THE FUTURE OF ENERGY THE FUTURE OF ABERDEEN

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1 THE FUTURE OF ENERGY THE FUTURE OF ABERDEEN

2 A VISION FOR THE FUTURE Aberdeen Renewable Energy Group (AREG) is an innovative public-private membership organisation at the cutting edge of Scottish and UK efforts to build a sustainable renewable energy industry in a fast moving, globally competitive market. AREG was launched in 2001, when offshore renewables were barely on the UK energy agenda and has been pioneering the renewables revolution ever since. Publicly funded by Aberdeen City Council, this not-for-profit, independent company has its own board of directors drawn from major energy interests across Aberdeen City and Shire. Jeremy Cresswell, editor of the Press and Journal s monthly publication Energy is chairman of AREG and Morag McCorkindale is the company s chief operating officer both were instrumental in the company s formation and continue to drive forward plans for the future. COLLABORATIVE STRENGTH One of AREG s key advantages is that it can tap into a multitude of public and private sector trade networks. With connections through Aberdeen City Council s membership of the World Energy Cities Partnership and its Memorandum of Understanding with an array of international energy regions, AREG can draw upon well established and successful trade links. Access to these international networks are also complemented by close working relationships with Scottish Development International, UK Trade and Investment, the Department of Energy and Climate Change and other public sector and Scottish local authority working groups. AREG also has close ties with Scottish Renewables, RenewableUK, EWEA, SubseaUK, the North Scotland Industries Group, The Energy Institute, Scottish Council for Development and Industry, Scottish Enterprise and the Chamber of Commerce plus many other organisations with relevant renewables activities and opportunities. Through these close relationships AREG and its members are kept abreast of industry initiatives, business opportunities, trade missions, inward visits and events suited to their key interests.

3 CATALYST FOR CHANGE AREG acts as a catalyst to help develop the local economy by transferring forty years of existing energy skills into renewables. Membership continues to grow and has been increasing by more than 30% each year. It brings together an impressive blend of experience spanning every sector of renewable energy including wind, wave, tidal, hydro, bio, solar, geothermal and fuel cell energy. Morag McCorkindale, chief operating officer, said: A large part of AREG s success is delivering on our aim to lead, or otherwise participate in, projects identified as adding economic development value to the region. The significant growth in our membership year on year, is particularly notable and reflects the extensive energy expertise in the region as well as the special role we can play particularly in creating an industrial scale offshore renewables industry. The North-east s world-class oil and gas expertise and its reputation for innovation and business enterprise are emerging as critical to the development of offshore renewables. Not only do we have the assets and engineering and technical skills but many oil and gas mechanisms such as recognised codes of practice, sharing of information and supply chain management are transferable. AREG has significantly increased participation in the renewables supply chain (wind, marine, biomass, solar and district heating) by promoting the industry through its active and inclusive events and international trade programmes, contact with government and industry bodies, flagship projects and its activities surrounding the development of the All-Energy show. In fact, in June 2010, the Aberdeen Renewable Energy Group s activities in this area were acknowledged with a prestigious industry award in recognition of its outstanding achievements in developing the North East of Scotland s sustainable energy capabilities. The Group received the Best Region accolade at the Renewable Energy Association s British Renewable Energy Awards. Then in December, AREG chairman, Jeremy Cresswell was awarded the Outstanding Contribution to Industry Award by Scottish Renewables in recognition of his impressive contribution to making the industry a success. Key to the award was his personal drive, expertise and enthusiasm, critical to ensuring development of renewables in Scotland. This dynamic drive combined with a stalwart determination on the part of the AREG team and its robust membership are what makes this partnership, and the region it shares, a success. AREG MEMBERSHIP AREG membership is open to individuals, businesses and organisations involved in the renewables sector with a base or significant operations in Aberdeen City and Shire. Membership benefits include promotional platforms, participation in members meetings, seminars and workshops, participation in joint events and exhibitions, news updates and access to market intelligence on projects plus international trade and business development opportunities. One of the most popular aspects of AREG s activities includes its regular members meetings which attract a significant number of key renewable energy decision makers. Each event is themed and invites industry spokespersons to share their market knowledge and experience and provide updates on key projects, policies or trends. AREG also run joint events with bodies such as Scottish Renewables, the Energy Institute, Scottish Enterprise, North Scotland Industries Group and others. They are an excellent means of networking with the people that matter and gathering important market knowledge within this fast growing industry. In short, AREG is a strategic tool, not just for its immediate locale but for Scotland, the UK and Europe and because of the region s already unique position within international energy networks, AREG and its members are already active in many locations around the globe.

4 Offshore wind energy is attracting a range of transferable skills from the offshore oil and gas industry in Aberdeen City and Shire.

5 PIONEERING PROJECTS AREG is determined to help Scotland achieve its renewable energy targets and to help local companies access the significant business opportunities available in the sector. But there is much more than this to AREG as the company is not only playing a lead role in renewable energy issues, it has initiated a portfolio of visionary projects that will impact on the region and the industry for many years to come, for example: European Offshore Wind Development Centre (EOWDC) The EOWDC is one of the most exciting potential developments for the future of Scotland, the UK and Europe and it is happening right here in Aberdeen. A joint venture between AREG and Vattenfall, complemented by development partner Technip, the EOWDC could provide a vital stepping-stone to the UK s ambitious 39 gigawatts of generating capacity planned for offshore wind development in territorial waters. It is anticipated that the venture will support national security of energy supply, help the region to diversify its economy and capitalise on employment opportunities in the sector, attracting scientists, researchers, engineers, offshore wind supply chain companies and future investment. Last August the EOWDC was awarded an exclusivity agreement by The Crown Estate to test and demonstrate up to eleven next generation offshore wind turbines plus other associated technology. The award followed an application process conducted in response to the UK offshore wind industry s need to demonstrate new offshore wind turbines and other technologies in the marine environment. The Crown Estate said the EOWDC was one of the UK s demonstration projects that is expected to contribute to addressing both technical and cost challenges, and to facilitate construction further from shore and in increasing water depths. The exclusivity agreement means that the joint venture can test and demonstrate up to eleven next generation offshore wind turbines and other technology. It will also enable the company to take its proposals through the planning and consenting phases. As well as proving new turbine designs and foundations, the EOWDC will provide independent validation and accreditation of equipment and services prior to commercial deployment. It will also generate further value through associated R&D activity and could boast an offshore research station, become a centre of excellence for environmental research, technology development and a test-ground for new health and safety, access and training procedures. In December, the project received a major boost and its European significance was recognised with confirmation from the European Union that a grant award of up to forty million Euros had been made from their European Economic Recovery Plan. This plan is designed to stimulate growth, protect jobs, invest in Europe s long-term economic health and boost the fight against climate change. The support was endorsed by the European Council and is part of wider proposals to invest in key energy and internet broadband infrastructure projects. The EU Grant will support both development and capital costs associated with the EOWDC. The establishment of both the joint venture partnership and EU grant application was achieved with invaluable support from the Scottish European Green Energy Centre (SEGEC). At the time, David Hodkinson, now UK Country Manager of Vattenfall Wind Power in the UK, said: We very much welcome the news from the European Union which confirms the considerable financial support being awarded and underlines the strategic importance of the EOWDC and a move towards a vibrant UK offshore wind industry which will attract jobs and inward investment. Ron Cookson, Managing Director of Technip UK, said: We are extremely pleased to be working with Vattenfall and AREG on the EOWDC. This opportunity is the first offshore wind project for Technip in Aberdeen and reflects our intention to become a major player in this sector. Morag McCorkindale, Chief Operating Officer at AREG, said: This official endorsement is very positive news for Aberdeen City and Shire. Not only will the EOWDC supply renewable energy to our region, it will contribute considerably to the local economy through proving the technology and techniques needed to develop the major offshore wind farms planned to be built in the North Sea later this decade.

6 All-Energy Exhibition and Conference Aberdeen s All-Energy show is the UK s largest renewable energy event and has been supported and championed by AREG, Aberdeen City Council and Aberdeenshire Council since its inception. The exhibition and conference is a vibrant platform for renewables technology, skills transfer and business enterprise. All-Energy, currently attracts nearly eight thousand visitors and brings together delegates and business interests from around the globe. The show continues to grow year on year and is a key event for AREG in which it showcases not only its own activities but those of its partners and members and the region s exceptional talent within the largest bespoke regional pavilion of its kind. Jeremy Cresswell and Morag McCorkindale at All-Energy in Aberdeen which attracts over 7,000 key renewables delegates from all over the world. Aberdeen City Council s development of Marischal College includes a biomass heating facility. Marine renewables represents a significant market for Aberdeen City and Shire businesses. Renewables Research Hub An innovative collaboration involving Aberdeen s internationally renowned universities has been designed to further bolster the city s global status as an industry leader in the renewable energy spectrum. The project, to establish a renewables research hub, is building on the alliance to progress joint renewable energy research capabilities. The three parties in the alliance The University of Aberdeen, The Robert Gordon University and Aberdeen City Council committed 700,000 for the initial three years and has since leveraged around 1.5million from industry and other research organisations. The University of Aberdeen excels in bioenergy, hydrogen and HVDC expertise while The Robert Gordon University is reputed for its existing renewable energy capacity in the marine sector. Both universities, which enjoy outstanding links with both local and international industry, are also conducting research into fuel cell technologies and the hydrogen economy. Combining the institutes wealth of resources with that of the region s flourishing renewable energy industry and assisting in the commercialization of technology is a vital component in strategically catapulting Aberdeen to the forefront of the international renewable energy market.

7 Biomass energy sources are readily available in the region. Biomass Developments In Aberdeen City and Shire, natural biomass energy sources are readily available and a cost effective way to service our heat and power needs. The use of wood products and associated technology for generating energy is well proven and widely used across Europe. The region has shown a desire to lead the way in this sector and support local skills, jobs and reduce power and heating costs for both households and businesses alike. AREG has been instrumental in the region s growth of biomass projects through its involvement in the Grampian Biomass Working Group and participating in an advisory role on other projects. Over 8million was committed to biomass infrastructure between 2006 and 2009 and since then large developments are continuing apace such as the installation of biomass boilers in a variety of public buildings including Marischal College, Foresterhill Hospital and Duthie Park Winter Gardens. Other innovative ventures have also include converting local schools and community buildings to run on wood fuel, a Combined Heat and Power project for a collection of Aberdeen City Council s seafront buildings, a district heating scheme in Banchory and the development of wood pellet manufacturing facilities, including Scotland s first commercial operation.

8 Our ambition is to make Aberdeen City and Shire as world famous for renewables as it is for oil and gas and to ensure Scotland becomes a global leader in renewables and the clean energy industry. Aberdeen is a prominent player in the industry and AREG is committed to taking the region forward by capitalising on its wealth of energy experience and expertise combined with its innovation, enterprise, strong partnerships and alliances. THE AREG TEAM Jeremy Cresswell Chairman jeremy.cresswell@ Morag McCorkindale Chief Operating Officer mmccorkindale@ Iain Todd Renewable Energy Champion iain.todd@ Mark Yule Membership and Administration Officer mark.yule@ Debbie Ashworth Marketing and Communications Manager dashworth@ AREG endeavours to work towards economic and environmental sustainability. This document has been printed on paper made from 100% recycled, de-inked pulp with FSC accreditation, from a paper manufacturer certified as ISO The waste paper used has been processed back into fibre in a totally chlorine free process. Aberdeen Renewable Energy Group 2nd Floor, St Nicholas House Broad Street Aberdeen AB10 1GY T: +44 (0) T: +44 (0) E: info@ www.