Budget 2015: Chancellor switched on to Birmingham’s energy potential
BIRMINGHAM has been handed a massive boost by the Chancellor with the news that the city is be the home of the new national energy research centre.
The move follows agreement – subject to due diligence – by the Energy Technologies Institute (ETI) to merge its existing Smart Systems and Heat Programme, currently based in Birmingham into the new Energy Systems Catapult.
The government said the merger created an immediate critical mass of capability and also extended ETI’s work on local heating design technology beyond 2017.
The programme will continue to develop demonstrators in conjunction with local authorities in Bridgend, Manchester and Newcastle and share its insights with ETI’s Loughborough-based strategy team.
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The Chancellor has also announced an investment of £60m for a new energy research project, the Energy Research Accelerator. The ERA is a multimillion research hub which will build on the expertise of six leading midlands universities, the British Geological Survey and the surrounding industrial base to deliver a step change in energy research and development, securing the UK’s leadership position in the sector.
The University of Warwick is one of those working on the project.
Vice-Chancellor Professor Sir Nigel Thrift said: “The global energy storage market will rise to $50bn by 2020 and much of the rise will be in transportation to $21bn. Automotive is well on its way to displacing consumer electronics as the biggest user of energy storage.
“The Energy Research Accelerator initiative will play a crucial role bringing together researchers and industry to meet that challenge. It will enable the University of Warwick to create a National Low Carbon Mobility Centre, serving the automotive, commercial & off road, marine and rail sectors by the development of enabling technologies in energy storage and energy machines, drives and systems.”
The Energy Systems Catapult will be a not-for-profit, independent centre which connects businesses with the UK’s research and academic communities. Catapult centres are being established and overseen by Innovate UK as a new addition to its range of programmes to stimulate innovation. They are places where the best of the UK’s innovative businesses and researchers work together to bring new products and services more quickly to commercialisation.
Focusing on areas with great market potential, Catapults will open up global opportunities for the UK and generate economic growth for the future.
The energy Catapult will benefit from being based in Birmingham as it will be closely located to a hub of energy systems-focused private, public and academic organisations as well as good transport links to the rest of the UK where it expects to be involved in energy systems testing and demonstration.
It is one of two new Catapults set to open from April 2015, the other being the Precision Medicine Catapult. There are currently seven Catapults up and running – High Value Manufacturing, Cell Therapy, Satellite Applications, Future Cities, Digital, Offshore Renewable Energy and Transport Systems.
Recognition of the importance of the Birmingham scheme was outlined by Mr Osborne in his speech to the Commons.
He said: “The Midlands is an engine of manufacturing growth. So we are today giving the go-ahead to a £60m investment in the new Energy Research Accelerator and confirming the new National Energy Catapult will be in Birmingham.”
Andrew Spence, tax partner at EY in the Midlands, said: “The £60m investment in a new Energy Research Accelerator to be based in Birmingham, recognises the engineering capabilities of our local universities and the future investment into research and development within the energy sector.
“This news, in conjunction with the recent confirmation from the Government that universities are eligible to claim the Research and Development Expenditure Credit (in relation to their expenditure work) demonstrates their ongoing commitment to supporting innovative activities.”
Business Secretary Vince Cable said the new catapult would make Britain the best place in the world to develop new energy products and services, such as local energy systems that can provide an alternative source of power to the national grid.
“Locating the Catapult in Birmingham puts it right at the heart of a vibrant energy hub that will bring researchers and businesses together – a key component of bringing new and innovative ideas to market,” he said.
Energy Systems Catapult Chairman Nick Winser added: “The Birmingham area has a strong cluster of businesses and academic activity related to energy, as well as excellent transport links to the many organisations with which we will work right across the UK. The advanced discussions with the ETI to merge their existing Birmingham based team into the Catapult provides us with the opportunity to make a strong start.”
It is expected that the catapult will open at the ETI’s existing office at Birmingham Business Park, before finding a permanent location in the Birmingham area.
