Business Weekly - Cambridge, UK

Waving the flag for energy in the East of England (from left) John Best, John Westwood and George Morrison.

George Morrison, managing director of Aquaterra Energy, called for united support on the issue at the annual EEEGR ’08 conference staged by the East of England Energy Group at Newmarket last week.

It was the biggest EEEGR event to date, focusing on the race for sustainable energy and attracting nearly 200 delegates and around 60 exhibitors.

Mr Morrison said the lack of an engineering faculty at the UEA was an obvious weakness for the region: “If we want a sustainable industry, I believe our regional voices, such as EEEGR, should make this a priority target. For our graduate needs, this would be like bringing water to the desert.

“I would estimate that for every graduate I can attract this summer, Aquaterra will be able to sell an additional £500,000 of export work next year – and bring this work back to the Norfolk economy.”

He said that this year his company had advertised in UK universities to recruit six graduate engineers for various areas of work.

It had attracted 150 CVs – but only six of them from British nationals, an imbalance which he could not ignore.

“The nearest top engineering university to Great Yarmouth is Cambridge which, at 83 miles, is about as far away from any such institution as it is possible to get in England,” he said.

It came at a time when there was a chance for the energy industry to build on 40 years of activities in the southern North Sea which had left the region with a real wealth in terms of experience and expertise.

Around 90 per cent of Aquaterra's turnover was generated through export contracts.

“I believe the East of England can rightly claim to offer world leading engineering skills and this experience and skill level is very sellable abroad, he added.

His words prompted a lively debate and also a suggestion that companies could now set up their own engineering degree schemes with university support.

John Best, EEEGR chief executive, said the best way forward was for the industry to speak with one coordinated voice through its Skills for Energy Partnership.

The conference also focused on golden opportunities which diversification in the energy industry offered the region’s supply chain businesses.

“Many amazing opportunities lie ahead for the industry with a forecast 22 trillion dollar spend on energy by 2030,” said John Westwood, managing director of industry analysis group Douglas Westwood.

Gareth Brett, head of new nuclear for British Energy, said the potential for the supply chain in the East of England was enormous. “It will be stretched, possibly over-stretched,” he said.

British Energy was focusing on four sites with potential for new nuclear plants, including Sizewell and Bradwell.

Building Sizewell B had already put £30m into the community, created 500 full-time jobs and there were currently 25 apprentices.

But he recognised that local community interests were paramount and, even if progress was smooth, it would be 2018 before the first power was produced from a new plant.

John Sewell, UK operations manager for Perenco at Great Yarmouth, believed there was still 20-30 years of life in southern North Sea gas exploration and production.

What was being done with renewables was admirable but energy sources like gas would continue to have a vital role to play in the energy mix.

His company was giving extended life to many gasfields by operating differently and smartly.

“We need supply chains to be with us in those changes. We have 40-year-old platforms which can be kept going for another 15 years but with robust maintenance schemes and innovative thinking.”

Like many others, they were struggling for young skills but bringing wealth to the region.

Perenco’s spending last year included £49.5m in the East of England.

Brian Tilley talked about the fantastic opportunities offered by the wind industry in the UK which had persuaded his employers E.ON to create a climate and renewables business.

One of the challenges was to find manufacturers, particularly of turbines. There were only 2-3 major overseas companies.

With such increasing demand, he hoped eventually they would ultimately be made in the UK, ideally on the east coast where many sites were planned.

He too spoke of the need for more skilled engineers, particularly with a marine background.

Johnathan Reynolds, sustainable development manager for EEDA (East of England Development Agency), outlined to the conference how the agency was using its influence to encourage sustainable energy and low carbon growth.

And he too emphasised the importance of innovation and the need for skills to embrace a strategy for a 60per cent reduction in the country’s CO2 levels by 2031 (from a 1990 base figure) and an 80 per cent reduction by 2050 – and all without impacting on business growth.

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