Appendix.1D. Nuclear Industry / GREEN. Growing Gloucestershire. Strategic Economic Plan for. Draft.A

Transcription

1 Appendix.1D Strategic Economic Plan for Growing Gloucestershire Nuclear Industry / GREEN Draft.A

2 Explanation of the proposal The proposal is to create a Renewable Energy, Engineering & Nuclear skills centre at the decommissioned Berkeley power station. The project will: provide a centre for STEM (Science, Technology, Engineering & Maths) skills delivery in anticipation of the unprecedented expansion of Nuclear and low carbon engineering in Gloucestershire and the South West region; provide an immediate rapid expansion of engineering skills training from September 2015 for young people and apprentices, satisfying the already huge demand from Gloucestershire businesses; provide the capacity on a single site to focus the development and delivery of the necessary workforce skills from craft level to the Delta-Standard demanded by the Nuclear Industry; ensure the skills infrastructure supports the growth in Gloucestershire s economy, by future proofing and meeting the skills needs of businesses affected by workforce displacement to the demands of the nuclear industry; satisfy the skills demands of Gloucestershire-based low-carbon industries arising from the anticipated demand for 45,000 skilled engineers for the construction of the Hinkley C and Oldbury Nuclear Power Stations in late 2018 to power generation in the mid 2020s; enable the building of a STEM conference centre and exhibition space to encourage significantly more young people to enter STEM occupations and help create a new generation of entrepreneurs; provide for University research, exploiting the site s proximity to the estuary, as an excellent test bed for solar, wind and tidal energy. Will enable education and training providers and new or existing suppliers/ researchers involved in the low carbon sector to work in a cluster encouraging engineering focussed entrepreneurship and business start-ups. What is the problem or opportunity? Gloucestershire s economy is set to grow considerably in the next two decades with a nuclear power station to be built at Oldbury and a new nuclear station being built at Hinkley within an hour s drive of Gloucestershire. These major infrastructure projects will draw upon local, regional, national and, most likely an international workforce and will require Gloucestershire to respond to unprecedented demand for labour. To meet this demand, Gloucestershire needs to grow its skilled workforce to retain the skills, knowledge and prosperity in the county servicing nuclear, low carbon energy and engineering industries. Investing in the skills infrastructure in the county ensures we are ready to respond and reap the rewards of the huge investment that is presented by the Nuclear, Low Carbon and the production based economy. The skills required by companies in this sector are in huge demand as key local engineering companies continue to be unable to fill significant numbers of jobs each year and smaller businesses are understood to be reluctant to recruit apprentices for fear of losing them to larger companies. The expected ambitious civil power projects will be dependent on an effective, well operating and efficient skills system which this proposal will deliver. Significant short, medium and longer term employment opportunities can be generated. With the evident difficulties of recruitment for local engineering companies there must be a considerable increase in capacity to train new entrants to this labour market and up-skill, retrain or refresh existing skilled workers. The energy and water sector is forecasted to have limited growth, but still contribute to 4.4% of the total GVA in Construction however will grow 31.9% and be 7.9% of the GVA in This project will support growth in this sector in particular but it will also deliver against a specific target area for the other growth sectors in the county. Knowledge Intensive Services are a target growth sector contributing 33.8% of the growth in GVA and 37.6% of the GVA in Key sectors in this are Architects and Engineering Services and Other Professional Services both of which will benefit enormously from the GREEN project. Growth benefits are also 2

3 expected in the Knowledge Intensive High to Medium manufacturing sectors due to supply chain effects. Unlocking the growth potential of these sectors, in line with the strategic priorities for the county is a key benefit of this project. The project has the support of major employers in the county: Magnox ; Doosan Babcock; Horizon Nuclear Power; Ecotricity; EDF; Atkins; AMEC. This land is empty and shovel ready. The project has the support of the local authority who are keen to welcome significant inward investment. It is. Rationale for intervention Gloucestershire has a long established heritage and expertise in the Nuclear, Energy and Manufacturing sector with major employers for this sector located in the County. The South West has a high proportion of Nuclear skills employment with 3600 employed in decommissioning and power generation. 65% of the nuclear workforce will retire by 2025.This provides the potential and need to add to the existing technical, construction and scientifically skilled staff with an estimated need of 700 apprenticeships and 150 graduates a year over the next 15 years to make these projects successful. The project will efficiently provide the facilities and expertise on one site and bring together, for the first time, Colleges, the University of Gloucestershire and Private Training Providers to share expertise and resources. It will provide for University research, exploiting the site s proximity to the estuary, as an excellent test bed for solar, wind and tidal energy complementing the growth of Gloucestershire University s engineering offering. The location enjoys good transport links and shuttle bus services will operate between campuses already proven to be an effective transport solution elsewhere. If we do not meet this skills challenge we risk a significant proportion of the uplift from the nuclear industry going out of the county and the UK and we miss an opportunity to grow the skills needed by the emerging STEM industries. The Sector Skills Council for Science industries (COGENT), has identified skills as a priority risk area for the successful implementation of civil nuclear, including new build & decommissioning. COGENT estimate that there will be 45,000 people/trades/roles involved at the build stage of a power station. To meet the anticipated demand across the sector, additional workforce capacity is needed. This project will ensure there is a continuous supply of adequately trained, skilled and qualified workforce for the planning, construction and operation of the nuclear projects whilst maintaining the skills need of existing companies in the low-carbon, construction and engineering industries in Gloucestershire. This additional capacity cannot be met by existing providers in the region. Bridgwater College and the NSA are working with SGS to ensure the skills needs for these projects will be available. 3

4 The proposal itself An investment of 5m is needed to enable the project to be delivered. SGS has formed an agreement with the Nuclear Decommissioning Authority (NDA) to gain a lease to the majority of the unlicensed part of Berkeley Power Station. This gift of land and facilities by the NDA exceeds the 5m asked to support this project and represents a unique opportunity to use this facility to support skills development in Gloucestershire. A freehold transfer will accommodate this arrangement and will result in the regeneration of a brown field, industrially important and historical site. At a build cost of 3m the proposed STEM conference centre and exhibition space would be an exemplar of low-carbon building methods, energy generation and energy efficiency. It would be the gateway to the site and would be designed to stimulate and excite a visitor and promote general STEM-based subjects as well as low-carbon energy generation in particular. 2m will be used to refurbish existing engineering training buildings. This will also provide accommodation for start-up, low carbon and engineering businesses with training facilities on site, enabling engineering training for young people. Commencing September 2015, it will increase the number of Engineering trainees by 100% from 70 to 150. This initial project investment of 5m therefore focuses on increasing the existing training capacity of trainees within the area in engineering and providing capacity to promote nuclear, low carbon and engineering sector to school children and young people to meet the huge future anticipated demand and to provide back-ground skills acquisition and transfer for the current low-carbon industries. The initial development will attract external private sector funds as demand arises, as has been demonstrated at Bridgwater College, where to date 19.5million of private sector investment has been provided, in support of the Hinkley Point Power Station Development with EDF. Revenue costs will be met by existing Education Funding Agency and Skills Funding Agency funding streams and the provision of specialist full cost recovery and commercial training opportunities. Delivery The project will be delivered in 3 phases beginning with building work in the 14/15 Academic year. As part of the first phase an engineering training centre will be operational from September 2015; Phase 2 will see the opening of the STEM exhibition and conference centre. Phase 3 will include residential leisure and training accommodation timed to respond to the Oldbury build expected to commence The Project would be run and operated by South Gloucestershire & Stroud College (SGS), which is a member of the National Skills Academy for Nuclear (NSAN). Other education and training providers will be actively encouraged to take part and locate new and existing provision in partnership with NSAN. The project will be led by SGS partnered by the County s Further and Higher Education and Private Training providers: South Gloucestershire & Stroud College, The University of Gloucestershire, Gloucestershire College, Gloucestershire Engineering Training (GET), C&G Training Services. The project is fully supported by other LEP colleagues in the West of England District and South Gloucestershire County Council and this shows the full regional approach that this project embraces. The proposal is supported by Bridgwater College as an existing supplier of engineering training in the region. The following employers have committed their support:- Magnox ; Doosan Babcock; Horizon Nuclear Power; Ecotricity; EDF; Atkins; AMEC Stroud District Council support the project and plan to encourage further inward investment, unlocking the potential of this site to become the focal point for engineering training within Gloucestershire. The National Skills Academy for Nuclear (NSAN) have been instrumental in the development of the project and together with Cogent, the sector skills council for process industries, have supported and advised on the future skills needs and potential shortages in the sector. 4

5 Outputs - what will be gained from the proposal? The investment in the skills infrastructure is reported as capable of raising the return on the value of a nuclear reactor for the UK economy from 44% to 63% with an estimated value gain to Gloucestershire of greater than 2 Billion over a 15 year period. This benefit will not be realised without this investment to develop and promote local skills. It will enable Gloucestershire to build a long term sustainable skills system providing growth opportunities for Science, Technology, Low carbon and Engineering businesses in Gloucestershire. From the FE sector perspective, it will provide for 100% increase of full time engineering students and support xx engineering apprenticeships training places. (tbc) What is the ask to the government? The project requires Government investment of 5m. Fit with national strategies and other LEPs/other strategic developments? The project is consistent with the Government s objectives as outlined in The UK s Nuclear Future For industry to be supported by a workforce with the skills, capability and capacity required to successfully deliver current and future UK nuclear programmes with the highest standards of nuclear professionalism, safety and competitiveness; To have a supply chain with the skills and expertise to compete on a global basis for contracts; For the UK nuclear industry and its approach to skills and workforce development to be recognised as an example of international best practice. 2m will be used to refurbish existing engineering buildings to provide training and business start-up facilities. The remaining 3m will enable the creation of the STEM conference centre and exhibition space and will be an exemplar of low carbon building methods, energy generation and energy efficiency. Value for money The gift of land and facilities by the NDA presents a unique opportunity to provide a vital engineering training facility by the additional seed funding of 5m. SGS will re-locate their existing full-time and adult Stroud-based engineering provision and some associated engineering construction to pump prime the project and provide some immediate facilities and revenue with delivery from September South Gloucestershire & Stroud College would be responsible for the Berkeley site, its maintenance, growth in activity and the delivery of the project outcomes as the lease holders of the site. South Gloucestershire & Stroud College rental commitment of 100,000 towards buildings. 5