Strategies for Local Sustainable Economic Development

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1 Strategies for Local Sustainable Economic Development Towards a Low Carbon Fife Economy Robin Presswood Business and Strategy Manager, Fife Council 29 th October 2009

2 The Low carbon economy is An economic development opportunity that will transform Scotland Probably fastest growing employment sector A reality - being delivered on a large scale by the private & public sector today Much more than just wind energy Key corporate priority for Fife Council

3 Fife Council Priorities

4 Green Jobs are a new and powerful force for achieving a more resource efficient and equitable global economy. United Nations Environment Programme Scottish expertise and innovation can lead to new jobs in technology creation, energy production, manufacture and exports Jim Mather, Minister for Enterprise, Energy and Tourism Real business opportunities will emerge from a greater commitment to sustainable development. Green Business Fife, Mission Statement

5 Low Carbon Market Projections 25% of Europe s Wind / 10% of Europe s Wave Potential Scottish Government 50,000 jobs over the next years Careers Scotland The development of CCS in Scotland, including power stations and storage networks, has the potential to support 10,000 jobs" Alex Salmond UK Wind will create 57,000 jobs by 2020 BVG Associates UK Low carbon sector expected to grown by 45bn over next 10 years, ScottishPower

6 2007/8 2008/9 2009/10 (to date) Enquiries managed Renewables related enquiries 34 (32%) 43 (46%) 23 (59%)

7 Economic Opportunity for Fife Area of Work Energy Park Fife Renewable Energy Generation R&D (CCS, Fuel Cells etc) Offshore Wind (construction, O&M) Office based jobs (Developers, Legal etc) Renewable Energy plant construction Projected number of new jobs by ,

8 Fife s Total Carbon Emissions Fife: 3,529,000 (Excluding Longannet) 12,000 10,000 CO2 emissions estimates 2006 Scotland: 43,493,000 kt CO2 8,000 6,000 4,000 2,000 (Source: Emissions of carbon dioxide for local authority areas for 2006, DEFRA) - Longannet Fife (Total) Industry and Commercial (Fife) Fife Domestic (Fife) Transport (Fife) LULUCF (Fife) Fife Council

9 Planned Renewable Energy Investment in Fife

10 Tullis Russell 50MW biomass CHP system RWE NPower Cogen own and operate Joint study with Fife Council to explore district heating Financial closure reached CO2 reduction (tonnes) Investment Jobs (created/safeguarded) 396, m+ 30/540

11 Diageo New biomass plant as part of a major expansion Dalkia currently on site Spent wash from production process is 30% solid which is burnt Anaerobic digestion process is used on the remaining liquid to produce a biogas which is also burnt CO2 reduction (tonnes) Investment Jobs created 63,000 65m 20

12 Longannet biomass New 20 MWe biomass plant additional to the coal plant Will burn dried sewage pellets & waste wood Currently on site CO2 reduction (tonnes) Investment Jobs created 102, m+ 30

13 Fife Landfill Gas Projects Harnessing of methane gas at two sites - Dunfermline & Ladybank Total generation of 3.5MW of electricity Methane reduction of 13.5kT/yr Methane 21 times more potent than CO2 Thermal output to heat 213 nearby homes Both projects operated by third party - Council expecting a royalty income from both projects

14 Overview of Biomass Investment MW Capacity CO 2 reduction (tonnes) Planning Permission Projected date of operation Tullis Russell 200m+ 50MW 396,000 Yes 2013 Diageo 65m 5.5MW 63,000 Yes 2012 Longannet 100m+ 21MW 102,000 Yes 2011 Landfill Gas 1.75m 3.5MW 283,000 N/A Live EPR 18m 9.8MW 48,000 N/A Live Quaker Oats 6m+ c2mw c1,800 No 2013

15 Onshore Wind Investment MW Capacity Number of Turbines CO 2 reduction (tonnes) Planning Permission Projected date of operation Little Raith 14m 18-27MW 9 23,000 Yes 2010 FMC Dunfermline 2m 1.5MW 1 2,000 Yes 2010 Infinis - Westfield 7.5m 12.5MW 5 16,000 No 2011 ABO Wind - Saline 7.5m 10-15MW 5 13,000 No 2010

16 Electricity Generation Vs Consumption Renewable Generation vs Consumption - Electricity 1,200,000 1,000, ,000 MWh 600, , ,000 0 Potential Renewable Energy Generation (2013) Domestic consumption - Fife (2006) Industrial & Commercial consumption - Fife (2006)

17 Challenging Scottish Government Target - 20% of All Energy from Renewable Sources by 2020 Energy from Renewable Sources 3,000,000 2,500, Fife target: 20% of all Energy from Renewable Sources 2,000,000 MWh 1,500,000 1,000, ,000 0 Fife (2006) Potential with Renewable Projects (2013) 2020

18 Challenging Scottish Government Target - 42% Reduction in Carbon Emissions Total Carbon Emissions 4,000,000 CO2 (Tonnes) 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 42% reduction in emissions from all sources - Fife (2006) Potential with Renewable Projects (2013) 2020

19 Carbon, Capture & Storage at Longannet UK CCS competition to develop the UK s first commercial scale demonstration of CCS ScottishPower have deployed a Mobile CCS Test Unit at Longannet to carry out research Consortia includes Shell, National Grid and Aker Clean Carbon Fife has the chance to be at the centre of a new technology

20 Fuel Cells & Power Storage Demonstration centre for Fuel Cell technology Wind turbine will be used to create Hydrogen Hydrogen will then be stored and used in Fuel Cells to create electricity when required Cluster of similar companies to locate nearby University of St Andrews

21 Offshore wind Number of Offshore Wind Turbines required in the UK by 2020 Round 1 = 235 turbines Round 2 = 4,434 turbines* Round 3 = 5,000 turbines* (to meet 25 GW target) Scottish Waters = 1,288 turbines* UK Total = 7,956 turbines *Estimates based on 5MW turbines

22

23 Energy Park Fife Scottish Enterprise & Fife Council joint venture Scottish centre of excellence for offshore wind sector 11.7m investment by to date further 13m planned Target 1,000 jobs (350 delivered) 16 Ha remains available for development Current tenants: Bi-Fab, Duncan engineering & PTS

24 Proven track record Manufacturing BiFab global experience with Beatrice Tailsman, Alpha Ventus & Greater Gabbard 150 Engineering companies - 7,000 employees form supply chain for Renewable Energy Research & Development The Hydrogen office University of St Andrews EaSTCHEM Qinetiq

25 Fife in 2013 Our Vision 46% of electricity from Renewable sources 24% reduction in Carbon Emissions 1,000+ new Green Jobs 400m+ invested in Renewable Energy Emerging as Scotland s centre of Offshore Wind expertise? UK s first commercial Carbon Capture and Storage operation

26 Conclusion Scottish 2020 targets for both carbon and power generation are achievable Fife well placed for leadership role in several sub-sectors Partnerships essential to deliver Fife may be the first Scottish authority to generate the equivalent of its entire domestic electricity from renewable sources If we are to meet challenging Scottish targets, local government must lead, not follow

27 Strategies for Local Sustainable Economic Development Towards a Low Carbon Fife Economy Robin Presswood Business and Strategy Manager, Fife Council 29 th October 2009

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