50% of Companies in ‘Critical’ Financial Distress

The number of construction companies in “significant” financial distress hit increased 38.6% in Q1 2024, reveals the latest Begbies Traynor Red Flag Alert research.

In addition, construction was the sector with the most companies in “critical” financial distress, hitting 6,141 in the first quarter of this year.

Overall, the level of “significant” financial distress leapt 30.8% year-on-year in Q1 2024 with 554,554 companies affected (Q1 2023: 424,041).

The construction, food and drug retailers and general retailer sectors in particular drove the increase in “significant” financial distress.

With many companies in “critical” financial distress expected to enter insolvency over the course of the next 12 months, the picture in the construction, real estate, financial services and support services sectors is particularly concerning as nearly 50% (c.20,000 businesses) of the companies in “critical” financial distress are represented by these sectors.

Julie Palmer, partner at Begbies Traynor, said:

“Despite some optimism as we entered the new year, 2024 has so far been characterised by a continuation of the same pressures that plagued companies in the UK throughout 2023.

“Since the pandemic, hundreds of thousands of UK businesses depleted their financial reserves and loaded their balance sheets with increasingly unaffordable debt which for many may simply be too great to bear.

“As with the prior quarter, the picture is particularly concerning in the consumer facing sectors.

“We are starting to see this translate into larger companies entering insolvency, a trend that I expect to continue while consumer confidence remains uncertain.

“On top of that, the higher levels of financial distress in bellwether sectors such as real estate and construction point to a troubled UK economy.

“Right now, many companies will be pinning their hopes on a meaningful cut to interest rates later this year, but the Bank of England continues to be hawkish, so it is unlikely to make a cut in the near-term given inflation is still higher than expected.

“All of this means that these pressures are here to stay, and I fear this will result in thousands of businesses failing in the coming months as the constant pressures will become too great for many.”

 

Source: Development Finance today

 

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Net Zero: Invest and Profit

How will the transition to net zero affect the UK economy?

The rapid roll-out of clean energy and energy efficiency measures needed to deliver the net zero transition will be capital-intensive upfront but can serve to make the UK economy resilient, productive and competitive in the long term.

In 2020, the Government’s independent climate advisers, the Climate Change Committee, estimatedthat additional annual investment of over £40 billion would be needed as early as 2025, combining both private and public investment, increasing to around £50 billion between 2030 and 2050. Ensuring the UK can maximise economic and social opportunities from the transition means going beyond bringing emissions to net zero: it will also require designing policy and investments to make up for decades of underinvestment in key assets like public buildings and skills, tackling biodiversity loss and environmental degradation, and developing domestic capabilities in markets of the future. Achieving these objectives will require additional annual investment equivalent to at least 3% of GDP (or £77 billion, at current prices), with at least 1% of GDP (or £26 billion) coming from the public sector, according to a recent estimate.

What evidence is there for clean investment bringing economic benefits?

Investment into a clean economy can have long-term benefits for growth and productivity, as International examples demonstrate. Examples from the UK also highlight the opportunity for investment in clean technologies to induce creativity and innovation across the whole economy and generate new learning and experience along the way. For example, the Government’s investment in offshore wind, which started in the early 2010s when its cost was several times that of existing generation sources, has since supported cost reductions through economies of scale and further technological innovation. As a result, offshore wind now produces almost 15% of the UK’s electricity and has become one of the cheapest forms of energy generation, while also providing new jobs and export opportunities.

The economic gains are even greater when we take full account of the co-benefits that result from joined up deployment of clean alternatives across sectors, such as reduced traffic congestion and air pollution from investment in compact cities connected by public transport and electric vehicles, powered by renewable energy. These problems currently threaten people’s wellbeing and limit productivity, with air pollution costing the NHS and businesses more than £20 billion each year.

How can the net zero transition improve productivity and efficiency?

The majority of the economic activities involved in the transition towards net zero – such as investing in renewable energy and constructing more efficient buildings – have the potential to boost the UK’s productivity. This is achieved through improving energy and resource efficiency, shifting from low productivity sectors to the new, innovative, higher value-added sectors of the clean economy, and through process and product innovation in existing sectors.

Many low-carbon technologies are more efficient, and thus cheaper, to run than their fossil fuel counterparts. For example, electric vehicle drive systems have 15–20% energy loss, compared with 64–75% for petrol cars. Clean technology use will also shield the UK from the volatility of global fossil fuel markets. Even when upfront and running costs are incorporated, certain clean technologies have become almost exponentially cheaper in recent decades, while the real price of fossil fuels has remained roughly constant for more than a century. These cost reductions were made possible by economies of scale and learning by doing, causing an upsurge in demand and encouraging further innovation and cost reductions. In contrast, increased production of fossil fuels triggers the opposite effect, since it becomes necessary to extract a flow of resources that are ever more difficult and expensive to access, tying up expensive labour.

How can the growing demand for clean technologies benefit the UK?

The UK is an innovative economy and can access growth benefits as a centre of finance and services such as consultancy, engineering and design, which will be core to the green transition. It is also specialised in the innovation of several clean technologies that are seeing rapid growth globally, such as offshore wind, carbon capture, usage and storage (CCUS), and tidal stream energy. Further investment in these innovative technologies can unlock export opportunities as well as productivity-enhancing spillover effects into other sectors, with potential for relevant investments to support local prosperity as well, particularly in less productive parts of the country. Major economies like the US, EU, China and India have already introduced strong policy packages to develop the knowledge clusters and supply lines of the future and so there could be a risk that the UK falls behind if its policymakers do not act in this respect.

Some have argued that ambitious climate policy may have inflationary impacts as it drives up demand for materials and labour while supply remains insufficient. Yet recent experience with the energy crisis suggests inaction could be even more inflationary, as continued reliance on fossil fuels would keep the UK vulnerable to inflationary price shocks in global markets. Locking into fossil fuel infrastructure such as new oil and gas fields in the North Sea, and the continued construction of energy-inefficient buildings, also creates the risk of stranded assets, future financial losses and costs for businesses and households that will likely fall back on taxpayers. The Office for Budget Responsibility has estimated that if the UK continues its dependence on gas at the current level, recurring gas price spikes could add around 13% of GDP to public debt by 2050.

 

Source: LSE

 

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Brownfield Site for Walsall Homes

During a recent visit, Andy Street, Mayor of the West Midlands praised GreenSquareAccord’s (GSA) Canalside Close development which is being built in partnership with Keon Homes.

GSA’s Canalside Close development, located in Blakenall Heath in Walsall, will provide 33 affordable homes on disused industrial land close to the Wyrley and Essington canal. The housing scheme will be comprised of one and two bed apartments alongside houses with two and three bedrooms totalling 33 new and fully affordable homes.

The West Midlands Mayor’s visit to Canalside Close was part of a campaign to seek new powers to block controversial Green Belt developments and reclaim even more derelict industrial sites.

Andy commented:

“Canalside Close is a perfect example of what can be achieved when a builder and a housing association tap into new modern methods of construction through a partner like LoCaL Homes.

“We will eventually have 33 new homes for individuals and families to enjoy – all benefitting from high energy efficiency that is so important during the current cost-of-living crisis.”

 

Construction on the first properties at Canalside Close is complete with the new occupants already collecting the keys to their homes.

Sophie Green, a GSA customer who recently moved into her new home at Canalside Close, said:

“I am starting to feel settled into my new place and it’s amazing to know that I’m the first person to live here. It’s great to have the towpath so nearby which is perfect for an evening stroll now that the weather is getting better.”

Sophie’s new neighbours Chad and Kelly said:

“We are really happy with our new houses and the service we have received so far.”

Mike Nolan, Head of Development at GSA said:

“It is fantastic to see construction of the first homes at our Canalside development in Blakenall Heath now complete. It can only be good news for the local community that we are providing 33 new homes on a site which had become a hot spot for fly tipping in recent years. Our new homes at Canalside Close will help to address local housing pressure without impacting on precious green spaces.”

All the new homes on Canalside Close will be built using the low carbon LoCaL Homes Eco-200 off-site closed timber panel system, which is reducing construction times on site, and achieving savings overall in terms of carbon release.

The external wall panels will be finished with a brick slip system applied in the factory and will further improve both the quality and delivery of the development. Waste will also be dramatically reduced and will make for a much cleaner and safer site.

Mike Doolan, Sales and Partnership Manager at LoCaL Homes said:

“We recently had the pleasure of giving Mayor Street and his colleagues a tour around our award-winning factory in Walsall.

“It was great to follow up on this with a visit to the Canalside Close development where the West Midlands Mayor could see first-hand how LoCaL Homes’ off-site closed timber frames have been deployed.

“The future occupants of the homes at Canalside Close will benefit from reduced fuel bills thanks to a fabric first design approach and thermal efficient materials used in construction.”

 

Incoming residents to Canalside Close will have an allocated parking space, access to cycle storage and will be a short stroll away from the canal towpath.

Matt Beckley, Head of Development at Keon Homes, said:

“It is built into our operating strategy that we are ‘Brownfield First’ and the development at Canalside Close shows why it is the right decision.

“This was a derelict piece of land in an area that desperately needed affordable housing. Working in partnership with GSA, LoCaL Homes and local authority partners we have brought it to life in a way that really benefits the local community.”

 

The Canalside Close development is within easy reach of several local schools, including Rivers and Goldsmith Primary Academies, a nursery and playing fields which make the housing scheme an ideal base for those with young children.

 

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Liquidation Leaves Development Un-finished


The housing development has been left half-finished.

 

Half-finished Shrewsbury housing development ‘to be finished next spring’ after builders went into liquidation.

A half-finished housing development left abandoned after a construction firm went into liquidation “will be finished by next spring”.

Concerns had been raised over mess and safety after the development in Racecourse Crescent, Shrewsbury was left untouched for several months.

Star Housing, Shropshire Council’s housing arm, had instructed Tricas Construction to build 13 affordable homes on the site of the old police station next to Monkmoor Recreation

But Tricas went into liquidation, causing work to grind to a halt.

The council has expressed “disappointment” over the situation, but insists it is trying to get a new contractor in place and hopes the work will be done by next spring.

A Shropshire Council spokesperson said:

 “STAR Housing is disappointed over the liquidation of Tricas Construction, its contracting partner for the development at Racecourse Crescent.

“Tricas Construction made STAR Housing aware of some the challenges it was facing during a very difficult time for the construction industry. STAR Housing did its best to support Tricas Construction during this period but due to the complexity of the issues facing Tricas

“Legal matters arising from this situation are being addressed and efforts are underway to secure a new contractor to complete the project.

“Safety measures have been implemented on the site, and STAR Housing anticipate the completion of all work by Spring 2025.

“STAR Housing remains committed to completing this important affordable housing scheme in Shrewsbury.”

Source: Shropshire Star

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Access2 Wins ADSA Sponsored Award

 

Pic Cap: Ken Price (left) presents the award to Neil Rule of Access2 seen here with Philip Goldberg (right), Treasurer of the GAI.

 

This month (April) Access2 clinched the ADSA Sponsored Product Design and Innovation Award (Electronic) at the AI Specification Awards 2024.

The Newcastle-upon-Tyne company, which specialises in the supply of master keyed cylinder locks, scooped the prestigious award for TeDee – a keyless home locking system which can be used remotely via a smartphone or watch.

ADSA managing director Ken Price attended the ceremony at Southwark Cathedral and presented the award to Access2 MD Neil Rule.

Judges considered TeDee a “highly innovative product combining functionality, aesthetics and security with the convenience of modern technology” and deemed it a “most impressive product”

CLICK HERE  TO WATCH THE WINNING ENTRY VIDEO

 

This was the second time that electronic solutions have had their own category in the biennial awards – reflecting levels of innovation within the industry and the demand for blended solutions. The category attracted significant entries, showcasing solutions which combine traditional architectural ironmongery with electronic/technological components and interfaces.

Other finalists included: UAP Limited for IONIC, ASSA ABLOY for Openings Studio and Surelock McGill: Trent for its mechanical and electronic access control heavy duty lockable handle.

Organised by The Guild of Architectural Ironmongers (GAI) in conjunction with the Royal Institute of British Architects (RIBA), the awards are staged to identify and reward excellence in the specification of architectural ironmongery in the construction industry.

Said ADSA Managing Director Ken Price:

“It was a wonderful event hosted in a magnificent venue – a place where we could appreciate the historic architecture and marvel at the skills that must have gone into building such a place.

“Our warmest congratulations go to the team at Access2 which has demonstrated ingenuity and innovation by using emerging technologies to improve security and provide home owners with convenience and peace of mind.”

CLICK HERE FOR THE ADSA WEBSITE

 

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PLASTICS: From Hero to Villain

Author Ashley Bateson

In the last 100 years plastic has gone from hero to villain, having a catalytic effect in transforming our buildings in the modern era. However, our industry needs to understand all the societal and environmental impacts to make more informed materials choices if we are to build a sustainable future.

With their remarkable versatility and affordability, plastics have revolutionised modern construction, underpinning technological advancements and societal progress. As an excellent insulator it enabled widespread electrification and became synonymous with the modern lifestyle through products such as the Bakelite radio, telephones and mobile devices. Plastic also helped to replace severely harmful materials such as asbestos insulation and lead pipes. However, plastic has now become so pervasive that we have sleepwalked into an environmental crisis. A plastic bag was recently found at the bottom of the Mariana Trench in the Pacific Ocean, and microplastics have been found in snow samples in the death zone on Mount Everest.

Plastic consumption.

As we become more attuned to the sobering reality of single-use plastic consumption, there has been a public drive to reduce this which has resulted in initiatives such as the carrier bag charges implemented across Europe and UN continues its efforts to tighten plastic pollution laws.

Despite this pressure, global plastic production is predicted to double by 2050, and this is why we must look beyond single-use plastics. The construction industry directly accounts for 20% of plastic demand, and this is set to increase.

It is used in a variety of building elements including pipes, cables, seals, window frames, floor coverings, and thermal insulation. The longevity of plastic in buildings can be 25-35 years or so, and this creates problematic waste streams; especially when we consider building life cycles can be 60 years or more. We are also beginning to understand the health risks of plastics in buildings, especially when there are high levels of additives. The heavy reliance on plastics is also a barrier to the net zero carbon mission, with plastic production potentially becoming the most significant driver of oil demand globally as the energy sector decarbonises.

Recycling is often presented as a solution to the plastic crisis, but in practice this has some crucial limitations.

Due to the diversity of plastic types, it is difficult to sort and efficiently process waste streams. Many plastic types diminish in quality in the process, such as PVC, meaning that they can only be downcycled to inferior uses. As a result, recycled plastic is often more expensive to produce, severely impeding its uptake. While recycling should be promoted due to its ability to reduce waste and optimise plastic production, it does little to solve the consumption side of the problem.

Alternatives.

Alternative materials such as aluminium, glass and timber should be considered instead for some applications. Mineral wool is often a suitable low-carbon thermal insulation material compared to expanded polystyrene.  Timber window frames are a suitable alternative to PVC window frames, which are much more common in Europe. Clay drains can be a suitable alternative to plastic drainpipes and cast iron rainwater pipes can last much longer than plastic rainwater pipes, and are less prone to physical damage.

The hard truth is that the main reason for selecting plastic building materials is often short-termism, or prioritising lowest initial cost rather than taking a life-cycle perspective.

Sustainable materials can make sense with a long-term view, where the benefits of resilience, durability, ability for reuse and more efficient recycling loops come into play. Short-termism also obscures the negative externalities of waste, where the polluter pays principle often isn’t applied.

Conclusion.

To bend the plastics curve and remediate the carbon cost and plastic waste crises, we need to take holistic, systemic approaches that inherently reduce production and consumption. This will require making informed long-term decisions that account for the true cost of the materials we consume. Innovation can play a role, from new recycling processes, materials or circular ‘product as a service’ business models but a wider cultural shift to stewardship is needed to achieve a truly transformative effect that addresses consumption. It is only by recognising that the plastic crisis is so deeply engrained in society that we can begin to design an entirely new sustainable paradigm for the future.

Source: Hoare Lea

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Will Britain Ever Build Enough Houses?

Housing planning reform is high on the political agenda as we head towards the general election

Our 2024 outlook for the UK homebuilding sector is negative. While the UK’s housing underdevelopment is a long-term positive for homebuilders, current industry and economic headwinds will continue to hinder development as homebuilders navigate current market uncertainty.

By the end of 2024, the UK will most likely be headed to the polls. Housing planning reform is high on the political agenda as the current planning system is one of the barriers to housing affordability. Ultimately, the path to affordable housing is through increased supply. While Britain’s two main political parties are targeting 300,000 new homes built per year, builders have constantly fallen short of this target.

Although we are cautiously hopeful of a housing market rebound, partly because of the stabilisation of interest rates and building costs, builders continue to face a myriad of ongoing challenges, making achieving this target in the near term an uphill battle. Among these challenges are upcoming regulatory changes, considerable red tape, a shortage of small builders, a tight labour market, and incentives required to attract new homebuyers, all of which affect homebuilder profitability and, consequently, the number of homes completed.

Notwithstanding the government’s plan for increased housing, we anticipate builders will continue to tread cautiously and manage housing delivery with an eye toward maintaining their own profitability, while continuing to invest for the future.

Poor Quality Housing

According to a report from Resolution Foundation, about one in 10 people across the UK (roughly 6.5 million) live in poor quality housing – defined as homes that are not in a good state of repair, where heating, electronics, or plumbing are not in good working order, and where damp is present.

The report states that poor quality housing is concentrated among young people, low-income families and those from ethnic minority backgrounds. Moreover, the UK population is projected to grow from approximately 67 million as of mid-2021 to 70 million by mid-2026 and further to 73.7 million by mid-2036, according to the Office for National Statistics.

Despite the UK’s considerable need for housing, new housing remains muted amid significant property development challenges. The expectation of interest rate cuts in 2024 should be positive for housing affordability and some demand. However, given the constrained supply, housing prices will likely remain elevated until supply and demand dynamics normalise.

A complicated planning system and considerable regulatory hurdles continue to make homebuilding inefficient. New development permits follow a complex process and lengthy wait times resulting in a slow pace of development and increased costs. The UK government is pushing for reform with efforts towards prioritizing brownfield development and speeding up the planning system. However, it is yet to be seen whether the current government will be more successful than its predecessors on this front.

Regulatory Changes Coming in Housing

The “Future Homes Standard” is part of the UK government’s plan to deliver zero-carbon homes by 2025. The standard will ensure that new homes are future-proofed and produce a minimum 75% lower CO2 emissions than those built to current standards. The standard prioritises low-carbon heating systems and focuses on the efficiency of a building by improving insulation and minimizing heat loss.

These changes will require builders and their subtrades to enhance their skills through training and adoption of new technologies. Beyond the increased cost to builders, companies are likely to face other challenges such as design changes, lack of expertise, and potential issues arising from managing new supply chains and the maintenance of lowcarbon heat pumps. While larger homebuilders have likely begun the transition process with their design teams, we expect smaller homebuilders may struggle throughout the transition period, with regard to the added costs and training required to develop the technical understanding of the new regulations.

Biggest Housebuilders Take Charge

Historically, small and medium-sized enterprises (SMEs) played a significant role in the housing market. Unlike national homebuilders, SMEs are often embedded within the communities they build, making them the most suitable to assess local need.

Forty years ago, SME builders (those that focus on only a handful of sites at one time) delivered 40% of homes. Today, this figure is closer to 12% as larger developers such as Barratt Developments (BDEV), Taylor Wimpey (TW.), and Persimmon (PSN) dominate the building landscape. Over the years, SME builders have been disproportionately affected by bureaucracy and challenges accessing suitable land.

Land is typically sold via a competitive process and the number of sites under 100 plots (i.e., those for which SMEs would typically compete) have fallen consistently since 2016. We expect operating pressures will continue to have a greater impact on SMEs. Unless there is significant government reform encouraging SME builders, we believe the problem will only get worse as large builders gain market share and continue to benefit from their economies of scale as it relates to land acquisition, preferential subtrade scheduling, and materials pricing.

Affordability Affects Profitability

According to the Office for National Statistics, over the last 25 years, housing affordability has worsened in every local authority, especially in London and the surrounding areas. In 1997, 89% of local authorities had an affordability ratio of less than five times workers’ earnings, whereas only 7% had this level of affordability in 2022. There are significant differences in affordability across the country and regionally, London continues to have the lowest affordability, while Scotland and Ireland are the most affordable.

Uncertainty around homeowner affordability affects builders in several ways. In an uncertain market, builders increasingly need to offer incentives to attract new homebuyers. Such incentives, including upgrades, price reductions, waived closing costs, or reduced interest rates, affect project profitability. Despite the Government’s initiatives to boost development, we expect most developers will be required to continue to adjust prices and offer incentives to improve homebuyer affordability and drive demand. Therefore, we expect builder profitability to remain under pressure.

The UK Trade Skills Index 2023 report has highlighted the need for 937,000 new recruits by 2032 to bridge the skills gap in the construction and trades industry. Of this, nearly a quarter of a million (244,000) must be qualified apprentices to fill a growing gap. The UK’s tight skilled trades market has extended construction timelines, raised costs, and impeded productivity. Solutions to these labour challenges are critical for the homebuilding sector. Looking ahead, we expect construction and financing cost inflation to ease; however, we believe the shortage of skilled labour will continue to hinder development. Until there is significant progress on this front, builders will continue to struggle with their own productivity and that of their trades, which will further extend timelines and could lead to additional labour cost inflation.

Big Builders Don’t Provide Low-Income Housing

According to the National Planning Policy Framework (NPPF), at least 10% of each major housing development must consist of affordable homes. Outside of these requirements, homebuilders may have less incentive to provide housing aimed at consumers in low-income brackets, despite the wider social benefits. Homebuilders that focus on the step-up or luxury market are in a better position than those focused on first-time homebuyers. Not only is the demand for these types of housing less cyclical, but they are typically more profitable.

Helping qualifying individuals into homeownership is a highly political topic. The Government has in place several schemes to help support first-time homebuyers and those in low-income brackets. For example, “Help to Buy” was introduced in 2013 and ended in March 2023. This Government-backed scheme gave first-time homebuyers extra money to buy their first home. If potential homebuyers saved up 5% for a deposit, the Government granted a loan of up to 20%, interest free for up to five years. Approximately 292,000 properties were purchased using this scheme as the Government provided loans totaling over £17 billion.

Reform Needed to Build More Houses

Although this scheme has now drawn to a close, there are other options to support homeownership such as the “Shared Ownership” or “Rent to Buy” programmes. However, without adequate housing supply in place, these schemes exacerbate the same housing problem they are trying to solve.

The recent stabilisation of finance and construction costs is a positive signal for homebuilders and buyers alike. However, development challenges continue to restrain homebuilding activity and require significant government reform to reduce the red tape and ease restrictive planning regulations, lower the barriers to entry that prevent SMEs from competing, and attract skilled workers.

Resolving these issues requires significant reform from policymakers and would create an environment conducive to higher homebuilding. We expect housing plans for both political parties will continue to fall under intense scrutiny until election day. It remains to be seen whether either party’s planned reforms will be enough to move the needle and finally deliver on their promises.

Source: Morning Star

 

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The Technological Advancements in Offshore Wind

BladeBUG in action. Photo: Department for Business and Trade

From F1 to blade robotics: Five innovations in UK offshore wind

The UK has positioned itself as a leader in the offshore wind sector, but what ground-breaking technology is driving its growth?

With world-leading offshore wind clusters and catapults, and a $1tn tech economy, the UK boasts high calibre innovation and expertise in the offshore wind supply chain. Particular strengths include:

  • farm development,
  • cutting-edge service technologies,
  • a highly-skilled workforce,
  • project planning and consultancy, through to maintenance and repurposing.

This has allowed the UK to push boundaries in offshore wind innovations, which in turn is making the industry safer, more productive and better connected.

 

Robotics

BladeBUG is a deep tech company providing advanced robotics and integrated inspection, maintenance and repair solutions across the renewable energy sector. It improves wind turbine performance and revenue generation through proactive and predictive maintenance, reducing asset downtime, unplanned events and catastrophic failures, which can all have a significant impact on the cost of energy.

Designed to be cost-effective, safer and faster than conventional methods of inspection, the compact, agile and multifunctional robots are being developed to work offshore to de-risk operations and make good use of narrowing weather windows. One of BladeBUG’s unique features is a modular payload bay that enables the integration of industry standard and customised tools to bolster capability, whether collecting high quality data sets or performing highly repeatable processes with greater accuracy.

 

How F1-inspired advanced engineering is increasing AEP

With engineering expertise honed in Formula One motor-racing, Anakata is a leader in aerodynamic innovation; providing pioneering approaches to improving wind turbine performance. Uniquely designed blade furniture, which can also be retrofitted onto operational turbines, helps improve energy capture by up to 5% per annum. Tailored to each turbine type, Anakata have had its parts installed on all key manufacturers’ turbines, including Siemens, Vestas, Gamesa and Nordex since 2016. The company works with wind farm owners, asset managers and turbine manufacturers to improve operational performance.

Anakata recently launched the SuperAero Tip Booster (SATIP) to meet the specific needs of offshore; featuring 3D multilayer leading-edge protection, a ridged leading edge to enhance performance and reduce unsteady loads, and an advanced blade lightning protection system to improve blade integrity.

The SATIP design is also focused on reducing the impact of turbine wakes. It mixes the edges of a blade’s wake better, meaning that the wake is compressed and collapses at a faster rate, helping to improve the wind regime for downstream turbines, further improving Annual Energy Production (AEP).

5G connectivity in hazardous offshore environments

A 5G ‘living lab’ test centre in Humberside allows technology providers to develop, test and demonstrate in real world conditions, with access to reliable, high-speed communications.

For example, JET Connectivity’s solar-powered 5G buoy works in conjunction with fifteen 5G radio transmitters across five sites, including four wind turbines and a radio mast in the port, to provide an extended private 5G network over a 45km2 area. It is a crucial part of the new ‘5G PORTAL’ that will accelerate development of a new generation of digital technologies essential to the vast global expansion of offshore wind farms.

The lab is open to users from across the global offshore wind sector and provides a real-world test and demonstration zone for robotics, AI, remote sensors, wearable technology, zero emission vessels and smart ports – driving forward the digital evolution of the next generation of wind farms.

 

UK catapults – global hubs of innovation

The Offshore Renewable Energy (ORE) catapult has become one of the world’s leading innovation centres for offshore renewable energy and uses its unique testing capabilities linked to technology development and late stage R&D, analysis, supply chain acceleration, and applied research, to de-risk and supercharge innovation in the offshore renewable energy sector.

In line with the growing global opportunity for floating offshore, with potential for over 10GW of installed capacity by 2030, the new Floating Wind Innovation Centre in Aberdeen, opening in March 2024, will accelerate the build-out of floating farms and drive innovations in manufacturing, installation and O&M. The centre is the first in the world dedicated purely to the development of technology solutions linked to floating wind.

 

How to develop your energy innovation in the UK

The UK’s innovation ecosystem doesn’t exist in a bubble, with international businesses playing a massive role. Kavaken is a Turkish cleantech company that has recently set up its headquarters in Newcastle. It accessed support via the UK’s Global Entrepreneur Programme and Tech Rocketship Awards and is now developing its business further with the help of the ORE catapult. Kavaken’s software helps to identify potential faults and malfunctions to improve productivity in renewables. The company has benefitted from the UK’s cluster system, allowing it to access new contacts, funding opportunities and customers.

 

 

In 2024, the Tech Rocketship Awards have been rebranded as the Unicorn Kingdom Pathfinder Awards and are looking for scaleups and innovators in the energy space.  Companies are invited to apply before 31 April 2024.

Source: Recharge

 

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Wernick Group proudly announces its 90th anniversary

      

Marking a significant milestone in the company’s rich history of delivering innovative and sustainable modular solutions

 

The Wernick Group of companies has a proud legacy stretching back to 1934, growing from a humble maker of poultry crates to becoming Britain’s largest family-owned provider of portable and modular buildings, and off-grid power solutions.

Since its founding, the business has been at the forefront of the modular building industry. Whilst maintaining an enduring status as a family-owned and run business over the past nine decades, Wernick continues its mission to improve people’s lives through the provision of sustainable buildings and infrastructure.

 

CEO Jonathan Wernick, commented,

“Samuel Wernick, my great-grandfather, started his working life as a poultry dealer. He manufactured wooden crates to transport the chickens which led him to start manufacturing as a commercial enterprise. It was Sam’s ability to adapt to the opportunity of manufacturing these crates that led to the birth of the Wernick Group a few years later. This ability to adapt quickly to opportunities remains one of the key strengths of the Wernick Group 90 years later. He would be immensely proud of everything the company has achieved over that time.

 

Today, the Wernick Group consists of six distinct businesses: Wernick Buildings, Wernick Hire, Wernick Refurbished Buildings, Wernick Events, Wernick AVDanzer, and Wernick Power Solutions. Each company within the group holds focal importance in delivering comprehensive and tailored solutions to meet the evolving needs of its clients.

The last decade, in particular, has seen a vigorous expansion through a combination of shrewd acquisitions and organic growth. The Wernick Group currently has forty operating centres throughout the UK, working across both the public and private sectors. The Group of companies combine to offer the sale and hire of permanent and temporary modular buildings, site accommodation, and off-grid power solutions.

Wernick Group’s Chairman David Wernick commented,

“We are a 4th generation company with my son Jonathan running the Group as CEO. We take great pride in what we’ve achieved over the last 90 years and are incredibly grateful for the dedication of our employees during this period.”

CLICK HERE and vist the WERNICK WEBSITE

 

 

 

 

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UK ENERGY: AI Opportunities and Challenges

From smart meters to smart resource management, we get a guided tour around artificial applications at grid and consumer level, to better understand how algorithms are increasingly running our power supplies. 

Many of the worst environmental catastrophes we face today, including those here in the UK, are the direct result of the energy industry. Fossil-fuel-burning power plants are the second largest emitter of greenhouse gas emissions and have many other consequences, including the emission of airborne mercury. Understandably, there has been an increased push for renewable energy, but this transition is easier said than done, considering how dependent our infrastructure is on fossil fuels.

Chief among the obstacles to adopting renewable energy is that power grids become significantly more difficult to manage when additional power sources — particularly from non-traditional sources, such as renewable energy — are introduced. Thankfully, innovations in technology such as artificial intelligence have been introduced, allowing UK energy companies to manage their production and output more effectively, serving as an essential first step toward a greener future.

How artificial intelligence enables smart resource management in the energy sector
Artificial intelligence technology is poised to ignite a revolution in the UK’s energy sector thanks to two main capabilities: data analysis and predictive analytics. When combined, these two functions of AI allow people to effectively pursue smart resource management in ways that were once thought impossible and enable the energy sector to significantly curb the negative environmental impact it is causing.

At its core, smart resource management is an approach to resource use — including energy — that aims to maximize output while minimizing cost and environmental impact. Artificial intelligence models can enable UK homeowners and businesses to achieve smart resource management by providing unprecedented levels of insight into energy consumption and efficiency.

Understanding smart resource management in the energy sector
For those hoping to achieve smart resource management, there are three essential qualities to prioritize. Reducing cost and environmental impact of operations – the fundamental aspect of smart resource management is reducing operations’ cost and environmental impact. Companies can use artificial intelligence to better manage the use and production of power, thereby minimizing overproduction.

Minimizing operational and supply risks – smart resource management also requires producers and consumers to minimize the risk of disruption. One of the reasons why renewable energy has not yet been embraced on a wider scale is its relatively unreliable nature. For example, solar power grids cannot produce electricity at night or in severely cloudy situations, and wind fields are less efficient in times of low wind. AI predictive analytics can allow resource companies to forecast the productivity of their renewable energy sources, allowing them to adjust production and use to account for these changes.

Capturing new growth opportunities – the final aspect of smart resource management is the ability to grow sustainably. Using artificial intelligence and its predictive analytics capabilities, renewable energy companies can more effectively identify potential sites for development. For example, a solar power company in the UK can use an AI model to analyze data about climate, sun exposure, and other factors to determine ideal locations for new arrays.

Smart meters: A groundbreaking use case for AI in the energy sector
The most obvious use case of artificial intelligence in smart resource management is the smart meter. Like traditional power meters, a smart meter’s primary purpose is to track a building’s power consumption, but smart meters can also provide real-time insights to both occupants and energy companies into the real-time energy use of that building. This data can then be analyzed using artificial intelligence to improve the efficiency of energy production and use.

By providing better real-time insights into data use, smart meters have the potential to curb the UK’s overall energy consumption significantly. AI models can give suggestions to both individual homeowners and energy providers using smart meter data to help them improve their energy consumption habits.

However, the benefits of analyzing smart meter data using AI don’t stop with sustainability — UK consumers and energy companies alike will be rewarded with savings for improving the efficiency of their energy consumption. According to some experts, individuals could see as much as 30% savings if they follow the energy efficiency recommendations of artificial intelligence using smart meter data, meaning homeowners are doubly incentivized to improve their homes.

How UK regulation affects AI use in the energy sector
UK landowners may also be required to implement some of these improvements if they hope to rent out their properties. The regulations known as the Minimum Energy Efficiency Standards (MEES) require commercial properties — both residential and non-residential — to meet guidelines of energy efficiency and carbon emissions or face a substantial fine. Analytics powered by artificial intelligence can help guide owners to make wiser, more efficient decisions regarding their energy efficiency.

It’s important to remember that UK regulations are based around a seven-year “payback period,” which means landlords are only expected to implement improvements that will lead to cost savings greater than their investment after seven years. In other words, homeowners’ investments in their eco-friendliness will pay for themselves.

AI models can identify anomalies in energy consumption almost immediately, allowing landowners to repair systems and get consumption levels back on track quickly. Systems can also be analyzed to determine when preventative maintenance may be required, allowing owners to ensure systems are consistently operating at peak efficiency.

Still, it isn’t only environmental regulations that companies using AI to improve their efficiency must consider. Companies must also ensure they maintain compliance with any regulations that may be in place regarding the use of artificial intelligence technology. Recently, the UK introduced a framework for AI use designed to encourage technology innovation while protecting the safety of all involved. Although this framework is not yet codified into law, it establishes an expectation of data privacy, transparency, and fairness that energy companies will be expected to follow.

It is more apparent than ever before that something needs to be done about the environmental destruction caused by the energy industry — and soon. Thankfully, artificial intelligence provides a very real solution to many of the problems the energy industry suffers, as it will allow both consumers and producers to achieve smart resource management at levels hitherto unattainable. Although the energy sector is historically reluctant to embrace new technological paradigms, the potential implications of artificial intelligence on sustainability must not be ignored.

 

Source: Environmental Journal

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