastfund.org businesses, by supporting existing

Page | 13 Find out more

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