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Low Carbon and Sustainability Statement 2015/16
Scottish Enterprise : Low Carbon and Sustainability Statement 2015/16
Advocate and deliver the economic benefits of a low carbon and sustainable economy
Document classification : Public
Words in CAPITALS
are our key market
segments
Words in red italics
are not currently our
key market segments
Low Carbon and Environmental Markets
Leasing &
service
models
m.r.o.
Recycling
& Decom.
Reverse
logistics
INTELLIGENT
MOBILITY
CIRCULAR
ECONOMY
Biofuel
Remanufacturing
ENERGY
SYSTEMS
Sustainable
Transport
INDUSTRIAL
BIOTECH
Electric
vehicles
SENSORS
a.d.
Industrial
efficiency
hvac
SUSTAINABLE
CONSTRUCTION
Hydrogen
LOW
CARBON
HEAT
c.h.p.
Smart
Grid
OFFSHORE
WIND
Electricity
Generation WAVE &
TIDAL
Heat
networks
Forestry
biomass
(cross-cutting
technology)
Heat
pumps
Onshore
Wind
Solar
CARBON
CAPTURE
STORAGE
WATER
TECHNOLOGIES
Overlapping circles
show opportunities for
collaboration
1
ad
chp
hvac
mro
= anaerobic digestion
= combined heat and power
= heat, ventilation, air conditioning
= maintenance, repair, overhaul
Low Carbon and Sustainability Statement 2015/16
1.
Introduction
Figure 1: Low Carbon and our Business Plan
This Low Carbon and Sustainability Statement provides a summary of our
work to promote low carbon1 as a green growth market opportunity for
Scottish companies, supported by resource efficiency to help all
companies to be more competitive. This Statement will help our staff to
coordinate their support for low carbon activity and provides evidence to
support our contribution to the Scottish Government’s climate change
policies and targets under the Public Bodies Duty. It summarises what we
have delivered in the past year and what we plan to deliver in the year
ahead.
We produce a separate annual Climate Change Report focusing on the
internal impact of our offices, industrial and commercial property
portfolio and staff travel.
2.
We support companies and sectors through a range of activities including
business and export advice, innovation support, access to finance,
demonstration projects, supply chain development and through targeted
infrastructure to support the growth of low carbon sectors.
Low carbon includes support to develop, provide and adopt products, services and
infrastructure that reduce carbon emissions or improve the environment. Low carbon
products and services include renewable energy, environmental and clean technologies
and support for resource efficiency (energy, water, transport, raw materials and waste).
2
Renewable
Energy
Infrastructure
Fund
Low Carbon
Infrastructure
Transition
Programme
Innovation
Low carbon
Innovation Calls
Horizon
Internationalisation
Exports of low
carbon products
Inward
Investment
Inclusive Growth
Community
Energy
poverty
2020
Fuel
Our Business Plan
Low carbon is a cross-cutting business opportunity across all four drivers
of growth identified in our Business Plan (figure 1).
1
Investment
For 2015/16 we aim to help companies generate significant productivity
and efficiency improvements, worth at least £90-110m, and secure
between 160-200,000 tonnes of CO2 savings arising from projects and
company support that improves efficiency. We are developing a measure
that will track our performance in promoting green growth market
opportunities from low carbon.
3.
Why focus on low carbon and environmental markets?
Low carbon is a strategic driver of growth through rapidly expanding local
and global markets and it enhances productivity for companies who
invest in resource efficiency.
Low Carbon and Sustainability Statement 2015/16
Figure 2: Key Low Carbon Facts
5.
Statutory Requirements
An overview of the policies and strategies driving our thinking and action
on low carbon can be found here.
6.
Low Carbon and Environmental Market Segments
The remainder of this Statement provides details on our objectives and
activities within the main markets that we have identified.
Each market segment has prospects for green growth and we can provide
resource efficiency support to any company. Circular economy is an
innovation led agenda which supports specific green growth
opportunities and wider resource efficiency to all companies.
Ref. Market Segments
4.
Why should business welcome a low carbon and sustainable
approach?
Save money
Staff
engagement
Brand and
reputation
Reduce risk
New
opportunities
All five of these reasons are important, but it is perhaps the area of ‘new
opportunities’ which is most exciting. Innovation and digital technology is
enabling companies to produce products and deliver services in
innovative ways which can result in smarter and cleaner ways of doing
things.
3
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Offshore Wind
Wave and Tidal
Energy Systems
Carbon Capture and Storage
Low Carbon Heat and Cooling
Water Technologies
Sustainable Construction
Intelligent Mobility
Industrial Biotechnology
Environmental Monitoring/ Sensors
Circular Economy
Resource Efficiency
Priority change from
previous year
Low Carbon and Sustainability Statement 2015/16
Offshore Wind (1)
Why is this important?
Our Objectives
Scotland has 25% of Europe’s offshore
wind potential. Initial deployment is
concentrated right across the North Sea
providing international economic
opportunities.
Attract inward investment for manufacturing.
Developing large-scale capacity for clean
energy from offshore wind has the potential
to support thousands of jobs and attract
billions in investment.
Use innovation programmes to support supply
chain companies and cost reduction (£100 per
MWh target).
Offshore wind supported 2,100 Scottish jobs
in 2013, with around £9.5bn invested in UK
2010-14.
1 to 2 GW may be deployed in Scottish
waters by 2020.
Offshore wind will contribute to Scotland’s
low carbon electricity targets:
 100% equivalent renewable electricity

generation by 2020; and
50g CO2 per kWh across all electricity
generation by 2030.

Support a globally competitive supply chain.

Maximise the potential of our port infrastructure.
Promote Scotland as a leading research hub
using our R&D and test and demonstration
facilities.
Develop a strategic response to the economic
opportunities from floating wind.
Attract 2 manufacturers of turbine
components by 2020.
Secure commitment to investment in at
least one component manufacturing
company by 2018.
Secure commitment to develop
infrastructure for at least one major port
by 2020.
4
What are we delivering?








Strategic support to the sector through the
Scottish Energy Advisory Board and Offshore
Renewables Programme Board
£15m Scottish Innovative Foundation
Technologies fund.
£70m National Renewables Infrastructure Fund.
£40m Prototyping for Offshore Wind Energy
Renewable Scotland.
Supply Chain Directory, supply chain
conference and workshops.
Offshore Wind Expert Support Programme.
Work with Skills Development Scotland to
develop the Energy Skills Partnership, the
Energy Technology Partnership and to
implement the Energy Skills Investment Plan.
Support the growth of exports to rest of UK,
Germany, France, Denmark and Netherlands.
Close relationship management of tier 1 supply
chain companies as the industry moves to
procurement and deployment.
Develop an innovation strategy, including test
and development, in collaboration with key
partners eg Offshore Renewable Energy
Catapult Centre.
Low Carbon and Sustainability Statement 2015/16
Why is this important?
Scotland has 25% of Europe’s tidal energy
potential and 10% of its wave resource.
Wave and Tidal (2)
The Scottish Government’s Renewables
Action Plan aims to develop a strong wave
and tidal energy sector in Scotland with
potential to bring economic benefits and
contribute to the 100% equivalent renewable
electricity target.
Our Marine Energy foresighting report (2013)
provided mid-range estimates for Scotland
and Scottish companies to 2020 of:
 330 MW installed capacity;
 Growth of 30% per year from £20m to
£1.7bn;
 A cumulative GVA of £1.1 billion and
6,400 jobs;
 Gain up to 75% of the value of Scottish
marine projects; and
 Potential to be at the forefront of
international opportunities within a
potential global market of £2.5bn+.
Our Objectives
What are we delivering?
Tidal

Support the development and deployment of
initial tidal array projects.

Develop a Scottish supply chain, including
indigenous
or
inward
investment
in
manufacturing.

Support cost reduction through the resolution of
common technology challenges.
Develop further test and demonstration sites to
maintain Scotland's lead in developing new
devices.
Wave
Support the long-term ambition to be one of the
world's leading countries to develop wave
energy in partnership with Wave Energy
Scotland.






Support access to innovation funds.

However, development and deployment has
been slower than expected, particularly for
wave energy.
Promote our test and demonstration capability
and use Scotland as a location to develop niche
market devices.
Support targeted inward investment.
5
Worked with partners to achieve funding for the
word leading £52m MeyGen tidal array project.
Continue to deliver WATERS 1 & 2 projects and
launched WATERS 3 bringing total grant
awarded to £10.6m.
Launched the £2.4m Tidal Array Cabling project
to deliver 2 innovative cabling demonstration
solutions in 2015.
Participate in the £2m EU funded Ocean Energy
ERA-NET project to coordinate research.
£1m investment in Flowave test tank at
Edinburgh University.
Strategic investments in marine energy projects
and companies using the Renewable Energy
Investment Fund, including ScotRenewables,
Albatern and Nova Innovation.
Developed and launched a Supply Chain Expert
Support programme with HIE.
Supported the establishment of Wave Energy
Scotland.
Account management support given to a
number of world-leading wave and tidal device
developers.
Established a collaborative marine energy
programme with Nova Scotia.
Wave is a long-term prospect with little
deployment expected until mid 2020’s.
Low Carbon and Sustainability Statement 2015/16
Why is this important?
Our Objectives
The development of energy systems offers a
significant opportunity for Scotland given our
strong company and academic base, our
unique capabilities and our increased
reliance on renewables.
Energy Systems
Identify international opportunities and
encourage exports.
Increase innovation.
Energy Systems (3)
Energy systems can enable a low carbon
economy, for example, by enabling greater
penetration of intermittent renewables.
The global smart grid market is estimated as
£24bn in 2020, with £3.7bn cumulative
market for Scotland to 2020.
Develop the company base and supply chain.





Encourage innovation.
Communicate the benefits.
The Smart Grid Strategy aims for 12,000 jobs
in Scotland by 2020. Smart grid has a
potential of £13bn GVA in the UK by 2030,
with £5bn exports. Networks and storage
have potential of £6-34bn GDP by 2050,
whilst hydrogen for transport alone could add
£10-26bn by 2050 (source: TINA).
HVDC contracts in European markets may
exceed £22bn by 2025, whilst UK grid
upgrade is forecast to be £9.8bn by 2020
(source: TNEI). 700m smart meters may be
deployed worldwide by 2017.
6
Smart grid Action Plan
What are we delivering?
Maximise impact through demonstrators and
internationalisation.
An energy systems approach considers
our electricity, heat and transport energy
needs in a holistic and integrated way.
Energy storage is at the heart of this.
The smart use of systems and networks,
supported by information technology and
new business models, can enable the
integration of multiple energy sources in
order to increase efficiency. Hydrogen
and fuel cells can contribute to energy
systems.




Established the Scottish Smart Grid Sector
Strategy and Action Plan; coordinated by a
Smart Grid Industry Leadership Group.
Smart grid supply chain workshops and
innovation calls delivered and planned.
EU collaboration with the European North Sea
Energy Alliance.
Continue to support the Power Networks
Demonstration Centre.
Launched CENSIS (Centre of Excellence for
Sensor and Imaging Systems), an innovation
centre based on collaboration between
universities and industries led by the University
of Glasgow (funded by SFC).
£1.6m grant to support the Aberdeen hydrogen
bus project.
Collaborate with Innovate UK in maximising
opportunities from the new Energy Systems
Catapult (based in Birmingham).
Develop and launch Sustainable Islands
Internationalisation programme.
Support Innovate UK in developing their
Hydrogen Fuel Cells Roadmap.
We are reviewing our evidence base and
will develop an overall strategic approach
to Energy Systems by autumn 2015 which
will set out our objectives and additional
activities to realise this opportunity.
Low Carbon and Sustainability Statement 2015/16
Why is this important?
Carbon Capture and Storage (4)
Carbon capture and storage (CCS) will be a
key tool to tackle climate change; both
through decarbonising electricity supply and
tackling the emissions from industry. It can
create jobs and economic opportunities.
In a high growth scenario, CCS has the
potential to generate more than £2 billion in
GVA and create more than 13,000 jobs in
Scotland by 2025.
CCS has huge export opportunities for both
technology and know-how. The International
Energy Agency forecasts cumulative global
investment of $2.5 to 3 trillion (2010-50).
The Scottish North Sea has 50% of Europe’s
offshore carbon storage capacity. There is a
commercial opportunity for Scotland to import
CO2 from other European countries for
permanent storage in the North Sea.
Enhanced Oil Recovery from injecting CO2
into oil fields has the potential to realise an
additional 3 to 5m barrels of oil from the
North Sea.
The proposed Peterhead project* could
capture 1mt/CO2/year for 10 years.
7
Our Objectives
Create and develop a Scottish CCS cluster.
Support companies and wider industry through
research, market information, technology
development, internationalisation and
diversification.
Promote our export capability.
What are we delivering?
Reports on:
 The Economic Opportunities from Enhanced Oil
Recovery (2012).
 Peterhead Port CO2 importation (2012).
 Development of the Central North Sea CO2
transportation & storage cluster (2013).
 The creation of a CO2 Storage Hub for Central
North Sea (2014).
 CO2 Multistore Joint Industry Partnership to
share offshore storage formations (due 2015).

*The Peterhead project led by Shell,
with strategic support from SSE, will be
the world’s first carbon capture from a
gas fired power station. The CO2 will be
compressed, pumped offshore using
existing infrastructure then injected 2km
under the Goldeneye platform for
permanent storage in the depleted gas
reservoir. The project is progressing
through DECC’s £1bn CCS
commercialisation competition with an
investment decision to be made late in
2015. 400 construction jobs could be
created.



Supported DECC’s CCS Cost Reduction Task
Force.
Influencing the EU and North Sea Basin
countries for collaborative projects.
Project with Shell to maximise Scottish supply
chain opportunities on the Peterhead project.
Promote social enterprise involvement during
the construction phase in areas such as
catering and maximise the opportunities for
apprenticeships.
Develop proposals to promote industrial CCS at
Grangemouth and support the Captain
Caledonia Clean Energy Project.
Low Carbon Heat (5)
Low Carbon and Sustainability Statement 2015/16
Why is this important?
Our Objectives
Heat accounts for 55% of Scotland’s energy
consumption. The economic opportunities
from low carbon heat are being driven by EU,
UK and SG targets introduced to tackle
climate change, promote economic
efficiency, enhance energy security and
reduce fuel poverty. The UK’s world-leading
Renewable Heat Incentive is driving activity
in this sector.
Maximise economic benefit to Scotland from the
new market opportunities in low carbon heat.
The UK Technology Innovation Needs
Assessment, reports that innovation in heat
pumps, networks and storage could reduce
energy costs by £14-66bn to 2050 whilst
innovation in heat technologies could add £212bn to GDP.
The Scottish Government’s Renewable Heat
Action Plan outlines the ambition of a
decarbonised heat sector and sets a target of
11% of non-electric heat demand from
renewable sources by 2020. Its Heat
Generation Policy Statement has a target of
1.5 TWh of district heating by 2020. There is
an estimated £500m investment potential for
100 proposed district heating projects.
District heating and the reuse of waste heat
will also support the target to reduce
Scotland’s total energy demand by 12% by
2020.
8
What are we delivering?

Build a strong network of companies with
opportunities for collaboration.

Build the Scottish supply chain.

Maximise the potential for exports to markets
such as China, USA and France.

Develop Scotland as a leading location for
innovation through demonstrator projects.

Research by Innovas identified 227
companies, estimated turnover £694m,
employing 7390, excluding the multisector conglomerates (the BIS Low
Carbon report identified 8600 jobs).

A number of ambitious companies
were identified: 40% forecast growth of
over 20% per year; 31% spend over
5% of turnover on R&D and 31% are
exporting.
There is a cluster of innovative
companies in the controls, energy
monitoring and heat recovery markets.



Research on internationalisation priorities
building on key Scottish strengths that match
international demand, in particular capabilities
suited to export to France, China, USA and
Sweden (2014).
Research on heat foresighting and market
growth (2015).
Further research planned on Scottish research
capabilities, assets and supply chain.
International Low Carbon Heat Showcase
Conference (2014 and 2016).
Continue to support the Heat Network
Partnership and establish a Heat Industry
Group to challenge and support our heat related
interventions.
Facilitating the Scottish Government’s £250k
geothermal demonstration call.
Established the £76m Low Carbon
Infrastructure Transition Programme*.
Establish a Market Support Programme to
provide expert help for companies.
Support internationalisation activity.
* Low carbon heat projects are expected
to be a significant component of the
LCITP; a project with the Scottish
Government, HIE and Scottish Futures
Trust to increase the pipeline of low
carbon infrastructure projects to investor
readiness stage.
Low Carbon and Sustainability Statement 2015/16
Water Technologies (6)
Why is this important?
What are we delivering?

Water Technologies are an emerging priority
linked to the Scottish Government’s Hydro
Nation strategy.
Promote the economic opportunities from water
and wastewater and build Scotland’s
international reputation as a ‘hydro nation’.
UKWRIP estimate turnover of the global
water technology market of $50bn by 2020;
driven by population growth, upgrading
ageing infrastructure, higher water quality
standards, ground water contamination and
the impact of climate change. $8,600bn will
be spent on water and sewage by 2050. UK
currently has 3% of this market.
Develop the Scottish supply chain, particularly to
access UK utilities’ investment plans.

Increase research and innovation and assist
new commercial products through the Water
Innovation Service.

Research by Innovas into the water sector
identified an innovative, export orientated
sector consisting of 200 companies
supported by the construction and
engineering sectors. Based on a sample of
these companies, 41% invest over 5% on
R&D and 49% are exporting. Turnover is
estimated at £1.8bn, with 8,500 jobs of which
£1.1bn and 3,600 are with Scottish Water.
Under the Water Resources (Scotland) Act,
2013, Scottish Enterprise has a statutory
duty to promote the economic opportunities
from the water economy.
Water, energy and food are intrinsically
linked. Water has sustainability implications
and impacts on ‘low carbon’ through the
energy needed to supply and treat water.
9
Our Objectives
Promote export opportunities to markets such as
Canada, Poland, India and SE Asia. Support
international development aid water projects.
Promote Scottish input to global aid
programmes.


‘* The Water Innovation Service will
provide a single access point for
businesses, working closely with relevant
agencies, and linking with existing
research and academic networks in
Scotland and internationally. The service
will identify new market opportunities and
enable SME’s to validate new and
improved technologies at test facilities
leading to wider commercial
opportunities.



Developing the Water Innovation Service* with
Scottish Government, SFC and HIE to assist
companies to develop products in water
management, wastewater treatment and
industrial process water.
Company capability research showed that
Scotland has a strong company base with a
number of technology focused businesses in an
innovative sector (2014).
Research on internationalisation priorities
building on key Scottish strengths that match
international demand, in particular capabilities
suited to export to Canada, India, Poland and
SE Asia (2015).
Develop an international proposition. SDI will
work with businesses to realise opportunities eg
Aquatech trade mission to Amsterdam.
Deliver the Water International Showcase
Conference, 2016.
Collaborative activity through the Green Growth
Programme to address phosphorous and
priority substance recovery from water.
‘Seek and Solve’ innovation call with Scottish
Water and their supply chain to identify potential
areas to develop demonstration projects.
Develop an approach to water conservation
amongst water intensive industries in Scotland.
Low Carbon and Sustainability Statement 2015/16
Sustainable Construction (7)
Why is this important?
10
Our Objectives
What are we delivering?
Sales of low carbon building technologies are
projected to increase from £1.1bn to £1.9bn
in 2020, supporting 12,000 jobs in Scotland.
BRE estimate that 14,000 Scottish
businesses are already involved in lowcarbon market opportunities.
Encourage and assist companies and the wider
industry to be more competitive.

Help companies to access the rapidly growing
domestic and international low carbon market
opportunities for retrofit and new build.

The global sustainable construction materials
market is valued at $39bn, forecast to grow
13% annually to 2015.
Help commercialise new products and services
such as off-site construction techniques.
Scotland has 60% of the UK’s forestry
resource. Using timber in construction has a
low carbon footprint.
The built environment accounts for over 40%
of carbon emissions. Sustainable
construction will support the targets to reduce
Scotland’s total energy demand by 12%,
waste reduction and renewable heat; and
support the zero emissions aspiration for new
buildings and the Smart Cities agenda.
Work with the Innovation Service to support
collaboration and innovation.
Support low carbon collaborative infrastructure
and demonstration projects.






‘* The Construction Scotland
Innovation Centre links business,
university experts, Scottish Funding
Council and ourselves to deliver
transformational change in
construction.


Support a number of high impact innovative
construction businesses to capitalise on low
carbon opportunities.
Helped to establish the BRE Innovation Park at
Ravenscraig to support product innovation and
demonstrators.
Helped to establish and deliver the Wood
Products Innovation Gateway.
Established the Scottish Energy Laboratory, a
one stop shop to support collaboration and
testing energy related technologies.
Delivered a pavilion at Ecobuild, 2013-16.
Continue to support the Construction
Scotland Innovation Centre*.
Support industry collaboration groups to
commercialise Cross-Laminated Timber,
Natural Fibre Insulation and Timberframe.
Develop an international learning journey
programme for Scotland’s sustainable
construction products and services, including
offsite construction.
Work with companies with offsite capabilities to
develop a strategy and action plan to accelerate
growth and exports.
Develop a project with leading house-builders to
‘industrialise’ private house building.
Low Carbon and Sustainability Statement 2015/16
Why is this important?
Intelligent Mobility (8)
Intelligent mobility is the convergence and
integration of informatics, transport and
energy production and storage. It
supports sustainable and low carbon
transport.
Individuals, businesses, public sector service
providers and other “machines” are
empowered with information, capabilities and
methods to determine in real-time the best
way for people, goods and services to move,
or be moved, across all available forms of
transit and connectivity (physical and
electronic); balancing need, cost, time, and
environmental impact.
Market growth for personalised mobility
services. Business to:
 Business: $13trillion by 2020 (F&S);
 Consumer: £300 per month average
revenue per user (Finland ITS);
 Government: $400bn by 2020
(Navigant).
Transport accounts for 24% of Scotland’s
emissions. Intelligent mobility will support the
Scottish Government’s draft Low Emission
Strategy and Transport Scotland’s Roadmap
to Widespread Adoption of Plug in Vehicles.
It will also support the target to reduce
Scotland’s total energy demand by 12%.
11
Our Objectives
Stimulate
more
investment,
innovation,
internationalisation and equitable growth from
sales into global markets.




Business Development
Network Development
Portfolio and pipeline Management
Support enabling factors
Deliver through a mobility-as-a-service Open
Innovation Partner Network Strategy.
Intelligent mobility can help to achieve
air quality and carbon targets.
What are we delivering?




£1.64m project flow, including £400k from
Scottish Enterprise.
14 Global Companies seeking
Memorandum of Understanding to
participate in the open innovation partner
network.
240 organisations in partner network.
Seek and solve approach to connecting
Global Companies with Scottish SME’s.
The Sector team are currently reviewing and
developing our intelligent mobility objectives and
priorities. Customer demand for seamless,
integrated, valued mobility services has caused
change of focus from vehicle centric transport
(smart mobility) to customer centric mobility-as-aService (intelligent mobility).
Note that transport projects based on new sources
of energy (electric vehicles and hydrogen) are
included within our Energy Systems market
segment.
Low Carbon and Sustainability Statement 2015/16
Industrial Biotechnology (9)
Why is this important?
12
Our Objectives
What are we delivering?
The Industrial Biotechnology (IB) market
could be worth between £4-12bn to the UK
economy by 2025 and can provide
productivity, efficiency and environmental
benefits.
Increase awareness of IB as a transformational
tool.

Created and launched the National Plan for
Industrial Biotechnology (2013).
Increase the number of, and turnover of,
companies who have adopted IB.

The Scottish IB Plan states that there is
currently £189m turnover, with a target of
£900m by 2025, whilst jobs may increase
from 1100 to 2500. 43 companies are
actively involved in Scotland.
Address skills requirements.
Supported the Industrial Biotechnology
Innovation Centre* (2014) and helped it to
secure a further £2.7m investment to establish 2
equipment centres.
Encourage collaboration with overseas partners.

Launched the Scottish Biorefinery Roadmap
(including feedstock analysis).
The Industrial Biotechnology Plan has 4 themes:

Develop a biorefinery proposition and use this
to target investment from international
companies. Support the Innovation Centre with
biorefining innovation calls.

Support the Scottish Biofuels Programme.

Develop a ‘network integrator’ with the KTN and
Innovation Centre to increase industry
engagement.
IB can help the low carbon economy through
all stages of the supply chain; from sourcing
raw materials, enabling manufacturing
efficiencies, product use and subsequent
disposal and recycling of products at the end
of their life.
BERR (2009) estimated annual UK CO2
savings of 1.4 to 5.2Mt by replacing chemical
synthesis from petrochemicals. In addition,
bio ethanol could save 1.3-10Mt and
biodiesel a further 3-9.7Mt.




Industry engagement;
Identify the opportunities of a
biorefinery;
Establish an Innovation Centre; and
To develop skills needs.
Biotechnology also supports our work on the
Circular Economy and the Green Growth Action
Plan.
‘* The Industrial Biotechnology
Innovation Centre promotes
collaboration within industry and
academia to drive innovation, find
commercial applications and support
projects that bring biotechnology closer
to market.
Low Carbon and Sustainability Statement 2015/16
Sensors and Environmental Monitoring (10)
Why is this important?
13
Environmental monitoring and sensors can
help to enable a low carbon economy. For
example, sensors can support environmental
monitoring, smart grids and intelligent
transport systems; and support the cost
effective deployment of off-shore wind and
other low carbon infrastructure.
Most market reports focus on sensors as a
whole, rather than sensors specifically for
environmental monitoring. Global markets
are uncertain, but likely to grow rapidly, for
example, there is already a $69bn market for
sensor components within a $490bn market
for sensor systems.
The global hyperspectral imaging market for
environmental monitoring, agriculture and
food compliance (increase efficiency, reduce
waste) is forecast to grow $16m to 31m
(2013-19); with a 12% annual growth rate in
the UK.
K-matrix reported that environmental
monitoring and sensors had Scottish sales of
£12m in 2011/12. It is estimated that 170
Scottish companies spend around £100m on
sensor related R&D activity each year.
Note that smart heating controls falls within
our ‘low carbon heat’ priority, whilst building
modelling lies within ‘sustainable
construction’.
Our Objectives
Increase the number of, and turnover of,
companies in the sector.
Provide innovation support services.
Develop innovative market solutions to identified
environmental monitoring problems with a view
to improving Scotland’s environment and export
markets.
Sensors for environmental monitoring is a small
part of our wider Sensor Systems Opportunity
Action Plan (2014), which states that we will:



Encourage a world class interface
between universities, companies and
customers to accelerate product
development;
Support collaborative R&D; and
Develop relationships to encourage
international collaborative technology.
* The Green Growth Action Plan, with
SEPA and other partners, includes
support for new approaches to
environmental monitoring.
What are we delivering?
Launched CENSIS (Centre of Excellence for Sensor
and Imaging Systems), an innovation centre based
on collaboration between universities and industries
led by the University of Glasgow (funded by SFC).
Developing 3 business led collaborative R&D
projects within the Green Growth Action Plan*:
 Hyperspectral Imaging, a collaborative
project with SEPA, SAMs, universities and
companies, to develop a camera which
could be used to monitor crop diseases and
sources of pollution;
 Develop a low cost, mobile air quality
monitoring system for cities in collaboration
with a local authority; and
 Remote monitoring of oceans, using
sensors, for of off-shore aquaculture and oil
spills.
£2.6m contribution to a £6m MIRAGE project to
develop laser based infrared imaging to detect
methane, CO2 and CO. This could be used to
detect leaks in aerosol cans, to monitor fugitive
emissions and to identify specific vehicles breaching
air quality rules.
Proposal to develop hyperspectral imaging to
monitor pollution and algal blooms from Sustainable
Urban Drainage Systems. Potential link to the
proposed Glasgow North canal sensor system.
Circular Economy (11)
Low Carbon and Sustainability Statement 2015/16
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Why is this important?
Our Objectives
In a world of finite raw materials the circular
economy focuses on re-using materials in the
economy. It can stimulate economic growth
by boosting productivity, innovation and
stronger customer relationships.
Stimulate innovation, productivity and growth
across individual companies and supply chains
by tailoring our existing support for innovation,
remanufacturing and supply chain development.
Annual cost savings of $340-630bn are
estimated across a subset of EU
manufactured products. This equates to
£0.8–1.5bn for Scotland, with an additional
saving of £1.5bn for consumables such as
food, drink and clothing (20% of their material
inputs).
Remanufacturing is estimated to contribute
£1.1bn to the Scottish economy and employ
19,000. It could grow by an additional
£620m by 2020, creating up to 5,700 jobs.
Scotland’s Economic Strategy highlights the
circular economy as a means to support
business growth, transform products into
assets and services and stimulate job
creation in design, innovation,
remanufacturing and materials reprocessing.
A new ‘Roadmap’ will be published in late
2015, reflecting how zero waste policy has
evolved into a broader focus that the circular
economy brings.
What are we delivering?

Develop a Circular Economy Action Plan to
coordinate and drive our delivery.

Target 150 manufacturing companies for our
support to scale up their circular economy
practices and impacts.

Actively support the Scottish Institute for
Remanufacturing.

Deliver the £3.8m Scottish Recycling Fund, in
partnership with ZWS, to support materials
reprocessing and remanufacturing.

Scope a range of sector projects: oil and gas
decommissioning, industrial biotech, onshore
wind turbine re-use.

Actively participate in the Circular Economy 100
Network, led by the Ellen MacArthur
Foundation.

Continue to project manage evidence gathering,
with the support of SG/ZWS/ SEPA, including
research on energy, aerospace and chemicals.
Exploit sector development opportunities in
conjunction with sector bodies and partners.
Identify and share Scottish and international
best practice.
Strengthen the evidence base.
Circular economy principles will be embedded
into our new Manufacturing Action Plan.
What’s in a name? From a policy
perspective we call it the circular
economy. Others just call it
‘innovation’, ‘sustainable
manufacturing’ or ‘closed loop
processes’.
Whatever name companies and
sectors choose, it’s ultimately about
redesigning business processes to
facilitate the re-use of existing
materials.
We are actively helping to shape the Scottish
Government’s Circular Economy Roadmap.
Low Carbon and Sustainability Statement 2015/16
Why is this important?
Resource Efficiency (12)
All companies can benefit from improved
competitiveness from using resources
efficiently. Resource efficiency helps to
reduce the carbon intensity of production,
enabling economic growth to be achieved
with lower carbon emissions.
Investment in resource efficiency can have
multiple benefits beyond energy cost savings
that will also improve productivity - reduced
maintenance costs, material and labour
savings, reduced waste and improved
working environment.
DEFRA (2011) estimate that there is a
potential for a further £11bn, £5n and £40bn
savings from energy, water and materials
respectively in the UK. Zero Waste Scotland
estimate £2.36bn low cost savings for
Scotland from reducing waste alone.
Helping businesses to become more energy
efficient will also support the target to reduce
Scotland’s total energy demand by 12% by
2020.
Our Business Efficiency Evaluation (2012),
covering 2007-10, estimated that we grew
GVA by £174m; a 1:13 cost to GVA outcome.
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Our Objectives
What are we delivering?
Help companies to become more resource
efficient through energy efficiency, raw
materials, waste reduction and recycling, water
and wastewater, exploiting renewables, and to a
lesser extent transport.
Our 7 Sustainability Specialists will continue to
engage with around 200 companies per year. Their
support covers business efficiencies, carbon
management, ISO14001 environmental quality
award and advice on developing on-site renewable
energy.
Help manufacturing companies to develop a
culture of business excellence, including
resource efficiency.
For 2015/16 we aim to help companies generate
significant productivity and efficiency
improvements, worth at least £90-110m, and
secure between 160-200,000 tonnes of CO2
savings* arising from projects and company
support that improves efficiency.
We work closely with the Scottish Business
Sustainability Partnership (ZWS, EST, COSLA,
SEPA) to co-ordinate support to companies.
Our 22 Scottish Manufacturing Advisory Service
(SMAS) advisors provide in-depth support to a
further 200. They encourage a culture of business
excellence to improve cost, quality and delivery
performance to improve competitiveness.
We are developing a revised Environmental Aid
grant under EU regulations to provide capital grants
for companies implementing environmental and
energy saving improvements.
‘* our CO2 savings performance measure
applies to our entire portfolio, including
resource efficiency, sector projects, grants
and investments.
We are developing the Business Excellence
Academy, a new product combining lean
management with leadership capability.
Work with Scottish Government and other partners
on Decarbonisation of Industry Roadmaps.
Low Carbon and Sustainability Statement 2015/16
Statutory Requirements
EU targets, and the Climate Change (Scotland) Act 2009, are driving Scottish Government policy and action, encouraging the public sector to
embed sustainable and low carbon development within service delivery.
Scotland’s Economic Strategy (2015) supports “a more resource efficient, lower carbon economy”, with a “fundamental transition of all sectors
of the economy and a long-term strategy for economic growth”....”whilst maximising opportunities to export our technology innovations”.
Additionally, the Strategic Guidance (2014-16) tasks Scottish Enterprise to accelerate the delivery of large scale low carbon infrastructure
projects across Scotland and encourage communities to be at the heart of local energy systems.
The Scottish Government’s Report on Proposals and Policies (RPP2) sets out how Scotland can deliver its statutory annual carbon targets
from 2013–27. Under the Public Bodies Duty, we must contribute to the delivery of these targets and help deliver the Climate Change
Adaptation Programme. These statutory duties cover our internal operations, our delivery of services to business as well as our wider
influencing role. For 2015/16 major public bodies will have a statutory duty to prepare an annual report on compliance with these climate
change duties, with 2014/15 being a trial year.
Under the Wildlife and Natural Environment (Scotland) Act 2011, we must report tri-annually on the action we take to protect and enhance
biodiversity. We submitted our 2011/14 report to the Scottish Government in December 2014.
Under the Environmental Assessment (Scotland) Act 2005, we must complete a Strategic Environmental Assessment of all significant new
plans, policies and programmes. At present, we have identified that this only applies to our annual Business Plan. A full Assessment of our
2007/10 Business Plan was completed in 2007. We can use this Low Carbon Statement as evidence to support ongoing monitoring of our
existing Assessment as there are no significant new environmental impacts arsing from our latest Business Plan.
Under the Water Resources (Scotland) Act 2013, Scottish Enterprise has a specific statutory duty to promote the economic opportunities from
water.
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