Marine renewable energy – A business and LEP perspective

Nick Ames – Managing Director, Supacat/ LEP Board member

19 February 2013

Agenda

Supacat

Why Renewable energy?

LEP and Low Carbon initiatives

Heritage

2004-2013- Diversification1997-2004 – HMT launched1981-1996 – The beginning

Supacat Ltd established on ATMP and Glider winch programmes

UK MoD business channelled through Primes (Fairey, Alvis)

Utility vehicle ‘Capability Gap’ recognised – HMT concept

RNLI relationship established based on trailer products

First HMT4x4 order (UK MoD) for 65 won in 2001 with Supacat as Prime Contractor

Wider markets identified and exports achieved – USA, Denmark, Australia

HMT 4x4 taken into UK Regular Army

First Renewable Energy contract

15 Staff £2m Turnover

60 Staff £10m Turnover

100 Staff £20m Turnover

Business Process

Value Creation Value Generation Value Realisation Value Add

Marketing & Sales

Design &Engineering

Programme Management

Customer Support Services

Support Processes

Opportunity and conceptdevelopment

Turning Concepts into Reality

Delivering Reality

Supporting theCustomer

Agenda

Supacat

Why Renewable energy?

LEP and Low Carbon initiatives

Diversification

• Desire to make sure the business has a sustainable platform for the future

• ”Renewable energy – without the hot air” – S MacKay

• Desire to play a greater role in the region

• Identification of good partners to assist, Regen SW and MEM

• Long process and needs patience, but so does oil & gas

• There is a requirement for new skills

• Geography degree

SW England – A great place for offshore renewable energy…….

• Peninsula location• Port assets – Plymouth, Bristol,

Falmouth, Appledore and others• Universities with Marine and

Engineering specialisms• Wave Hub – a unique asset• Grid connections – net importer• Coastal experience• SW Marine Energy Park• Location of UK’s first windfarm• Low carbon communities• MET office• Engineering supply chain

The SW Offshore Renewable Energy resource bed

Tidal Wave WInd

Source data: ORRAD report, 2010

Agenda

Supacat

Why renewable energy?

LEP and Low Carbon initiatives

Benefits to the SW of Offshore Renewable Energy

• Sustainable jobs

South West Capital Expenditure

2015- 2030

0

200

400

600

800

1000

1200

1400

£ Million

2015-2020 2020–2025 2025–2030 2030 in planning

Wind CAPEX

Wave CAPEX

Tidal CAPEX

Source: ORRAD 2010

£3.5 Billion SW Capex spend on offshore renewable energy by 2030

SW Operational Expenditure

2015 - 2030

0

200

400

600

800

1000

1200

1400

1600

1800

2000

£ Millions

2015-2020 2020–2025 2025–2030 2030 in planning

Wind OPEX

Wave OPEX

Tidal OPEX

Source: ORRAD 2010

Over £350m per annum by 2030

GVA (Value Add) to the Economy

Technology 2015-2020 2020–2025 2025–2030 2030 in planning Totals

  Direct GVA Direct GVA Direct GVA Direct GVA Direct GVA

Tidal CAPEX 148 36 53 121 357

Tidal OPEX 16 32 42 65 155

Wave CAPEX 153 115 305 37 611

Wave OPEX 16 43 96 143 297

Wind CAPEX 362 154 120 113 749

Wind OPEX 250 612 811 974 2647

Totals 944 992 1427 1453 4817

£4.8bn GVA by 2030

Source: ORRAD 2010

South West Jobs – all technologies

Source: ORRAD 2010

0

1000

2000

3000

4000

5000

6000

2010-2015 2015-2020 2020-2025 2025-2030 2030 +

Dir

ect P

osts

CAPEX

OPEX

Over 80% wind related O&M

Over 5,000 O&M posts by 2030

Low Carbon Special Interest Group

Now established with remit to:

“.. involve and work with partners in the public and private sector,  organisations such as Regen SW and Institution of Civil Engineers to define our position, shape our policy, and enable progress towards the first low carbon LEP by capturing funding for the region’s projects”

Region holds many Low Carbon energy programmes, such as: Hinkley Point, Atlantic Array, Cranbrook housing heating, Numerous Waste to Energy programmes, Langridge Bio

Summary

KEY POINTS

Low cost

Collaborate

Innovative

South West is well served with good SME businesses

Offshore renewables offers the chance for these to buy into a global industry at the outset

The SW is well served with support organisations and we should support them