RINNAI: UK ENERGY FOR THE FUTURE

A GUIDE TOWARDS NET ZERO AND LOWER CARBON EMMISSIONS – UK ENERGY FOR THE FUTURE

 

 

 

Rinnai’s Chris Goggin lists a brief guide to national & local power variables that do, and might, in the future, supply the UK end-user and consumer. He looks at what is currently on offer and how that energy is manufactured and operates within the total UK mix of fuels.

 

As the UK is now firmly in an era of energy transition it is important that all interested parties – heating engineers, contractors, consultants and end-users – should be aware of what alternative energy is currently available and future options being actively considered.

Carbon heavy fuels are currently being phased out and replaced with a variety of low carbon alternatives. Instead of oil, natural gas and fossil fuel-generated electricity, renewable sources such as wind, wave and solar are being gradually introduced into the UK energy mix.

Biofuels such as BioLPG and RDME could also become UK market relevant along with green gasses such as hydrogen, which is supported by the UK hydrogen strategy and a myriad of pilot schemes across the UK. Energy policy in the UK is also planning to increase nuclear capacity with the construction of several new facilities, with the objective of providing low carbon electricity and potentially hydrogen. Following is a short exposition of each energy vector.

 

HEAT PUMPS

Heat pumps are an old but current technology – the first was invented by Peter von Rittinger in 1867. They can be considered zero carbon at the point of use. However, the carbon intensity of the system is dictated by the electrical grid generation method. A heat pump works by extracting heat from air outside and elevating its temperature using a compressor. Compressed heat Is then transferred into a body of water for heating and DHW.

Residual heat is stored in a hot water cylinder used for showers and baths. If installed correctly on to an appropriate property a heat pump will prove to be an energy efficient, effective tool of decarbonisation to the end-user.

Heat pumps are widely used in Scandinavian countries and other major European economies such as Germany. Mainstream UK media support heat pumps as do governmental grants that supply most initial purchase costs. Heat pumps are available with approved technology that encourages decarbonisation.

SOLAR ENERGY

 

Solar energy absorbs sunlight into photovoltaic panels which produces an electrical charge. This charge of electricity is then converted and transported into a domestic or commercial application. The UK government encourages domestic renewable energy installation. Homeowners can partly subsidise their solar panels through several governmental grants.
One example of UK homeowners incentivised towards solar thermal installation through a governmental scheme is the Smart Export Guarantee (SEG) which allows homeowners to receive payments for unused excess energy exported back to the national grid.

Solar power is viewed as holding the potential to contribute meaningfully towards the current and future domestic UK energy mix as well as multiple others across the globe. Only recently it was announced that Global renewable energy company – Low Carbon, has announced construction of 3 new large solar farms in Essex, Derbyshire and Buckinghamshire. Construction in Buckinghamshire will begin immediately. Once complete the facility will provide clean power to more than 7300 homes. Capacity of this site will be 23.4MW. Work on the 28.8MW Derbyshire and 23MW Essex locations will begin in the early new year – 2023. Similar installations are being constructed across every continent.

WIND ENERGY

Renewable wind energy is created when wind turbines are pushed by natural currents of air which is then converted into electricity via a generator. Current UK direction of onshore wind energy is convoluted. At present there is a ban on installing new onshore wind farms inside the UK. However, some media outlets report that the ban is lifted, others maintain the ban is still in effect. Offshore wind farm capacity is being expanded to meet future demand. There are several new installations being constructed inside UK and Irish waters.

Offshore wind facilities under construction and due to begin operations. Amongst the new sites to be introduced is the Dogger Bank Wind Farm off the coast of Yorkshire, Northeast England which will begin operations in 2025. £8.27 billion has been invested into this project and is a joint venture undertaken by SSE Renewables, Equinor and Eni Plenitude.

WAVE ENERGY

Wave energy is created once captured kinetic energy gathered by tidal movements pushes a turbine, which in turn produces electricity. Wave and wind energy rely on the same concept of utilising kinetic energy to generate power. Wave energy is considered 100% carbon neutral. Wave energy is expensive to produce and maintain but is also effective. UK policy adjustments in market and planning legislation could see wave power become expanded to meet future demand.

Further on-land construction work is continuing on the £35 million Holy Island Tidal Energy Scheme, in North Wales. 35 sq km of seabed will be used to generate as much as 240MW of clean tidal electricity, enough to power 180,000 domestic properties.

rDME

Renewable DiMethyl Ether – known as rDME – is a molecule-based fuel that can be produced through a wide range of renewable feedstocks which allows for quick and long-term sustainable production. rDME contains a similar chemical composition to Butane and propane and can be mixed with LPG in existing appliances to continue product operations.

rDME combusts cleanly and releases no “soot” emissions. It has many fuel properties that make it easily used in sites and appliances currently using diesel as a fuel. It has a very high cetane number, which is a measure of the fuel’s ignitibility in compression ignition engines.

Future capacity of rDME is set to rise sharply, further increasing the likelihood of rDME being introduced nationally at some stage soon. A demonstration plant is to be opened later this year, whist the first operational commercial site manufacturing rDME will be on-line in 2024 in Teesside.

LGP & BioLPG

LPG (Liquefied Petroleum Gas) is a low carbon fuel source that is supplied in two forms – propane and butane. BioLPG is 100% carbon neutral and produced through renewable feedstocks such as plant and vegetable waste. Both are considered future forms of carbon friendly energy.

LPG producers see a role for Bio-LPG in the future whether that be blended with LPG or BioLPG. The fuel can be theoretically drop in, meaning limited disruption and user familiarity. Companies have invested over £260 million to date in developing clean liquid gases, including bioLPG and rDME to market. During the transition to renewable liquid gases LPG will remain a valuable part of the low carbon energy mix.

As economies and industry attempt to decarbonise fuel supplies, demand for LPG and BioLPG will rise. Legislation amendments introduced by the US, EU and Japan could see both demand and produced volume of BioLPG increase.

NUCLEAR ENERGY

Nuclear energy occurs when a reaction from either uranium or plutonium is stimulated to generate electricity. The UK government is keen to expand nuclear capacity.

As of writing, it has been confirmed that the UK government will inject £700 million of taxpayer’s money in developing Sizewell C nuclear power plant. Doing so will provide 6 million homes with low carbon electricity for more than 50 years and strengthen national energy security.

HYDROGEN

Hydrogen is produced in various forms signalled by a spectrum of assorted colours: blue, green, pink, brown, grey, yellow and turquoise.

 

  • Blue hydrogen is formed once natural gas is heated with steam in a process called Steam Methene Reforming (SMR). Hydrogen and carbon dioxide are created as a result meaning that emissions must be captured and stored for blue hydrogen to become a low carbon fuel source.
  • Grey hydrogen uses Steam Methene Reforming without capturing any emissions.
  • Green hydrogen occurs once water molecules are split into oxygen and hydrogen using renewable energy to power an electrolyser which sits in a water basin. Green hydrogen is considered 100% carbon neutral and is regarded as a source of future clean energy.
  • Pink hydrogen is created through nuclear powered electrolysis whilst yellow hydrogen is produced through solar powered electrolysis.
  • Turquoise hydrogen is made using a process called methane pyrolysis which produces hydrogen and solid carbon.

 

An extensive list of major international energy companies, such as BP and Equinor has announced various projects costing billons that explore the introduction of hydrogen as a major contributor towards future global energy needs. Spanish renewable energy company Iberdrola are planning to develop a green hydrogen production facility at the UK’s largest port in Felixstowe. Iberdrola is prepared to invest £150 million in the project which is expected to be operational in 2026.

Closer to home the UK issued its Hydrogen strategy in 2021, with the objective of achieving 10GW of Low Carbon Hydrogen by 2030. The strategy is also seeing rapid developments in pilot schemes using 100% hydrogen across the UK.

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UK Risks Losing Green Energy Projects to the US

By Nicholas Earl

 

The UK and European Union (EU) are at risk of losing green energy projects to the US – if they fail to match its new investment environment, warned two fast growing energy companies.

 

James Basden, founder and director of clean energy storage specialist, Zenobe Energy (Zenobe), said that his company was going to “accelerate what we’re doing in America because of the tax credits.”

He said: “We’re not alone. The UK and the EU are going to have to change, I’m afraid, because markets move very fast.”

 

Zenobe has been establishing roots in the US over recent months, signing a memorandum of understanding with JERA Americas, the US subsidiary of Japanese power company JERA, to jointly develop utility-scale battery storage projects in New York and New England.

The company mission statement is “to make clean power accessible across the world.”

So far, it has secured funding to pursue e-buses and charging infrastructure, alongside large-scale battery facilities in the UK – which aim to provide renewable energy in response to wind farms being switched off, as an alternative to gas supplies.

 

Nils Aldag, chief executive of German hydrogen technology experts Sunfire, was also weighing up the possibility of pivoting projects and investment Stateside if the EU failed to provide with more support.

“We will have to consider the US if we do not see Europe respond in time,” he said.

 

The looming possibility of a mass exodus of clean energy players follows the passing of the US Inflation Reduction Act in Washington last August.

The legislation, ostensibly focused on reducing the deficit, provides significant opportunities to invest in renewables.

The bill will raise $738bn, which includes $391bn of committed spending on clean energy – making it the largest piece of federal legislation ever to address climate change.

This includes $128bn for renewable energy and grid storage, $30bn for nuclear power, $22bn for home improvements and $13bn for electric vehicle incentives.

It also features hefty production tax credits to help US manufacturers accelerate production of solar panels, wind turbines, batteries, and process key minerals.

 

Over half of the US Inflation Reduction Act is committed to green energy and climate change (Source: Politico)

 

By contrast, the UK has imposed a fresh levy on electricity generators, snatching 45 per cent of revenues for legacy operators that have provided clean power to meet the country’s energy needs for decades.

EU has to back green energy goals with policies

The EU has its own ambitious generation targets for renewable energy as part of its RePowerEU plan – designed to reduce its reliance on Russian imports following the country’s invasion of Ukraine last year.

Sunfire is a nascent, high-quality electrolysis company, developing hardware for green hydrogen production industries and businesses developing green energy projects.

This makes them highly appealing to the EU, which has included 200GW of hydrogen generation over the coming decade – including 10m tonnes of production and 10m tonnes of imports.

 

However, Aldag feared Europe was missing the “unlocking factor” of regulation and support schemes to allow its hydrogen goals to be realised.

He said: “It’s really the regulatory framework in Europe that is not yet sufficiently in place for this target to actually be met. The US has basically given a whack to the whole industry, and European regulators understand they have to act quickly now.”

 

In his view, the EU and US were not just competing for projects and could be each other’s second market if an attractive investment environment was created across the West.

This would ensure a strong market to compete with the growing influence of China and India in the renewables sector.

The EU has initiated plans to take on Biden’s legislation, through loosening subsidy restrictions and speeding up permits across the bloc for green energy projects.

 

EU Commission President Ursula von der Leyen announced at the World Economic Forum in Davos yesterday that Brussels would also water down state aid rules and offer more funding support to strategic industries that were climate friendly.

She said: “To keep European industry attractive, there is a need to be competitive with offers and incentives that are currently available outside the European Union.”

 

UK waking up to Biden’s challenge

In the UK, the response has so far been more muted despite its own highly aggressive generation targets for domestic renewable production over the coming decades.

However, the publication of Tory MP Chris Skidmore’s net zero review suggests there could be more pressure in Westminster on the Government to compete with the US.

In his report, Skidmore labelled net zero as the “economic opportunity of the 21st century’ and called for more and called on the Government to boost investment in green energy projects.

When approached for comment, the government argued that the UK is already committing enough funds to renewable projects.

 

A Treasury spokesperson said: “The government is taking significant action to encourage investment in renewable generation including committing £30bn to support the domestic green industrial revolution from March 2021 to April 2028.

“Our contracts for difference scheme has been hugely successful in driving the deployment of renewable energy with our most recent auction delivering a record capacity of almost 11GW of clean energy. To date CfD generators have received almost £6 billion net in price support through the scheme”

 

However, BEIS Select Committee member Alexander Stafford said the US Inflation Reduction Act means the “global race to net zero is well and truly on”.

The first step, in his view, was to offer clean energy firms an investment allowance in line with the windfall tax for oil and gas firms, so that the Electricity Generator Levy does not “deter investment and push firms overseas.”

 

He said: “The US hopes to lure electric car manufacturers and renewable energy firms into crossing the pond through its Inflation Reduction Act’s generous tax credits.  If the UK is going to compete, ensuring these new industries and better-paid jobs come here, we need to back these clean enterprises wholeheartedly.”

 

This outlook was shared by Jack Richardson, senior climate programmer at the Conservative Environment Network, a leading Westminster body supported by green Tory MPs.

He also called for a speed up of planning decision and a contracts for difference scheme to subsidise sustainable aviation fuel.

 

Richardson said: “We have an opportunity to lead the world in so many clean industries because we were the first major economy to legislate for net zero by 2050. While we have an early lead, we need to double down to develop and keep clean industries here in the UK.”

Source: CITY AM

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STONEMASONRY SKILLS SURVEY

Historic Environment Scotland (HES) has today (Wednesday 18 January) launched a survey of stonemasonry in Scotland to better understand the current status of the sector. 

The survey seeks to gather information on the number of stonemasons there are in Scotland, where the business that employ stonemasons are based, and the need for stonemasonry skills across the country.

The survey is the first in a series examining stonemasonry in Scotland and is an action arising out of the work of the Stonemasonry Training Working Group of sector partners and stakeholders, convened by HES. The data gathered will be used as a first step to building understanding of how the stonemasonry sector looks across different parts of Scotland, and ensuring it is equipped to meet the challenges of the future. The aim is to create a stonemasonry specific dataset that will enable better sector engagement and consultation, as ideas and proposals on the future of stonemasonry training are developed.

HES supports the delivery of stonemasonry skills training at its Skills Training Centres in Elgin and Stirling, in partnership with Forth Valley College.

Colin Tennant, Head of Technical Education and Training at HES, said: “With our built environment in Scotland predominantly made of stone, it is crucial we ensure a continuing supply of trained stonemasons to repair, maintain and conserve this heritage.

“Stonemasonry is also a sustainable traditional skill which supports both green jobs and a circular economy which helps maximise our existing resources, crucial for our national net-zero ambitions.

“We want to ensure the sector can thrive into the future, which is why we’re launching this survey to gather information which will help us build a comprehensive picture of stonemasonry in Scotland. To help us to that, we would urge as many stonemasons and employers as possible will take part in the survey.”

The survey will be open until Tuesday 28 February and can be accessed on the HES website.

 

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Insulating EU homes could reduce energy demand

Insulating EU homes could reduce energy demand by 44%, saving up to 777 TWh
 
A new study by BPIE (Buildings Performance Institute Europe) shows that improving the insulation of existing residential buildings in the EU would significantly contribute to securing the bloc’s energy independence and achieving the EU target of reaching climate neutrality by 2050. Improved insulation of EU residential buildings would result in a reduction of energy demand for heating in buildings by 777 TWh, or 44% compared to 2020: 46% in gas savings, 44% in heating oil savings and 48% in coal savings.

“The results speak for themselves,” says Oliver Rapf, BPIE Executive Director. “Buildings must be treated as vital infrastructure contributing to EU energy security and climate neutrality. Deep renovation should be one of the EU’s highest priorities facing the energy crisis.”

In this analysis, BPIE modelled two renovation scenarios until 2050: The 2% Renovation Scenario and the Full Renovation Scenario.

The 2% Renovation scenario – following the goal renovation rate prescribed by the European Commission in the Renovation Wave Strategy – assumes that a 2% renovation rate is reached by 2030 and remains at that level until 2050. The Full Renovation scenario assumes that after 2030 the average renovation rate (now at 1%) will continue to grow at the speed needed to renovate all existing residential buildings before 2050.

The analysis shows that achieving a stable 2% renovation rate is insufficient to achieve EU climate goals and significantly contribute to energy independence. Under this scenario, 30% of buildings will be left unrenovated by mid-century and 235 TWh of potential final energy savings will be wasted.

To fully benefit from the savings potential (777 TWh), the entire residential building stock must therefore be renovated.

To reach EU climate neutrality goals by 2050, this means the current renovation rate of 1% must be at least doubled by 2030, reach 3% by 2035, and 4% by 2040.

Achieving this level of ambition means that EU building policies must carefully align short-term actions with long-term needs and ambitions.

“Building renovation activity must seriously ramp up in this decade,” continues Rapf. “The final negotiations of the EPBD in the coming months should define deep renovation as the standard and agree renovation requirements which deliver on this standard, are fair and backed by attractive financial support for all who need it.”

The report concludes that the EPBD recast should require that financial programmes and advisory services prioritise projects achieving deep renovations. Minimum Energy Performance Standards (MEPS) should be designed on a differentiated basis according to ownership structure, and focus on worst-performing buildings across all segments first. Even in a step-by-step approach, all renovations and especially the first step should pull the building out of the worst-performing category. Public funds including emergency relief, recovery funds and subsidy schemes should all be designed towards supporting deep renovations of buildings. Member States should not wait for a ban of fossil fuel boilers to be introduced by the EPBD, and should stop fossil fuel subsidies immediately.

Read the report

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APPLICATION FOR MAJOR NEW INDUSTRIAL & LOGISTICS PARK

Leading property regeneration and placemaking experts, Scarborough Group International (SGI) has submitted plans to deliver a major new industrial and logistics park on a 60-acre site, known locally as Brown Moor, located adjacent to its flagship Thorpe Park Leeds development.

Following a series of public consultation events showcasing the proposed masterplan, SGI has submitted an outline planning application, which seeks permission to develop up to 60,000 sq m (645,834 sq ft) of industrial and logistics space with ancillary office space. The buildings will be capable of being brought forward in multiple phases to respond to market interest and occupier demand.

The application also includes details of the estate infrastructure, public footpaths and other public rights of way which will as part of the proposals will be enhanced, as well as the site landscaping.

‘Integral’, as the development has been named, will deliver a range of high-quality buildings suitable for companies of different sizes within the advanced manufacturing, logistics and industrial sectors, adding to the strong economic mix of east Leeds and providing hundreds of new jobs.

The design of each building will be highly-sustainable and in keeping with the contemporary style of architecture at Thorpe Park Leeds.

Extensive landscaping is also proposed throughout the scheme with over 40% of the site retained as green space, while public connections and rights of way to the existing amenities within Thorpe Park Leeds will also be enhanced, making the area more accessible and connecting the local community.

The proposed development will be accessed from the new Manston Lane Link Road (MLLR) which forms part of the recently-opened East Leeds Orbital Route which is, in turn, directly accessed from junction 46 of the M1 motorway, providing a well-connected and highly-accessible location for future businesses located at the site.

Adam Varley, Development Director at SGI, said:

“The industrial and logistics sector is undergoing significant change.  Supply chain resilience, rising energy costs, smart infrastructure and the continued growth of e-commerce are forcing businesses to rethink their real estate requirements. Decision making factors such as accessibility, cost and labour pool, while still relevant, are now being overtaken by the need to attract and retain the very best talent.

“The design of Integral scheme at Thorpe Park Leeds responds to the shifts in the market by providing industrial spaces that are integrated into a dynamic and established mixed-use community. Working with the design team we believe that the buildings will offer exemplary accommodation with enviable sustainability credentials, as well as access to an abundance of high-quality landscaped spaces.”

Thorpe Park Leeds is strategically located with its own dedicated access at Junction 46 of the M1. More than 900,000 sq ft of office space is already built, supporting over 5,500 jobs as well as The Springs retail and leisure park which includes the 10-screen ODEON Luxe cinema, Next, Boots, M&S, TK Maxx, The Range, H&M, Pure Gym, Nandos, Piccolo by Piccolino, Caffe Nero and many more.

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Reawakening Silvertown

A major new planning application for the Silvertown site in the London Borough of Newham has been submitted following an extensive consultation process with local residents and businesses.

With a bold character founded in the industrial heritage of this historic part of London, this diverse neighbourhood will feature around 6,500 new homes with 50% affordable housing, alongside a vibrant new centre for the Royal Docks.

Submitted by The Silvertown Partnership, striking designs for the 50-acre site show how the iconic Millennium Mills building, left derelict and largely disused for around 40 years, will be fully restored and form the centrepiece of the new community.

The £3.5bn development will embrace its dockside location and over 5 acres of water will be central to the new neighbourhood, with canal walkways, a paddle board club and new bridges providing far greater access to the water and a closer connection with nature.

Situated within London’s only Enterprise Zone, the London Plan identifies the site as one of the largest regeneration opportunities in the capital and the development is predicted to contribute between £76m-£90m per year to London’s economy, with the vast majority of this expected to be in the Newham area.

The plans reveal ambitions to make Silvertown a hub of new industry, featuring over 780,000 square feet of next generation work and creative spaces in the refurbished Millennium Mills buildings and surrounding employment quarter, equivalent to 13 times the size of St. Paul’s Cathedral, alongside provision for additional future flexible workspace and makerspace.

Silvertown is expected to become a new cultural hub for the Royal Docks, with brand-new arts and leisure facilities, cafés, restaurants and bars providing residents and visitors a place to unwind and be entertained. New public squares will play host to cultural events while green spaces will provide access to nature and encourage walking, running and cycling across the site. The newly opened Custom House Elizabeth Line Station will also provide a convenient transport link for residents, workers and visitors just 15 minutes from central London.

Silvertown will deliver significant opportunities for local people and create more than 10,000 jobs, making the site somewhere to celebrate East London’s pioneering past and brighter-than-ever future. It’s estimated that more than 1,300 people per year will be involved in construction of the site, with a target of 25 per cent of those to come directly from the London Borough of Newham. In addition there will be a mix of apprenticeships and paid work experience opportunities available.

Extensive new community facilities are also proposed that will include healthcare, nursery and community spaces, as well as a brand-new primary school. The new neighbourhood will also be one of London’s greenest, with all homes and commercial spaces supplied with hot water and heating powered through a zero-carbon district heating system.

The Silvertown Partnership is seeking full planning permission for phase one of the Proposed Development, which will include 1,248 new homes, including 610 affordable homes, and 82,328 sqm new commercial space. Outline permission is sought for the remainder of the site.

The Silvertown Partnership, which includes Lendlease, an international real estate and investment group, is working in conjunction with the Greater London Authority (GLA), Homes England and The Guinness Partnership (TGP).

Prior + Partners are the lead consultant for the hybrid planning application and masterplanners for the whole Silvertown site. Architects working on various plots within the site include AHMM, dRMM, Pollard Thomas Edwards, Maccreanor Lavington, and Gort Scott with OMMX, with Arup on transport, AECOM on infrastructure and EIA and Energy Strategy, and SLA and Churchman Thornhill Finch on landscape. DP9 are the planning consultant.

 

Quote attributable to Ed Mayes, Project director for Silvertown, Lendlease:

“After months of working together with local residents and our public sector partners GLA, Homes England and the London Borough of Newham, I’m proud to present our vision for this iconic new neighbourhood. Silvertown is finally being reimagined as a vibrant new centre for the Royal Docks – a place where people can live and work well, better connected to the water and each other.

“This is a pivotal moment for the Silvertown development, as we reveal plans for a neighbourhood that will create thousands of much-needed new affordable homes and jobs for Newham. I look forward to continuing to work closely with the local community and our stakeholders to make this shared vision a reality.”

 

Quote attributable to Catriona Simons, CEO at The Guinness Partnership:

“This planning application is a big milestone in creating a new future for the Silvertown site. As affordable housing provider for the first phase affordable homes, Guinness is proud to be part of this ambitious and exciting vision for the Silvertown neighbourhood.”

Source: Landlease

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225,000 extra workers required to meet UK demand

Against a backdrop of economic challenge, rising materials and labour costs, new figures from the Construction Industry Training Board (CITB) reveal that almost 225,000 extra workers will be required to meet UK construction demand by 2027.

CITB’s annual Construction Skills Network (CSN) report shows that:

  • 224,900 extra workers (44,980 a year) will be needed to meet UK construction demand between now and 2027
  • Construction output is set to grow for all nations and regions, however, recession is expected in 2023 with slow growth returning in 2024
  • The major sectors for demand are:
    – private housing
    – infrastructure
    – repair and maintenance
  • If projected growth is met, by 2027 the number of people working in construction will be 2.67m

The report highlights that construction is expected to remain a sector where there is demand for workers despite the current economic uncertainty. As a result, recruitment, training, development and upskilling remain major priorities for the industry for 2023 and beyond.

CITB is responding by investing in apprenticeships, launching a range of targeted initiatives and working collaboratively with industry, to help the construction sector have a skilled, competent, and inclusive workforce.

Tim Balcon, CITB Chief Executive said: “The latest CSN report clearly shows that despite current economic uncertainty, recruiting and developing the workforce remains vital to ensure the industry can contribute to economic growth.

“We know the next 18 months won’t be easy, however, I remain inspired by the construction industry’s resilience shown in the pandemic and throughout 2022.

“In short, it makes clear that the need to recruit and retain talent in the sector has never been greater. Whether that’s for building the homes the country needs, constructing energy and transport infrastructure or retrofitting the built environment to help drive down energy bills and meet net zero targets.

“To bolster industry’s resilience, CITB will strive to attract and train a diverse range of recruits for industry, equipping them with modern skills for rewarding construction careers. I look forward to working with and supporting industry and stakeholders in the challenging times ahead and to emerging stronger when the recession ends.”

 

To help directly address these challenges and maximise the opportunities which will arise, CITB has invested almost £50m of Levy to support over 22,000 apprentices to help them join the industry; while grants have helped support over 16,000 learners to complete their qualifications.

Direct funding has provided grants over 269,000 training courses and in total £97m has been invested in grant funding by CITB, to make it as easy as possible for employers to recruit and retain their skilled workforce.

CITB continues to provide targeted support to SMEs through grant and funding and through support in accessing training and funding. Since April 2022, CITB’s engagement team has supported SMEs on 26,976 occasions, supporting them to continue to train during the current economic uncertainty.

CITB also offers funding aimed specifically at smaller companies such as the Skills and Training Fund. Companies with fewer than 250 PAYE employees can access up to £25,000 annually (depending on their size). By the end of quarter two 2022, £3.9m had been invested in companies via this fund.

CITB’s Scottish Academy for Construction Opportunities (SACO) commission has awarded £1.3m across the Highlands and Islands; while England Construction Opportunities (ECO) commission has awarded a total of just over £1.8m. This investment will directly help address the construction industry’s skills gap, increase employment retention, and provide vital support to new starters at the beginning of their construction careers, by promoting work experience for new entrants to the industry.

Experience Hubs across England and Wales are creating a talent pipeline to meet the needs of local construction employers and to support construction career opportunities for people from local communities.

Further CITB initiatives range from localised solutions for funding and training like our employer network pilot project, available to more than 3,800 levy-registered construction businesses across five locations in England, Scotland and Wales; to a £10.5m Leadership and Management commission which will provide funded courses for businesses of all sizes to equip supervisors and managers with a recognised Leadership and Management qualification.

Training remains a key focus, which is why CITB has invested in National Construction College (NCC) sites, to meet the industry’s specialist training needs. By focusing the curriculum on unmet demand, we are looking to build capacity for the industry, which has resulted in a 25% increase in the number of people trained to date. Our data shows that 96% of CITB apprentices have secured employment or progressed in education, with over 90% remaining in the sector.

Tim Balcon concluded: “This coordinated and comprehensive approach to helping recruit, train, develop and upskill talent, whilst continuing to work collaboratively with industry and stakeholders means CITB will continue to play a central role in supporting an industry that is a key driver of the UK economy through these challenging times.”

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Why is the Planning System Failing?

In the midst of a housing crisis, why is the planning system failing, and what does this mean for the communities it is supposed to serve?

Few would disagree that there is an urgent need for new homes that are sustainable and affordable, both to meet the needs of a growing population and to replenish our ageing housing stock.

But, with delays in the planning system choking supply and the UK government that has now backtracked on its stated target for housing delivery in England, the need to address the issues constraining the supply of new homes to meet that need is becoming critical.

In 2021, only 216,000 new homes were built

In 2021, only 216,000 new homes were built, falling far below the manifesto commitment of 300,000 homes a year by the mid-2020s. This target has now been scrapped as Prime Minister Rishi Sunak dilutes the UK Government’s housebuilding pledge.

It is estimated that tens of thousands of plots are currently ‘stuck’ in the planning system, with little being done to remedy this or address the lack of resources in local planning departments. Over the last ten years, over 2.5 million units have been given the green light by UK councils, but only 1.5 million have been built.

Since the local elections in Hertsmere and Amersham & Chesham, the government has bowed to local pressure and backtracked on much-needed planning reforms aimed at simplifying and streamlining the planning process.

“Uncertainty about the future planning system and delays to planning reforms have had a ‘chilling effect’ on housebuilding and created uncertainty for housebuilders and planners.”

This is despite a report from the House of Lords Built Environment Committee, which stated that “Uncertainty about the future planning system and delays to planning reforms have had a ‘chilling effect’ on housebuilding and created uncertainty for housebuilders and planners.”

UK government and the failing planning system

In last year’s Queen Speech, the government announced that it intended to introduce reforms as part of its levelling up agenda that will provide local councils and constituents with more control over a planning process that is already highly politicised.

But even this ambition has been thwarted by backbenchers opposed to mandatory housing targets and the five-year land supply rule introduced to ensure that sufficient sites were allocated for development to meet the demand for five years of housing.

To quote Robert Colvile from the Centre of Policy Studies, “These proposals could cut the number of homes being built by 20% to 40%, potentially more because the industry was already being affected by recession and interest rate rises.”

Putting politics before planning

What is needed is leadership from the UK government and a coherent housing policy that, amongst other things, addresses the issues with our planning system.

Issues were laid bare in a research paper published by the Royal Town Planning Institute in 2019 entitled ‘Resourcing Public Planning’ which called for ‘significantly increased resourcing to deliver better development management, strong and informed planning policy, genuine community participation, pro-active local authority-led development and a wider range of built environment professionals in the public sector’. It is three years since the paper was published, but nothing has changed.

Putting politics before planning is failing the very communities that the planning system is there to serve

Housing is a societal need, but it also underpins economic growth. Putting politics before planning is failing the very communities that the planning system is there to serve.

 

Source: Open Access Government

 

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Sanifos 110 wins Build It Award

Saniflo was delighted to finish 2022 on a high by winning the Build It Awards for the Sanifos 110 lifting station in the ‘Best Plumbing or Drainage System or Product’ category. 

The Sanifos 110 is the best-selling underground lifting station model in the 6-strong Sanifos range. The compact unit provides a cost-effective solution for the discharge of black and grey water waste from new and existing buildings where gravity drainage isn’t accessible. With an integrated grinder pump and multiple connection points, the 110-litre capacity unit is capable of discharging all the waste from individual dwellings or industrial units, but is also commonly used for extensions, outbuildings, garden rooms, glamping pods etc. The waste can be pumped vertically up to 14m and horizontally, which means that building projects are feasible even if they are sited beneath the level of the mains drains, sewer or water treatment plant.

The flexible unit can equally be sited on the ground, in a cupboard, basement or a shed and is simple to install above or beneath the ground. The popularity of hybrid working over the last few years has paid witness to a boom in garden offices and these are often sited at a distance from the main property. These independent buildings are also widely used as gyms, salons, accommodation and hobby rooms. The Sanifos can facilitate the drainage for these buildings without the need for costly civils work, allowing the installation of bathrooms, kitchens, laundry rooms and any other application requiring a waste discharge.

Tim Pestell, Managing Director of Saniflo, was very pleased to receive the news from the Build-It team;

“The Build It Awards have been in existence for over a decade and are a coveted accolade for any supplier in the self-build industry. Saniflo products have been widely used in the sector for many years, particularly in refurbishment, change of use and extension projects and it’s great to receive formal recognition in the shape of the award.  The Sanifos 110 is a highly appealing product for self-builders and renovators because it offers the ability to build in places that might otherwise not be considered. Our thanks to the judges who chose this product from Saniflo.”

CLICK HERE TO VISIT THE WEBSITE

 

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BLEAK FUTURE FOR WESTERN EUROPE

Scott Hazelton of IHS Markit lays out a somewhat bleak economic future for the

economies and construction markets of Western Europe

 

The war in Ukraine, energy supply and price issues, plus tighter financial conditions to fight inflation broadly will tip the eurozone economy into recession in late 2022 and early 2023.

Although major governments have rolled out packages to shield households and firms from surging energy prices, high inflation will take a toll on confidence, spending and investment decisions.

The European Central Bank’s (ECB) tightening monetary policy will add further financial strain on households and firms.

These developments will translate into further weakness for Western European construction.

Western European construction spending

German construction firms signalled the quickest contraction in activity, as the headline index hit a 19-month low.

Both Italy and France reported softer reductions during the latest survey period, while construction activity returned to growth in the United Kingdom.

Activity fell across all three subsectors, but homebuilding registered the quickest reduction. Civil engineering and commercial construction activity fell for the sixth straight month, although the rates of contraction softened.

We expect real total Western European construction spending to rise by just 1.2% in 2022.

With headwinds set to linger into 2023, and as the ECB’s rate hikes start to bite, construction spending is expected to rise just marginally next year, by only 0.4%.

After a weak second quarter, with German real GDP rising by just 0.1% quarter on quarter (q/q), the Russia–Ukraine war and effective halt to Russian gas deliveries at the end of August will almost inevitably tip the economy into recession during the next two to three quarters.

Germany’s inflation rate reached double digits for the first time in September and tighter ECB monetary policy will erode consumers’ disposable income, despite government support measures.

Fixed investment already fell by 1.3% q/q in the second quarter of 2022, largely due to construction, which recorded a quarterly fall of 3.4%.

Leading indicators such as the ifo Business Climate Index and the PMI point to further weakness in the second half of 2022.

We expect total construction spending to decline by 0.9% in 2022, followed by a further decline of 1.8% in 2023, even as the government pushes ahead with infrastructure investment to reduce dependence on Russian energy.

Rising inflation and interest rates will dampen housing affordability and household demand for home improvements.

Risks of energy shortages, further increases in energy prices, tighter financial conditions, and uncertainty relating to the war in Ukraine will cause delayed investment in non-residential structures.

Commercial construction activity in Italy

Italy is also likely to slide into a recession in the final quarter of 2022 and early 2023 given growing headwinds.

Yet, temporary support measures rolled out by the government are expected to cushion the impact of energy price hikes on households and firms during the second half of this year.

In addition, Italy is the largest recipient of grants and cheap loans from the European Union’s Recovery and Resilience Facility (RRF), providing a boost to private-sector investment to finance major public projects, particularly in infrastructure.

We have total annual output in Italy increasing by 2.5% in 2022, followed by a further 2.8% in 2023.

Italian construction companies signaled a third successive monthly reduction in overall activity during September, according to PMI® survey data.

Across the three broad sectors, housing and civil engineering registered softer contractions compared with August.

At the same time, commercial construction activity rose for the first time since July.

Construction activity in France declines

Construction activity across France continued to decline in September, according to the latest PMI survey, but the rate of contraction was the softest over the current four-month sequence amid varying trends across subsectors.

Housing signalled a marked decline in activity that was the steepest in three months. Civil engineering activity also contracted, though the rate of decline was only marginal, while commercial activity increased slightly.

Demand followed a similar trend, with the seasonally adjusted new orders index scoring only marginally below the 50.0 no-change threshold to signal a mild fall in sales.

Although France is less dependent on Russian gas than some of its neighbours, more than half of its 56 nuclear reactors have been shut down for maintenance, forcing a reliance on imports just as an energy crisis is looming.

As a result, our macroeconomic forecasts see France entering recession in late 2022 or early 2023, despite the governmental measures to cap energy prices.

Overall, real total construction spending in France is forecast to rise by 2.2% in 2022, before flattening to 0.1% in 2023.

How will UK construction perform in 2023?

The UK experienced lacklustre performance during the second quarter of 2022, with real GDP rising by only 0.2% q/q.

Construction was a key driver of activity and was the only sector to record continued growth in July and August.

The Office for National Statistics data showed that the volume of construction output rose by 0.4% month on month in August, up from 0.1% in July, when warmer-than-average temperatures made working conditions difficult.

UK construction firms signalled a rise in overall activity in September following two months of decline, according to latest PMI® data.

Housing was the best-performing sector, with activity levels rising at the fastest rate in five months, while commercial activity also expanded.

In contrast, civil engineering registered a third consecutive monthly decline in activity, albeit at a rate that was the softest seen over this period.

Inflationary pressures remained sharp but the rate of input price inflation moderated slightly.

Weak economic growth, ongoing Brexit tensions, and the end of the government’s super-deduction scheme on 31 March 2023 will drag on business investment.

Against this backdrop, real total construction spending in the UK is expected to rise by 1.5% in 2022 but decline 0.4% in 2023.

The chart above indicates the medium-term outlook for construction by country. The relatively short and shallow recession precludes any large downturns, but it also features and anaemic recovery.

Importantly, while the broad Eurozone will experience recession in 2023, there will be individual national exceptions.

The brunt of the downturn will be felt by economies that are relatively manufacturing intensive.

Norway escapes the downturn as it is not as impacted by high energy prices. Greece and Spain benefit from large tourism sectors which, while negatively impacted by recession, see more than offsetting gains from post-pandemic resumption of travel.

Ireland will see some challenges with its residential market, but broadly benefits from relocations due to Brexit.

These economies will be relatively strong, even in 2023, with consequently stronger prospects.

 

Source: Construction Europe

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