Aston University, European Bioenergy Research Institute (EBRI)

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1 Funding and Economic Development Project Management Chartered Surveyors Energy Carbon Sustainability Aston University, European Bioenergy Research Institute (EBRI) Summative Assessment and Evaluation of EBRI Project Business Investment in Research Interim Evaluation Report May 2018 Focus Consultants Focus House Millennium Way West Phoenix Business Park Nottingham NG8 6AS T: E:

2 Focus Offices Nottingham Focus House Millennium Way West Phoenix Business Park Nottingham NG8 6AS Tel: Website: Client: Aston University School of Engineering & Applied Science Aston University Birmingham B4 7ET Client Lead: Tim Miller Tel: Leicester 4 Merus Court Meridian Business Park Leicester LE19 1RJ Tel: leicesterenquiries@focus-consultants.com Website: Lincolnshire Focus House Resolution Close Endeavour Park Boston Lincolnshire PE21 7TT Tel: bostonenquiries@focus-consultants.com Website: Prepared By: Focus House Millennium Way West Phoenix Park Nottingham NG8 6AS Focus Contact: Helen Sykes, Consultant Tel: enquiries@focus-consultants.com Project: Aston University, European Bioenergy Research Institute (EBRI) Document Title: Summative Assessment and Evaluation of EBRI Project Date: May 2018 Authorised By: Ian Stevens, Partner London 605 Elizabeth House 39 York Road London SE1 7NQ Tel: londonenquiries@focus-consultants.com Website: Signature: Focus Consultants 2010 LLP

3 CONTENTS Page Nr Executive Summary Introduction Project, Background Overview and Context Project Outputs Achieved Strategic and Policy Context Consultation with Beneficiary Businesses Consultation with Partners and Delivery Team Summary and Conclusions and Recommendations 62 R0942/Interim Evaluation Report 1 April 2018

4 Executive Summary In October 2017, Focus Consultants was appointed by the European Bioenergy Research Institute (EBRI) at Aston University, to undertake an independent summative assessment and evaluation of the ESIF funded project EBRI: Business Investment in Research. There are two phases to this exercise this, the interim evaluation, followed by a summative assessment to be completed in June 2019, following the conclusion of the project. This report sets out the findings of the interim evaluation. The project supports the development of a regional bioenergy supply chain and the promotion of innovative new bioenergy technologies. It began in 2016, and will run until 2019, supporting the exchange of ideas, and commercial research as a means of enabling local businesses to identify business and value opportunities. Alongside this, the project helps businesses identify and trial technologies or processes that help them diversify or identify potential new products or services. Progress to Meeting Targets EBRI is making excellent progress in meeting targets of business support associated with the ESIF grant that co-finances the current phase with over 90% completion in the numbers of enterprises cooperating with research enterprises. This shows the project team are able to interpret the complicated technologies of the project for the business community, and encourage SMEs to make commercial use of these technologies. With regards to project targets in each LEP / COR (Category of Region), EBRI has acknowledged the disparity between the different areas, and plans are now in place to focus on the Greater Birmingham and Solihull, Black Country and The Marches LEP Transitional Areas to address evident imbalances. The project has already reached its target in The Marches LEP Developed and Stoke-on-Trent and Staffordshire Transitional LEP areas and has exceeded initial targets in the Greater Birmingham and Solihull and Coventry and Warwickshire Developed LEP areas in all these cases progress stands at 100% achieved or over. Strategic and Policy Context If anything, EBRI appears to be more relevant in the strategic climate of 2017 / 18 than at any time in the past, as both locally and nationally the emphasis of partnerships becomes increasingly focussed on technology, energy from waste, climate change and business support. At a national level, EBRI strongly supports the findings of recent studies including the Dowling Review of Business and University Research Collaboration, the DBIS and UK Government Industrial Heat Recovery Support Programme Consultation 2017, Building Our Industrial Strategy 2017, Clear Growth Strategy and National Energy Policy. Locally, EBRI is becoming increasingly significant to the implementation of local and regional partnership strategies including the West Midlands Regional Energy Policy Commission and Science and Innovation Audits of 2018 along with the evolution of Local LEP Strategies. R0942/Interim Evaluation Report 2 April 2018

5 Consultation with Beneficiary Businesses Feedback from Businesses: The feedback from business beneficiaries, through the consultation questionnaires completed at the Master Classes, reveals all participants consider the service received to be good with 68% rating it excellent. Specific comments include: Excellent content, well presented and easy to digest Broken down very well in a manner a complete novice could start to piece together The overall impression is that EBRI is very good at translating difficult academic concepts for a general business audience. Positive feedback includes: The Master Classes are very well received The feedstock testing is a very useful part of the EBRI offer EBRI has provided businesses with the information they need to make key strategic decisions affecting future business growth Business Case Studies: In depth interviews with four beneficiary companies are testimony to the positive impact EBRI is having on very different types of commercial activity from recycling corks, wood fuel, engineering consultancy and refined fuel production. EBRI has helped clients make decisions on markets, guided investment in new machinery, and proved the market credibility of technology to potential investors. Consultation with Partners and Delivery team This current EBRI project has benefitted from the lessons learnt during the last ERDF funded phase, as well as implementation to date both influencing delivery going forward. EBRI is making very good progress towards achieving targets particularly in the early stages of business engagement, and in providing information for long-term development. However, the majority of businesses are part way through the process and have yet to realise the principal benefits of participation. The team identified a number of reasons for this: The process is inevitably long, with the realisation of value taking place over years. Many of the businesses engaged are small, micro SMEs, without access to the capital required to invest in new technology and take EBRI s recommendations forward. There are some structural issues which make it difficult to access further funding through Innovate UK for example There are some cultural differences between academia and industry particularly the smaller SMEs that make up the majority of EBRI s clients. However, EBRI is very business oriented, with the Business Research Team now particularly adept at acting as an interface between businesses and researchers. This ability to 'translate' and 'speak the language' of both groups could be seen as a key factor in EBRI's success. R0942/Interim Evaluation Report 3 April 2018

6 Recommendations EBRI is supporting a range of differently sized businesses, which is positive. However, to ensure the true realisation of value from waste, new products to market and business and economic growth, it may be necessary to focus resources on those most likely to be able to access investment capital. The successful achievement of short term funding targets can detract from a focus on the big picture for example using the technologies to meet global challenges, such as climate change. EBRI can address this by undertaking regular reviews of organisational position and capacity, and how the team can put itself in a position to address macro-economic and social issues. A further linked recommendation is the development of a 20 or 30-year plan, setting out where EBRI sees itself this far into the future, using the expertise of the team to present a vision of the type of industry and companies that it will be supporting. Next Steps This is an Interim Report, based on an assessment of the information available. To provide a comprehensive summative evaluation at the conclusion of the project, it will be necessary to collect additional data on the businesses that have benefitted. Specifically, we will want to assess the impact of the business engagement with EBRI, over and above the measured outputs. To do this, we will contact businesses at the end of the engagement process to obtain: Additional staff employed as a result of the EBRI project Additional turnover as a result New services or products to market as a result This will be a priority in the work programme for 2018 / 19. R0942/Interim Evaluation Report 4 April 2018

7 1.0 Introduction In October 2017, Focus Consultants was appointed by the European Bioenergy Research Institute (EBRI) at Aston University, to undertake an independent summative assessment and evaluation of the ESIF funded project EBRI: Business Investment in Research. There are two phases to this - an interim evaluation, to be followed by a summative assessment in June 2019, following the conclusion of the project. This report sets out the findings of the interim evaluation. As outlined in the brief, this interim evaluation includes: An overview of the project in terms of background, context and delivery A consideration of the outputs achieved to date A review of the strategic and policy context, and analysis of whether the project fulfils the current policy agenda Consultation with beneficiary businesses, including feedback from attendees on the Master Classes, and in-depth consultation with a sample of businesses who have benefited from one to one support from EBRI Consultation with the Project Delivery Team and key partners Conclusions and recommendations for future provision based on the findings from all the above. This report sets out this work in detail. It is a result of a desk-based evaluation of existing documentation, as well as telephone and face to face interviews. The summative assessment which will follow the conclusion of the project will include: Further engagement with the Project Delivery Team, partners and stakeholders Comparator review a desktop study of complementary projects Additional in-depth profiles of beneficiary businesses Delivery of key data Strategic review analysis of the changing policy context Final assessment of key data Economic Impact Assessment full analysis of all project metrics Presentation of full evaluation. Focus has taken every care to conduct the study professionally, openly and thoroughly, to retain an objective stance, to balance the opinions expressed and explore the justification for the comments made. It must also be recognised that there are inevitable budget and time constraints, which limit the resource available for the evaluation. R0942/Interim Evaluation Report 5 April 2018

8 2.0 Project Overview 2.1 Background and Context The European Bioenergy Research Institute (EBRI) at Aston University is a world leading centre for bioenergy research and technology development. Created with the assistance of the European Regional Development Fund (ERDF), EBRI evolved from a research facility with the installation and commissioning of capital plant and equipment to the delivery of structured industry engagement programme for bioenergy and associated sectors. EBRI Phase 1: The original EBRI project was co-financed by an ERDF award in 2011, to fund a 1,900m² building to house an industrial research and demonstration facility focused on bioenergy notably the combination and calibration of advanced thermal and biological processes, focused on intermediate pyrolysis and gasification, anaerobic digestion and thermo-chemical refining of plastics and biomass to high quality products and fuels. EBRI then diversified to accommodate a more business-orientated agenda. The original demonstration aspects were adapted to facilitate the transfer of bioenergy technologies and expertise to regional businesses with an increasing focus on fostering innovation and supporting SMEs achieve concrete results. The first phase was completed and fully evaluated in 2015, with the evaluation findings, including extensive consultation with the business community directly informing Phase 2. EBRI Phase 2: Now funded through ESIF, Phase 2, the EBRI: Business Investment in Research project, supports the development of a regional bioenergy supply chain and the promotion of innovative new bioenergy technologies. It began in 2016, and will run until 2019, supporting the exchange of ideas, and commercial research to enable local businesses to identify business and value opportunities. It also supports businesses to identify and trial technologies or processes that help them diversify into bioenergy or develop new products or services. The EBRI team facilitate collaborations between businesses and academics and support applied research. They engage local SMEs in knowledge exchange, research and innovation, bringing new products and processes to market in bioenergy and energy systems. The new programme builds on the most successful aspects of previous industrial research and engagement projects through business engagement and support as follows: Business Engagement Initial business engagement is through a series of workshops that provide a broad understanding of the cutting edge practical research knowledge of EBRI. Business decision makers, entrepreneurs and developers are invited to attend a two-day Master Class, brokerage, funding or networking event to build awareness of bioenergy and energy systems and their applications. R0942/Interim Evaluation Report 6 April 2018

9 2.1.2 Business Support After engagement the team provide a minimum of two days of personalised service tailored to each business to enable them to understand the technologies, apply them in a commercial environment and bring them to market. The support takes the form of: Testing: SMEs have access to pyrolysis test facilities, feedstock analysis, and company reports on viability and technology requirements. Feasibility studies: staff conduct studies on bioenergy and energy systems, assessing the nature of the site and feedstock, the proposed technology and economic assessments of risk and return. This service includes decision support tools and economic modelling, as well as technical assessments of feedstock logistics and transport. Technology: an assessment of emerging products and technologies. Markets: the team provide an appraisal of the bioenergy marketplace in a detailed options and opportunities report. The project will increase investment in research by SMEs in technologies identified through smart specialisation in the growth area of low carbon. It builds directly from demand from the business community. 2.2 Project Management and Governance The diagram below shows the team structure for the EBRI Business Investment in Research project. Project funded staff are shown in blue. R0942/Interim Evaluation Report 7 April 2018

10 BRA Business Research Associate R0942/Interim Evaluation Report 8 April 2018

11 The project governance is managed as follows: Quarterly reports on the project into EBRI management meetings. Monthly Project management meetings including Director of Institute and Deputy Dean of Engineering School, through to the Dean of School and University Executive. Formal reports on finance, targets, marketing, compliance issues and development opportunities. Presentation of marketing plans, finance and target tracking reports. Weekly project team meetings to guide day to day development. 2.3 Project delivery The project is delivered step-by-step. Engagement with SMEs is initiated through a varied programme of master classes and networking events, to demonstrate EBRI s capacity and raising awareness of the services on offer. Appropriate businesses are then invited to a more in-depth engagement process, with tailored reports and studies specific to their area of research or interest. The key activities are: Business Engagement the customer journey starts with initial engagement through workshops and events targeted at business decision makers, entrepreneurs and managers. Practical feasibility studies on bioenergy and energy systems how the technology can be applied to each company and a full economic assessment of the risks and returns, with the emphasis on the next practical steps. Horizon scanning assessments of emerging products and technologies. Market assessments reports to each company on the current state of the bioenergy market place and where each is best positioned. Access to the demonstration facilities of advanced gasification, pyrolysis, CP engines and integrated systems. Seminar workshops with business decision makers. Value chain mapping advice on value / supply chain opportunities. Material testing and analysis matching material character with technology solutions. R0942/Interim Evaluation Report 9 April 2018

12 3.0 Project Outputs Achieved 3.1 Inputs The costs are: Project Manager 253,075 Research 325,189 Lab Tech Support 103,367 Demonstration support 256,469 Technology/ Economic Analysis 59,198 Business Development & Marketing 305,004 Direct technical support 519,384 Business Engagement 60,173 Finance, accounting, legal and technical support 223,352 Marketing, travel, consultancy, consumables and office costs 143,914 Demonstrator Operation 220, Outputs progress towards targets ERDF funding is characterised by a series of predetermined outputs and outcomes, against which tangible success can be measured. The following table lists each of the outputs (code number and definition), and records the project target, numbers achieved to date, and a percentage which indicates project towards targets. Outputs Current to date Project Target % Complete C1/C4 Number of enterprises receiving % support/ Number of businesses receiving non-financial support C5 Number of new enterprises % supported C26 Number of enterprises % cooperating with research entities C28 Number of enterprises supported % to introduce new to the market products C29 Number of enterprises supported to introduce new to the firm products % EBRI is therefore on track to achieve the targets outputs as agreed with ERDF. The total number of enterprises engaged in support are progressing very well towards the targets of 93 and 8 enterprises respectively. EBRI is in fact projected to overperform with regards to the number of enterprises receiving support, with an additional 67 enterprises engaged to some extent, although not yet completed. R0942/Interim Evaluation Report 10 April 2018

13 The team have also identified 7 potential Knowledge Transfer Partnerships (KTP) as a result of engaged enterprises cooperating with research entities. Although a number of companies are progressing towards achieving a C28 output, this is an area that needs more attention to achieve the desired outcome. However, the objectives under the C28 and C29 outputs refer to new products, and despite having delivered less than 55% of these so far, there is a shared understanding these benefits are most often realised towards the end of the process. 3.3 Outputs progress towards targets by LEP Outputs LEP /COR Split Current to Project date Target % Achieved Greater Birmingham and Solihull % Developed Greater Birmingham and Solihull % Transitional The Marches Developed % The Marches Transitional % Black Country Developed % Coventry/Warwickshire Developed % Stoke/Staffordshire Transitional % With regards to overall project targets in each LEP / COR (Category of Region), EBRI has acknowledged the disparity between the areas reflected in the table above. and plans are now in place to focus on the Greater Birmingham and Solihull, Black Country and The Marches LEP Transitional Areas to address this imbalance. The project has already reached its overall target in The Marches LEP Developed and Stoke-on-Trent and Staffordshire Transitional LEP areas and has exceeded initial targets in the Greater Birmingham and Solihull and Coventry and Warwickshire Developed LEP areas. R0942/Interim Evaluation Report 11 April 2018

14 4.0 Strategic and Policy Context The EBRI programme is available to eligible SMEs from five Local Enterprise Partnership (LEP) areas in the Midlands being: Black County Coventry and Warwickshire Greater Birmingham and Solihull Stoke-on-Trent and Staffordshire The Marches. It is important to recognise the nuances of each LEP s strategic priorities. As such, we have undertaken a brief review of each of the LEPs to show how EBRI is directly relevant to delivering their strategic objectives. This is below. However, we start with an assessment of how EBRI relates to recent national thinking on best practice work between academia and SMEs. 4.1 National Strategies Encouraging a British Invention Revolution: Sir Andrew Witty s Review of Universities and Growth Final Report and Recommendations (2013) This report is an independent review, undertaken by Sir Andrew Witty, on how Universities can support local growth. This report highlights: Sir Andrew Witty s Review of Universities and Growth The future growth of the UK economy will in large part come from fast growing SMEs, but while on most indicators the UK s innovation performance is above the EU average our performance in terms of the proportion of SMEs that are innovative is relatively weak. Universities offer SMEs varied and substantial benefits, but many SMEs lack resources for external engagement and the quality of support available from the local University is key The Witty Report highlights the following key points relevant to EBRI s work: Universities offer SMEs varied and substantial benefits, but many SMEs lack resources for external engagement and the quality of support available from the local University is key. Stakeholders believe SMEs could benefit from University engagement but do not do so because they remain unaware of the possibility. The report examines the suggestion that working with business is a distraction from, or even positively at odds with, the proper research and teaching aims of a University. The Review saw a growing body of evidence that this is not only mistaken, but that for many Universities effective economic engagement was a condition of success. R0942/Interim Evaluation Report 12 April 2018

15 Witty highlights: what I heard was a persuasive argument that effective economic engagement is not an alternative to excellence in research and teaching but enabled and catalysed by it, and viceversa. However, Witty goes on to state: I also heard evidence that SMEs do not always find Universities accessible citing evidence such as the Chief Science Officer of Cellzome SME, for example, who stated We find it difficult to get the interest of academia to do the work we need.universities see the work as being contract, too small or short term to engage their interest and energy, and appear to be more interested in the larger, longer term strategic industry-academic alliances coming from big pharma. The extent to which EBRI has experienced similar issues to these is highlighted in later sections. Recommendations of the Witty Report on University / business collaboration relevant to EBRI are: Recommendation 1: Universities have extraordinary potential to enhance economic growth. Universities should make facilitating economic growth a core strategic goal. Recommendation 2: Prospective investors in research should have online access to as much information as possible - including identifying research by sector and technology, and where possible by the businesses and charities funding it. It should also include further development of indicators such as citation-based measures of research strength by sector. Recommendation 5: Universities should put in place a single point of entry for SMEs that triages their needs and directs them to the relevant part of the University. This point of entry should also look to drive up SME demand and engagement, and work with external partners across the locality, as well as within the University. The recommendations were taken on board by EBRI when developing Phase 2 of the business technology support project, the subject of this evaluation The Dowling Review of Business-University Research Collaborations (2015) Professor Dame Ann Dowling s 2015 review of business research and development was commissioned by the Government to consider how to best support relationships between UK businesses and University researchers. The Dowling Review defines the benefits for participants. For academics, these include the opportunity to address challenging research questions with real-world applications, to see their research have tangible impacts, and to gain access to new skills, data or equipment. On the other hand, companies can improve business performance through developing new techniques or technologies, de-risk investment in research, and extend the capabilities and expertise available. R0942/Interim Evaluation Report 13 April 2018

16 The key recommendations from the review relevant to EBRI are: Relationships between people in business and academia form the foundation for successful collaboration. These foundations can be fostered by an incentive framework for Universities and businesses which promotes the transfer of ideas and people. This includes supporting students to develop business awareness at an early stage of their research careers. Pump-prime funding will stimulate the development of high quality research collaborations. Providing such help will not only result in increased benefits for business, as academics are able to more confidently explore areas of business interest, but also offers the chance to drive new insights in areas of fundamental research. Technology transfer offices need to prioritise knowledge exchange over short-term income generation. There is a tension between the desire to earn short-term income from IP [Intellectual Property] and the need to deliver wider public benefit, and potentially greater long-term return on investment from this IP. The emphasis needs to shift towards the latter. Government strategy on innovation needs to be better coordinated and have greater visibility. Government has an opportunity to use industrial sectors and key technologies as levers to encourage greater business investment in innovation and R/D and to involve companies of all sizes through the supply chain. It also needs to ensure that the tax system effectively encourages collaborative research. There is a need to set a clear national direction and provide stronger support to LEPs to enable them to fulfil this role. The significance of the Dowling Review is in the recommendations emphasising the necessity of more efficient collaborations between business and academia. The realisation of value on both sides is acknowledged as a means of supporting industrial strategy and business investment. Programmes such as EBRI s are catalysts for substantial benefits through the development of innovative products and services, and improved competitiveness and productivity Department for Business, Energy and Industrial Strategy: Industrial Heat Recovery Support (IHRS) Programme 2017 The Government plans to introduce a support programme (the IHRS) to increase industry confidence in investing in opportunities for reusing waste heat from industrial processes and increase the deployment of recoverable heat technologies. The consultation builds on previous stakeholder engagement through the Industrial Decarbonisation and Energy Efficiency Roadmaps project - focussing on eight energy intensive industry sectors, aiming to help them transition to a low carbon future while improving their competitiveness. The new project proposes opening the IHRS to a wider range of industrial sectors. The programme will overcome barriers to recover and reuse waste heat, to enable industrial energy bills savings and carbon emissions reduction. R0942/Interim Evaluation Report 14 April 2018

17 The proposed programme aligns both EBRI s and the government s aims of achieving a low cost, clean and secure energy system, acknowledging the potential to realise significant energy bill and carbon savings for industry through a reduction in primary fuel use. The programme has the potential to reduce total industrial energy bills by over 500m over its lifetime, helping to insulate the business base from future energy price fluctuations. It is estimated that up to 6 MtCO²e⁶ could be saved, equating to societal benefits of an average cost of - 74/tCO²e abated. This means that the societal benefits of the IHRS programme outweigh the total cost of the programme. EBRI s capacity to provide knowledge and expertise in this sector could help to overcome the acknowledged barriers of: Insufficient knowledge and information Technical barriers with the complexity of fitting heat recovery technologies to certain industrial processes Commercial barriers regarding the payback of investments and availability of capital. EBRI is directly applicable as it can overcome knowledge, information and technology barriers by providing support for feasibility studies, to identify industrial heat recovery opportunities and assess their costs and benefits. The document quotes an Element Energy study that found that: 11 TWh/yr of industrial heat use in 2014 could have been technically recovered from industrial processes in eight key energy intensive sectors, but that only 5 TWh/yr of this would have been commercially viable In this way EBRI could contribute to boosting industry confidence in identifying and investing in heat recovery opportunities HM Government: Building our Industrial Strategy (2017) This sets out how the UK proposes to build a modern industrial strategy, to improve living standards and economic growth by increasing productivity and driving growth across the whole country. The process identifies 10 pillars to achieve this including science, research and innovation, and affordable energy: Investing in science, research and innovation - becoming a more innovative economy and doing more to commercialise the UK s world leading science base to drive growth. Delivering affordable energy and clean growth keeping costs down for businesses and securing the economic benefits of the transition to a low-carbon economy. The report also identifies the West Midlands as comparatively underperforming in relation to surrounding districts. Productivity in the area has declined between 1997 and 2014, and stands above only the North East, Yorkshire and the Humber, Northern Ireland and Wales. The programme details where the UK is experiencing shortfalls: R0942/Interim Evaluation Report 15 April 2018

18 The UK invests 1.7% of GDP in private and public funds on research and development. This is below the OECD average of 2.4% and substantially below leaders of innovation - South Korea, Israel, Japan, Sweden, Finland and Denmark - who contribute 3%+ of their GDP. Regional disparity means the UK public R/D funding is heavily focused on the golden triangle of Oxford, Cambridge and London. The Report proposals align with EBRI s directives with both investment and a focus on innovation in the energy sector: an additional 4.7 billion by in R/D funding. consultation on the technologies which the new Industrial Strategy Challenge Fund could support, including smart and clean energy technologies, and biotechnology. to build on the excellent research and innovation that exists around the country. to double support for energy innovation, in view of reducing the cost of achieving the UK s decarbonisation goals in the power and industrial sectors. The Clean Growth Strategy The UK s Industrial Strategy prioritises clean growth and affordable energy for businesses and consumers, noting there are already 430,000 UK jobs in low carbon businesses and their supply chains. The strategy finds opportunity in the forthcoming economic investment in clean growth the UK low carbon economy could grow by an estimated 11% per year between 2015 and and could deliver between 60 billion and 170 billion of export sales of goods and services by The key points and proposals in the strategy relevant to EBRI are: a package of measures to support businesses to improve their energy productivity by at least 20% by This includes improving energy efficiency of commercial buildings. support for recycling heat produced in industrial processes, to reduce business energy bills and benefit local communities. investment of 162 million of public funds in research and innovation in Energy, Resource and Process efficiency. zero avoidable waste by 2050, maximising the value we extract from resources, and minimising the negative environmental and carbon impacts associated with their extraction, use and disposal. R0942/Interim Evaluation Report 16 April 2018

19 4.2 National Energy Policy The Office of National Statistics (ONS) provide an accurate contextual picture of the UK s energy situation. The UK s progressive energy policy recognises the importance of energy coming from renewable and waste sources, borne out of an appreciation for the current dependency on fossil fuels and energy imports: The UK is dependent on imports for almost half our energy needs The UK relies on fossil fuels for over 80% of our energy consumption Since 1998 the UK has gone from being a net exporter to a net importer of energy UK s reliance on imported energy has returned to the levels last seen around the mid-to late-1970s Figure 4.2: UK Energy Import Dependency: the percentage of UK energy supply made up of net imports, 1970 to 2015 Source: ONS There are significant risks associated with this energy position: Fossil Fuel Dependency Legislative and economic constraints on greenhouse gas emissions Much of the UK s extant infrastructure is scheduled for decommissioning Focus on large-scale plant and a centralised energy network R0942/Interim Evaluation Report 17 April 2018

20 Import Dependency Insecurity of supply from Middle East, Russia, North Africa Intrinsically linked to price of oil no long-term cost reductions Economic value is lost outside of the UK. Focus on Renewables The percentage of energy coming from renewable and waste sources, such as wind, hydro power and biomass, has risen from 1% of total UK energy consumption to 9% from 1998 to 2015 In addition, the UK has a target for Primary Energy Consumption by It is legally bound to provide for 15% of its energy needs including 30% if its electricity, 12% of its heat, and 10% of its transport fuel from renewable sources. As of 2016, according to the Energy and Climate Change Committee, the UK is less than halfway towards 12% in heat and the proportion of renewable energy used in transport actually fell in the year prior. The Committee contend that beyond 2020, heat and transport will likely depend on some combination of bioenergy and electrification. Over 70% of the UK s renewable energy is bioenergy, which has an important role in the UK s future energy mix, but there are concerns over its carbon footprint. On its current course, the UK will fail to achieve its 2020 renewable energy targets. The report acknowledges that the 2020 targets were set by the EU and adopted by the UK, but despite the UK s forthcoming withdrawal from the EU, to renege on its commitment would undermine confidence in commitment to future targets, including the 2050 decarbonisation objectives of the Climate Change Act R0942/Interim Evaluation Report 18 April 2018

21 Moreover, a number of national and international targets closely regard the energy sector: Europe 2020 sets out a target across the EU by 2020 for 20% reduction in greenhouse gas emissions compared to 1990 levels, increasing the share of renewable energy generation to 20%, and achieving a 20% increase in energy efficiency. Through the Climate Change Act and other policies, the UK targets a 34% reduction in greenhouse gases by 2020, and 80% by 2050, and increasing the share of renewable energy to 15% by Within the 2050 target is an aim to reduce industrial emissions by 80% compared to 1990 levels. The National Environment White Paper sets out an ambition to halt environmental degradation and start rebuilding natural capital, including blue and green infrastructure such as the network of green spaces, water and other environmental features. It is clear that the UK needs to make significant investment in renewables in the foreseeable future. This is reflected in the LEP policies discussed below. EBRI s role as a developer of innovation in realising value from waste could contribute to an increase in the proportion of energy source from renewables in the UK and provide a riposte to the reliance on imported energy. 4.3 Regional Energy Strategy Powering West Midlands Growth: A Regional Approach to Clean Energy Innovation 2018 The strategy depicts a time of transition in energy systems worldwide towards more localised, cleaner energy systems, better integrated into wider infrastructure systems and the localities they serve. It recognises the West Midlands spends over 10 billion a year on energy, and a further 1.5 billion is invested in energy infrastructure projects across the region. The strategy aims to: Reduce energy costs for strategic industries to enhance their competitiveness and productivity Reduce the incidence of fuel poverty among households, particularly in Birmingham City and the Black Country Deliver the region s share of national and global carbon budgets Create a regional energy infrastructure which puts the West Midlands at the leading edge of the global energy and transport systems transition, and makes the region the most attractive market to commercialise new energy and transport system technologies in the UK The core principles behind the strategy correlate to EBRI s project in so far as they prioritise innovation and leadership in the clean energy transition, and partnerships across sectors and between businesses and Universities. EBRI can play a significant role in reducing energy costs and fuel poverty, as well as commercialising new energy technologies. These principles are translated into 3 specific initiatives: Energy Innovation Zones: to provide a simple, flexible mechanism to support integrated local energy infrastructure transition and accelerated deployment of innovation. R0942/Interim Evaluation Report 19 April 2018

22 Energy Capital: an innovative, democratically-accountable regional energy governance structure established to ensure effective delivery of the aims of this regional energy strategy Specialist resource to help secure long-term funding: for targeted and appropriate local energy investments, innovation and development of an active innovate energy business cluster at scale. Energy Innovation Zones (EIZs) are driven and defined by local market and customer needs, as well as technical opportunities and climate change imperatives, and aligns with the overall direction of travel of the energy system towards lower carbon, more competitive and more customer-centric approach. They provide the missing link in the UK innovation eco-system for energy opportunities to deploy energy innovations commercially and as part of an integrated system at a scale that customers can relate to. This will provide the link between pilot demonstration and global market success. There are a number of well-developed potential EIZs proposed, including Tyseley and Central Birmingham. The proposed EIZ presents one challenge and opportunity as making use of the latest clean technologies already being developed by the Universities of Birmingham and Aston at Tyseley and elsewhere. Developments are in view to optimising the use of the city s 35,000 tonnes of waste which currently pass through Tyseley annually A Science and Innovation Audit Report for the Midlands Engine [ME], sponsored by the Department for Business, Energy and Industrial Strategy (2016) Science and Innovation Audits (SIAs) enable local consortia to analyse their strengths in science and innovation and identify areas of emerging excellence. The audit focused on the Midlands strengths in Next Generation Transport, Medical Technologies and Pharmaceuticals, Future Food Processing, and Energy and Low Carbon. Low Carbon is identified as a market driven priority, covering geo-energy, thermal energy systems, nuclear, energy storage and smart integrated energy systems. The large-scale industrial base in energy is complemented by a critical mass of research and innovation assets focused on driving forward and delivering UK leadership in key areas of energy research and rapid translation into industrial pilot and demonstration-scale activities. Around one-fifth of all business R/D in the UK is delivered within the ME footprint. There are a large number of research posts, scientists and academics across Midlands institutions with approximately 2,000 skilled people working in this arena. Key assets include the Centre of Excellence for Low Carbon and Fuel Cell Technologies (CENEX), the Energy Research Accelerator (ERA), and the Energy Systems Catapult. The breadth of multi-disciplinary related industrial and research activity conducted across the Midlands is supported by academic institutions whose individual research centres collaborate on large programmes to address the sub-elements of the priority area. Across these Universities there are some 500 academics and scientists working in energy research. Aston University is listed alongside its specialisms: Aston University Distinctive capabilities on bio-energy and the development of renewable gases and heat, its existing facilities have potential to operate as a demonstrator facility for an integrated heat and power network. R0942/Interim Evaluation Report 20 April 2018

23 Key research centres The European Bioenergy Research Institute acts as a focus for pan-european activities on the scientific and technological aspects of biomass conversion and the use of products for renewable power, heat, transport fuels, hydrogen and chemicals. The University is a partner of the SUPERGEN Bio-Energy Hub. The report provides a contextual review of the global and market drivers of change in energy systems, establishing a picture of necessity and demand in this field: In response to climate change and environmental protection regulations, efficiency improvements will be demanded in the generation and use of energy in all sectors of the economy. The share of renewables in total power generation is forecast to rise from 21% in 2012 to 33% in Trend of growth in microgeneration and small energy projects, targeting individual and rural energy needs with renewable technology applications, for example biomass-fuelled generation. An increase in the development of secondary alternative energy sources such as batteries and fuel cells to provide effective energy storage and standalone energy-saving electrical equipment, vehicles and public utilities. The Energy Research Accelerator represents a major investment in energy in the Midlands Engine the region needs to capitalise on their opportunities in geo energy, thermal energy systems, nuclear, energy storage and smart integrated energy systems. The report identifies the shared R/D ethos present in Midlands University assets, such as at the Midlands Innovation partnership between the Universities of Aston, Birmingham, Leicester, Loughborough, Nottingham and Warwick. Tackling the UK s energy challenges, the Universities are collaborating on the 180m Energy Research Accelerator (ERA). By heralding the extensive University collaboration with industry and academia, the audit attributes significance and importance to the EBRI project in delivering the wider Industrial Strategy The West Midlands Combined Authority (WMCA): A Science and Innovation Audit for the West Midlands 2017 The report, produced by the WMCA with its partner LEPs of Coventry and Warwickshire, Black Country, Greater Birmingham and Solihull and Birmingham Science City, is supplementary to the Midlands Engine SIA, and provides a more detailed picture of strengths and opportunities in science and innovation. The West Midlands SIA supplements the wider Midlands Engine SIA (2016), focusing on the LEPs of the Black Country, Coventry and Warwickshire, and Greater Birmingham and Solihull. A summary of the relevant messages is: The area supports c.350,000 employees in science and technology sectors, representing 1 in 5 jobs R0942/Interim Evaluation Report 21 April 2018

24 Productivity performance is well below the national average level There must be a continued effort to drive higher levels of knowledge exchange between Universities and businesses across all technology areas / sectors Access to ERDF monies has been important in building the innovation ecosystem; the loss of this funding could be very detrimental if no alternative is made available. By grasping the currently favourable national policy context, there is an opportunity to realise the potential identified in the West Midlands SIA, by taking forward the following with Government and local partners: Raising levels of business R/D investment and its subsequent exploitation is a key strategic imperative for the UK, including the WM SIA area Addressing the large number of innovation inactive businesses Stimulating and steering major collaborative research and innovation projects that realise the potential from their science and innovation base. EBRI is therefore a strength in the science and innovation sector in the West Midlands SIA, and an important player in increasing business innovation, stimulating collaborative research, and raising the levels of business R/D investment. 4.4 Aligning with LEP Strategies This section considers the LEP strategies in the West Midlands to understand the role that EBRI could play in supporting their directives. This comprises a review of both the Strategic Economic Plan and the European Structural Investment Fund Strategy for each LEP. Greater Birmingham and Solihull Black Country Coventry and Warwickshire Stoke-on-Trent and Staffordshire The Marches. Within the Common Strategic Framework, the European Commission has identified three types of regions, differentiated by relative prosperity - their GDP as a percentage of the EU average. Areas are defined as one of: Less Developed regions (GDP below 75% of EU average), Transition regions (GDP 75-90%), More Developed regions (GDP above 90%). The EU defined Transition Area in the West Midlands exists in parts of the Marches LEP (Shropshire, Telford and Wrekin) and extends into the Stoke-on-Trent and Staffordshire LEP. R0942/Interim Evaluation Report 22 April 2018

25 4.4.1 Greater Birmingham and Solihull LEP (GBSLEP) GBSLEP Strategic Economic Plan The Plan heralds the LEP area as the main driver of the UK economy outside London, with the Midlands Machine having achieved the highest growth rate of any UK city region and being the leading LEP area for attracting foreign direct investment (FDI). To realise this vision, a relevant objective is to become a world leader in innovation and creativity via commercialising cutting-edge research and innovation. This is underpinned by 4 key priorities: to simulate demand-led innovation to increase SME internationalisation and export to grow key markets for inward investment to strengthen business support and access to finance including for scale-ups. The Strategic Vision is: To be a top global city region that drives the Midlands Engines and is the major driver of the UK economy outside London harnessing our strengths and assets for the benefit of our area and the wider UK economy. The report also highlights that: Only 1 in 5 West Midlands SMEs currently export, although 9% and 12% have the characteristics to become exporters, and over half that do export could become persistent rather than occasional exporters. Universities are committed to working collaboratively with industry and other institutions across the Midlands to maximise the potential of their expertise in key technologies through initiatives such as the Energy Research Accelerator and the Midlands Engine Low Carbon Transport programme. Commercialising research and innovation capacity: the SEP plans to stimulate demand-led innovation. If Greater Birmingham were to close its productivity gap through innovation there is potential to grow the economy by over 4 billion. Whilst the number of firms identified as innovative has increased in recent years, a large proportion are not - 46% across the UK, 44% in West Midlands. Key sectors are professional and finance, advanced manufacturing and engineering industry, digital and creative, life sciences and low carbon energy technologies clusters which are leading the way in developing and commercialising new technologies key to delivering smarter, more sustainable and more inclusive growth. Greater Birmingham has the highest number of business start-ups per annum outside London and their rate per head of population is above the core city LEP average. R0942/Interim Evaluation Report 23 April 2018

26 However, the survival rate for business start-ups (52.6%) is slightly below average. There is also a low performance for the incidence of high growth firms, a significant gap with London and the South East. European Structural and Investment Fund Strategy (2014) This Strategy cites EBRI as 'a new and exciting asset which is a global leader on energy from organic waste and biomass', contending that EBRI represents a significant research resource in low carbon technologies. It further contends that EBRI can be combined with the Business School to advise companies on low carbon technologies, environmental impact, business development strategies, investment opportunities and business cases. It goes on to point out that the LEP will be investing in innovation in four key sectors - life sciences, low carbon, advanced manufacturing and ICT, digital and the creative industries. Recent figures on the low carbon economy in the GBSLEP area show that there are 1,580 companies, with sales of 3.83bn and employment of 28,899 people, and that the GBSLEP is one of the leading LEPs in the positive trend of growth, employment and sales in the Low Carbon Goods and Service sector. This scale-up of the industry is needed to support meeting the challenges. For example, in Birmingham the Green Commission Vision statement sets out the city s carbon reduction target as 60% by 2027, as well as its ambition to become a leading green city. For Birmingham alone, based on the 60% reduction target, and assuming the trajectory of achievement, the target CO2 reduction for the period 2014 to 2020 is 1,068,557 tonnes. Proposed areas for LEP intervention include: Supporting the shift to a low carbon economy This will be focused on supporting businesses in seizing the benefits of decarbonising, as well as developing low carbon goods and services, to support green supply chains, grow companies and provide employment benefits. Low Carbon Solutions This includes linking a hard-to-treat housing retrofit scheme with a local renewable energy source or supporting the further development of an industrial site with a heat capture, energy storage and smart grid system. GBSLEP ERDF Priority 4 Transitional Area GBSLEP have ring-fenced part of the money designated for the Priority 4 (Low Carbon) Priority fund to be spent in the GBSLEP Transitional Areas - the Cannock Chase, East Staffs, Lichfield and Tamworth districts of Staffordshire, leaving 1.9m remaining. Whilst beneficiaries need to be located in the Transitional Areas, organisations running the project can be located anywhere. R0942/Interim Evaluation Report 24 April 2018

27 Organisations have been encouraged to take advantage of the regional funds, and EBRI could benefit from an influx of investment in the promotion of production and distribution of renewable energy, promotion of energy efficiency in enterprises, low-carbon strategies, research and innovation in low carbon technologies, energy efficiency, smart energy management and renewable energy use in public infrastructure. Greater Birmingham and Solihull LEP EBRI Links EBRI is playing a significant role in contributing to the LEP s strategic priorities regarding commercialising cutting-edge research and innovation. EBRI s business support programme has exceeded targets in the Developed area engaging with 27 enterprises and is having a positive impact on high growth firms and business survival rates, while directly strengthening business support available for SMEs. EBRI are targeting the ERDF Transitional Area with new Master Classes in Lichfield and Shrewsbury Black Country LEP Black County LEP Strategic Economic Plan (2014) The plan highlights the Black Country needs to be robust in the face of future changes in rising energy costs, and resilient in respect of extreme weather conditions and other environmental threats. Failure to promote and support renewable energy sources, including biomass, improve energy efficiency and reduce waste will impact on the viability of business and future prosperity. There are just under 500,000 households and 40,000 businesses in the Black Country, spending over 1.5 billion a year on fuel to power buildings, vehicles and homes and generating more than 500,000 tonnes of domestic waste and more than 3.2 million tonnes of commercial and industrial waste. The potential economic value of processing these value streams locally in a more environmentally friendly way is approximately 1 billion a year. The draft for the forthcoming SEP ( ) defines the development of a sustainable, low carbon economy as a key driver of change. LEP EU Structural and Investment Funds Strategy The report highlights that The Experian index (2012) shows that the Black Country is the least resilient of 39 LEP areas in England based on variables relating to business, people and place factors: The area s 2.9% growth rate is the lowest of all LEP areas over the last 10 years. It has far fewer businesses for its size than the national average. It ranks 37 th out of 39 LEP areas in the number of patents per 100,000 residents to stay competitive, local companies need to engage with the knowledge base, levels of innovation and R/D activity. The area is not creating sufficient jobs for the people seeking work. There are not enough higher quality jobs available Gross Value Added (GVA) per head is 5,500 lower than the national average. R0942/Interim Evaluation Report 25 April 2018

28 To tackle this, the LEP has identified five transformational growth sectors - Transport Technologies, Building Technologies / Construction, Advanced Manufacturing including Advanced Engineering, Environmental Technologies and Business Services. Low Carbon and Environmental Technologies - The Black Country LEP recognises a key opportunity for reducing the area s emissions will be in working with its manufacturing industries to reduce their emissions, and to support them in developing low carbon and environmental technologies to support emission reduction and open up new markets. Business Support - The report recognises that for the area to achieve its full potential, public investment is required to tackle significant market failures and barriers to growth, and to improve economic resilience and inclusion. This means supporting business start-up, competitiveness and innovation in high value manufacturing and all other key priority sectors, and niche areas, that have the potential to grow and provide higher quality jobs. The LEP strategy also highlights the importance of collaboration - they state It is expected there will be collaboration in energy efficiency and green economy interventions with the other five West Midlands LEPs, building on a historical record of close working in this policy area. However, the LEP boasts its own University of Wolverhampton, and have sought funding for a new Science, Technology and Prototype Centre at the Wolverhampton Science Park, providing lettable office space and laboratory / testing space. There are already functioning ties between the LEP and Aston University as part of the High Value Manufacturing Catapult network, and so collaboration could be possible. Black Country LEP EBRI Links EBRI s services align with the LEP s priorities in so far that the ERDF project prioritises the need for business support and collaboration and is centred on low carbon technology. EBRI s widespread engagement with SMEs in terms of business support and low carbon and environmental technologies is contributing to the resilience of the LEP, encouraging innovation and R/D in enterprises. The acknowledgement of the potential collaboration amongst LEPs is also an area that EBRI need to keep in mind when developing future projects as this would allow for economies of scale in terms of programme delivery. Continued support will be required to improve the LEP s growth rate. R0942/Interim Evaluation Report 26 April 2018

29 4.4.3 Coventry and Warwickshire LEP Coventry and Warwickshire LEP Updated Strategic Economic Plan (2016) This highlights the need for investment to support the development and strengthening of clusters of innovative companies in Advanced Manufacturing and Engineering (AME) in Coventry and Warwickshire. AME directly employs 34,000 people in the LEP area accounting for 10% of all employment; this is 57% greater than the UK average overall. The CWLEP area will become a global centre for R/D in AME by investing in research and development and innovation technology support programmes and demonstrator programmes and projects to help companies develop their entrepreneurial skills and attract more investment. In 2016, it was further noted that a key enabler will be to support a greater number of businesses, particularly SMEs, to work with the area s innovation assets to foster innovation and attract further investment from knowledge-intensive sectors to the region including a Business Investment Fund to help access finance from commercial providers. Technology Strategy Board priorities and local opportunities include inductive charging, intelligent mobility, intelligent logistics, renewable energy technologies and innovative energy infrastructure, smart grids, low-impact buildings, future automotive propulsion technologies including hybrid technologies, energy systems and energy storage technologies, power electronics, human-machine interface technologies and visualisation technologies. A key priority is to support the diffusion of innovation throughout the local business base, particularly SMEs, including collaborations with the knowledge base to develop innovations and strengthen local supply chains for major Original Equipment Manufacturers (OEM). However, with Coventry and Warwickshire having two of its own Universities the potential links with EBRI and Aston University could be reduced. CWLEP are keen to invest in capital infrastructure that supports the development and uptake of solutions in energy efficiency, low carbon economy, and sustainability amongst other areas. LEP EU Structural and Investment Funds Strategy (2016) A key theme here is Supporting the Shift Towards a Low Carbon economy in all sectors, with Growth Interventions including: the production and distribution of energy from renewable sources energy efficiency and renewable energy use in enterprises research and innovation in, and adoption of, low-carbon activities. SMEs are targeted in relation to waste and its re-use, industrial processes, designing out waste, recovery of waste heat energy and CHP, low carbon fuels, and whole building solutions. SMEs will further benefit from the establishment of a Green Business Support Network to provide targeted advice to help firms reduce energy use, and a grant and loan scheme to help SMEs invest in low carbon technology. EBRI could benefit from a collaborative and advisory role as part of this network. R0942/Interim Evaluation Report 27 April 2018

30 The report highlights the energy sector plays a crucial role in the economic development of Coventry and Warwickshire, being second only to the automotive sector as an employer. Its focus on energy management and supply could bring real commercial advantages, attracting investment and new businesses. Business Growth - The Coventry and Warwickshire economy is underperforming relative to the national average, with lower than average productivity. Other factors are not all businesses with growth potential have realised this, with a potential under-representation of high growth businesses to drive employment and productivity growth. Coventry and Warwickshire LEP EBRI Links The LEP prioritises innovation and developments in low carbon technology applications. The Green Business Support Network may have the capacity to provide a similar offer to EBRI but lacks specific technologies. EBRI have contributed to the CWLEP key enabler of supporting greater numbers of businesses to work with innovation assets, exceeding targets and directly aiding the pursuit of the area becoming a global centre for R/D in Advanced Manufacturing and Engineering. Support has culminated in additional collaboration with research entities and the development of new-to-firm products, part of the prioritised diffusion of innovation throughout the local business base. EBRI could complement the Green Business Support Network to provide targeted advice to help firms reduce energy use. Business engagement could be centred on realising growth potential amongst businesses to improve productivity Stoke-on-Trent and Staffordshire Local Enterprise Partnership Strategic Economic Plan The plan places a strong emphasis on the support of business as a means of providing a strong economy. The LEP is committed to stimulating enterprise, innovation and inward investment; and building on existing industrial sectors and those with future potential for growth. The plan highlights that the Stoke-on-Trent and Staffordshire area has a strong set of businesses with growth potential in key sectors. Their business growth agenda is based on recognised strengths in key aspects including advanced manufacturing. The report highlights: Energy Generation: building on the long-standing presence of Alstom in Stafford, ABB, Siemens Wind Power, GE Power Conversion and the sustainable energy programme centred around Stoke-on-Trent and beyond, there is a need to meet growing local and international demand by diversifying into geothermal, anaerobic digestion, biomass and energy-from-waste. The report also notes that the Keele University Sustainability Hub acts as a focus for the research into, teaching of and management of sustainability, green-tech and energy generation. Building on this the University aims to significantly expand its capacity in energy / renewables research, particularly around wind, solar and geothermal. R0942/Interim Evaluation Report 28 April 2018

31 Energy price volatility and supply insecurity hamper local business development. The LEP s Powerhouse for Energy proposals set out a strategic approach to help protect the area s energy supply from short-term shocks and rising energy prices. They aim to achieve this through a fully integrated smart city network and by exploring local non-conventional sources such as geothermal. Localised energy generation will also be incorporated into new employment site infrastructure. LEP EU Structural and Investment Funds Strategy The strategy takes stock of the LEP s opportunity areas, appreciating the high level of local Universities actively engaged in research and innovation support, while also recognising that at present there are below average levels of enterprise and declining business start-up levels. This strategy highlights the opportunities to create a unique local energy offer, based on existing and new assets and investment in emerging technologies and energy supply chain development both in Stoke-on-Trent and Staffordshire. The plan defines this as an opportunity to build both a more coherent support offer for local businesses, and an innovative economy based upon the numerous local knowledge assets which include two Universities and a number of successful Regional Growth Fund (RGF) projects. Their business growth agenda is based on recognised strengths in key aspects of advanced manufacturing, including Applied Materials, Agritech, Aero-Auto, Medical Technology and Energy Generation. These sectors each have recognised growth potential and can draw upon knowledge assets to sustain their competitiveness. Stoke-on-Trent and Staffordshire LEP EBRI Links The Strategic Economic Plan identifies a growing local and international demand for diversified energy generation in the form of geothermal, anaerobic digestion, biomass and energy-from-waste. EBRI are a direct actor in meeting this need, as well as working to improve the below average levels of enterprise. EBRI face competition from a high level of local Universities engaged in research and innovation support. Keele University focuses on wind, solar and geothermal energy, which are a different area of energy and renewables to EBRI, so there could be potential for a joined up renewable / biomass / energy business support programme where SMEs are signposted to the correct institute that can meet their needs. The issue of energy price volatility and supply insecurity is not just applicable to Stoke and Stafford; it has impacts across the whole of the UK, indeed the whole of the world. Any technology that EBRI can develop to mitigate these risks would be of international importance. R0942/Interim Evaluation Report 29 April 2018

32 4.4.5 The Marches Local Enterprise Partnership Strategic Economic Plan Amongst five key strategic priorities which guide the LEP work programme are support for businesses, and the development of an energy strategy as part of physical infrastructure developments. The Energy Strategy, slated for Spring 2018, will review energy supply for current and future demand given the LEP s plan to deliver 40,000 new jobs and 70,000 new homes by It will also consider the possibilities for the transition to a low carbon economy. Actions to achieve this include: Supporting low carbon and renewable energy supply chains Providing opportunities for the development of energy efficiency, waste reduction and renewable energies in communities Increasing the use of renewable energy, decreasing energy use and promoting smart energy systems A central challenge highlight by the report is the growing Gross Value Added (GVA) gap which is driven by below average skills and under-representation of economic activities that contribute most to GVA. Strategies such as business support, enterprise, innovation and skills development have an important role to play in facilitating growth in the Marches business base and driving up productivity. The report notes the LEP is strong in enterprise performance but there is a need to drive innovation. Despite the Marches ranking 18 th nationally for innovation, the region ranks outside the top 35 for engagement with R/D, process innovation, strategic and marketing innovation, products and services innovation. The area identified Advanced Manufacturing and Engineering and environmental technologies as a key sector with potential for high value growth. The Marches LEP is split into a Transition Area (Shropshire, Telford and the Wrekin) and a More Developed Area (Herefordshire). A government call in April 2018 has designated 1.5m of funding exclusively to support the shift towards a low carbon economy in the transition area only. LEP EU Structural and Investment Fund Strategy The Marches has been allocated 80m of EU funding to invest between 2014 and The Marches ESIF Strategy identifies five strategic activities that align with priorities set out in the EU Framework on the European Growth Programme and help to deliver the Marches vision, including supporting the shift towards a low carbon economy and enhancing competitiveness, research and innovation and enabling technology. Prioritised activities include: Enhancing Competitiveness, Research and Innovation and Enabling Technology: Increase collaborative research between enterprises, Universities, research institutions and public institutions, particularly through the Marches growth sectors. Encourage commercialisation of research to support the development of new products and services, particularly through the Marches growth sectors. R0942/Interim Evaluation Report 30 April 2018

33 Supporting the Shift Towards a Low Carbon Economy: Sustainable and balanced growth. Supporting low carbon and renewable energy supply chain. Providing opportunities for the development of energy efficiency, waste reduction and renewable energies in communities. Increasing the use of renewable energy, decreasing energy use and promoting smart energy systems. Environmental technology is one of the fastest growing sectors in the Marches, with more than 65% of sector businesses experiencing growth in the last year. As an LEP, the Marches is the second best represented with regard to environmental services and technology, with a number of market leading companies and technologically cutting-edge enterprises covering renewable energy, water technology, waste management and pollution control. The sector prioritises transfer of knowledge to help Marches businesses working in all sectors to improve economic performance through better environmental management, generating demand for local product and services solutions. The strategy identifies energy from waste as a potentially major role in energy efficiency for urban areas. Local biomass resources are recognised as important for rural areas. The Marches LEP EBRI Links Supporting the low carbon economy is one of the Marches SEP priorities - seeking the transition to a high value, low carbon economy, maximising the opportunity of new technologies, reducing environmental costs to business, reducing fuel poverty and recognising the area s environment as an economic asset. EBRI s support aligns with the strategic activity that supports business networks, skills base, supply chain, knowledge transfer, waste management, resource efficiency, renewable and low carbon energy support measures, R/D and innovation. Support is also acknowledging the concentration on the Transition Area as a means of improving the local GDP to match the EU average. 4.5 Summary of Strategic and Policy Context If anything, EBRI appears to be more relevant in the strategic climate of 2017 / 18 than at any time in the past, as both locally and nationally the emphasis of partnerships becomes increasingly focussed on technology, energy from waste, climate change and business support. At a national level, EBRI strongly supports the findings of recent studies including the Dowling Review of Business and University Research Collaboration, the DBIS and UK Government Industrial Heat Recovery Support Programme Consultation 2017, Building Our Industrial Strategy 2017, Clear Growth Strategy and National Energy Policy. Locally EBRI is becoming increasingly significant to the implementation of local and regional partnership strategies including the West Midlands Regional Energy Policy Commission and Science and Innovation Audits of 2018 along with the evolution of Local LEP Strategies. R0942/Interim Evaluation Report 31 April 2018

34 5.0 Consultation with Beneficiary Businesses For this interim evaluation, two strands of work have captured data and qualitative feedback from beneficiaries who have used the services provided by EBRI. These are: Analysis of Data from Businesses Taking Part in EBRI events This section analyses feedback gathered from those who attended EBRI workshops including the Master Class Courses and St Paul s events. Case Studies of Beneficiary Businesses This section captures more in-depth feedback from one to one consultations with businesses who have received in depth support and provides a more detailed understanding of the impacts that support from EBRI can have. 5.1 Analysis of Data from Businesses Taking Part in EBRI Events Value from Waste Master Class In total, there were 47 surveys completed across 5 classes undertaken at Coventry (6 th -7 th September), Stoke (12 th -13 th July), Birmingham (15-16 th March (1) and 14 th -15 th June (2)) and Wolverhampton (29 th - 30 th March). The surveys were conducted between March and September Respondents were asked to rate both the overall course as well as each individual session Overall Rating Respondents were asked how they rated the Master Class Course overall and could choose their answer on a sliding scale from very poor to excellent. All respondents rated the sessions at a good or above, with the majority (68.01%) considering the course to be excellent and a further 26.60% determining the course as very good. Individually, the best performing class were conducted at Birmingham (2) and Stoke-on-Trent, which both received over 80% of responses in the excellent category. 60% of attendees at the Birmingham (1) event considered it excellent. Respondents were given the opportunity to make additional comments regarding their overall ratings. Some of the recurring positive feedback regarded the informative nature of the course as well as the excellence, knowledgeability and approachability of the presentation team. In terms of the content provided, most comments reflected positively on the depth of information, whereas a minority queried the academic nature of the course. A selection of these positive comments is listed below: Excellent content, well presented and easy to digest Content was great. Right pace, friendly bubbly and knowledgeable group Very high levels of passion, plain language and energy by all of the speakers. Brilliant to see the percentage of ladies Broken down very well in a manner a complete novice could start to piece together. R0942/Interim Evaluation Report 32 April 2018

35 A number of the comments recommend specific alterations and improvements. Some of these have been included below: I would like more time to discuss business opportunities and ideas with people on the course Day 1 had some repetition for me having been to your Fusion [St Paul s] event previously. Activities were well planned, but some felt rushed. This was a shame as it was the chance to apply info on a practical basis. Overall a bit academic Overall there was a little too much PowerPoint. It would be good to establish ground rules with attendees at the start e.g. about willing participation in group activities (some people don t take it seriously). And not answering phones Details of the attendees on day would have helped introductions and networking Group Activities Each Master Class Course comprised between 4 and 6 group activities on a variety of topics, some of which were independent to that Class, others were repeated and can be compared across different locations and deliveries. Each group activity is considered below. No activity registered a single score in the very poor or poor category, and each was largely ranked as excellent by most respondents. The group activity with the largest proportion of excellent responses was Mobilising Sustainable Bioenergy Supply Chains (60.0%), followed by the activities based on Anaerobic Digestion and Biorefinery Solutions (59.1%) and Biorefinery Supply Chains (57.1%). The only activity not to receive over 50% of responses in the excellent category was the Techno-Economic Assessment of Bioenergy Projects (45.8%). Only 2 respondents rated one of their group activities as average ; these were Mobilising Sustainable Bioenergy Supply Chains and Techno-Economic Assessment of Bioenergy Projects. On average, just 3.7% of respondents considered their group activities as average and 14.0% determined they were good. 32.6% rated them as very good, and on average 53.7% thought they were excellent. The activities have been ranked according to the percentage of excellent responses below: Mobilising Sustainable Bioenergy Supply Chains 60.0% Anaerobic Digestion and Biorefinery Solutions 59.1% Biorefinery Supply Chains 57.1% Assessing Business Opportunities in Bioenergy Systems 55.3% Bioenergy Projects, Feedstock and Technologies 54.3% Visits 52.8% Techno-Economic Assessment of Bioenergy Projects 45.8% R0942/Interim Evaluation Report 33 April 2018

36 Visits Three out of the five Master Class Courses included a group visit. These took place in Stoke and Birmingham and involved tours of a local biomass boiler, the EBRI Laboratories, Power Plant and an Electric Vehicle-to-Grid Car. Overall, on average 52.8% of respondents rated their visit as excellent, and just 11.1% thought it was good. The most popular visit ranked by respondents most frequently as excellent was the tour of the local biomass boiler in Stoke (60%) Overall, Group Activities 3 of the 5 surveys sought to determine how respondents rated the group activities across both days of the course. In total, 45.5% of respondents considered their activities to be excellent, 36.4% very good, 13.6% good and just 4.5% thought they were average. The Master Class held at Stoke-on-Trent received the proportionately highest ratings, whereas the session held at Birmingham in June 2017 received the greatest diversity of responses, ranging from average (10%) to excellent (40%). It should be noted that the courses hosted at Wolverhampton and Birmingham (March 2017) did not ask their respondents to rate their group activities overall Technical and Business Challenges Three of the five questionnaires provided the opportunity for participants to comment on their main technical and business challenges, with comments being particularly diverse. A few respondents thought the introduction and integration of technology posed their greatest problem, others were concerned by funding and investment opportunities, but most issues were unique to each companies interests. A selection of these comments has been listed below: Helping clients benefit from bioenergy. Selling the benefits and integrating into my service Exploring sustainable energy sources for renewable energy in our environment and land Bringing a new technology to the UK. Communicating benefits to the wider AD [Anaerobic Digestion] and waste management sectors To better understand various feedstocks available. To better understand the difference between pyrolysis and gasification Finding trade and investment opportunities in the UK for our international clients Finding specific marketing angles relevant to different business sectors R0942/Interim Evaluation Report 34 April 2018

37 Additional EBRI Support Support from EBRI in the Future Respondents were asked which of a series of 7 areas they would like support from EBRI in the future and could choose as many as they saw fit. Overall, the most popular were the joint collaboration with their business (78.8%), other EBRI events (76.6%) and funding opportunities for their business (74.5%). The areas of future support have been ranked below in order of the percentage of respondents who said yes : Joint collaboration for your business 78.7% Other EBRI events, such as business focused seminars and workshops 76.6% Funding opportunities for your business 74.5% Tailor-made report on the viability of your business' technology requirements 54.5% Techno-Economic Assessment of proposed technology 51.1% Access to EBRI's pyrolysis and gasification test facilities 42.5% Feedstock analysis 40.4% A closer analysis of the varying popularity of each support area at different locations suggests that the attending companies had diverse priorities. For example, in Coventry and Stoke the potential for funding opportunities was the most popular choice for support, whereas in Birmingham (1) and Wolverhampton, the possibility to attend other EBRI events, such as business-focussed seminars and workshops were the most popular choices. The question also allowed for respondents to leave additional feedback. Some of these comments have been listed below: A reunion would be very useful to bounce ideas again Interested in finding opportunities for other s business. Also interested in joint collaboration opportunities with Birmingham City Council / Veolia Contract Interested in networking events and may be able to assist with some workshops focussing on some practical aspects Any help available in tailoring our communications offer to the market and promoting our innovation study tours to international trade shows Curious about onsite methods of testing feedstocks at point of use rather than supply Furthermore, respondents were asked whether they would be interested in joining EBRI s Networking and Showcasing Club (also referred to as Fusion) for businesses connected to the bio-economy and beyond. Of the 47 total respondents, 41 (87.2%) said that they would be interested. Respondents at all but Birmingham (2) were further asked whether they would be happy for their comments to be used in future EBRI marketing material to promote future Bioenergy Master Classes, and 35 (88.6%) of respondents said that they would. R0942/Interim Evaluation Report 35 April 2018

38 5.1.2 St. Paul s Fusion Events The survey results from four Business Fusion classes have also been analysed. These events are shorter than the Master Classes and are designed to provide networking opportunities. Across the four classes surveyed there were 42 respondents to the questionnaire. The classes took place in 2017 at St Paul s Club in Birmingham (16 th May) and at EBRI, Aston University (21 st March, 21 st June, 19 th July). Respondents were asked to rate both the individual event and a proposed membership of EBRI s Business Fusion Club, as well as various questions depending on the session Overall Rating The survey asked how the respondents rated their event overall, with a range of options from very poor to excellent. Across the 4 classes, most people thought the session was very good (37.8%). A further 29.7% considered their session to be good, 24.3% registered that it was excellent, while a minority thought they were either average (5.4%) or poor (2.7%). A closer reading of the data suggests that the most popular class took place at Aston University (21 st March) as all respondents rated their event as at least very good. Similarly, the event at St Paul s Club recorded 90% of responses as very good or above. The event at Aston University (19 th July) was the only class to attract a single poor rating. Additionally, respondents were granted a forum to express open feedback on their event. A selection of these have been listed below, attributed to the relevant event. Overall, comments were positive in their nature, and considered the events informative, engaging, clear and well presented. A very interesting presentation which opened my eyes to the need to convert negative waste to energy There was a lot of technical information to take in. From a professional point of view, it could be interesting to get insight to business models and challenges Thought provoking. Makes sense and if businesses can benefit economically and use from a marketing standpoint then all the better Didn t expect to have to complete EU funding docs at registration. Perhaps these should have been sent out in advance More companies that make stuff please Group Activities At two of the events the surveys asked respondents to rate each individual session they participated in. At Aston University (21 st March) respondents were quizzed on 4 sessions, and again at Aston University (19 th July) respondents were asked about the two sessions they participated in. Largely, the sessions were considered to be, on average, at least very good (38.5%) or excellent (38.5%). Just 23.1% overall rated their sessions at good or below. R0942/Interim Evaluation Report 36 April 2018

39 The highest scoring session according to respondents was the tour of the EBRI laboratories and power plant, of which 61.5% of participants rated it excellent. The next most popular sessions were the Introductions and technical briefing (57.0% excellent ), and Shaping the Business Fusion Club in the future (67.0% very good ). Most respondents regarded the Workshop to explore wider business opportunities to be very good (57.0%). The most diverse ratings were attributed to the Biochain Business Opportunities session, as equal numbers scored it poor, average, good and excellent (17.0% each) Value from Waste Master Class Some participants at the Aston University events (21 st June, 19 th July) were asked whether they would like to attend an EBRI Master Class event which has been devised for new local businesses seeking new market opportunities. On 21 st June respondents were asked whether they would attend a Master Class at Stoke-on-Trent 2 said they would (13%). On 19 th July respondents were asked whether they would attend a Master Class at either Coventry and Warwickshire Growth Hub on 6-7 th September, or at EBRI, Aston University Campus on th November 2 said they would attend at Coventry (33%) and 1 said they would attend at Birmingham (17%) Business Fusion Club Respondents at 2 of the events (St Paul s Club, and Aston University 21 st June) were asked whether they would be interested in joining EBRI s Business Fusion Club. 21 people said that they would (72.4%), 11 being from the event at St Paul s Club (78%). All of the surveys also queried which factors are important or not important to respondents when considering the proposed membership of the Business Fusion Club. The data from the four events has been collated and demonstrates that most of the factors are important to potential members, in particular the opportunity to network with larger business and organisations, which received 98.8% backing yes. The least important factor to respondents was the prospects of organised tours to interesting locations. This is surprising considering the session that was rated excellent more than any other was a tour of the EBRI laboratory and power plant. The factors have been ranked in order of their overall percentage share of respondents who said yes : Networking with other SME businesses 98.8% Networking with larger businesses and organisations 97.6% Showcasing your company and its products / services to other SME businesses 96.4% Showcasing your company and its products / services to larger businesses and organisations 89.3% Insight speaker events for members on a variety of topics aimed at 75.0% business leaders and entrepreneurs Organised tours for club members to interesting locations such as recycling 51.2% Plants and energy plants. R0942/Interim Evaluation Report 37 April 2018

40 Respondents could also provide additional feedback. A selection of responses has been included below: Profile raising through joint projects. Introductions One to One to relevant companies Would only be interested in events where tangible benefits to business would be evident I have to be honest at this stage it is the networking that interests me, particularly with those interested in the bioenergy field Additional EBRI Support Respondents were asked which from a series of 7 areas, would they like support with in the future, and could choose as many as they saw fit. Overall, combining the data from the four fusion classes, the most popular proposed support among respondents was the proposition of attending other EBRI events (57.1%) and join collaboration for their business (50.0%). More than one-third of those surveyed sought support in the shape of funding opportunities (38.1%), although just 7 people out of the 42 respondents wanted support in feedstock analysis (17.5%) and via access to EBRI s pyrolysis and gasification test facilities (17.5%). The data from the Business Fusion events has been graphed alongside the results from the Master Class Courses as a means of comparing the popularity of the different areas of support depending on the type of class attended. The results are shown in Figure 1. Figure 1: Areas of Support in the Future Other EBRI events, such as business focused seminars and workshops Joint collaboration for your business 50.0% 57.1% 76.6% 78.7% Funding opportunities for your business 38.1% 74.5% Techno-Economic Assessment of proposed technology 33.3% 51.1% Tailor-made report on the viability of your business' technology requirements 21.4% 54.5% Access to EBRI's pyrolysis and gasification test facilities Feedstock analysis 17.5% 17.5% 42.5% 40.4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Business Fusion Master Class The chart shows that at both types of class, the areas of future support favoured by participants followed a similar trend. Interestingly, surveys at the Business Fusion events recorded consistently lower proportions of respondents who sought EBRI s support in the future across all areas of support. The R0942/Interim Evaluation Report 38 April 2018

41 greatest distinction in results between the two types of event regarded the proposed future funding opportunities for their business; 36.4% fewer people sought this kind of support at the Business Fusion sessions as they did at the Master Classes. The survey provided space for optional feedback. A sample of the comments is below: Interest would depend on value to my business Not sure, we work with businesses which regulate this support. However, I can t see that we need it directly Some of the surveys asked if the respondents would be happy for their comments to be used in future EBRI marketing materials to promote future events. 62% of respondents said they would (9 from St Paul s Club, 9 from Aston University, 21 st June). Some of their comments have been listed: It would have been interesting to hear about the technologies and research EBRI have been involved in. What technologies are best suited to what feedstock and is it a financially viable solution [Carew Consulting] Probably need to have a What s in it for me to get businesses engaged. Business leaders are bombarded with proposals but basic benefits including economic benefits would help sell concepts Funding Event for Businesses EBRI s Business Club In tandem with the bioenergy Master Classes and the Business Fusion events, EBRI provide a forum for businesses interested in funding. The 26 attendees at the Funding Event on 6 th December 2018 at the St Paul s Club were asked to consider their potential membership of the wider Business Club and asked to reflect on the funding event itself. 77% of respondents said that they were interested in joining EBRI s Business Club, while only 7% outright said they were not. Respondents were asked which of the Business Club s activities were important or not important to them, with 92% of respondents opting for networking with other businesses, business and technology insight events, and access to research and commercial funding. The interest in networking mirrors the interests of respondents to the St Paul s Club surveys, but the importance bestowed on attending insight days is more prevalent amongst funding event attendees. R0942/Interim Evaluation Report 39 April 2018

42 The factors have been ranked in order of their overall percentage share of respondents who said the activity was important : Networking with other businesses 92% Business and technology insight events - industry and technology 92% briefings on current challenges, practices and trends Access to funding - including research and commercial 92% Showcasing your company and its products / services 74% Student projects such as MBA teams, technical / business / legal topics 74% The opportunity to orientate Aston University s research agenda around topics 74% of interest to you Student placements to get first access to top graduates 70% Organised tours for club members to interesting locations such as recycling 67% plants, and energy plants. Access to analytical and testing services 55% Interestingly, the least popular feature of the Business Club for those attending a Funding Event was the access to analytical and testing services (55%), suggesting the clientele have broadly different objectives to those engaged in the Master Classes. The survey asked whether respondents would like to attend an EBRI Value from Waste Master Class event overall, 61% responded positively, 23% suggested they would attend a March 2018 event at the University Centre Shrewsbury, while 38% determined they would attend other future EBRI Master Classes in Funding Event The questionnaire took a more in-depth look at the funding session itself, asking respondents to rate the event. 62% of the 26 attendees considered the event very good, while 30% suggested it was good. An equal 4% determined the event to be average or excellent. Although an overall positive reflection, the funding event was deemed less popular than the comparable EBRI sessions. The survey provided an open platform for additional feedback on the event as a whole. A selection of the comments provided is listed below: I liked all the sessions. I now have a range of professional advice in finance and more No summary of funding (full scope of UK/EU options) Really good flow to the different topics covered, worked extremely well Respondents were asked to rate the three types of session delivered, as well as the St Paul s Club venue. The data from this question is illustrated in Figure 2. The networking sessions were considered excellent by 31% of attendees. The presentations by guest speakers were also deemed popular as 69% said they were very good or excellent. Presentation by Aston University staff, including non- EBRI staff and project presentations, were mostly considered very good (by 42%). R0942/Interim Evaluation Report 40 April 2018

43 Figure 2: Funding Event Activities Presentations by guest speakers Presentations by Aston University staff Networking sessions 15% 4% 4% 4% 11% 27% 19% 31% 31% 27% 54% 42% 35% Those surveyed provided additional feedback on each of the activities: Variable but lacked real detail, the overview presentations were good but some details of support services costings (on guest speakers) Main issue some case studies better (on Aston University staff) Those sessions allow me to meet others and exchange some business cards and ideas (on networking sessions) Nice quality and length, good mix of people rather than all from the same business sector (on networking sessions) Maybe structure the networking via dating techniques (on networking sessions) Overall, 46% of respondents considered the venue to be very good, 31% rated it good, and 12% average Additional Support from Aston University Respondents were asked which of a series of 9 areas they would like support from Aston University in the future and could choose as many as they saw fit. The most popular proposed support among respondents was the proposition of a Knowledge Transfer Partnership (61%) and attendance at other EBRI events (61%). The results are illustrated in Figure 3. R0942/Interim Evaluation Report 41 April 2018

44 Attendees were further asked whether they sought support or more information on the 4 specific areas detailed at the event; 65% sought to pursue the British Business Bank, and 58% said yes to Emmerton Consulting. Less than 50% suggested they would like support from Seagrave French LLP (38%) or Taurus Wealth (35%). One respondent provided rationale to their decisions: Not ready for help with financing yet, have other avenues for funding. All funding has different rules and lots of bureaucratic systems. Figure 3: Additional Areas of Support from Aston University Other Aston events e.g. organised by Aston Business School Other EBRI events e.g. business focused seminars and workshops Low Carbon support for SMEs 38% 54% 61% Aston Programme for Small Business Growth 57% Aston Student Placements Innovation Vouchers 42% 42% Knowledge Transfer Partnerships (KTPs) 61% Energy and Waste 'Value Chain' opportunities European Bioenergy Research Institute 46% 46% 0% 10% 20% 30% 40% 50% 60% 70% 93% of those who responded yes to any of the additional support areas above agreed to have their details passed on to the relevant department. 93% were also content with their comments being used for future marketing material. When considering the overall performance of the event, most comments were positive. A selection of the feedback is listed below: Another fascinating event from EBRI with lots of hints and tips on how to secure funding and help using University graduate placements and apprenticeships Not sure this really addresses the full scope of funding an overview would have been great Excellent and hands-on advice for a range of services R0942/Interim Evaluation Report 42 April 2018

45 5.2 Case Studies of Beneficiary Businesses Four beneficiaries of the EBRI project were consulted in depth to produce comprehensive case studies on the impact the support has had. These are all SMEs in the West Midlands who have collaborated in some way with EBRI Recorked UK Background / The Business Recorked is a small social enterprise which collects used corks to recycle selling them on via ebay for a variety of uses. It began in 2015, following a chance conversation between the Director, Sanjay Aggarwal, and a representative of a Portuguese cork company. Similar enterprises also exist in France, the USA and elsewhere. Initially, Recorked imported the used corks, but in 2017, they decided to start sourcing all their corks through a UK cork recycling scheme. They send large cardboard banners and collections sacks to recycling stations and partner organisations such as restaurants and wine bars and pay couriers to transport the returning sacks of corks to their central collection point. The take-up was rapid - it took only three months to get 50 partners involved showing catering businesses are keen to find a way of recycling corks which would otherwise be disposed as waste. Partners include Adnams Brewery, River Cottage Canteens and the Sommelier Wine Awards all sending their used corks to Recorked UK. Recorked UK describe their offer: We are the UK s leading natural wine cork recycling program. You donate, and we resell. For every cork collected, we donate a % of our profit to our nominated charities. We also supply free corks to various charities and schools for use in craft projects. We partner with pubs, bars, hotels, restaurants, wine merchants and vineyards who join our family as collection partners. With millions more corks to recycle every year, we need your help to continue to grow. Join the Recorked UK movement and let s create real change with recycled cork. The corks are sold largely for crafting and similar purposes through Ebay, Etsy and Recorked UK s own website. The craft market for corks has grown considerably over the last few years. However, Recorked UK acknowledge that this market is finite, and although in theory the business is very scaleable, they are only able to collect as much as they can sell. Because of this, Recorked are actively seeking new markets and uses for the corks to significantly scale up the business. R0942/Interim Evaluation Report 43 April 2018

46 Nature of involvement with EBRI Recorked UK found out about EBRI through the Black Country Growth Hub, after which Sanjay attended one of the Master Classes. A short film of Sanjay talking about his experience at the Master Class and what he hopes the benefits will, be for Recorked UK can be viewed via this link: Recorked UK at the EBRI Master Class ( Following the initial contact with EBRI at the Master Class, in September 2017, two members of the EBRI Business Support Team produced a report for Recorked UK on Waste cork valorisation Outcomes From the Executive Summary of the report for Recorked UK: The current outlet for the used corks is reselling either in its original form or as a by-product, such as balls, for craft fishing or decoration objects with a product value within the price range of The prospect of added value products from its existing waste cork material through an energy from waste process or alternative pre-treatment routes is analysed in the current report. EBRI has assessed the supplied waste cork material and found: 1. Analysis of the provided cork feedstock provided by ReCorked UK Ltd to identify critical parameters such as heating value, moisture and ash content, biomass content and heavy metals and elements. 2. Thermochemical routes for its valorisation either though energy recovery or bio-product recovery. 3. Biological pathway potential for energy recovery or bio-products. 4. Alternative uses through pre-treatment or products recovery from waste cork and relevant markets. The different routes are considered in detail in the report. The alternative uses make use of cork s absorbent qualities in filtering applications, for the absorption of contaminants or as bio-products, particularly in furniture and homewares Impact on the Business Recorked UK are considering the outcomes of the report, assessing the information to make decisions on future markets. The report identifies two or three potential uses for the corks that could be promising, and EBRI are keen to research these areas. Recorked UK are also exploring new ways of transforming corks into other products for example cork boards, DIY kits of bird houses or hedgehog homes or air plants as small gifts for wedding guests. R0942/Interim Evaluation Report 44 April 2018

47 5.2.2 Harrington Woodfuel Co Background / The Business Harrington Woodfuel Company supply wood for burning direct to homes and business customers in the West Midlands. They were established in 2010, and source native hardwood from sustainable British forests, which is seasoned in a dryer powered by a biomass boiler. Waste wood off-cuts from the company s main product are used as fuel in the boiler. One of Harrington s main selling points is the consistent quality of the wood. They are the only HETAS supplier in the central West Midlands, carrying out random tests to ensure the moisture content of the final product is below 20%. Harrington also produces pizza logs and hobbit logs for very small stoves and have developed a processor specifically designed to cut this smaller size of log Nature of involvement with EBRI Matthew Downes of Harrington Woodfuel Co. attended an EBRI Master Class in March He found it interesting to see what opportunities are available, beyond a wood-based biomass product, and can foresee using food waste - it provided food for thought on how to future proof the company. In addition, Matthew realised that EBRI could assist Harrington Woodfuel Co. in extracting value from their waste wood streams. At present, any waste woodchips are simply boxed and left to season naturally. However, this is a long process and takes up space, which is very limited and a valuable commodity for the company. Importantly, the woodchips are off-cuts of sustainably sourced hardwood, so this high-quality material is not being used to its full potential Outcomes Following the initial contact, two reports were produced by the EBRI Business Support Team for Harrington Woodfuel Co. In March 2017, EBRI produced a High-Grade Virgin and Waste Wood Market Review an economic and technical assessment of the local, regional and national markets for high grade waste in the UK. Harrington were looking to find if they could extract any value from the waste wood streams generated by the company, and the report assessed current market values of wood waste chips and sawdust, including an evaluation of potential markets and alternative revenue generation. Three distinct approaches were investigated, with the one with the most potential being alternative markets for using woodchips and sawdust. R0942/Interim Evaluation Report 45 April 2018

48 A second study was then undertaken in December 2017, to take these findings forward and identify outlets for the company to incorporate new high grade woodfuel products to their existing range and add value to the business. Here EBRI analysed samples provided by Harrington Woodfuel Co. and reviewed suitable equipment for chipping, and potential suppliers for the sawdust. The outcomes were to suggest appropriate chipping equipment for the wood offcuts and processing, waste wood stream analysis, and a list of potential companies for sawdust disposal Impact on the Business Based on the EBRI reports, Harrington Woodfuel Co. have assessed their waste sawdust production, and concluded that they are not generating it in sufficient volume to sell onto pelletising companies as a viable business opportunity. However, if volumes increase, they now have the information they need to capitalise on this opportunity. The report also showed that the wood chip waste is more valuable if the sizes are consistent. Harrington Woodfuel Co. will use this finding to guide equipment investment decisions. In these ways the EBRI research has supported the company to make key strategic decisions affecting future business growth Additional comments on engagement with EBRI Harrington Woodfuel Co. were very impressed with the quality and detail of the reports particularly the potential opportunities to increase profits through investment. The engagement with EBRI has been both reassuring and positive. Furthermore, the EBRI report provides details and figures they can use with potential customers, partners and investors. EBRI would be the first point of contact for this business with any related questions. For example, they are starting to think about possible routes for recycling that are used to transport the wood logs to customers, once they are no longer useful for this purpose T2 Sensors Ltd Background / The Business In 2016, Max Swinbourne established 4T2 Sensors Ltd with a business partner, as an engineering consultancy company specialising in bespoke and custom made smart electronic devices. One of their first clients was a company developing refractometers sensors measuring refraction in fluids. These are expensive to produce, and easily contaminated. The brief for 4T2 was to find a way of overcoming these problems. In doing so, it became apparent that the technology could have many other applications, for example to detect contaminants within a gear box mechanism, or a desalination sensor, which can measure exactly how much salt is in a fluid. R0942/Interim Evaluation Report 46 April 2018

49 In a sense this innovation was by serendipity, a by-product of another unrelated development. In T2 established a lab to explore the potential of the various applications where the technology could be used. This is turn has led to the development of a sensor for inline measurement of the electrical properties of liquids. One application of this is to measure the constituent parts of a fluid in production lines for drinks and liquid food manufacture. A feature of the technology which is unique, is the ability to data log the process being monitored, continuously sending data about production enabling adopters of the technology to optimise their production processes. The sensor technology currently used for this task is optical and therefore suffers from the inherent problems associated with the technology - cost and high maintenance. Tests with rapeseed oil shows the sensor has applications in bioliquids and bio-based fuels Nature of involvement with EBRI It was during the development process that Max first came into contact with EBRI. 4T2 required technical and market validation for new applications, of particular interest was the biofuel market, an area where they had limited expertise. In October 2017, a member of the EBRI Business Support Team produced a report assessment of applications for conductivity-based sensors in biomass processing identifying markets where the sensor technology could be deployed in the near-term. Based on a comprehensive literature review, sensor applications in the manufacture of three main biomass-derived biofuels were identified: biodiesel, bioethanol and biogas including current market volumes and projected growth for each product Outcomes The report set out why the technology that 4T2 developed would be useful, provided a validation that markets exist, and gave the company the knowledge to explore the applications for this technology more seriously. Following the report s completion, and armed with the knowledge that it gave them, 4T2 have filed patents for products which are now in production, and now have another two patents ready to file under the new company name of 4T2 Sensors Ltd. The manufacture of the constituent parts will be subcontracted to other British manufacturers and 4T2 themselves will assemble the final products Impact on the Business 4T2 have now completed an investment growth phase, and signed agreements with a number of investors. The company has been able to use the report written by EBRI as evidence to show potential investors the market credibility of their technology. In the near future, 4T2 are hoping to obtain grant funding to support a recruitment drive. R0942/Interim Evaluation Report 47 April 2018

50 Additional comments on engagement with EBRI Max commented that the subject matter of the report was something that 4T2 had limited knowledge about, and yet it was written in such a way that it was easy to read and digest it was well structured with clear ideas to explore FuturEnergy Background / The Business FuturEnergy Ltd specialise in clean technology, renewable energy and allied sectors, delivering diverse design proposals and process solutions to industry. The company was originally recognised as a leading UK wind turbine manufacturer, developing the AirForce¹ 1kW domestic wind turbine in 2006, 6,000 of which have subsequently been sold world-wide. As of 2015, a diversification strategy has seen FuturEnergy act as a contracted design house with 7 full time employees specialising in mechanical engineering - developing equipment and processes that evolve ideas into actual products. Their in-house design and manufacturing capability is supported by a wide range of equipment such as CNC machining, water-jet cutters, plating and finishing and 3Dscanning, all facilitating a prototyping and small-scale production service. FuturEnergy describe their offer: FuturEnergy offers a generator design service, and supplies bespoke generators to industry, especially where off-the-shelf units are not suitable, with wind, tidal and hydropower applications being key areas. Other products and projects are active in areas as diverse as waste to energy, heat recovery and energy generation, concentrated solar-thermal and solar-pv, water desalination systems and organic waste reduction. Energy from waste systems include equipment that recovers energy from end-of-life tyres, plastics, and organic wastes such as sewage sludge. Gases generated are used to drive gas engine generator sets, with oils either used in the same way, or further processed for use as transport fuels. Residual chars are often valuable products that can be used in cogeneration plants or the chemicals industry Nature of involvement with EBRI Business Development Director Steve Harrison acknowledged there has been a two-way relationship between EBRI and FuturEnergy. Despite being highly-skilled mechanical engineers, FuturEnergy s diversification into energy from waste systems required expertise in chemical engineering, a resource FuturEnergy lacked and therefore sourced from EBRI. Steve engaged with EBRI at a Master Class in Birmingham and subsequently presented part of an EBRI Energy from Waste Workshop in 2017, introducing waste conversion technologies and energy recovery methods employing pyrolysis, gasification and incineration. R0942/Interim Evaluation Report 48 April 2018

51 FuturEnergy accepted they did not have the skills and knowledge associated with chemical deconstruction and the finer details of pyrolysis; they worked with EBRI to scope a collaborative project to assess their pyrolysis process which combined an auger reaction with friction compounder reactor for the pyrolysis of tyres. The process of extracting energy from end-of-life tyres involves putting them through a compounder reactor used in the plastics extrusion industry to bind materials together into a paste. If turned to a higher speed at a higher temperature, it breaks them down to liquids and gases, with a solid residue, quickly and efficiently. EBRI reviewed the core designs of the reactor and facilities of the current plant, before providing critical design points and suggestions for the process. EBRI also analysed materials from the tyre pyrolysis process to aid FuturEnergy s chemical process design one member of the EBRI Business Support Team produced a report titled: Technical review of pyrolysis process design for tyres and plastic waste Outcomes The technical report described the process and system, analysed the samples of feedstock from waste tyres, oil and char, and suggested further analyses, potential markets and applications for the products. As a result, FuturEnergy now has a better understanding of the material output and processing required to produce a refined fuel. From the conclusion of EBRI s report for FuturEnergy: The main outputs of the process at 450 C and 12 minutes residence time was a fine char product with a considerably high heating value and low moisture content that has an increased concentration of cobalt, copper and remaining heavy metals in comparison to the raw feedstock. This downgrades the quality of the char as a fuel and increases any potential issues related to deposition or combustion of it. Furthermore, the liquid product has a consistency with qualities between biodiesel and heavy fuel oil but with an alarmingly high acid number that will be problematic both for storage and fuel use. Considering that the provided samples were from the primary tests, the quality of both fuels could be further improved to target potential markets for fuel oils or as feedstocks for the chemical industry. EBRI s analysis of the chemical process identified how value could be realised from tyres in the fuel and chemical industry - the output could be used in asphalt, a form of diesel, in tars for the chemical industry, recycled in the tyre-making process, as aviation fuel and in valuable petroleum wax used in oils, greases and lubricants. With this knowledge FuturEnergy has developed a unit that is efficient and popular. This is at a preproduction stage and aims to progress to full production by FuturEnergy have already brokered partnerships across the UK and are developing markets in Portugal and India. EBRI have become R0942/Interim Evaluation Report 49 April 2018