Support for the Energy Sector Maggie McGinlay Director, Energy - - PowerPoint PPT Presentation

Scottish Enterprise Support for the Energy Sector

Maggie McGinlay Director, Energy & Clean Technologies April 2014

Scottish Enterprise

 We work with businesses across Scotland and

globally and attract investment to stimulate economic growth and improve the business environment.

 We spend £300m per annum to support

companies and sectors to grow.

 We work in partnership with universities,

colleges, local authorities and other public sector bodies to maximise our contribution to the Government Economic Strategy.

341,360 businesses in Scotland

(339,110 with 250 employees or less] 239,080 self-employed (businesses with no employees)

102,275 firms with employees

14,000 “SMEs

“

with turnover of £1m+

5,219

2,700 Growth Firms

Growth Companies EXPORTS 15,185 Exporters 2,261 with 50%+ turnover from exports

Scottish Business Birthrate 76%

• f UK’s (74% in 2009)

BUSINESS START-UP 15,957 start-ups 11,000 likely to take on employees 55 to achieve high- growth status

£128bn

SCOTTISH

GDP

A small business base, relative to our population In our business base, a high proportion of companies reach high-growth Average performance on Innovation, including Low business investment in R&D A world-class university research base, in some key technologies and sectors Low export growth, with exporting concentrated in a small number of companies, sectors and markets Strong, sustained performance in inward investment, especially in high-value activities Very Low rates of business investment

Strong, Equity Capital Market Shortages of relevant skills and talent in some sectors Average Skills levels

Some world- class assets, clusters and companies

Our Economic Context

• Growth Companies - more emphasis on building the

international capacity of companies we support, including our approach to investment and high-impact entrepreneurship.

• Internationalisation - embed this across all our work and in

particular, help grow exports and attract significant investment by enhancing Scotland’s global connections.

• Innovation - stimulate a significant improvement in Scotland’s

innovation performance by focusing on product development and market opportunities, particularly in international markets.

• Low Carbon - support Scottish companies and sectors to identify

and access international low carbon markets in areas such as energy and resource efficiency.

• Renewables - build on the advantages Scotland has in offshore

renewables and address the challenge of securing significant investment in the supporting infrastructure.

To deliver our international ambition, our business plan has five operational priorities, based on the areas where we believe we can have the greatest impact on economic growth:

SE Business Plan Priorities 2014-17

Renewable Energy in Scotland Raising International Ambition - Team Scotland

TEAM SCOTLAND APPROACH Work closely with range of public and private sector partners Local co-ordinated presence Increase in overseas coverage Embed within Industry Strategies Selling Scotland

Globally Competitive Businesses Support to Companies

Account Management

International Trade & Investment

Scottish Development International

Investment

Scottish Investment Bank

Innovation Support

R&D Grants Commercialisation

Capital Grants

Regional Selective Assistance

• Growth Companies
• “Important to Economy”
• Leadership Development
• Business Efficiency
• Export Support
• Inward Investment
• Field Offices
• Global Networks
• Seed Fund
• Co-Investment Fund
• Loan Fund
• Life Sciences Fund
• Renewable Energy Investment Fund
• Financial Readiness

What We Do

• Support for Capital Investment
• Job Creation
• Support for Innovation
• R&D Support (Renewables)
• Commercialisation
• Proof of Concept
• ‘Entrepreneurial Companies”

 Energy Advisory Board  Oil and Gas, Renewables,  Thermal Generation and CCS

Industry Leadership Groups

 Offshore Wind Route Map  Marine Plans  Oil & Gas  Smartgrid Action Plan  Exports: oil & gas, food &

drink, renewables

 Company Engineering  ITREZ  ORE Catapult

Sector Leadership

Industry Leadership Groups

Sector Strategies

Transformational Change

Sector Delivery Plans

SE’s Contribution

Globally Competitive Sectors Sector Projects

…to stimulate sector growth

What We Do (2)

Scottish Enterprise helps Titan Torque expand horizons in global oilfield equipment market

Oil & Gas Case Study - Titan Torque

“Titan Torque is precisely the type of company we want to encourage - innovative, ambitious and open to international collaboration. It is great to see yet another Scottish-based firm blazing a trail in the global oilfield equipment market and Scottish Enterprise is proud to support the development and commercialisation of pioneering oil and gas technology.” Neil Robertson, Scottish Enterprise

Offshore renewables present the biggest opportunity for sustainable economic growth in Scotland for a generation; however, there are significant challenges that must be addressed:-

 investment in infrastructure  appropriate supply chain  ongoing innovation of technology and practices  regulation of and access to the Electricity Grid  managing the marine environment  availability of Skills  access to finance  securing support of local communities and existing users of the Sea.

Offshore Renewables - The Challenges

European Marine Energy Centre for test and demonstration - a world’s first UK R&D Excellence based in Glasgow Supporting growth

• f key companies

Scotland - Leading the Field in Innovation

Case Study - AlbaTERN

SQUID is an innovative wave energy device that has been proven at scale in a wave tank

• the next step is to prove the full size device

in the sea. The WaveNET is a unique wave energy array system, constructed from multiple SQUID modules, that can be readily adapted to suit the specifications of the site and the customer’s power requirements. AlbaTERN sees their first customers as fish farms or other similar operations and have calculated a cost saving model against diesel. The longer term ambition is to develop an economically viable wave energy system which can be used for grid connected electricity generation.

Case Study - AlbaTERN (2)

Support from Scottish Enterprise:

 Designated Relationship Management.  High Growth Support Unit.  SMART - Feasibility study of the squid wave energy converter.  R&D Grant - Squid wave energy converter R&D programme.  WATERS (Wave and Tidal Energy RD&D Support fund) 2 -

development and demonstration of wavenet array utilising 2nd generation Squid.

Case Study - Nova Innovation

Nova Innovation Ltd (Nova), an SME founded in 2009, was established to design, manufacture and install commercial tidal energy devices Nova has secured a commercial order (understood to be the world’s first community owned tidal turbine) for its first 30KW turbine at North Yell in Shetland - which will supply electricity to the Cullinvoe Ice factory and to the SSE grid in Shetland. A Crown Estate lease has been secured for the Shetland Tidal Array project, utilising larger “next generation” technology. This project is on schedule for deployment in early 2015.

Support from Scottish Enterprise:

 Account Managed Growth Company.  SMART feasibility study - small diameter direct drive

immersed generator

 R&D Grant - low mass mid column tidal turbine support

structure.

 Shetland Tidal Array project:

– Research & Development Grant – Renewable Energy Investment Fund.

Case Study - Nova Innovation (2)

 Understand the global opportunity  Be clear on Scotland’s competitive advantage  Support companies and sectors to be globally competitive  Support overall business environment – infrastructure and

financial

Support to the Energy Sector

Scottish Enterprise Support for the Energy Sector

Maggie McGinlay Director, Energy & Clean Technologies margaret.mcginlay@scotent.co.uk Tel 01224 252001