Discussions about the necessities and trade-offs around the transition to net zero are back on the news agenda this week (write Fraser of Allander Institute’s EMMA CONGREVER and CIARA CRUMMEY).
The changes required to meet net zero targets are complex and challenging yet the risks of not doing enough are immense. Inherent in this are trade-offs but also opportunities. An ordered transition where businesses and households have certainty over what they will need to do is the best way to minimise harm to incomes and to maximise the benefits that can be realised.
For many businesses and households, the costs associated transition to net zero will be manageable, and perhaps even cost effective in the long run. But for some, the upfront costs will be difficult to manage.
Whilst there is a general awareness of the direct costs that will fall on households from, for example the phasing out of gas boilers (a devolved policy, so not affected by the UK Prime Minister’s recent announcement) there is also the impact in livelihoods due to changes in the structure of the economy.
At the moment, all the attention is on the ‘just transition’ for workers in carbon-intensive industries, in the North East in particular. But the impact on jobs could be far wider than this.
The Joseph Rowntree Foundation asked us, along with colleagues in the Strathclyde Business School, to look into the potential for disruption to jobs in the wider Scottish economy, particularly in relation to low paid jobs. Our assessment of the available literature and various Scottish Government plans, reports and action plans didn’t provide much to go on, so we embarked on some experimental mapping and modelling of the potential intersection of net zero and low pay.
Today we published a report that we hope provides a rationale and a way forward for government, and others, to consider this issue fully. Whilst we can’t yet confidently put a figure on it, we have found that there is potential for significant disruption to jobs in sectors that employ large numbers of low pay workers, including retail and hospitality.
The mechanisms through which this impact could be felt are varied. Issues we looked at included the knock-on impact from depressed wages in areas where carbon intensive businesses cease trading. We also considered the impact on the viability of businesses with large commercial footprints who may need to invest large amounts to bring buildings up to new energy efficient standards.
There are many unknowns in this type of analysis, including the sufficiency of government policy and the behavioural response from consumers. For example, the Scottish Government is hoping to see car use reduced in Scotland.
Households may also independently decide they wish to reduce car use. It is easy to see how this could impact on the viability of out-of-town shopping centres that rely on customers arriving by car and if there aren’t serious efforts to provide adequate replacement public transport or alternative active travel routes, these large centres of employment may become unviable.
Some of the scenarios that we work through may not lead to jobs disappearing completely, but simply shifting to other places or other sectors. There are two further issues to consider here. Firstly, low paid workers tend to be less flexible on where they can work, due to a variety of factors including available transport and difficulties finding affordable childcare to cover long commuting times.
They also tend have less of a financial buffer to deal with even short periods of unemployment. Secondly, simply moving low paid jobs from one place to another misses a crucial opportunity to maximise the benefits that the transition to net zero could bring by providing career pathways into new, higher paid, growth sectors.
There is an opportunity here to better join up Scottish Government ambitions on tackling poverty and the transition to net zero that is currently missing from both the Just Transition plans and the Fair Work Action Plan. We hope this analysis will be useful in informing the future development of this work.
Communities across Scotland are being asked to consider whether their local area could be designated as the country’s newest national park.
Individuals, groups or organisations considering making a proposal can now register early interest.
Nominations will officially open later this year, once the appraisal framework has been finalised. The government has committed to designating at least one new national park in Scotland by Spring 2026.
Visiting Loch Lomond and The Trossachs National Park, Minister for Green Skills, Circular Economy and Biodiversity Lorna Slater said: “I look forward to engaging with communities and learning more about their proposals, and I encourage everyone to get involved as we move closer to naming Scotland’s next national park.
“Our existing national parks play an important role in tackling the biodiversity and climate crises, whilst also supporting local communities, businesses and visitors.
“Last year we consulted widely on the future of national parks in Scotland, and there was broad support for our commitment to create at least one new park by 2026.”
Chief Executive of Loch Lomond & The Trossachs National Park Authority Gordon Watson said: “National Parks have a vital role to play in securing a more sustainable future for Scotland. They are unique places where we can maximise the benefits that can be provided for nature, climate and people.
“Scotland has set ambitious targets to reach Net Zero and to restore biodiversity by 2045.
“If we are to reach those targets, urgent, bold action is required and Scotland’s existing – and any new – National Parks can make a substantial contribution.
“Through scaling up our efforts to lock-in carbon in the landscape, restore nature at scale and enable a greener low-emission economy, we can, together, help Scotland make significant progress towards these commitments.”
The Scottish Government is already aware of several communities or groups that are interested in putting their area forward for national park status. Our appraisal framework will help to ensure the nomination process is fair, transparent and inclusive.
Registration opened yesterday (Thursday 11 May 2023). There is no requirement to register interest in order to submit a nomination. Nor does registration commit a group or organisation to submitting a nomination.
Registration will allow the Scottish Government to update interested parties with any important information, key dates and communications throughout the process.
New plan sets out steps to unlock the potential of smart electric vehicle charging, including allowing motorists to power their homes using the electricity stored in their electric vehicle
electric vehicle drivers could save hundreds of pounds each year while cutting emissions by smarter charging of their electric vehicles
billpayers without electric vehicles will also benefit from a more sustainable, secure and efficient electricity system
projects, including a street lamppost capable of charging electric vehicles and selling power back to the grid, will receive a share of £16 million funding
Electric vehicle consumers are set to benefit from lower energy bills and cheaper motoring thanks to a landmark plan to unlock the potential of smart electric vehicle charging.
The Electric Vehicle Smart Charging Action Plan published today (Tuesday 17 January) by the government and Ofgem, sets out steps being taken to seize on the significant potential of smart charging and make it the preferred method of long duration charging by 2025.
Smart charging harnesses the potential of energy use data and the latest energy innovations to deliver significant benefits for consumers, including allowing motorists to charge electric vehicles when electricity is cheaper or cleaner, allowing consumers to power their home using electricity stored in their electric vehicle, or even sell it back to the grid for profit. It is expected high mileage motorists could save up to £1,000 a year through smarter charging.
And to back this up further, the government has today also announced £16 million funding from the Net Zero Innovation Portfolio (NZIP) for technologies that harness the potential of smart charging, including a smart street lamppost which will enable motorists to access smart charging on the move, and projects that will enable domestic appliances, from heat pumps to electric vehicle charge points and batteries, to integrate into a smarter energy system.
Energy and Climate Minister Graham Stuart said: “We want to make smart charging an easier choice for drivers of electric vehicles, whether that is charging on the driveway, at the workplace, or parked on the street. To do that we need to build new network infrastructure at pace, using the latest available technologies.
“Today’s plan sets out how we will work with Ofgem and industry to kickstart the market for smart charging, which we are backing up with £16 million in innovation funding. This will let people take control of their energy usage, in the most convenient and low-cost way.
Ofgem Director for Strategy and Decarbonisation Neil Kenward said: “As energy regulator, we’re helping create the infrastructure to deliver Britain’s net zero future at the lowest cost to customers.
“This latest innovative plan will help to maximise the benefits of smart charging, offer vital savings to consumers and reduce the overall cost of energy by seizing the opportunities to use batteries to both power homes and fuel the wider grid.”
Today’s announcements build on the major steps already taken by the government to enable smart and flexible electric vehicle charging. As of July 2022, all new charge points sold for private now must have smart functionality and the UK is consulting on a new policy and technical framework to unlock the benefits of domestic smart, flexible energy, and enhance its cybersecurity.
Through the plan, the government will improve publicly available information and evidence on smart charging, support the implementation of robust consumer service standards and ensure private charge points are secure and compatible with the latest energy innovations.
The roll out of intelligent and automated smart charging will deliver a win-win situation for all consumers. Reduced electricity system costs will lower prices for everyone, motorists will pay less for charging their electric vehicle, and the electricity powering electric vehicles will be cleaner and greener.
The government and Ofgem will seek to remove the barriers that currently prevent the full development of a diverse and competitive smart charging market, while making sure the energy system is ready to respond to the upturn in energy demand that electric vehicles will bring.
£229,000 to a project led by Otaski Energy Solutions (Gateshead, Tyne and Wear) to develop a smart street lamppost capable of charging electric vehicles and sharing power back to the grid
£220,000 to V2X-Flex (Reigate, Surrey), a project led by EV Dot Energy Ltd to develop prototype software and a new business model which will reduce entry barriers for the domestic use of V2X bi-directional chargers to provide energy flexibility services
£165,000 to BEVScanV2X (London), a project led by Agile Charging Ltd to develop technology that could overcome battery degradation by creating a cost-effective tool to monitor and advise best approaches to maximise battery life and financial returns from smart charging
Among those receiving funding today through the Interoperable Demand-Side Response (IDSR) Programme, which supports technologies that allow consumers to remotely increase or decrease their energy use to take advantage of when energy is cheaper or more renewables are on the grid, are:
£510,000 to Energy Smart Heat Pump (Chertsey, Surrey), a project by Samsung Electronics UK and their project partners Passiv UK to design and develop a technology solution that is able to provide demand side response (DSR) services via Samsung Heat Pumps, giving greater control of their usage on the basis of cost or carbon savings
£1.2 million to Smart-DSRFlex (Manchester), a project by Landis & Gyr UK to demonstrate how DSR technology can help to manage a renewables-based electricity grid using the smart meter system
£29,000 to Open DSR for All (Manchester), a project by Carbon Co-op to explore the benefits and technical barriers to an accessible approach to domestic DSR, potentially enabling more products being able to offer DSR in future
Depending on tariff, mileage, and charging patterns, smarter charging could save an average driver up to £200, and a high mileage driver up to £1000 a year by delaying the power demand from electric vehicles at peak periods, such as 4pm to 9pm on winter evenings. By helping to efficiently balance when energy is generated and used on the electricity grid, the technology could contribute to reducing electricity prices for consumers across the network.
Delivering the steps set out in the Action Plan will help make smart charging the norm at home and work by 2025. It is the ambition that in the late 2020s smart charging will also become more commonplace at long-duration public charging, such as on-street or at transport hubs.
Finalised Action Plan ‘sets out net zero opportunities’
A pathway to help make Scotland a world leader in hydrogen production has been published, but campaigners are questioning the suitability of hydrogen for most sectors.
The Hydrogen Action Plan sets out steps to help the emerging hydrogen sector in Scotland achieve an ambition of 5 Gigawatts (GW) of renewable and low-carbon hydrogen – equivalent to a sixth of Scotland’s energy needs – by 2030.
It also reaffirms an ambition to produce 25 GW by 2045, with a hydrogen economy potentially supporting more than 300,000 jobs.
Capitalising on the potential for Scotland to become a leading exporter of hydrogen is estimated to contribute between £5 billion and £25 billion a year by 2045 depending on the scale of production and the extent of exports.
The Scottish Government is making available £100 million to support the Action Plan, including a £90 million Green Hydrogen Fund, which will open early next year.
Net Zero & Energy Secretary Michael Matheson said: “Hydrogen could present Scotland’s greatest industrial opportunity since oil and gas was discovered in the North Sea.
“The technology has tremendous potential to help deliver a just transition for our energy sector, realising huge economic benefits while supporting our net zero transformation.
“Scotland has vast natural resources with which we can become world leaders in renewable hydrogen production and export, while others are looking beyond their borders to nations that can produce and provide that hydrogen at scale.
“Our Hydrogen Action Plan reaffirms the Scottish Government’s clear commitment to helping our hydrogen sector grow and prosper. We are open to the world and actively collaborating with international partners in order to realise the benefits of hydrogen.”
Climate campaigners have responded to the Scottish Government’s new ‘Hydrogen Action Plan’ by questioning the suitability of hydrogen for most sectors and highlighting the cost and inefficiency of the technology.
Friends of the Earth Scotland’s Climate Campaigner Alex Lee said: “Hydrogen is inefficient, faces costly technical barriers and is unnecessary or unsuitable in most sectors. Evidence shows that blue hydrogen made with fossil gas, which Ministers want to label as low-carbon, doesn’t deliver meaningful cuts to climate emissions.
“It is welcome that the Scottish Government has heeded the overwhelming scientific consensus on the inefficiency and high cost of using hydrogen to heat our homes. It looks like that this will not be a priority in Scotland but the Plan still suggests that the Scottish Government may attempt to blend hydrogen into the gas grid and potentially invest in ‘hydrogen ready’ boilers in new build homes.
“The Plan also backs hydrogen buses and cars despite the fact electric vehicles are streets ahead in terms of efficiency and public awareness.”
“The Government still seems to be falling for industry spin that dodgy technologies like Carbon Capture and Storage and Direct Air Capture will cut climate pollution. For decades carbon capture has failed to work at the scale promised and the few plants that have been built have been plagued by technical problems and closures.
“It’s time the Scottish Government accepted that carbon capture is not the magical solution it hopes and focused its energies on measures to cut emissions in the here and now.
“The forthcoming Energy Strategy is a chance for the Scottish Government to invest in solutions we know actually work like heat pumps and insulating homes that can help people in Scotland with their bills and unlike dodgy hydrogen help us tackle climate change.”
Decarbonisation fund recipients announced as applications re-open
Ten companies have been awarded a total of £9.4 million to help Scottish industries reduce carbon emissions through decarbonisation and energy efficiency projects.
The recipients from the second round of the Scottish Industrial Energy Transformation Fund (SIETF) are predominantly involved in the manufacturing and food and drink sectors.
The projects include a more energy efficient dryer at a seaweed processing facility, whilst several brewers and whisky distilleries will also receive funding for projects that aim to reduce the emissions that are created during energy-intensive manufacturing processes.
The projects awarded funding have the potential to reduce emissions by 40,482 tonnes of CO2 a year, the equivalent of the annual emissions from 17,000 households.
A further £160,000 has also been made available to conduct up to four engineering or feasibility studies into future projects that will aim to reduce emissions and increase efficiency within the sector by creating a pipeline of future projects.
First Minister Nicola Sturgeon announced the funding while visiting Graham’s Family Dairy, where previous SIETF funding allowed them to upgrade steam production and heat distribution infrastructure.
The First Minister said: “Reducing emissions in our manufacturing sector will be a crucial step in ensuring Scotland reaches its net zero target by 2045.
“I am pleased that the Scottish Industrial Energy Transformation Fund continues to support companies across the sector to embrace decarbonisation, improve efficiency and reduce their impact on the environment.
“This week is Scotland’s Climate Week, which puts a renewed focus upon the ongoing climate emergency and our efforts to tackle it. And as households and businesses struggle with rising energy costs, it has never been more important to support industry to become more energy efficient.
“I welcome the work that the Fund has already supported and I hope that many more businesses will apply in the future.”
Up to £34 million of Scottish Government funding will be made available through the lifetime of the five-year SIETF, which runs until 2026. The third round of applications is now live.
Robert B Graham, Managing Director at Graham’s Family Dairy said: “The SIETF programme has enabled us to accelerate our industrial decarbonisation programme, driving energy efficiencies and reducing waste.
“SIETF funding support has meant we have been able to deliver a number of process decarbonisation projects in parallel, to achieve scalable impact across our supply chain and share results to support Scottish industry & businesses with their journey to net zero.”
Peter Davison and Kieran Healey-Ryder from the Sustainability Leadership Team at Whyte & Mackay, which has secured second round funding, said: “As whisky makers we believe in a sustainable future for what we do here on Jura.
“This Scottish Government programme is a galvanising platform for industry to come together and solve for a green future right across these islands.
“This grant will accelerate our journey towards a sustainable future for whisky making here on Jura.”
SIETF supports industrial sites with high energy use to transition to a low carbon future. It will improve the international competitiveness of many companies whilst protecting jobs.
The application window for the third round of projects will remain open until 18 November 2022.
The second round of recipients of SIETF funding are detailed below:
Name
Competition
Sector
Location
Technology
Grant offered: over £2m
DSM Nutritional Products
Deployment
Food and drink
East Ayrshire
Mechanical Vapour Recompression (MVR) technology
Whyte & Mackay
Deployment
Food and drink
Argyle and Bute
Steam boiler with biomass fuel burner and flue gas purification
Grant offered: £1m – £2m
Pauls Malt
Deployment
Food and drink
Angus
The installation of a hot water network and CHP
Grant offered: £500k – £1m
Brewdog
Deployment
Food and drink
Aberdeenshire
Food grade (green) CO2 production via CO2 capture
Carbon Capture Scotland
Deployment
Dry Ice Production
Dumfries and Galloway
CO2 Feedstock Recycling
Uist Asco
Deployment
Manufacturing
Western Isles
Installation of a more efficient dryer with heat recovery
UPM
Deployment
Manufacturing
East Ayrshire
Replace existing pumps with three energy efficient turbo blowers
Grant offered: £250k – £500k
Diageo
Deployment
Food and Drink
Aberdeenshire
Installation of High Temperature Heat Pump
Macphie
Deployment
Food and Drink
Aberdeenshire
Conversion of oil fired steam plant to natural gas
Tennent’s
Deployment
Food and Drink
Glasgow City
Air compressor and spent grain transfer and smart air injection and spent grain removal technology
Grant offered: £100k – 250k
DSM Nutritional Products
Deployment
Food and drink
East Ayrshire
Heat recovery DCM evaporator and preheat feed effluent columns
City council leader Cammy Day said yesterday: The climate crisis represents the single greatest threat to all humankind, and it is something that we must face together.
Whilst recent events such as the death of Her Majesty The Queen, the ongoing cost of living crisis, and events in Ukraine have dominated our thoughts and indeed the news cycle, we must now turn our efforts back to arguably the most pressing issue of our time.
As Scotland’s Climate Week begins today, I would like to reiterate our commitment to becoming a net-zero city by 2030 and spearheading the climate fightback here in Scotland’s Capital. This is a cornerstone of the Council’s long-term goals, and I am determined that we will play our role in the wider climate effort.
As Council Leader I will be attending the UK100’s Climate Leadership Academy this autumn. This programme for leaders across the UK will provide knowledge on decarbonisation, financial transition, energy, and nature/adaption.
I relish the opportunity to speak to other local government leaders from across the country and the political spectrum. The climate crisis is a collective problem and as such requires a collective and cooperative solution.
To achieve net-zero, everyone must play their part in driving climate action. A reduction in emissions needs to take place across all areas of society and business sectors. Overwhelmingly, the scientific evidence clearly shows that to prevent the worst impacts of climate change, the increasing global temperature must be limited to 1.5°C.
Here in Edinburgh, we are already on our way to becoming a greener city.
This summer we launched a citywide network of electric vehicle chargers located on streets and at park and ride sites, which will help people to choose cleaner, low emission electric cars.
In June the citywas awarded silver statusby the Sustainable Food Places Network, recognising the Capital’s pioneering work to promote healthy and sustainable food. The City of Edinburgh Council was also ranked third in the UKby Climate Emergency UK in their scorecard of local authority’s climate action plans.
At the start of #ScotClimateWeek I would like to call upon our fantastic residents, businesses, and partner organisations to renew their climate commitments. Our dedicated climate webpage is filled with information on Edinburgh’s 2030 climate strategy, tracking our progress and climate action in the city. I would encourage everyone to educate themselves on the climate crisis and find out how small, individual changes can make a lasting impact.
Encouraging people to consider alternatives to travel by car like walking, wheeling, cycling and travel by public transport is essential to our net zero goals and we’ve set a target of reducing the kms travelled by car in Edinburgh by 30% by 2030. Last week we marked Car Free Day and this Sunday (2 October) we’ll be holding a fun event on Waverley Bridge to celebrate the occasion. The area will be transformed into an inclusive community hub of information, inspiration and activity encouraging people to consider more sustainable forms of transport.
We remain in the midst of a challenging fight against climate change, and the significant impacts that are already being felt across the globe. However, I remain confident that our capital city and its people will persevere and play their part in this shared effort to make our planet a safer, sustainable, and more prosperous place to live.
With Scottish Housing Day (14 September 2022) focusing on sustainable housing, the Alliance of Registered Co-operatives and Housing Associations, Independent in Edinburgh (ARCHIE) is working collaboratively to address the challenges around decarbonisation and energy efficiency and provide advice on how tenants can live sustainable lives, from energy saving tips to financial support.
Past ARCHIE successes include joint ventures such as distributing energy saving packs to tenants and energy use advice. One of the most successful projects is the provision of Tenant Advice Services, which includes money, debt, benefits and tenancy sustainment advice.
Through sharing services and collaborating on joint activities ARCHIE members provide value for money and keep rents affordable.
The ARCHIE members are Lister Housing Co-operative, Manor Estates Housing Association, Muirhouse Housing Association, Port of Leith Housing Association (PoLHA), Prospect Community Housing, Viewpoint Housing Association and West Granton Housing Co-operative.
Larke Adger, Chair of ARCHIE and Chief Executive, West Granton Housing Co-op commented: “Through collaborative working, we have achieved better services and support for tenants across all ARCHIE member organisations.
“We look forward to continuing to build on this work to help create thriving, sustainable communities.”
– Planet Friendly Eggs become first carbon neutral food product to be stocked by Morrisons on its drive to be directly supplied by net zero British farms –
– Cambridge University report confirms carbon neutral status and product will be the first to feature the British Lion Egg green stamp to indicate a lower environmental impact –
Morrisons has become the first supermarket to launch its own line of carbon neutral eggs as part of its commitment to be directly supplied by ‘zero emission’ British farms by 2030, five years ahead of the rest of the supermarket industry.
In stores now, Morrisons new carbon neutral ‘Planet Friendly Eggs’ come from Morrisons farms where hens are fed a soya-free diet of insects – which are in turn fed on food waste from its bakery, fruit and vegetable sites.
This pioneering ‘circular waste’ feeding scheme, powered by Better Origin technology, reduces deforestation caused by soya production and negates the carbon emissions emitted from transporting this soya.
The egg farm where the first stock of Planet Friendly Eggs will originate also has a large wind turbine, 50kWh solar panels, and a carbon sequestration programme to offset any remaining emissions on the farm – with 20 percent of its land planted with trees.
Morrisons has been working with its farmers to create net zero carbon farm ‘models’ that look at neutralising emissions through the whole lifecycle and footprint of the farm. Planet Friendly eggs are the first product to come out of these models, with sustainable beef, lamb and fruit and vegetables to follow.
A report by Cambridge University has confirmed the carbon neutral status of Morrisons new Planet Friendly Eggs, having analysed all carbon emissions in the eggs’ production and those which are offset on Morrisons first carbon neutral egg farm. The report considers the holistic production of the eggs, including the Better Origin X1 insect growing unit and food waste transport, the sourcing of locally grown grain and the hen housing and care.
The product is also set to be the first to feature the British Lion Egg green stamp on its eggs to indicate the lower environmental impact to customers.
Morrisons Planet Friendly Eggs cost 30p each or £1.50 for a pack of six. They are initially available in 50 Yorkshire stores and Morrisons new lower environmental impact store in Little Clacton, with a national rollout planned for 2023.
Sophie Throup, Head of Agriculture at Morrisons, said: “This is our first carbon neutral product and there will be many more to come. It’s all part of our drive to be directly supplied only by ‘zero emission’ British farms by 2030.
“We know our customers consider the environmental impact of the food they eat and want affordable zero emission produce. Eggs are a regular weekly purchase for most households and so we’re thrilled that after 18 months of hard work with our farmers – these eggs are finally hitting our shelves.”
Ian Bamford, Commercial Director Centre for Industrial Sustainability at the University of Cambridge, said: “We were very pleased to have the opportunity to review and analyse the approach that Morrisons have taken to calculating the carbon impact of several of their egg producers.
“It was clear that the mitigation actions that had been put in place by the first farm to produce carbon neutral eggs enabled them to meet that goal.”
Mark Williams, Chief Executive for the British Egg Industry Council, said: “It’s great to see that Morrisons has launched a carbon neutral British Lion egg pack under its own brand, in a first for a UK retailer.
“Eggs generally have a significantly lower environmental impact than other animal proteins and they are a highly nutritious, natural and great tasting choice for all the family. We look forward to seeing more green Lions in the near future.”
An insect ‘mini farm’ was introduced onto the egg farm to feed the hens. The ‘mini farm’ container, in which millions of insects are kept, was developed and powered by Better Origin. Each container can help feed 32,000 free range hens and receives three tonnes of waste from Morrisons fruit and vegetable site each week. The insects can grow to 5,000 times their initial body mass in less than 14 days.
Fotis Fotiadis, CEO & Founder at Better Origin, said: “We are thrilled to see Morrisons introduce a carbon neutral product, powered by our technology, to the public. The current food supply chain isn’t sustainable in the long term and while it is certainly effective, it’s coming at a cost to the environment.
“Our ambition at Better Origin is to change that by creating a more sustainable circular food chain, so to finally see the first carbon neutral product from Morrisons hit the shelves is testament to the incredible work of the Morrisons team involved.”
Morrisons is committed to introducing sustainable products across all areas of the supermarket by lower emission sourcing and reducing the amount of plastic used.
Earlier this year, Morrisons became the first supermarket to commit to selling its own milk in carbon neutral cartons. The agricultural targets of Morrisons form part of the overall business plan to become ‘net zero’ for emissions by 2040, in line with the international Paris Agreement.
Supplying Scottish towns and rural communities with sustainable hydrogen gas will be the focus of a landmark partnership announced today between gas distribution company SGN and renewables generator RWE.
A Memorandum of Understanding (MoU) has been signed between the two companies to investigate the development of electrolysers, powered by RWE’s 10 onshore wind farms in Scotland which have a combined capacity of 213 megawatts, to supply homes and businesses with hydrogen gas via Scotland’s gas network.
Hydrogen has a crucial role to play in achieving net zero and is an essential component to decarbonise sectors like industry, heavy load transport, aviation and heat. Published in April 2022, the UK Government’s Energy Security Strategy doubled its ambition for low carbon hydrogen production capacity to 10GW by 2030. Similarly, the Scottish Government’s Hydrogen Action Plan aims to create 5GW of hydrogen by 2030 and 25GW by 2045.
The partnership will investigate the decarbonisation of homes and businesses connected to the networks of Campbeltown, Stornoway, Oban, Thurso and Wick, which are not connected to the mains gas network.
These networks are currently supplied by Liquified Natural Gas (LNG) and Liquified Petroleum Gas (LPG), which when swapped with hydrogen could save 21,000 tonnes of carbon each year and decarbonise around 9,500 properties.
The partnership will define how much hydrogen is needed, the requirements to convert these networks to hydrogen, and the supply of green electrolytic hydrogen from RWE’s renewable onshore wind farms nearby. In doing so, the project could also unlock onshore wind farm developments in grid-constrained* areas, by providing a use for the green electricity generated.
A feasibility study will also be conducted over the coming months into a 100-megawatt (MW) electrolyser at RWE’s Markinch CHP biomass plant.
This could produce green hydrogen from local and grid connected renewable energy, to connect into SGN’s gas network in Fife. It would build on the work SGN is already undertaking in Levenmouth on their world-first H100 Fife project.
Steve Boughton, RWE Director Hydrogen Development, said: “This MoU is a perfect partnership to develop options for the decarbonisation of domestic and business gas networks, and to help Government achieve its ambitions for 10GW of hydrogen production.
Hydrogen will play an essential role in the pathway to net zero, particularly in industry and homes which are hard to decarbonise, and RWE is perfectly positioned to support the development of the UK hydrogen economy.”
Fergus Tickell, SGN System Transformation and Business Development Lead, said: “We’re delighted to partner with RWE which shares our belief that hydrogen gas has a leading role in the decarbonisation of homes, businesses and industry in Scotland and the rest of the UK.
“We’ll explore how hydrogen produced locally can be delivered through the world-class networks we’ve been operating for decades, to all of Scotland’s communities, including in Fife, Campbeltown, Stornoway, Oban, Thurso and Wick. We also look forward to investigating more opportunities across the UK.”
The knowledge and experience gained from these initial studies will enable a better understanding of the practicalities and economics of the entire hydrogen cycle and will be an important precursor to a potential funding application under the UK Government’s Net Zero Hydrogen Fund.
Tackling climate crisis prioritised in future spending plans
Net Zero Secretary Michael Matheson has pledged to maximise the use of public funding to accelerate the delivery of plans to tackle climate change.
The Resource Spending Review, published this week, commits to increased spending on heat in buildings, active travel and peatland and woodland restoration.
Capital spending on programmes will also increase by over half a billion pounds over the next three years, to speed up the reduction in greenhouse gas emissions and build climate resilience across Scotland.
The Scottish Government has also committed to increasing its efforts to leverage private sector investment in the just transition to net zero, to make better use of limited public funds.
Key commitments in the Resource Spending Review include:
up to £75 million per year to deliver the Heat in Building Strategy, enabling £1.8 billion investment towards targets to decarbonise over a million homes and 50,000 non-domestic buildings by 2030;
up to £95 million towards meeting woodland creation targets of 18,000 by 2024/25;
£46 million to introduce the community bus fund and an increase in funding for concessionary travel schemes as well as investing up to £150 million of resource and capital across the spending review period in active travel, as part of a shift of transport funding to walking, wheeling and cycling – supporting our commitment to cut car kilometres by 20 per cent by 2030;
investment of over £12 million in peatland restoration to double current restoration rate and put us on track to hit our target of 20,000 in 2025/26;
£4 million of resource spending alongside £150 million capital and financial investment for the North East and Moray Just Transition Fund;
Rollout of the agriculture National Test Programme to enhance farmers and crofters’ awareness of their climate performance.
Net Zero Secretary Michael Matheson said: “This spending review comes at a critical point in the global challenge to address the climate crisis. Tangible global action is becoming ever more urgent, and Scotland is committed to playing its part with some of the most ambitious, legally-binding targets in the world.
“That is why our future spending plans prioritise investment in the package of measures to tackle climate change and deliver a just transition – as set out in our updated Climate Change Plan.
“But, as the Finance Secretary set out earlier this week, the challenging fiscal environment in the coming years means we must redouble our focus on efficiency, structural change and collaboration.
“That is why I am committed to ensuring we maximise every penny of public investment, working collaboratively with the private sector and our communities to accelerate delivery of public policies that will reduce emissions, build resilience to the impacts which are locked in, tackle biodiversity loss and help to create a fairer, greener society.”
The challenge of reaching net zero in Scotland’s communities is to be explored in a series of visits by a Scottish Parliament committee.
Holyrood’s Net Zero, Energy and Transport Committee is looking at the role of local government and its partners in making a real and lasting impact on the environment. Now the Committee want to see this work in action by visiting projects across Scotland.
The Committee will begin the series of visits by going to Stirling, Orkney and Aberdeen where they will explore how the private sector, third sector, social enterprises and local communities are working with local government to meet net zero targets.
Speaking ahead of the visits, Committee Convener, Dean Lockhart MSP, said: “So many of the key areas in helping Scotland reach its net zero targets sit with local government. Issues such as travel, housing, recycling and the circular economy have a huge impact on Scotland’s environment.
“But we know that local government can’t make this change alone. That is why we want to see how councils across Scotland are working with their communities and building relationships with business and the voluntary sector to embed these changes and make a difference to climate change.
“Our visits will allow us to see first-hand the positive work happening across this country as well as finding out what more needs to be done to make the net zero targets a reality.”
The Committee will be visiting Stirling tomorrow (23 May), Aberdeen on 30 May and Orkney on 6 June.
